TenneT to invest up to €5bn p.a. for the energy transition

31.07.2020

The Dutch-German transmission system operator (TSO) TenneT has just published its first-half 2020 report. Needless to say, the second quarter of 2020 was characterised by the corona pandemic and the extensive measures taken to ensure a safe and healthy working environment, but despite this, the TSO has made significant progress in developing the transmission grid onshore and offshore and in integrating growing amounts of renewable electricity. At the same time, TenneT has maintained a high level of supply security of 99.99% for 42m end consumers in Germany and the Netherlands.

As Europe’s first cross-border TSO, TenneT promotes the European market integration. The TSCNET shareholder increasingly benefits from its binational integrated approach to grid planning, management, and operation. Manon van Beek, TenneT’s CEO, comments: “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 utilisation due to European innovations and cross-border energy system planning.”

TenneT currently operates 14 offshore grid connections, twelve in the German and two in the Dutch North Sea. The twelfth offshore grid connection in Germany, BorWin 3, was handed over to TenneT in the first half of 2020. In Dutch waters, the Borssele Alpha grid connection recently transmitted offshore wind power for the first time and the Borssele Beta grid connection has now been commissioned well ahead of schedule. While in the offshore sector experience from the German market is used for the Dutch, the situation is the other way round when it comes to underground cabling. Here, expertise from the Dutch Randstadt project is applied for the DC connections SuedLink and SuedOstLink. These two largest projects of TenneT, which are being entirely installed underground, will be essential for the transmission of wind energy from northern to southern Germany.

Such efforts require huge investments – facilitated by solid financial results: The underlying operating result (EBIT) increased to €414m in the first half of 2020. During the same period, investments in the German and Dutch high and extra-high voltage grids also increased by approximately 30% compared to the first half of 2019, but will do so much more in the future. TenneT expects a further rise in the annual investment volume to €4 to 5bn in the next years. Otto Jager, CFO of TenneT, explains: “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 presents Half-year Report 2020 (picture: TenneT)

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Borssele Beta is ready for the grid

31.07.2020

Borssele Beta is the second high-voltage grid connection for offshore wind farms in Dutch territorial waters of the Dutch-German transmission system operator (TSO) TenneT. Like Borssele Alpha, the first Dutch offshore connection, it transmits green electricity generated in the Borssele wind farm area ashore, in this case from the Borssele III, IV and V wind farms. The operators of these three farms can hook up their wind turbines to the high-voltage grid one month earlier than scheduled, as TenneT has just received the “Grid Readiness” certification from the internationally accredited registrar and classification society DNV GL. This means that Borssele Beta fully complies with the criteria of the “Ontwikkelkader windenergie op zee”, the Offshore Wind Energy Development Framework of the Dutch Government.

The Borssele III, IV and V wind farms will have a total capacity of 700MW. The electricity generated here is collected by the offshore transformer platform, which converts the voltage from 66kV to 220kV for transmission via submarine cables to the onshore substation in Borssele. For feeding into the high-voltage grid, the voltage is then converted to 380kV. Marco Kuijpers, Director Offshore Projects at TenneT, comments on the rapid realisation: “We are proud of the fact that the second part of the Borssele high voltage connection is already complete and was realised within budget. Despite all the Covid-19 challenges, we were successful in continuing with the works; a huge achievement from all the contract parties involved.”

By the end of 2023, TenneT will have installed 3.5GW of offshore grid connections in the Netherlands, of which the first 1.4GW have already been achieved with Borssele Alpha and Beta. The next projects are Hollandse Kust (zuid) Alpha and Beta, followed by Hollandse Kust (noord). For these wind farms, TenneT will deploy five identical 700MW transformer platforms and identical 220kV cable connections. This standardisation allows TenneT to realise these projects faster, more efficiently, and more economically. The governmental Dutch follow-up roadmap for offshore development provides for an additional 6.1GW of offshore wind farms from 2024 to the end of 2030, located in the wind energy areas Hollandse Kust (west), Ten Noorden van de Waddeneilanden and IJmuiden Ver. Only for the first two, TenneT will again use standardised 700MW platforms. The efficient connection of IJmuiden Ver, located further out in the North Sea, partly requires other technologies based on DC instead of AC. IJmuiden Ver will have two offshore transformer platforms with a capacity of 2GW each, which is unique in the offshore wind industry.

The Borssele Beta offshore grid connection of TenneT is ready for transmission (picture: TenneT)

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TenneT records 21% increase in offshore transmission

28.07.2020

In the first half of 2020, the wind energy transmitted from the North Sea ashore by the Dutch-German transmission system operator (TSO) TenneT rose to 11.51TWh. This represents an increase of 21.1% compared with the 9.51TWh in the first half of 2019, bringing the North Sea’s share of total wind power generation in Germany to 15.6%. The maximum feed-in volume from offshore wind farms in the German North Sea was 6,035MW on 2 January 2020. By 30 June, the generation capacity of the German North Sea wind farms reached 6,679MW, a volume which is exceeded by TenneT’s offshore transmission capacity of 7,132MW. This amount, which is higher than the German government’s 2020 target (6.5GW for the North and Baltic Seas combined), is currently being achieved with twelve German offshore grid connections.

