Energy Island Bornholm project reconsidered due to soaring costs in Denmark
The realization of the Energy Island Bornholm may become excessively costly for the state, according to economic advisors who recommend a re-evaluation of the entire project and its financial implications in their latest report. If there is no prospect of a societal economic surplus, they suggest that the project should be abandoned. The advisors are particularly interested in assessing the impact of the Energy Island on Denmark’s energy security and the potential of Power-to-X technology.
Current calculations from the Danish Energy Agency indicate that the project could cost nearly double the initial estimates. The Energy Island is expected to reverse economic challenges for Bornholm, but the functioning mayor Morten Riis expresses disappointment in the advisors’ recommendation, emphasizing the urgency of the green transition while also acknowledging the need to optimize spending.
According to the plans, Energy Island Bornholm will consist of offshore wind turbines and a transformer station in southern Bornholm, designed to supply power to 3.3 million households across Denmark, Germany, and Poland. Funding of 17.6 billion kroner has been secured, but costs are anticipated to rise significantly, leading to estimated economic deficits between 4 and 17 billion kroner.
Lea Wermelin, a member of the Danish Parliament from the Social Democrats, believes that a new analysis is unnecessary at this time. The infrastructure for the Energy Island is currently under procurement, and Wermelin prefers to wait for the results before considering further studies as suggested by the economic advisors. Meanwhile, opposition exists from local residents opposed to the transformer station’s impact on the landscape. Peter Juel-Jensen, from the Liberal Party, supports the project but acknowledges that the advisors’ counsel warrants careful consideration. A range of political parties backs the initiative, although the Danish People’s Party has withdrawn from the alliance.