TenneT raises investments goals

In: ConvertersSubstationsWindfarms
Dutch and German Transmission System Operator (TSO) TenneT is scaling up its organisation to invest EUR 4 to 5 billion annually to connect renewable energy sources and develop a borderless European electricity market.

It follows an investment of EUR 1,408 million in the Dutch and German high-voltage grids from TenneT in the first half of 2020, a 30% increase compared to the first half of 2019 (EUR 1,094 million).

CFO Otto Jager commented: "We are going to connect growing amounts of renewable electricity to the grid while facilitating the development of a borderless European electricity market. In light of future equity funding needs, the ongoing talks with the German government about a possible equity participation, next to the Dutch State, are welcomed by TenneT."

TenneT stated it is on track to move the energy transition in the Netherlands forward making use of its experience in Germany. Borssele Alpha recently saw its first power delivered by the neighbouring wind farm. Borssele Beta was commissioned at the end of July, ahead the formal delivery date of 31 August 2020.

TenneT has now got fourteen offshore grid connections in operation, twelve in the German and two in the Dutch North Sea. The 12th offshore grid connection in Germany, Borwin 3, was completed in the first half of 2020. This brings the total connection capacity in the German part of the North Sea to over 7 GW, exceeding the German government's sustainability target of 6.5 GW by the end of 2020.

In order to reduce the impact of AC lines and to increase the public acceptance of those projects, Germany recently decided to start a couple of 380kV AC underground cabling pilots. Furthermore it is also developing large DC corridor projects like SuedLink and SuedOstLink. These projects will be built completely underground and will transport northern wind production to meet demand for electricity in southern Germany.

As Europe's first cross-border TSO, TenneT stated it continued to facilitate the development of a borderless European electricity market. Manon van Beek, CEO: "Sharing best practices and lessons learned between our German and Dutch operations is paying off more and more in terms of an integrated approach to offshore and onshore grid expansion, better grid utilization due to European innovations and cross-border energy system planning."

In the first half of 2020 TenneT recorded an underlying revenue of EUR 2,319 million, an increase of 7.1% compared to 2019 (EUR 2,166 million). This attributed to its growing asset base and additional compensation for grid-related expenses. Underlying EBIT increased by EUR 7 million to EUR 414 million in the first half of 2020 (first half 2019: EUR 407 million). In July 2020, TenneT strengthened its balance sheet by issuing EUR 1 billion of green hybrid securities.

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