Denmark is one of the European countries leading the renewable energy revolution. Why?

Denmark is one of the world leaders in renewable energy. The country is aiming to reach its target of providing 100% of its electricity needs by 2035 through renewable sources and by 2050 it is hoping to have 100% renewable energy across all sectors.

Key companies in the country include the likes of Vestas, the Danish installer and seller of wind turbines. Founded over 100 years ago the Danish company is a heavyweight in the renewable energy space, with over 21,000 employees and manufacturing facilities in everywhere from Romania to China.

Another heavyweight is Dong Energy, the largest energy company in Denmark. Dong started out as an oil and gas play targeting opportunities in the North Sea before shifting its direction to become a major player in wind energy.

In 2016 Dong Energy carried out a major IPO on the Copenhagen Stock Exchange in a deal that valued the business at £10bn. The Danish government-owned vehicle sold a stake worth 17.6% in the wind energy powerhouse.

But why is Denmark such an innovator in renewable energy?

The country was one of the first in the world to carry out a massive programme of offshore wind farm construction, beginning in the early 90s and continuing this policy over the following twenty years. A key reason for its enormous wind energy capacity is that the country is physically well placed to benefit from its location at a belt that is exposed to a high level of wind activity. Indeed the winds produced by the country even enable it to export part of its excess capacity to neighbouring Sweden and Norway.