Siemens Energy and Danish state-owned power utility Energinet have announced a 1.4 billion euro framework agreement to renew Denmark’s energy infrastructure.
To accelerate the green energy transition, Siemens Energy has been chosen by Energinet to deliver transformers and switchgears for high-voltage substations to expand the electricity grid in the country.
New substations
The agreement focuses on the Western part of Denmark, where approximately 50 new or reinforced 150kV high-voltage substations are planned to be built or expanded over the next eight years. The first four years of the agreement is estimated to be worth up to 800 million euros to accelerate the energy transition. The new substations will be automated and include state-of-the-art grid technologies from Siemens Energy.
Net-zero by 2045
With Denmark aiming to reach a target of net zero emissions by 2045 through renewable energy, the race is on to decarbonize the Danish grid. 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 require massive investment and expanding electricity grids to ensure the future electrification of Danish society.
Criticality of power transformers
As renewable energy becomes a bigger part of the electricity mix, grids need to adjust how to transport that electricity. Unlike with conventional generation, wind and solar are often not available where they are consumed, which means the electricity needs to be transported over longer distances, usually at high voltages to minimize loss. Power transformers are a crucial link in this chain, as they enable both that long-distance transport, as well as the conversion between high-voltage for transporting and lower-voltage for consumers.
Long-standing partnership
Siemens Energy has been manufacturing power transformers for more than a century. This new agreement is the continuation of a long-standing partnership with Danish 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. This includes the recently inaugurated Viking Link, the world’s longest interconnector between Denmark and the UK.
Also read: Siemens Energy To Manufacture Power Transformers In US
Featured photograph (source: Energinet) is for representation only.