New Era of North Sea Cooperation: German–Danish Agreement on Bornholm Energy Island Sets Milestone for Cross-Border Offshore Wind Expansion

Berlin (Germany) - Germany and Denmark signed a bilateral agreement at the North Sea Summit to invest in the joint German–Danish offshore hub project, Bornholm Energy Island.

The agreement was concluded in the presence of German Chancellor Friedrich Merz and Danish Prime Minister Mette Frederiksen. The project is regarded as the first cross-border initiative of its kind and is intended to strengthen European energy security and advance the integration of the energy market.

Among other things, the agreement provides for a shared allocation of costs for the necessary support of offshore wind energy. The cost-sharing model is based on the electricity flows from the wind farm to Germany and Denmark, as well as the mutual benefits of the project. According to the partners, this is the first example of joint financing of an offshore wind farm by two countries.

Bornholm Energy Island is expected to deliver a total additional offshore wind capacity of 3 GW, supplying electricity to around 3 million households. By interconnecting the German and Danish grids, the project is said to set a new standard for cross-border cooperation. Implementation will be carried out jointly by the transmission system operators 50Hertz (Germany) and Energinet (Denmark).

Federal Minister for Economic Affairs Katherina Reiche described the project as a “flagship of European cooperation,” emphasizing: “Cross-border projects such as this reduce critical dependencies, strengthen our strategic autonomy and make us more resilient against political and economical pressure.” Her Danish counterpart, Lars Aagaard, spoke of a new era of connectivity and shared energy security: “At a time when international cooperation is under pressure, the Bornholm Energy Island stands as a testament to Europe’s unity and resolve, turning our shared vision into action, for the benefit of citizens and businesses in both our nations and throughout Europe.”

The project is one of eight “Energy Highways” designated as priority projects by the European Commission and is to be implemented as the world’s first HVDC hybrid connection with multiple terminals. The EU is supporting Bornholm Energy Island with €645 million from the Connecting Europe Facility.

Source: IWR Online, 28 Jan 2026