SOURCING PROGRAM SETS THE PACE FOR GREEN TRANSITION
The energy crisis and ambitious energy policy initiatives have accelerated the need for green transition. This requires a well-functioning electricity transmission grid, which within a few years must transport far more green electricity from production to consumption. It is an enormous task and to ensure that the electricity grid does not become a bottleneck in the conversion of our energy systems, Energinet has taken initiatives to ensure that business partners can do more of the work for us when new connections and old facilities must be built and renovated.
The green transition requires us to produce much more renewable energy
The Danish Parliament has accelerated the development of green energy to obtain more climate-friendly electricity, gas, and heat and thereby achieve the climate target of a 70% reduction in greenhouse gases by 2030. In 2022, the development of green energy has also become a security issue, aiming to make Denmark independent of energy from Russia.
In Denmark, we must first replace fossil fuels with green energy. Secondly, we need to produce even more green energy, so that cars, trains, and heating of houses can run on electricity and to convert green electricity into green, liquid fuels for planes, ships, and heavy industry.
Energinet cannot become a bottleneck in the development of green energy
All this green energy must be carried from A to B, and this requires a well-functioning transmission system: new power lines must be built, and old facilities renovated. And Energinet cannot become the bottleneck in all this. So, we need others to do more of the work for us. This move is part of the initiative Developer in the green transition, and an extensive sourcing programme will help Energinet achieve its goals.
With the sourcing program, we enter a small number of long-term contracts with selected turnkey suppliers, who must group our standard systems in modules and install these as turnkey systems when we place an order.
The tender is split into two: One for substations and one for cables
Energinet's new turnkey suppliers will be found in two independent tenders: one tender for high-voltage substations and one tender for underground cabling. The tenders were published on in July and October 2022. Both the substation and cabling supplies will be split geographically, meaning that contracts will be awarded for Jutland/Funen (DK1) and Zealand (DK2), respectively. The tender totals approx. DKK 10 billion, and contracts will run for 8 years.
Building and renovating more facilities faster by having business partners do it for us is a big change for Energinet. Our technical tender material will look completely different, we will have to manage the construction projects in a completely new way, we will need to develop new skills and new methods of cooperating with the authorities.
A digital collaboration platform helps us to get going easier and faster
We are also preparing to get fully up to speed with the digital advances that other professional builders use today by letting all documentation and knowledge flow from stakeholder to stakeholder via a common digital collaboration platform. This digital collaboration platform follows a project from conceptual planning to operation - indeed throughout the lifetime of a facility, until sometime in the future when the facility must be replaced by something new.
Customer promises lead to faster grid connection
Another important element of Developer in the green transition is to improve customer experience and increase the turnaround time for stakeholders who want to be connected to the electricity transmission grid. Here, specific improvement initiatives have been launched aimed at ensuring faster grid connection, more transparency, and better project flow. Transparency and project flow must make it possible for the initiators of a new solar park, for example, to stay updated on how far their application for grid connection is in the connection process.
”We are replacing our petrol cars with electric cars like never before, and households, companies and district heating companies are demanding heat pumps – while still more regions and municipalities are investing in green transport. In the future, there will be an almost inexhaustible demand for electricity, for example to produce liquid, green fuels for planes, ships, and heavy industry.” Henrik Riis, CEO, Energinet Eltransmission.”
Henrik Riis, Director, Energinet Eltransmission