A consortium consisting of three of Denmark's largest pensions and energy companies are now ready to finance and operate a future Energy Island called Wind Island located in the North sea.
Wind Island can become a base for 10 GW offshore wind turbines, which correlates to 25 traditional offshore wind farms. The Danish government’s ambition on an Energy Island in the North sea could be financed entirely on non-government fundings.
In relation to the Danish Government’s Climate Action Plan from 2020, PensionDanmark, PFA og SEAS-NVE is ready to finance Wind Island in the North sea, with a DKK 400 million funding to develop the project. Together, the partners are a strong consortium, known for a long-term and sustainable ownership with a focus on clients, members and shareholders.
The cooperation is based on utilising existing technology within classic Danish strengths, but with an innovative concept, which fundamentally changes our approach for utilising offshore wind energy. Additionally, a significant offshore expansion will reduce the need for onshore wind farms and solar parks and the local disturbance challenges that follow.
Wind Island consists of concrete caissons, located in the North sea approx. 100 km from the shore. From here the wind electricity can be collected and forwarded to the shore. The location of the wind farm makes it invisible from the shore. To ensure a public ownership of the transmission grid, the government owned company Energinet, who owns the general energy infrastructure in Denmark, are able to buy a park of the island to install a transmission cable.
The Energy Island is an important part of an economic-sensible expansion of the offshore electricity capacity. In Addition, it has the potential of becoming an exportable product. The experiences from the North sea could be shared with the rest of the world.
The partners asses the Danish government’s Energy Island ambitions as visionary and valuable for Danish offshore technology. Planning and construction Wind Island is a demanding project, but, it can be conducted with existing technology.
Denmark is currently a front runner in driving the green transition and it will require significant investments to reach the ambitious goals set by the Danish government. A Wind Island in the North sea will accelerate the green transition as well as create value for Danish pension savers.
It is possible to expand Wind Island concurrently with the development of storage technology or e.g. Power-to-X. Additionally, a link between Wind Island and other near countries is possible.
Contributors to this solution
PensionDanmark is a Danish non-profit labour market pension fund. The fund manages pensions under collective and corporate agreements and health care products on behalf of 23,000 businesses.
PensionDanmark is one of the 50 largest pension funds in Europe and currently has EUR 36 billion under management.