Milestone reached: Denmark and Germany conclude bilateral agreement to invest in Bornholm Energy Island and strengthen European energy security

Today, in the presence of German Chancellor Friedrich Merz and Danish Prime Minister Mette Frederiksen, Energy Ministers Katherina Reiche and Lars Aagaard concluded an agreement on Bornholm Energy Island at the North Sea Summit in Hamburg. The agreement marks a pivotal step in deepening the partnership between Denmark and Germany and brings the shared ambitions for a cleaner, more secure, and more competitive continent closer to reality. This first of a kind cross-border project increases Europe’s energy autonomy, drives innovation, and consolidates resilience in the face of geopolitical challenges.

Katherina Reiche, Federal Minister for Economic Affairs and Energy: Bornholm Energy Island is a flagship of European cooperation and a strategic project for our common security. In a world of increasing geopolitical tension Germany and Denmark are taking responsibility for Europe’s future energy supply. Cross-border projects such as this reduce critical dependencies, strengthen our strategic autonomy and make us more resilient against political and economical pressure. We are therefore sending a clear signal: Europe acts united, sovereignly and foresighted.

Lars Aagaard, Minister of Climate, Energy and Utilities: Bornholm Energy Island marks a new era of interconnection and shared energy security. Together, we strengthen the ties between our nations and show that large-scale, cross-border projects can be delivered. At a time when international cooperation is under pressure, the Bornholm Energy Island stands as a testament to Europe’s unity and resolve, turning our shared vision into action, for the benefit of citizens and businesses in both our nations and throughout Europe.

By interconnecting the Danish and German energy grids, the Bornholm Energy Island sets a new standard for European cross-border collaboration. This enhanced interconnectivity strengthens the security of energy supply and economic ties between the two countries, meanwhile contributing to the broader European efforts for greater market integration. With an additional total capacity of 3 GW offshore wind electricity to be connected to both Denmark and Germany, the energy island will deliver reliable electricity to power around 3 million households in Denmark and Germany.

Through this partnership, Denmark and Germany are taking the lead in fostering robust supply chains and close industrial cooperation across Europe. By developing new technological solutions and sharing knowledge, the project helps to maintain Europe’s technological leadership in the energy transition and provides a solid foundation for long-term competitiveness. Implementation of the project reflects a visionary collaboration not only between governments but also transmission system operators, Energinet (Denmark) and 50Hertz (Germany).

Denmark and Germany have agreed on sharing the costs to finance the support need for the offshore wind. The cost-split reflects an overall balance between factors such as the expected electricity flows and distribution of benefits from the project. The project entails the first example of two countries sharing the support needed for an offshore windfarm and proves a landmark in the development of European cross-border offshore cooperation.

Bornholm Energy Island is one of eight central ‘Energy Highways’ prioritized by the European Commission and will become the world’s first multi-terminal HVDC hybrid interconnector. The Bornholm Energy Island has received 645 million euros in EU support under the Connecting Europe Facility.