Siemens Energy and Danish grid operator have signed a framework agreement to renew Denmark’s energy infrastructure.
The €1.4bn contract is for delivery of transformers and switchgear for high-voltage substations to expand the electricity grid in the country to accommodate more renewable electricity.
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 deal is estimated to be worth up to €800m to accelerate the energy transition.
Member of the Executive Board for Siemens Energy Tim Holt said: “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.”
Energinet Electricity Transmission chief executive Henrik Riis added: “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 ‘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.”