Denmark and Germany have formalized an agreement on the Bornholm Energy Island project in the Baltic Sea, focusing on the cost allocation for offshore wind. The agreement was signed at the North Sea Summit in Hamburg on January 26.
The Bornholm Energy Island agreement, established in 2023, is the first legally binding cooperation in Europe for a joint offshore energy project under the EU Renewable Energy Directive.
German Chancellor Friedrich Merz and Danish Prime Minister Mette Frederiksen unveiled the funding framework for upcoming offshore wind initiatives linked to the energy island.
The developers, Danish TSO Energinet and German Baltic Sea TSO 50Hertz, stated, “The agreement on the wind farms for the Bornholm Energy Island project is crucial for this German-Danish infrastructure endeavor.”
This project, designated as a Project of Common Interest (PCI) and supported by a EUR 645 million EU grant through the Connecting Europe Facility, marks a significant step within the Energy Highways initiative, part of the European Grids Package announced in December 2025, according to the European Commission’s Directorate-General for Energy (DG Energy).
Dan Jørgensen, Commissioner for Energy and Housing, expressed, “Amid geopolitical challenges, Europe’s commitment to offshore wind and renewable energy signifies a move toward home-grown clean energy, crucial for affordability, industrial competitiveness, economic prosperity, climate action, and security.”
The European Commission pledged additional support for the agreement’s prompt implementation. The energy island will integrate 3 GW of offshore wind-generated electricity with the Danish and German grids, transforming wind energy into a shared European resource for electrification. The project aims to establish the Baltic Sea as an offshore hub, serving as a model for future EU projects.
The announcement coincided with the signing of multiple agreements at the North Sea Summit, including a declaration to develop 100 GW of cross-border offshore wind projects and an investment pact anticipated to stimulate EUR 1 trillion in economic activity.
The pact tasks TSOs with identifying hybrid projects combining electricity generation and interconnection, and developing cost-sharing principles for cooperative projects.
Thomas Egebo, CEO of Energinet, stated, “Our task as transmission system operators is to convert political agreements into tangible infrastructure. The agreement clarifies the project’s economic framework and supports the technical planning and cooperation necessary for Bornholm Energy Island.”
Original Story at www.offshorewind.biz