TenneT raises investments goals
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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