Siemens Energy has secured a €1.4bn ($1.52bn) contract with Danish state-owned grid operator Energinet to enhance Denmark’s electricity infrastructure. The agreement involves supplying equipment for 50 new or upgraded 150kV substations over the next eight years.

This project is integral to Denmark’s energy transition strategy, with the first four-year phase valued at up to €800m. Siemens Energy will deliver transformers and switchgears essential for the long-distance transmission of renewable electricity.

Tim Holt, Siemens Energy executive board member, stated, “There is no energy transition without transmission. This agreement enables Siemens Energy to plan its capacities, benefiting both Danish and European energy infrastructure.”

Denmark aims to achieve net-zero emissions by 2045, necessitating significant grid expansion and decarbonisation to support increased renewable energy production. Henrik Riis, Energinet Electricity Transmission CEO, emphasized the importance of external suppliers in ensuring the rapid expansion of the grid to accommodate renewable electricity.

The integration of renewable sources like wind and solar requires efficient, high-voltage transportation to minimize energy loss, with Siemens Energy’s power transformers playing a vital role.

In addition to this deal, Siemens Energy plans to invest $150m in expanding its manufacturing facility in Charlotte, North Carolina, to produce transformers in the US from 2025.

Source: power-technology.com