Siemens Energy receives a significant billion-dollar order, propelling its launch.
Headline: Siemens Energy Secures Major Order for Danish-German Power Project on Bornholm Island
The electricity hub being created on the island of Bornholm is set to transmit offshore wind power from the Baltic Sea to Germany and Denmark, following a significant order secured by Siemens Energy. This project, known as the "Bornholm Energy Island" (BEI), will involve the supply of four converters and a comprehensive contract that includes design, manufacture, transport, installation, testing, and commissioning of the plant until the mid-2030s.
The joint contract between Energinet, 50Hertz, and Siemens Energy marks a significant step forward for the project, which had previously stalled. The costs on the German and Danish sides have been evenly distributed, leading to renegotiations. The total cost of the project is approximately 7 billion euros.
The power from Bornholm will be transmitted via submarine cables with a capacity of 2 gigawatts (GW) to a future transformer station at the Greifswalder Bodden in Germany. A 1.2-GW line will also connect the interconnector to the Danish island of Zealand. This interconnection is expected to play a crucial role in facilitating an efficient offshore interconnection between North and Baltic Sea coastal states.
The German federal government has agreed to assume liability for any disruption or maintenance work that prevents power from flowing through the international offshore grid connection to Germany. This liability guarantee is a prerequisite for successful tendering of the wind farm areas off Bornholm, according to 50Hertz CEO Stefan Kapferer.
Energinet will receive EU funding of approximately 645 million euros to help reduce investment costs. The responsible transmission grid operators for the project are 50Hertz and Energinet. Following the announcement of this order, Siemens Energy's share price rose by around 2.75%.
The larger part of the power produced in the wind farms off Bornholm is expected to flow to Germany, as stated in the joint announcement. The "Bornholm Energy Island" project is a significant step towards a more sustainable energy future and is expected to be completed by the mid-2030s.
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