Nordic Solar Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Investment (Government, Private), By Installation (On-Shore, Off-Shore), By Competitive Analysis (Wind, Hydro, Fossil Fuel, Others), And By Country - Forecasts From 2022 To 2027

The Nordic solar market was valued at 2.620 GW in 2020 and is expected to grow at a CAGR of 48.82% over the forecast period to reach a total market size of 42.353 GW by 2027.

Solar power is the conversion of sunlight into electricity via photovoltaics, indirect conversion via concentrated solar power, or a combination of the two. The popular misconception regarding the possibilities of solar power in the Nordics is that the region's cold weather and lack of sunlight make it unsuitable for solar power. However, according to research conducted by SINTEF, one of Europe's largest independent research organisations, solar cells perform better in cold conditions because the operational temperature of the cells is kept low. Voltage, the force that mobilises electrons in a solar cell, has been shown to rise when the weather cools, causing the cells to produce a greater output.

The combination of periods of intense sunlight, freezing weather, reflecting snow, and the growth of market parity is gradually making solar energy more appealing, even in most Arctic nations.  According to the International Renewable Energy Agency (IRENA) data, the Nordic region — Sweden, Denmark, Finland, Norway, and Iceland — generated about 1,900 Gwh of solar energy power in 2019. In 2020, the installed capacity was 3,267 MW.

The major drivers for solar power in the Nordics have been a reduction in solar module prices as well as government assistance through solar subsidies. The comparatively high power prices in the Nordics, along with inexpensive installation costs, give more chances for self-consumption systems.

Growth factors increase in adoption of solar energy:

The European Union (EU) Renewable Energy Directive, passed in 2009, established legally enforceable objectives for the renewable energy share of final energy consumption in each member state, including Norway and Iceland. While the EU as a whole had to fulfil at least 20% of its energy demands with renewables by 2020, the Nordic targets were more stringent: 30% for Denmark, 38% for Finland, 72% for Iceland, 67.5% for Norway, and 49% for Sweden. Despite this, all Nordic nations reached or exceeded their objectives two years ahead of schedule. They attribute these accomplishments to the flexible nature of the regional power market, excellent starting positions compared to other nations in terms of renewables in the energy mix, and growing demand for carbon-free electricity, heating, and transportation.

The Nordic countries are continuing to diversify their energy mix by including renewables. In 2019, the Nordic countries accounted for 29 % of all renewable power consumed in the EU. The most notable shift was in solar-generated power consumption, which grew by more than 24 % from 1.5 to 1.8 TWh in 2019.

Restraints:

• Inconsistent targets of government plans

Sweden's National Energy and Climate Plans indicated a very low ambition for solar energy until 2030, with 1.6 GW of newly installed solar capacity and a low figure of PV penetration by 2030. However, beyond 2030, there is a larger aim for solar capacity, with more than 7 GW of installed capacity. The plan contains no information on the future auction schedule, volume, or design. It is important to provide investors with additional visibility in this region. Sweden has a complete prosumer programme, which includes a prosumer solar and storage investment incentive. The proposal, however, lacks information on the magnitude of present support schemes. However, the system limit of 255 kW for exemption from energy tax on self-consumed electricity will be extended to 500 kW, thereby assisting in the growth of industrial PV applications.

COVID-19's Impact on the Nordic Solar Market:

The solar power industry was not immune to the coronavirus pandemic. Whereas COVID-19 has reduced the extremely steep growth curve seen over the last two years, the European solar sector has shown remarkable resilience. While growth rates remain lower than expected before the crisis, there has been an uptick in solar project deployment across the EU in 2020, with just 5 of the 27 EU Member States installing less capacity than the previous year, according to Solar Power Europe. The market is likely to revert to normalcy, with a high dependence on economic recovery and stimulus programmes.

Key Developments

• Nordic investors, the United Nations Office for Project Services (UNOPS), based in Finland, and IFU, a Danish investment fund for developing nations, partnered with an Indian IPP, Acme Solar, to build a 250MW solar plant in Rajasthan in June 2021.
• Nordic Solar merged its two investment companies and management company into a single joint public limited company in June 2021. The merger seeks to establish the necessary development foundation for the company to achieve its goal of being the leading solar energy company in the Nordic region.
• Renewables developer European Energy plans to begin construction of a DKr1bn ($158m) solar farm in Denmark in October 2021, calling it the “largest” project of its kind in Northern Europe.

Nordic Solar Market Scope:

Report Metric	Details
Market size value in 2020	2.620 GW
Market size value in 2027	42.353 GW
Growth Rate	CAGR of 48.82% from 2020 to 2027
Base year	2020
Forecast period	2022–2027
Forecast Unit (Value)	GW
Segments covered	Investment, Installation, Competitive Analysis, And Geography
Regions covered	Denmark, Sweden, Norway, Finland
Companies covered	Nordic Solae A/S, Svea Solar, Exeger Operations AB, Solar Finland, DanSolar   Energi ApS, ABB, Ocean Sun AS
Customization scope	Free report customization with purchase

 

Market Segmentation

• By investment
  • Government
  • Private
• By installation
  • On-shore
    • Residential
    • Commercial
  • Offshore
• By competitive analysis 
  • Wind
  • Hydro
  • Fossil Fuel
    • SWOT Analysis
    • Competitiveness
  • Others
• By country
  • Denmark
  • Sweden
  • Norway
  • Finland

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