Siemens Energy and Danish state-owned Energinet have announced a substantial EUR 1.4 billion framework agreement aimed at renewing Denmark’s energy infrastructure. This strategic partnership will accelerate the green energy transition in Denmark, with Siemens Energy delivering transformers and switchgears for high-voltage substations to expand the country’s electricity grid.
The agreement targets the Western part of Denmark, where approximately 50 new or reinforced 150 kV high-voltage substations are planned for construction or expansion over the next eight years. The initial four years of this agreement are estimated to be worth up to EUR 800 million (DKK 6 billion), underscoring the urgency to accelerate the energy transition. These new substations will feature automated, state-of-the-art grid technologies provided by Siemens Energy.
Denmark aims to achieve net-zero emissions by 2045, heavily relying on renewable energy sources. By 2030, Denmark must quadruple its electricity generation from wind and solar power to meet the increasing electricity demand driven by the adoption of electric vehicles, heat pumps, and the conversion of solar and wind power to hydrogen and green fuels for industries. This ambitious goal requires massive investment and the expansion of the electricity grid to ensure the future electrification of Danish society.
Tim Holt, member of the executive board for Siemens Energy, emphasised the critical role of transmission in the energy transition, stating, “There is no energy transition without transmission, and that can only happen with the availability of switchgears and transformers. 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.”
Henrik Riis, CEO of Energinet Electricity Transmission, highlighted the necessity of external suppliers for the rapid and significant expansion of the electricity transmission grid, saying, “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.”
As renewable energy increasingly contributes to the electricity mix, grids must adapt to transport this electricity efficiently. Wind and solar energy generation often occurs far from consumption sites, necessitating long-distance electricity transport at high voltages to minimise losses. Power transformers are crucial for this process, enabling the conversion between high-voltage for transport and lower-voltage for consumer use.
Siemens Energy has a century-long history of manufacturing power transformers. This new agreement continues a longstanding partnership with Energinet, which owns, operates, and develops Denmark’s transmission systems for electricity and gas. This partnership also includes projects like the recently inaugurated Viking Link, the world’s longest interconnector between Denmark and the UK.
This collaboration between Siemens Energy and Energinet is poised to significantly bolster Denmark’s energy infrastructure, supporting its ambitious renewable energy targets and the broader European energy transition.
For more information visit www.siemens-energy.com
