Germany and Denmark Move Forward with Baltic Sea Energy Island Project

Bilateral agreement targets 3 GW of offshore wind and strengthens Europe’s energy security

Photo: German federal government | Germany and Denmark Move Forward with Baltic Sea Energy Island Project

Germany and Denmark have taken a strategic step toward the future of Europe’s power system by signing a bilateral agreement to jointly develop an offshore energy island in the Baltic Sea, near the Danish island of Bornholm. The project is designed to support up to 3 gigawatts (GW) of offshore wind capacity and connect directly to the power grids of both countries.

Beyond expanding renewable generation, the initiative is positioned as a key energy security asset, helping reduce geopolitical vulnerabilities, enhance regional energy independence and protect electricity supply from external instability and political pressure.

Shared investment and grid integration

Under the agreement, Germany and Denmark will share development and infrastructure costs, including the construction of the artificial island, transmission systems and grid connections to surrounding offshore wind farms. Electricity generated offshore will be delivered to both countries via high-capacity subsea cables, creating a new model of cross-border energy integration.

The energy island will operate as a central offshore hub, collecting power from multiple wind projects and redistributing it efficiently, reducing transmission losses and improving system reliability.

A new benchmark for Europe’s energy transition

Energy islands are becoming a cornerstone of the European Union’s strategy to accelerate the energy transition, particularly in regions with strong offshore wind potential. In the Baltic Sea, the project also supports the diversification of energy supply routes, reducing reliance on imported fossil fuels and external energy sources.

The infrastructure could also enable future applications such as offshore green hydrogen production, energy storage solutions and potential interconnections with other Baltic countries, reinforcing the region’s role as a strategic clean energy corridor.

Economic and industrial impact

The development of the energy island is expected to stimulate supply chains related to marine engineering, subsea cables, power conversion systems and offshore operations. It is also likely to create skilled jobs and strengthen Europe’s renewable energy industry at a time of increasing global competition.

With this agreement, Germany and Denmark signal a more coordinated and long-term approach to addressing Europe’s energy challenges combining renewable expansion, system resilience and regional cooperation.

Germany and Denmark Move Forward with Baltic Sea Energy Island Project