NESA's has announced an aggressive strategy to acquire smaller vendors throughout Denmark in an effort to remain the largest electrical power supplier in Denmark and to become a national rather than a regional supplier. The ultimate objective for NESA is to have no less than one million customers, or twice the number they have today. At the same time, major suppliers in the neighboring counties are preparing to gain market access. Opportunities for US Energy Companies. In view of the expected consolidation of the industry over the next few years, and the increasing competition from foreign suppliers of electrical power, now is probably the ideal time of American energy companies to gain foothold in Denmark if the Nordic market is part of their future strategic planning.
Acquisition seems to be the most obvious avenue for successful market entry.
A Word of Caution. It will be deregulated and free, but only in within the framework set forth by the government. For instance, electricity prices will be based on free market forces, but power networks must always remain open for a rapidly increasing volume of renewable energy, predominantly wind power, at fixed high prices. At the same time, power companies are forced towards the use natural gas as a fuel, conveniently supplied by publicly owned corporations. Power companies are also obligated to ensure a sufficient district heating capability, regardless of the impact on their pricing.