Large-scale order for Siemens Energy to realise Danish-German Bornholm Energy Island project

• Contract for four converter systems and other technical components.
• 50Hertz CEO Stefan Kapferer: “Fundamental cornerstone to make a vision come true.”
• Energinet-CEO Thomas Egebo: “Making Europe greener and more independent of external energy sources.”
• Siemens Energy Executive Board Member Tim Holt: “The grid is the backbone of a resilient energy system.”
• EU grant worth 645 million euros handed over in Copenhagen.

The joint Danish-German Bornholm Energy Island project is moving from the planning and development stage to the implementation stage. The two transmission system operators Energinet (Denmark) and 50Hertz (Germany) placed a joint order with Siemens Energy for the construction and turnkey delivery of four converter systems in total as well as other technical components on the Danish island Bornholm and the Danish island Zealand as well as on the German mainland. This marks the end of a six-month transition phase during which the joint project had to be paused due to the need for political regulation between the two countries involved. 

The contract that is now concluded between Energinet, 50Hertz and Siemens Energy covers the design, the completion, transport, installation, testing as well as commissioning of the systems by the mid-2030s.

On Bornholm, two converter halls – where alternating current (AC) is converted to direct current (DC) and vice versa – will be built as part of this scope, along with a large AC substation. In the future, these halls are planned to be expanded to include a DC switchgear connecting the two converters. This power hub on Bornholm is intended to take on electricity from the future offshore wind farms off the coast, raise them to a DC voltage level of 525 kV and then make it available to consumers in Germany and Denmark as needed via submarine and onshore cables.

The total cost for the overall Bornholm Energy Island project currently amounts to around € 7 billion. The European Union granted a subsidy of €645 million as part of its Connecting Europe Facility (CEF) programme to Energinet. The official handover of the grant by EU Energy Commissioner Dan Jørgensen to Danish Energy Minister Lars Aargard took place today on the sidelines of an informal meeting of EU energy ministers in Copenhagen. These resources are primarily intended to reduce the Danish part of the investment costs as the larger part of the electricity generated by the wind farms off Bornholm will flow to Germany as well. The power cable between Bornholm and the future substation near Lubmin on the shore of the Bay of Greifswald will have a capacity of 2 GW, while the power cable to Zealand will have 1.2 GW.

50Hertz already concluded a framework agreement with Danish manufacturer NKT in late 2023 for the production and laying of the submarine and onshore cables between Bornholm and Mecklenburg-Western Pomerania. Following a Europe-wide tender and the approval by the Danish government, Energinet was now also able to order the cable connection between Bornholm and Seeland from NKT.

Stefan Kapferer, Chief Executive Officer 50Hertz: “Today, we placed fundamental cornerstones to make the vision of the Bornholm Energy Island a reality. We would like to thank the Federal Government for clearing formerly unsolved regulatory issues so shortly after taking office. These issues included the question of liability in case no electricity can flow to Germany through an international offshore grid connection because of a disturbance or due to maintenance. Such a guarantee is the prerequisite for a successful tender for the wind farm areas off Bornholm in particular and, more generally, for an efficient offshore cross-linking between all countries bordering the North and Baltic Seas. The amendment of the Energy Industry Act (Energiewirtschaftsgesetz, EnWG) by the Federal Cabinet now also enables the connection of an additional wind farm in Danish waters to the German extra high voltage grid through the Ostwind 4 grid connection project planned by 50Hertz.”

Thomas Egebo, Chief Executive Officer Energinet: “We are now taking a huge step toward a future where offshore wind from the Baltic Sea can supply millions of consumers with electricity. A great deal of work lies ahead, and there is a huge task in building the groundbreaking infrastructure needed for Denmark to harvest enormous amounts of locally produced energy – energy that will make both Denmark and Europe greener and more independent of external energy sources.”

Tim Holt, Executive Board Member at Siemens Energy: “The grid is the backbone of a resilient energy system. By connecting nations through pioneering infrastructure like the Bornholm Energy Island Project we’re laying the groundwork for a truly integrated, low-carbon energy future.”

The Bornholm Energy Island project is also picking up speed in other ways. Energinet and 50Hertz started the approval procedure in Denmark and are preparing for public hearings of the Danish environmental agency on Bornholm Island. The approval procedure for the cable routes through the Exclusive Economic Zone in Germany, the coastal waters as well as on land has not started yet. Nevertheless, 50Hertz has started early public participation and informed the local population and the authorities of the planned location for a new substation with converter in the municipality of Kemnitz in the Vorpommern-Greifswald district.

Source: 50Hertz