Copenhagen Energy Islands (CEI) is an independent company carved out of CIP, dedicated to early-stage development of energy islands and offshore transmission infrastructure globally.Copenhagen Energy Islands focuses on developing the technical solutions, as well as energy island projects, from origination and initial concept development through early-stage development before divesting them to infrastructure funds for mid- to late-stage development and construction. Copenhagen Energy Islands is currently developing a portfolio of around 10 energy island projects around the North Sea, the Baltic Sea and South-East Asia.

Energy islands are large-scale offshore energy hubs, which will enable the massive scaling required for the next generation of offshore wind deployment globally. Energy islands allow for a cost-efficient build-out and integration of offshore wind at a significantly larger scale and in an innovative way.

Energy islands address three main challenges to the build-out of offshore wind:

• Enable significant cost savings

  Costs are reduced as there are significant scaling benefits e.g. building one energy island to host 10GW of offshore wind is more cost-efficient compared to traditional high-voltage direct current converters on offshore platforms - simply because building each additional steel jacket is more expensive than expanding land area on the island. Additional cost savings are achieved through the use of standardised HVDC modules developed for the island, designed for serial production and simple offshore installation, reducing manufacturing and installation costs. Unlike platform‑based solutions, energy islands also rely on very short internal AC and DC connections, avoiding the need for long inter‑platform cables that increase complexity, cost and security risks in meshed offshore grids. Where relevant, the infrastructure can additionally support hydrogen production, allowing surplus energy to be transported via pipelines, which are significantly cheaper than long‑distance HVDC cables.

  The build-out of offshore wind can be accelerated as the energy island relies on a local supply chain already existing for other offshore infrastructure such as harbours, bridges, and tunnels, and can therefore easily be mobilised and expanded, creating local jobs and activities. Establishing an island for hosting 10GW offshore wind is much faster than building offshore converter platforms.

• Reduce grid constraints

  Grid constraints can be reduced as the island enables interconnection to several markets and potentially on-island hydrogen production. This increases the utilisation of power cables and reduces offshore wind curtailment. On-island hydrogen production enables harvesting most value from the wind resource by using wind power for on-island hydrogen production when power prices are low and for power export when power prices are high.

As the global energy mix shifts towards renewable power and hydrogen to achieve a net zero scenario by 2050, the global renewable electricity supply needs to increase around five times compared to 2022, according to the International Energy Agency. While governments and businesses are increasingly committed to decarbonisation targets, energy markets face extreme volatility driven by geopolitical tensions. Gas prices across Europe spiked in 2022 but have subsequently fallen. The volatility has highlighted the need for energy flexibility, security, and independence. This development leads to fundamental structural changes on the global energy system and increases the need for solutions that enables large-scale production, storage and flexibility.

Offshore wind will be a key technology to support the goal of net zero greenhouse gas emissions by 2050. Compared to onshore wind, offshore wind can be built at a larger scale, using materially larger turbines, which can help to reduce the cost of energy production. Additionally, wind speeds are typically stronger and more consistent at sea compared to land, resulting in higher electricity generation. Thirdly, land availability constraints are reduced compared to onshore technologies, particularly close to large load centres where real estate regulations and land costs create obstacles for developing renewables. 

Decarbonising power production and electrification can only deliver part of the solution towards reaching the net zero target by 2050. For the hard-to-abate sectors such as steel, petrochemicals, maritime transportation, aviation, etc., indirect electrification via Power-to-X will be key. With increasing capacities of intermittent renewables in the energy system, another challenge is balancing the production and consumption of electricity. Sector coupling and other new technologies like battery storage can provide large-scale flexibility and balancing of the power grid, reduce grid reinforcements and lessen curtailment of renewable energy. As offshore wind capacity expands, surplus generation and curtailment continues to increase, especially during low‑demand periods or when transmission is constrained. In markets with frequent zero or negative power prices, converting excess electricity into hydrogen allows curtailed energy to be utilised while adding flexibility to the energy system.