TenneT to issue €30 billion tender to expand offshore wind transmission

4C Offshore | Tom Russell
By: 23/06/2022 TenneT

TenneT has announced plans to issue a large-scale offshore tender in order to meet targets set by the governments of Germany, the Netherlands, Denmark, and Belgium. Total order volume is estimated to be up to €30 billion.

In the Esbjerg Declaration in May at the North Sea Energy Summit, Germany, the Netherlands, Denmark, and Belgium agreed to jointly install at least 65 GW of offshore wind energy by 2030. Transmission system operator (TSO) TenneT will account for almost two-thirds of this with 40 GW-  20 GW each in the German and Dutch North Seas. According to TenneT, achieving these offshore targets requires a new tender approach to ensure that the supply chain is able to anticipate on necessary investments.

TenneT plans to enter into a cooperation agreement with key market partners for a period of up to eight years. The agreement covers offshore platforms and onshore stations, as well as the converters for the two-way conversion between alternating and direct currents. The latter is based on the innovative 2 GW high-voltage direct current technology for a forecast 15 to 20 offshore grid connection systems.

TenneT COO Tim Meyerjürgens said: "In order to meet the challenges posed by this major expansion target and achieve its goals, we are breaking new ground in cooperation with our industry partners, sending a strong signal to the market with a large-scale tender. The goal is to set out a new kind of framework agreement that allows for scaling through efficiently expanding these new offshore systems - both for technology companies and for other transmission system operators. This will stimulate the market to build up the resources and comprehensive supply chains we need in a targeted and – crucially – in faster way. In these turbulent times this provides the industry with the investment security they need."  

"The accelerated expansion of renewable energies offers many opportunities. To take advantage of them, strong cooperation is necessary at all levels. This ground-breaking cooperation framework enables more flexibility, technological progress, and planning security for market players. It also shows which innovative solutions we are working on with the market to help us tackle and implement the expansion targets set by the governments in a targeted way. Our new approach will stimulate and drive the entire market across the value chain, allowing us to attract new industrial companies and help create new jobs. This benefits all parties through more employment, growth, and the strengthening of European supply chains," Tim Meyerjürgens added.

Currently, TenneT’s offshore connection capacity comprises around 7.2 GW in the German North Sea and approximately 2.5 GW in the Dutch North Sea. TenneT stated its innovative 2GW Program is crucial in managing the offshore energy transition and will help Europe become the world's first climate-neutral continent. The 2 GW per system aims to reduce the number of grid connections required.