BMI View: Our outlook for the Danish power sector remain unchanged. We expect thermal energy generation to decline over our forecast period, in line with the country's green energy agenda. In addition, we anticipate the government will look to boost biomass projects through coal conversions, as part of its effort to expand cleaner sources of baseload power.
Latest Updates And Structural Trends
Government efforts to curb further increases in the retail electricity price will lead to slowing capacity growth rates in the Danish renewables segment over the next five years as power sector strategy will centre on a more austere approach. We maintain a robust outlook for biomass power for this quarter as we expect government aims to expand cleaner sources of baseload power, to curb carbon emissions and balance intermittent wind power, will boost growth in the segment. This dynamic will be reinforced by thermal power generators increasingly considering converting their power plants from hydrocarbon feedstock to biomass in order to enter positive margin territory.