Siemens Energy wins expansion agreement to future-proof Denmark’s electricity grid
Siemens Energy and Danish state-owned Energinet have announced a 1.4 billion framework deal to rebuild Denmark’s energy infrastructure and speed the green transition. Energinet has chosen Siemens Energy to supply transformers and switchgear for high-voltage substations as part of a national energy system expansion project. The deal concentrates on the western region of Denmark, where 50 new or reinforced 150 kV high-voltage substations are expected to be built or extended during the next eight years. The first four years of the deal are expected to cost up to 800 million euros (DKK 6 billion) to speed the energy transition. The new substations will be automated and equipped with Siemens Energy’s cutting-edge grid technologies.
With Denmark intending to achieve net zero emissions by 2045 through renewable energy, the race is on to decarbonise the Danish grid. By 2030, the country must triple its wind and solar power capacity, as energy consumption increases due to the transition to electric vehicles, heat pumps, and the conversion of solar and wind power to hydrogen and green fuels for industry. To assure Denmark’s future electrification, huge investment and expanded electrical grids are required.
“There is no energy transition without transmission, and that can only happen with the availability of switchgears and transformers” said Tim Holt, Member of the Executive Board for Siemens Energy.
“Grid investments are accelerating dramatically in Europe and worldwide, and customers are competing for manufacturing slots. This agreement enables Siemens Energy to plan its capacities, which will benefit both Danish and European energy infrastructure. We are excited to be trusted to deliver on the grid acceleration in Denmark.”
As renewable energy becomes a larger part of the electrical mix, networks must alter how they carry electricity. Unlike traditional generating, wind and solar are frequently unavailable where they are consumed, necessitating longer distances and high voltages to avoid loss. Power transformers are an important link in this network because they enable both long-distance transfer and the conversion of high-voltage for transportation to lower-voltage for consumers.
“We need external suppliers to ensure rapid and significant expansion of the electricity transmission grid” added Henrik Riis, CEO of Energinet Electricity Transmission.
“The task is enormous. In the coming years, several high-voltage substations on the ‘high-ways’ of the Danish electricity grid are needed to secure that renewable electricity can be connected to the grid and transported around the country. We are incredibly pleased that with Siemens Energy we get a long-term, strategic partnership, thus ensuring that we can keep up with the dramatic development in Denmark.”
The new agreement is the continuation of a long-standing partnership between Siemens Energy and Danish Energinet, the independent public enterprise owned by the Danish Ministry of Climate, Energy and Utilities which owns, operates, and develops the transmission systems for electricity and gas in Denmark. This includes the recently inaugurated Viking Link, the world’s longest interconnector between Denmark and the UK.
Source: Siemens
