In the future, many of our everyday activities will be powered by electricity instead of oil, coal and gas. Electricity consumption is already increasing due to the many new electric cars and heat pumps that are spinning in private homes and businesses. The electrification of Danish society is a crucial stepping stone in the green transition of energy, and reinforcements and investments in the electrical infrastructure are necessary here. Andel writes this in a press release.
In an analysis from 2023, the industry organization Green Power Denmark points out that there may be a need to invest more than 50 billion DKK towards 2030, in order to meet the massively increasing demand for electricity in parallel with the fluctuation of production from renewable energy plants.
This is also the reason why Andel and Lolland Energi Holding have agreed that Andel will take over Nakskov Elnet. The terms have been agreed, and Andel has signed the purchase agreement.
Volume and competencies for the green transition
- Today's grid companies need significant financial robustness to be able to make the necessary, large investments in infrastructure and thereby ensure an energy system that will continue to be world-class in the future. The energy sector is therefore undergoing a necessary consolidation. I am pleased that we can help ensure a robust electricity grid through the acquisition of Nakskov Elnet, while I look forward to welcoming approximately 8,200 new grid customers and future cooperative members, says Andel's CEO Jesper Hjulmand.
In the past five years, Andel has made a number of acquisitions and mergers in Eastern Denmark, including the electricity grid in Vordingborg in March 2019, which supplies approximately 5,200 homes and businesses, Radius Elnet in September 2019, which supplies approximately 1 million. homes and businesses and the electricity grid in Hillerød in June 2021. Andel's network companies now transport 40 percent of the electricity supplied in Denmark.
Sharpen focus
For Lolland Municipality, it is primarily about preparing for future requirements for the supply area.
- The green transition will affect the entire supply area. We can see that we at Lolland Forsyning are facing new major tasks within, among other things, heat supply and the supply of technical water to industry, and in that situation it makes good sense to join forces on development tasks. At the same time, we can see that the task of electricity supply today is being concentrated in large units, and in this light, Nakskov Elnet has become a very small player, says chairman of Lolland Energi Holding Michael Knudsen.
He is convinced that customers are assured of continued high security of supply and stable operation.?
- Nakskov Elnet and Andel have had a close collaboration for several years on a number of services, including within operating agreements and shift schedules. So the two companies know each other intimately, and I am completely convinced that we will continue to have our very high security of supply, says Michael Knudsen.
Authority processing
- We are now awaiting the authorities' processing of the transaction, which hopefully results in approval within a few months. Provided that we obtain this approval, the current network customers can then be merged into Cerius. As a network customer in Cerius and a resident of the Zealand region, you automatically become a cooperative member and thus a co-owner of Andel. Citizens and companies in Nakskov become part of a group that is rapidly developing and that takes social responsibility for regional development and for the green transition of energy. This will be done, among other things, through Andel's investments in the electricity grid of the future, a regional fiber network, production of renewable energy and the rollout of charging infrastructure for electric cars, says Jesper Hjulmand.
Here are the details of the deal:
The deal includes approximately 65 km of electricity grid at high voltage level (10 kV), approximately 127 km of electricity grid at low voltage level (0.4 kV) and 8,200 remotely readable electricity meters.
Nakskov Elnet employs five employees who are still relevant for the operation of the electricity grid in Nakskov and will therefore be transferred to the company
After the expected regulatory approval of the deal, Andel will expand its board of representatives by 3 representatives, so that Lolland has a total of 11 representatives.
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