Siemens Energy, Energinet to Expand Denmark’s Electricity Grid

Siemens Energy and Energinet signed a framework agreement, valued at €1.4 billion, designed to renew Denmark’s energy infrastructure through the expansion of its electricity grid. Siemens Energy will deliver transformers and switchgears for installation on high-voltage substations in the western part of Denmark, where approximately 50 new or reinforced 150 kV substations are planned for construction or expansion over the next eight years.

“There is no energy transition without transmission, and that can only happen with the availability of switchgears and transformers,” said Tim Holt, Member of the Executive Board for Siemens Energy. “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.”

The initial four years of the agreement are expected to be worth up to €800 million, with new substations being automated and integrated with grid technologies from Siemens Energy. Power transformers transmit high-voltage electricity over longer distances and enable the conversion between high-voltage for transporting and low-voltage for consumers.

“We need external suppliers to ensure rapid and significant expansion of the electricity transmission grid. The task is enormous,” said Henrik Riis, CEO of Energinet Electricity Transmission. “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.”

In October 2023, Siemens Energy delivered a hybrid grid stabilization solution and a large-scale battery storage plant to Shannonbridge, Ireland. The separate technologies combined into a single grid connection for energy stability and the increased efficiency of renewable energy usage. The grid stabilization solution is a synchronous condenser that utilizes a generator with additional rotating mass from a flywheel. With its stored energy, the condenser offers a power reserve to compensate for frequency variations and securing grid stability.

“Technical solutions are essential if we are to combat the consequences of climate change and transition to a net-zero grid. Battery storage systems will play an increasingly pivotal role in tomorrow’s global energy infrastructure,” said Tim Holt, member of the Managing Board of Siemens Energy. “By combining our experience in grid technology, the Shannonbridge hybrid solution will help ramp-up renewables by offering storage and stabilization technology in one connection.”

The entire equipment delivery consists of the 4,000 MW synchronous condenser + flywheel, a 160 MWh BESS installment, power conversion systems, energy management systems, and medium voltage equipment. Operators in Ireland will be able to sell inertia, short circuit power, and reactive power generated by the synchronous condenser to the transmission system operator. Siemens Energy will also provide an energy management system, allowing the customer to address market demands and power requirements in real time.