Siemens Energy and a Danish grid operator have solidified a landmark framework agreement aimed at revitalizing Denmark's energy infrastructure, heralding a significant step forward in the nation's renewable energy ambitions.
The €1.4 billion contract encompasses the delivery of transformers and switchgear for high-voltage substations, essential components for expanding the electricity grid to accommodate the influx of renewable electricity.
Focusing primarily on the western region of Denmark, the agreement outlines plans for the construction or expansion of approximately 50 new or reinforced 150kV high-voltage substations over the next eight years. The initial phase of the deal, spanning four years, is estimated to be valued at up to €800 million, signaling a concerted effort to expedite the energy transition.
Tim Holt, Member of the Executive Board for Siemens Energy, emphasized the pivotal role of grid infrastructure in driving the energy transition, stating, “There is no energy transition without transmission, and that can only happen with the availability of switchgears and transformers.”
He further underscored the significance of the agreement in facilitating capacity planning, benefitting not only Denmark but also the broader European energy landscape.
Henrik Riis, Chief Executive of Energinet Electricity Transmission, highlighted the imperative of external partnerships to accelerate the expansion of the electricity transmission grid. He remarked, “We need external suppliers to ensure rapid and significant expansion of the electricity transmission grid.”
Riis expressed satisfaction with the establishment of a long-term strategic partnership with Siemens Energy, underscoring the pivotal role of such collaborations in keeping pace with Denmark's evolving energy landscape.
