The German energy technology group Siemens Energy has received a significant order for the expansion of the Danish electricity grid. The state transmission system operator Energinet concluded a framework agreement with Siemens Energy valued at 10.5 billion Danish kroner (1.4 billion euros). Under this contract, Siemens Energy is to supply transformers and switchgear for substations, as the company announced on Friday.

Denmark plans to accelerate its green energy transition with this expansion. A total of 50 substations are to be built or expanded over the next eight years. Investments of up to 800 million euros are envisaged for the first four years of the agreement, according to the statement from Siemens Energy.

The Scandinavian country must quadruple its electricity production from wind and solar energy by 2030 to cover the increasing electricity consumption as part of decarbonization. This requires massive investments in the expansion of the power grids.

"This order is an important step for us and shows the confidence in our technology and expertise," said Christian Bruch, CEO of Siemens Energy. "We are proud to be part of this significant initiative to promote renewable energies in Denmark."

Despite the positive news, the Siemens Energy stock fell by 1.13 percent in XETRA trading and closed at 25.42 euros.