Denmark will have to multiply both electricity production and electricity consumption in the coming decades to support the green transition. However, the expansion of the electricity transmission grid is challenged by long processing times, delivery delays and rising prices. Energinet states this in a press release.
The number of large electricity consumers and producers seeking connection to the grid has increased significantly, as has the number of construction projects that Energinet is responsible for. From 2020 to 2024, the projects have grown from 64 to almost 200. This has put pressure on the entire value chain – from environmental approvals to the production and delivery of components. The organization has had to scale up significantly in a short time.
"The large increases have meant that all links in the value chain that must approve projects and strengthen the high-voltage grid have been put under pressure. Among other things, the processing times for environmental approvals have increased significantly," reads the announcement from Energinet.
Measures implemented
As a countermeasure, Energinet has brought forward environmental applications and started purchasing components earlier in the project process to reduce vulnerability to long delivery times. At the same time, initiatives such as temporary connections, faster regulatory processing and a Grid Customer Center have been established to facilitate the processes.
After the National Energy Crisis Team, NEKST, launched recommendations last year to accelerate the expansion of the electricity grid, a majority in the Folketinget has decided to translate several of the recommendations into concrete rules. Among other things, three of Energinet's construction projects have been designated as so-called "acceleration areas", which means that several years can be cut from the implementation.
- Many things have been initiated to expand the electricity grid faster - some are working here and now, others we will only see the effect of in the coming months and years. And because the task portfolio continues to grow, there is also a constant need to look at what can be done further to increase the speed, says Søren Dupont Kristensen, Chief Operating Officer of Energinet.
Delays and cost increases
Yet a statement from the first quarter of 2025 shows that 73 percent of the construction projects are delayed compared to their original schedule. 15 of the projects have been delayed by an average of 5.4 months. Overall, the projects have been 8.6 billion DKK more expensive than expected, corresponding to an increase of 13 percent.
- With a portfolio of approximately 200 projects, it is natural that there are fluctuations. But it is my clear expectation that they will be smaller, and we will have fewer fluctuations over time, says Søren Dupont Kristensen.
Energinet expects that the fluctuations will be smaller over time, but emphasizes that the figures are only a snapshot and cannot be directly compared with previous statements of delays in 98 out of 174 construction projects, which have been reported in many media outlets in recent months, and which ended with the Minister of Climate, Energy and Utilities Lars Aagaard (M) being consulted and receiving a declaration of no confidence from the opposition.
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