DENMARK Trends and Developments Contributed by: Jakob Østervang, Peter Østergaard Nielsen, Anders Hørlyck Jensen and Tejs Degn Leth Ernst, Accura Advokatpartnerselskab
difficult to ensure cash flow. This has led to a new dynamic where trading and arbitrage – especially through battery storage – are increasingly essential to the business case. The financial distress of major players underscores the severity of these challenges. Better Energy announced in late 2024 that it would postpone 3 GW of solar pro- jects until after 2030 due to negative electricity prices and lagging demand. Shortly thereafter, the company entered reconstruction proceedings, citing a “perfect storm” of market conditions. In response, Andel took over four solar parks from Better Energy’s portfolio, assuming full ownership and responsibility for their realisation. This move reflects a broader trend in the M&A market, where utilities are stepping in to salvage stranded assets and ensure continuity in the green transition. Similarly, Obton A/S reported a pre-tax loss of DKK1.52 billion in 2024, driven by impairments and provisions on underperforming projects, leading to a strategic restructuring and merger into a new entity, ReCo. In terms of M&A, activity is low. Most transactions involve distressed or stranded projects. Operational assets are rarely sold, as they represent stable invest- ments with better returns than new developments. This reflects a broader market uncertainty and a pref- erence for holding existing assets – a trend also evi- dent in wind and battery segments. Onshore Wind While solar struggles with grid access and financing models, onshore wind faces the additional challenge of local resistance. Since 2020, few new wind turbines have been built, and the “not in my backyard” sen- timent remains a major barrier. Wind projects often require the purchase of surrounding properties to meet noise regulations, resulting in high indirect capex. Despite the advantage of 24/7 power generation, wind is more expensive and complex to develop than solar – both technically and politically. Municipal elections and local opposition slow down decision-making and grid expansion is sluggish. Compared to solar, wind projects are less attractive in M&A terms, with lower transaction activity and higher risk.
Hybrid projects that combine wind, solar and BESS are gaining traction. Eurowind Energy is leading this trend with its GreenLab Skive project, which inte- grates 84.8 MW of solar and wind with a 45 MWh bat- tery system. The BESS will provide ancillary services to Energinet, the local TSO and enhance grid stability, making the project more resilient and attractive for long-term investment. A broader market shift is also underway. Norlys, in partnership with Eurowind Energy, has established Norlys Energy Trading A/S, a dedicated energy trad- ing company focused on algorithmic and data-driven electricity and gas trading. This strategic move reflects a growing trend among utilities to internalise trading capabilities, reduce reliance on volatile PPAs and bet- ter manage market exposure across technologies. The initiative is not limited to wind but is relevant for solar and battery assets as well, underscoring how energy trading and dispatchability are becoming central to M&A strategy and project valuation. As with solar, operational wind assets are rarely traded. Utilities and long-term investors tend to hold onto them, valuing their predictable cash flows. This reflects a market environment where ownership is favoured over turnover – a trend that also influences battery investments. Battery Energy Storage Systems BESS have evolved from a technical add-on to a strategic necessity in green power projects. As PPAs become harder to secure and electricity prices more volatile, BESS has become critical for ensuring flex- ibility and profitability. Batteries enable arbitrage – buying electricity when it is cheap and selling when it is expensive – and help balance the grid, especially in solar setups. Standalone BESS projects remain difficult to finance – although we do see exceptions. Lenders typically require batteries to be paired with solar or wind, as standalone cases are considered too risky. Equity financing is therefore the primary option, limiting deployment. Nonetheless, interest is growing from players in the development space.
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