NKT invests in medium-voltage power cable business

In response to the surging demand for medium-voltage power cables, essential for European grid upgrades and renewable energy projects, NKT has announced significant investments to enhance production capabilities at its facilities in Denmark, Sweden, and the Czech Republic.

The move aims to bolster NKT’s capacity to meet the needs of electrical grid operators undertaking extensive upgrade projects amidst the shift to renewable energy and societal electrification.

Carlos Fernandez, NKT EVP and Head of Applications, emphasized the company’s strategic position to support the escalating market demand and its commitment to the green transition.

“With the rise of renewable projects, an extensive upgrade of the European power grid is imperative,” said Fernandez. “Our investments will not only meet the growing demand but also fortify our market leadership and contribute to crucial grid enhancements and renewable initiatives across Europe.”

The investment, totaling approximately EUR 100 million, will expand the production range to include 20-110 kV capacities and is expected to be operational between 2025 and 2026. This expansion will also create around 150 new jobs and is projected to support NKT’s financial goals, including a Return on Capital Employed (RoCE) above 20%.

The initiative aligns with REPowerEU’s objectives for 600 GW of solar and 440 GW of wind power by 2030, highlighting the critical role of medium-voltage cables in integrating new renewable energy sources into the grid. Moreover, the International Energy Agency (IEA) notes that achieving climate targets will necessitate the addition or refurbishment of over 80 million kilometers of power grids by 2040, mirroring the current global grid’s extent.

Add a Comment

Your email address will not be published. Required fields are marked *