It was supposed to be one of the major steps towards a stronger and greener electricity grid on Lolland-Falster and South Zealand. An upgrade of the high-voltage network, which was to ensure that both new solar and wind farms, battery facilities, and businesses can get power in and out of the system when they need it. But now the project has not only become significantly more expensive. It has also been pushed several years into the future.
Energinet's project for the area, 132 kV Lolland and South Zealand phase 3+4, is now set to cost 1,163 million kroner. When the project was approved in 2022, the price tag was 494 million. That is an increase of 669 million kroner. At the same time, the schedule has been drastically shifted: The stretch Orehoved-Vordingborg North will not be ready until June 2028, and the connection Nørre Radsted-Rødby is moved from May 2026 to December 2029.
Energy Minister Lars Aagaard has in a briefing to the Folketing's Climate, Energy, and Supply Committee approved Energinet's proposed changes to the project. Thus, the new price and schedule are politically confirmed.
Several factors come into play
The two new connections are the backbone of the upgrade that will enable the high-voltage network in South Zealand and Lolland-Falster to carry much more electricity than today. The stretch Orehoved-Vordingborg North is to strengthen the connection between Lolland-Falster and the overall Zealand network, so electricity from new solar and wind farms on the islands can be transported away from the area and onwards to the major consumption centres. The stretch Nørre Radsted-Rødby, on the other hand, is especially to increase capacity internally on Lolland-Falster. It should make it possible to connect new energy projects and large electricity consumers. Without this connection, there will be too few “slots” in the network to send out or draw in electricity, and therefore this connection is crucial for new green facilities and businesses to be connected without limitations.
The explanation for the collapse of the schedule, according to the minister, is primarily the authorities' changed practice for environmental assessments. Energinet initially laid out a plan based on the assumption that environmental screenings of the individual cable sections would suffice. After lengthy processing, full environmental impact assessments were instead required. This has triggered a more extensive process with additional investigations and hearings, resulting in several years of delay. Energinet also assesses that there are no remedial measures that can recover the lost time. The new schedule is therefore final.
Regrettable development
On the price side, the minister points to two factors that together explain the doubling. Firstly, the market has become significantly more expensive. Cables, transformers, and excavation contracts cost considerably more than in 2022, and when the construction period is extended, the costs of construction interest increase accordingly. Secondly, the project has grown in scope along the way to handle a larger future electricity demand in the region.
- I think it is deeply regrettable. The delay affects the green transition, which we are otherwise well underway with, and it is really unfortunate for the area, says the rural and business spokesperson for the Moderates, Charlotte Bagge.
- That it is becoming more expensive is probably something we can't do much about, but the delay frustrates me, and we must see if we can do something about the processing times, she says.
The technical changes are particularly visible at Orehoved. Here, Energinet abandons the expansion of the existing 132 kV station because a 400 kV Kontek cable lies under the station. An expansion is considered too risky with the possibility of damage to the cable and long-term repairs. Instead, a new, expanded station is being built at a new location. The station is being designed larger and more future-proof, and a new transformer is being purchased because the old one is nearing the end of its lifespan.
