Denmark has taken a significant step towards enhancing its renewable energy capabilities with a landmark EUR 1.4 billion (DKK 10.5 billion) agreement between Siemens Energy and Danish state-owned Energinet. This framework agreement is set to renew Denmark’s energy infrastructure, particularly focusing on the Western part of the country, and aims to accelerate the green energy transition by expanding the electricity grid.

The project will involve the construction or reinforcement of approximately 50 new 150 kV high-voltage substations over the next eight years. The initial phase, spanning the first four years, is valued at up to EUR 800 million (DKK 6 billion) and will feature state-of-the-art automation and advanced grid technologies from Siemens Energy.

“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.”

Denmark is committed to reaching net zero emissions by 2045, a goal that necessitates a significant increase in renewable energy sources. By 2030, the country aims to quadruple its electricity generation from wind and solar power to meet the growing demand from electric vehicles, heat pumps, and the conversion of solar and wind energy to hydrogen and green fuels for industries. This transition requires substantial investment in expanding the electricity grid to support the future electrification of Danish society.

Henrik Riis, CEO of Energinet Electricity Transmission, emphasized the importance of this partnership, stating, “We need external suppliers to ensure rapid and significant expansion of the electricity transmission grid. The task is enormous. In the coming years, several high-voltage substations on the ‘highways’ 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.”

As renewable energy sources become a larger part of Denmark’s electricity mix, the grid must adapt to transport this energy efficiently. Unlike conventional generation, wind and solar power are often generated far from where they are consumed, requiring long-distance transport at high voltages to minimize loss. Power transformers, a crucial component of this process, enable the conversion between high-voltage for transport and lower-voltage for consumer use.

Siemens Energy, with over a century of experience in manufacturing power transformers, continues its long-standing partnership with Energinet. This collaboration includes significant projects such as the Viking Link, the world’s longest interconnector between Denmark and the UK, further solidifying the strategic alliance aimed at bolstering Denmark’s energy infrastructure and supporting its ambitious climate goals.


Source: Siemens Energy