The Danish electricity grid must be updated in order to keep up with increasing electricity consumption in society. The grid companies Cerius-Radius are currently upgrading the grids. That is why, through their joint operating company, Nexel, they have carried out a large tender for some of the cable types that will connect future electricity production and consumption.
The tenders were divided into three sub-contracts: low voltage, medium voltage and rubber and flame-retardant cables. Together, the tenders have a total estimated value of 1.1 billion DKK, and the winners of the tender were NKT, Prysmian Danmark A/S and Reka Cables Ltd.
Previously, there have been suppliers associated with Cerius' and Radius' supply areas, respectively, but the winners of this tender must now deliver to both grid companies simultaneously. Cerius-Radius expects to have to purchase more than 1,000 km of cables from suppliers each year.
- We are turning our energy system upside down, as oil and gas are being phased out in many parts of society in favor of electricity. Fortunately, we have a strong electricity grid, which forms a fantastic foundation for this transition, but it will still require many new cables in the ground to meet future demand, says Frederik Dalgård Andersen, Planning Manager at Cerius-Radius.
Long agreements
In each sub-agreement, two winners have been found, so-called dual-sourcing, says Nexel Function Manager, Tomas Christensen.
- Across the continent, there is a high demand for many of the same cables and components for the electricity grid. With the outcome of this tender, we have secured strong partners and a high level of supply security, he says, and continues:
- This is also the reason why we have made the agreements longer in duration than we have previously done. Because we are in the middle of a time when the requirements for the electricity grid are changing, and we do not want to risk not having the necessary components and cables to meet customer demand, says Tomas Christensen.
The agreements are for a period of four years, and then there are four additional options to extend the agreements by one year, so that the agreements can potentially run for a total of eight years. The grid companies can make use of the new supplier agreements from mid-September this year.
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