Siemens Energy and state-owned Danish TSO Energinet have announced a € 1.4 billion (DKK 10.5 billion) framework agreement to renew Denmark’s energy infrastructure. To accelerate the green energy transition, Siemens Energy is to deliver transformers and switchgear for high-voltage substations to expand the country’s grid.

The agreement focuses on the western part of Denmark, where approximately 50 new or reinforced 150 kV high-voltage substations are planned to be built or expanded over the next 8 years. The first four years of the agreement is estimated to be worth up to € 800 million (DKK 6 billion). The new substations will be automated and incorporate state-of-the-art grid technology from Siemens Energy.

If Denmark is to reach its target of net zero emissions by 2045 through renewable energy, it will need to decarbonise its grid in a hurry. By 2030, the country must quadruple its electricity generation from wind and solar power as electricity consumption is multiplied by the switch to electrical vehicles, heat pumps, and converting solar and wind power to hydrogen and green fuels for industries. These shifts will require huge investment, and expansion of electricity grids to ensure necessary scale of electrification.

Henrik Riis, CEO of Energinet Electricity Transmission, commented: “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.”

This new agreement is a continuation of Siemens’ long-standing partnership with 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.