Budget for land installations for Bornholm energy island nearly doubles

The projected cost of constructing land-based facilities for the Bornholm Energy Island has surged to nearly twice the original budget, according to the Danish transmission system operator Energinet.

The project’s land installations, contracted to Per Aarsleff A/S for 3.7 billion Danish kroner, now face a 1.7 billion kroner budget overrun. The contract covers three converter stations in Denmark, including two on Bornholm and one on Zealand.

Energinet attributed the cost increase to market price inflation, difficult soil conditions, heightened physical security requirements, and logistical challenges in transporting materials to the island.

In a briefing to coalition partners, Climate, Energy and Utilities Minister Samira Nawa said the overrun does not require new political approval but directed Energinet to pursue cost reductions and improve future budgeting.

The Bornholm Energy Island will aggregate offshore wind power from the Baltic Sea and transmit it to Denmark and Germany, with operations expected to begin in 2036.