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TenneT Awards 22GW HVDC Contracts for Offshore Wind Projects in Europe

By: Chris Anderson 30/03/2023 Tennet

Cables Converters General Grid Substations Windfarms

TenneT have announced awards for both on and offshore converter stations utilising HVDC technology with a total capacity of 22 gigawatts.

TenneT, in partnership with Hitachi Energy, Petrofac, GE/SMOP and GE/McDermott, has awarded multiyear agreements to connect 11 offshore wind farms in Germany and the Netherlands with a total capacity of 22GW using high-voltage direct current (HVDC) systems. This represents the largest long-term agreement of 2 GW HVDC systems ever announced and will support the European Union's effort to accelerate offshore grid development in Europe. The awarded suppliers will start preparatory work immediately to ensure the delivery of all projects by 2031, with a total value of approximately €23 billion. The 2GW Program aims to double connection capacity by using fewer cables and platforms and has the potential to become a European showcase in offshore grid development.

The agreements connect eight offshore wind farms in the Netherlands and three offshore wind farms in Germany (see table below for details). A further 3 additional HVDC stations planned will be announced at a later stage.

The projects account for around 40 gigawatts of capacity, giving Tennet - the Transmission System Operator (TSO) responsibility for almost two-thirds of the 2030 65GW offshore wind energy target defined in the Esbjerg Declaration of May 2022 (agreed between Germany, the Netherlands, Denmark, and Belgium).

Hitachi Energy/Petrofac are awarded five of the Dutch projects - Borssele (IJmuiden Ver Alpha, Nederwiek 1), Eemshaven (Doordewind 1 and Doordewind 2) and Geertruidenberg or Moerdijk (Nederwiek 3), and the German project LanWin5 (connected in Rastede).

GE/SMOP are awarded three Dutch projects connecting to Maasvlakte, Rotterdam (IJmuiden Ver Beta, IJmuiden Ver Gamma and Nederwiek 2).

GE/McDermott will execute the German projects BalWin4 and LanWin1 that will connect at Unterweser.

TenneT expects that the projects BalWin3, LanWin4 (both connecting to the onshore grid in Wilhemshaven) and LanWin2 (connecting in Heide) will soon be awarded.

Tim Meyerjürgens, COO TenneT said: “TenneT has the technical know-how, scale and geographical position to connect wind energy from the North Sea. This is one of the most important infrastructure projects of the century; the green transformation of the energy system is key for the decarbonisation of industry. Together with our market partners we are very proud to have achieved another important milestone. Together we secure decisive acceleration of the offshore grid development and set the course for the future European energy landscape.”

Niklas Persson, Managing Director at Hitachi Energy’s Grid Integration business, stated “This innovative business model will set the course for the integration of a huge amount of offshore wind power and gives visibility for the future. In fact, we are already hiring to expand our global delivery capacity and effectively fulfill these and other orders. We’re proud to be part of this journey and, along with our partner Petrofac, we are setting the benchmark for deploying offshore HVDC technology at scale and with speed.”

Sami Iskander, Petrofac’s Group Chief Executive, said: “Today’s announcement represents an exciting next step in Petrofac and Hitachi Energy’s collaboration. We have already secured key resource and the yard capacity required to expedite the first two projects in TenneT’s ground-breaking programme. By combining Petrofac’s industry-leading EPCI expertise and Hitachi Energy’s well proven technology, we look forward to supporting TenneT to connect larger, more effective wind farms to deliver affordable clean energy for millions of European homes.”

Philippe Piron, CEO GE Grid Solutions, said: "Together with our consortium partners Sembcorp and McDermott, we are honoured and pleased to play a key role in this critical infrastructure project for European energy security and decarbonisation. These awards confirm that GE’s Voltage-Sourced Converter HVDC technology is now recognised as one of the most advanced in the world."

Chris Ong, CEO of Sembcorp Marine, said: “We are delighted together with our partner GE, to be selected by TenneT for three of their eleven two-gigawatt offshore converter platforms in the Netherlands. These are our largest and most advanced state-of-the-art offshore renewable energy projects to date. We thank GE and TenneT for their trust and confidence in our offshore construction capabilities. We look forward to contributing to TenneT’s vision and decarbonisation objectives.”

“Our integrated EPCIC delivery model, combined with nearly a century of executing some of the most challenging offshore projects in the world, make us ideally suited to support TenneT on this important offshore grid connection systems project,” added Vaseem Khan, McDermott’s Senior Vice President for Onshore.

Finally Marco Kuijpers, Director Large Projects Offshore TenneT commented “The new long term approach goes hand in hand with a fundamental change in values towards a strong partnership. This approach enables both sides with more flexibility, technological progress, and planning security. This benefits all parties and secures employment, growth, and the strengthening of supply chains. We can already see that our partners invest in extra resources and facilities.”

The 2GW programme
The 2GW Program features an innovative and holistic approach to ensure harmonisation across technology and design. By combining knowledge gained in offshore grid development and using a transnational approach, Tennet have developed in collaboration with its partners a standard they claim has the potential to become a European showcase in offshore grid development. The 2GW Programme is intended tol save time, resources, and money – and double the connection capacity by using less cables and platforms in comparison to previous grid connected systems. It includes development of a new certified 525 kV cable system.

One contract model
The 2GW Program’s various projects are governed by a contract based on a FIDIC standard agreement. FIDIC is globally recognised and used throughout the industry. It will make global implementation of the 2GW Program standard much easier for everyone.

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TenneT Awards 22GW HVDC Contracts for Offshore Wind Projects in Europe

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