Siemens Energy, Energinet Sign $1.52 Billion Deal to Upgrade Denmark’s Grid

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Siemens Energy has received a $1.52 billion contract from Energinet, the Danish state-owned grid operator, to improve Denmark’s electrical infrastructure. Over the next eight years, Siemens Energy is contracted to supply transformers and switchgear for about fifty new or renovated 150kV high-voltage substations. The project, which includes a four-year initial phase valued at up to €800 million, is essential to Denmark’s energy transformation plan. Denmark plans to reach net-zero emissions by 2045, and by 2030, it expects to have significantly increased its output of renewable energy from solar and wind power.

Substantial investments are being made to decarbonise and expand the power system in order to enable this change and make sure it can accommodate Denmark’s future electrification needs. In order to reduce energy loss, wind and solar power generation frequently occurs distant from consumption locations, necessitating effective, high-voltage conveyance. Power transformers from Siemens Energy are anticipated to be essential in enabling such long-distance electricity transmission and in converting voltages for end-user use.

In February 2024, Siemens Energy announced plans to start producing transformers in the US in 2025 to meet increased electricity demand. The German energy company intends to establish its first transformer production facility in Charlotte, North Carolina, and expand its power manufacturing facility there, investing $150 million in the process. The investment will create 600 jobs in the local community. Construction of the new factory is set to begin in 2024, with the first batch of power transformers arriving in early 2026.

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