NKT signs framework agreement with Nexel to supply low- and medium-voltage cables for grid upgrade projects
To support the growing electricity needs of consumers, Cerius-Radius and their joint operating company, Nexel, secure their future supply of power cables for grid upgrade projects by entering a framework agreement with NKT.
Press Release
10 September 2024
With growing demand for electricity, primarily driven by electric vehicles, heat pumps, and the phasing out of gas, Denmark’s island of Zealand, home to 2.3 million inhabitants, needs to upgrade their electricity distribution grid in the coming years. To keep up with demand, Cerius-Radius have to install up to 1,000 km of new power cables per year.
On behalf of Cerius-Radius, Nexel has completed a large tender for the underground power cables to be used for reinforcement and expansion of the grid to support the increasing demand for electricity. NKT will be a key supplier under the newly signed framework agreement.
“As a Danish company, we are always extra proud to sell power cables that will support our home market. With our factory in Asnaes set to deliver the majority of the cables in this framework agreement, transportation costs and emissions will be minimal. We are seeing growing demand to secure long-term supply of medium-voltage cables across Europe. This is why we continue to invest significantly across our sites to be able to increase capacity and satisfy growing demand from our customers,” says Carlos Fernandez, EVP Applications, NKT.
The framework agreement runs for five years, with the option to extend for another three years and covers up to 4,000 km of power cables across low- to medium-voltage levels. The majority of the cables will be produced locally at our site in Asnaes, Denmark which is being expanded in the coming years as part of NKT’s announced investments across its medium-voltage sites. First delivery will begin in late September, 2024.
"Across the continent, there is great demand for many of the same cables and components for the electricity grid. With the outcome of this tender, we have secured strong business partners and a high level of delivery security, this is also the reason why we have made the agreements of longer duration than we have done in the past. Because we are in the middle of a time when the requirements for the electricity grid are changing, and we don't want to risk that we don't have the necessary components and cables to meet customer demand," says Tomas Christensen, Manager at Nexel.
As the electrification of society gains speed, having a modern electricity grid in place is vital.
"We are about to turn our energy system upside down, as oil and gas are being phased out in many places in society in favor of electricity. Fortunately, we have a strong electricity grid, which forms a fantastic foundation for this conversion, but it will still require many new cables in the ground to meet future demand," says Frederik Dalgård Andersen, Head of Planning, Cerius-Radius.
Key facts:
- Cerius-Radius run the power grid in East Denmark on the island of Zealand – together, they have 1.4 million customers and 45,000 km underground cables
- Nexel provides operating and construction services to Cerius-Radius’ electricity network
- Delivery of some of the first cables will already begin in September 2024
- The framework agreement covers five years, with the option to extend for another three years
- The majority of the cables will be produced locally at the NKT factory in Asnaes, Denmark
Contact
Louise Westh Naldal, Head of Group Communications, Tel.: +45 2982 0022
About NKT
NKT connects a greener world with high-quality power cable technology and takes centre stage as the world moves towards green energy. NKT designs, manufactures and installs low-, medium- and high-voltage power cable solutions enabling sustainable energy transmission. Since 1891, NKT has innovated the power cable technology building the infrastructure for the first light bulbs to the megawatts created by renewable energy today. NKT is headquartered in Denmark and employs 5,000 people. NKT is listed on Nasdaq Copenhagen and realised a revenue of EUR 2.6 billion in 2023.
NKT - We connect a greener world. www.NKT.com.
To support the growing electricity needs of consumers, Cerius-Radius and their joint operating company, Nexel, secure their future supply of power cables for grid upgrade projects by entering a framework agreement with NKT.