Tim Meyerjürgens, COO of the TSCNET shareholder, comments on the impressive figures: „The expansion and integration of offshore wind energy is of central importance for the European energy transition.” And offshore development is also keeping pace in the Dutch market: “With Borssele alpha and – from mid-August – Borssele beta, we have now also successfully completed the first two offshore connections in the Dutch North Sea.” TenneT promotes capacity expansion with technical innovations and, according to Meyerjürgens, wants to remain a driving force in the offshore sector: “Ever since TenneT set the standard for plastic-insulated DC cables at 320kV in the offshore sector around ten years ago, we have been defining a new global benchmark for the future with our 525kV DC subsea cable system and its transmission capacity of two GW.”

The 525kV development programme should lead to a standardised cable system that the TSO can employ by 2030 for the three German North Sea projects BalWin1, BalWin2, BalWin3 and the two Dutch projects IJmuiden Ver alpha and beta as well as in potential further projects of equal power and voltage. TenneT is expecting lower costs, greater security of supply and less impact on the environment. These efforts require considerable investment: “We have an investment programme of around €20bn earmarked for connecting offshore wind energy in the Netherlands and Germany by 2030,” explains Meyerjürgens. Important in this context are also hydrogen and hybrid initiatives. The North Sea Wind Power Hubs proposed by TenneT explicitly include power to gas concepts. Furthermore, in June, TenneT proposed to the EU and the Dutch and German governments an integrated energy system approach for the international offshore development.

TenneT increased its transmission of offshore wind energy by 21% in the first half of 2020 (picture: TenneT)

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Borssele Beta platform topside ready for sail out

20.03.2020

In the Borssele offshore wind farm area in the south-western part of the Dutch North Sea, Borssele Alpha, the first and largest connection system for wind farms from the Dutch-German transmission system operator (TSO) TenneT in Dutch territorial waters, is already in operation. Now the TSCNET shareholder is in the process of installing Borssele Beta to connect further wind farms, in this case Borssele III and IV that are still under construction. The topside of the offshore transformer platform for Borssele Beta is now ready for shipping. It was built at the construction yard of the offshore platform specialist HSM Offshore in Schiedam in the Rotterdam-The Hague metropolitan area and will be put to sea on 22 March 2020.

When the pontoon carrying the 3,650-tonne superstructure arrives at its destination, a crane vessel will place the top side on the platform substructure (jacket). The top side comprises three interior levels and an outer deck. It is 25 metres high, 58 metres long and 32 metres wide. The Borssele Beta grid connection will have a capacity of 700MW and is scheduled to be commissioned on 1 September 2020. The Borssele III, IV, and V wind farms, which are located about 22km from the coast, will be connected to this transmission system. Borssele V by the Two Towers consortium has been designated as an innovation site within the wind farm zone and will be connected to Borssele Beta. The electricity generated by these offshore wind farms will then be transported ashore via two 67-kilometre-long cables to the high-voltage transformer station near the town of Borssele in the Dutch province of Zeeland.

Marco Kuijpers, Director Offshore Projects a TenneT, comments on the TSO’s progress in offshore expansion: “With this platform, the offshore grid that TenneT is building in the Dutch North Sea is definitively taking shape. Borssele Beta is the second offshore grid connection built by TenneT. Over the coming eight years we will build a new offshore connection every year. I am proud that we are able to make such a significant contribution to the energy transition in which offshore wind energy plays a crucial role.”

TenneT also assumes a marine ecological responsibility and makes its offshore platforms available for other uses. The TSO cooperates in this respect with the Dutch Directorate-General for Public Works and Water Management (Rijkswaterstaat). The Borssele Beta offshore platform therefore also features a Maritime Information Provision Service Point (MIVSP). This is a monitoring station with various monitoring systems, such as nautical radars, meteorological systems and ecological monitoring systems. Similar stations are being installed on every TenneT offshore transformer platform.

The topside of the offshore transformer platform Borssele Beta of TenneT is constructed and ready for shipping (picture: HSM Offshore)

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Investing in green energy

23.05.2018

The expansion of the transmission infrastructure for the integration of renewable energies is a cardinal obligation for transmission system operators (TSO) in the 21st century. As far as TSCNET shareholder TenneT is concerned, the ongoing efforts of the Dutch-German TSO to promote sustainable energy sources are not limited to the physical implementation of infrastructure projects. TenneT is also active on the financial market as the largest corporate issuer of Green Debt in the Netherlands.

Now, the TSO has again successfully issued €1.25bn of long term Green Bonds on the Dutch market in two tranches of €500m and €750m respectively. This adds up to €6.25bn of green issuances since TenneT established its green financing framework in 2015. Over the next 10 years, TenneT’s investments in Dutch and German offshore and onshore grid connections are expected to total €28bn. With the inclusion of the Dutch offshore projects Borssele Alpha and Borssele Beta, eleven projects are currently part of the Green Project Portfolio and financed through TenneT’s Green Bonds.

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Contract and “First steel cut” for Borssele

05.09.2017

The grid connection of the Borssele offshore wind area in the Dutch part of the North Sea is the first large-scale connection project realised under the Dutch National Energy Agreement for offshore wind farms. In February, TSC member TenneT, the Dutch-German transmission system operator (TSO), had already awarded the contract for the construction of the Borssele Alpha offshore transformer station to HSM Offshore. Now, TenneT contracted HSM Offshore also for the construction of the Borssele Beta platform.

The two platforms together provide 700MW of connection capacity and thus form the key component of the Borssele grid connection. The signing of the Beta contract was accompanied by the “First steel cut” ceremony for the Alpha platform at the HSM shipyard in Schiedam in the Dutch province of South Holland. Both contracts cover the engineering, construction, transport, installation, connection and testing of the respective offshore transformer stations. The Alpha platform is expected to be put into operation in 2019, and Beta in 2020.

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Picture: TenneT

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