The operating company Nexel, on behalf of the grid companies Cerius-Radius, has just completed a large tender for various types of cables that will help future-proof the electrical grid in Zealand and Lolland-Falster.
The green transition is accelerating the sales of electric vehicles and heat pumps among private consumers. The industrial sector has also recognized that electricity is more sustainable than burning fossil fuels, which places much more demand on the electrical grid than before.
To connect production and consumption
The grid companies Cerius-Radius and their joint operating company, Nexel, have just completed a large tender for some of the types of cables that will connect future electricity production and consumption. Nexel announced this in a press release.
– We are in the process of turning our energy system upside down as oil and gas are being phased out in many areas of society in favor of electricity. Fortunately, we have a strong electrical grid that serves as a great foundation for this transition, but it will still require many new cables underground to meet future demand, says Frederik Dalgård Andersen, planning manager at Cerius-Radius.
Total value over a billion
The cable tenders were divided into three sub-contracts: low voltage, medium voltage, and rubber and flame-retardant cables. Altogether, the tenders have an estimated total value of DKK 1.1 billion, with the winners being NKT, Prysmian Denmark A/S, and Reka Cables Ltd.
Cerius-Radius expects to source more than 1,000 kilometers of cables from these suppliers annually.
Two winners in each contract
Each sub-contract had two winners, a strategy known as dual-sourcing, explains Tomas Christensen, function manager at Nexel. It’s far too risky to put all eggs in one basket:
– There is great demand across the continent for many of the same cables and components for the electrical grid. With the outcome of this tender, we have secured strong partners and high delivery reliability, he explains and continues:
– That’s also why we’ve made the contracts longer than we previously did. We are in a time when the demands on the electrical grid are changing, and we don’t want to risk not having the necessary components and cables to meet customer demand, says Tomas Christensen.
Four years with possible extensions
The contracts are valid for four years, with the possibility of extending them by one year at a time for up to four additional years, making the contracts potentially last for a total of eight years. Previously, there were separate suppliers for Cerius’ and Radius’ respective service areas, but the winners of this tender will now supply both grid companies simultaneously.
The grid companies will be able to use the new supplier contracts starting from mid-September this year.
