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TenneT raises investment plans to support offshore wind

By: Tom Russell 13/03/2020 TenneT

General Windfarms

Transmission system operator TenneT plans to invest between €4-5 billion annually to support the energy transition. This was revealed as it posted its 2019 results.

TenneT recorded and underlying revenue of €4,084 million in 2019, down 3% compared to 2018. Underlying EBIT decreased from €853 million in 2018 to €768 million in 2019. Underlying EBIT decreased by 9% to €749 million in 2019, mainly driven by a reduced regulatory rate of return on equity in Germany, due to the start of the new five year regulatory period, partly offset by a higher regulatory asset base due to investments.

Approximately one sixth of TenneT's total investments in 2019 were allocated to the maintenance of the existing high voltage grids; the other part was earmarked for newly built projects and grid expansions. In 2019, TenneT invested €3.1 billion in the energy transition and security of supply.

Energy policies adopted by the Dutch and German governments are strongly focussed on making the energy system more sustainable. In order to be able to implement these policies on time, TenneT expects to increase its investment level to between €4-5 billion annually in the coming years as a result of the phase-out of coal and nuclear power plants and the growth of offshore wind energy.

The annual investments aim to support to the German governments decision to increase the capacity of offshore wind farms from 15 GW to 20 GW. The Dutch government has also initiated a major expansion of offshore wind energy in 2030, which means that TenneT must have realised 9.6 GW of connection capacity for offshore wind farms in the Dutch part of the North Sea by that year.

By the end of 2019, TenneT exceeded the German government’s 2020 6.5 GW expansion target for sustainable North Sea and Baltic Sea wind power. BorWin 3, TenneT's ninth offshore direct current connection, has been commissioned. DolWin5, DolWin6 and BorWin5 are in development and will increase TenneT's transport capacity for wind farms in the German North Sea to almost 10 GW by 2025. After 2025, TenneT plans to develop more than 6.5 GW of transmission capacity to be installed by 2030, to meet the government's new target.

Borssele Alpha, TenneT's first alternating current (AC) offshore platform on the Dutch part of the North Sea, was installed on schedule and is now ready for use. Another seven of these 700 MW standardised platforms will be delivered by 2027 for connecting future offshore wind farms to the onshore grid. The next offshore connection system, Borssele Beta, will be completed by 2020. For the IJmuiden Ver wind area TenneT expects to use two 2 GW converter platforms in combination with 525 kV cable.

For more information on offshore wind farms worldwide, click here.

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TenneT raises investment plans to support offshore wind

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