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)

Linkup
> See TenneT press release (html)
> Open Half year report 2020 (pdf, 1.77Mb)

See article on single page

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)

Linkup
> See TenneT press release (html)

See article on single page

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)

Linkup
> See TenneT press release (html)

See article on single page

50Hertz aims for 100% renewables by 2032

03.07.2020

50 Hertz, the transmission system operator (TSO) from the north-east of Germany, has launched a climate and economic policy initiative for its control area, which consists of the federal states in eastern Germany and the city states of Berlin and Hamburg. The concrete goal is to cover 100% of the electricity demand in the 50Hertz grid area with renewable energies by the year 2032 and the secure integration of green electricity into the transmission system. As the annual average share of renewables in 2019 was around 60%, the initiative is entitled: “From 60 to 100 by 2032: for an economy with prospects”.

The “100 by 32” initiative corresponds to and exceeds the objectives of the EU Commission’s “Green Deal”, according to which Europe should become the first climate-neutral continent by 2050. The TSCNET shareholder will focus the entire corporate strategy on the new ambitious target and – in compliance with the legal requirements for safe and reliable grid operation – will mobilise its extensive expertise. Since, according to 50Hertz CEO Stefan Kapferer, further considerable efforts are necessary not only in the own company but also in politics, economy, and society, the TSO offers to support the German federal and state governments in developing suitable areas and potential for wind and solar energy, off- and onshore

Kapferer comments further on the strategy: “The transformation of our electric power supply has entered a new phase. Today’s parallel existence of a conventional fossil generation system and an energy system based on renewable sources is coming to an end. Wind and solar energy must be able to provide ancillary services in the future. We are determined to drive this transition forward, but now with new and full speed.”

50Hertz launches the corporate initiative “From 60 to 100 by 2032” for a complete coverage of electricity demand with renewable energies (picture: 50Hertz)

Linkup
> See 50Hertz press release (html)

See article on single page

Eurobar for offshore integration

24.06.2020

Those involved in European electricity transmission have clearly understood that the common climate targets up to 2050 call for suitable and forward-looking concepts already today. Although the control area of TSCNET shareholder Amprion is not directly bordering a seashore, the German transmission system operator (TSO) shares nonetheless responsibility for transporting green electricity generated offshore to the consumption centres. Amprion thinks in a pan-European dimension and has developed a concept to integrate offshore electricity into the European power grid in a way that makes an optimal contribution to the European climate goals: The European Offshore Busbar (Eurobar) responds to the fact that the North Sea countries alone want to exploit an offshore potential of around 200GW by 2050.

The concept provides for the new generation of offshore facilities in the North Sea to be designed for connection to an offshore grid already during the early planning stage. Later, they can be gradually interconnected – first at national level and then between the North Sea countries. Through this integration, wind power can be transported flexibly and across borders to where it is needed, thus increasing efficiency and reducing costs as well as the need for additional grid expansion onshore. Dr Hans-Jürgen Brick, CEO of Amprion, emphasises the key role of the trans-European integration of offshore wind power for the future climate-neutral energy system: “Eurobar aims to make a constructive contribution to European plans for offshore development.”

Amprion has benefited from the advantages of an integrated power system for many decades and now, with Eurobar, intends to transfer this integration concept to the offshore grid to create an overall system for onshore and offshore energy. “Eurobar will intensify European collaboration in offshore development,” believes Dr Klaus Kleinekorte, CTO at Amprion. Peter Rüth, the CFO of the TSO, adds: “Eurobar is designed as a partnership.” Consequently, the implementation can be carried out by the respective partners, be it states or grid operators, autonomously. The only condition is, that the technical standards yet to be developed are applied when installing future offshore systems. “We will now be working together with our partners in industry and among network operators on resolving the technical issues and advocating standardisation on a European level,” concludes Rüth.

Amprion has presented the Eurobar concept for integrating European offshore systems (picture: Amprion)

Linkup
> See Amprion press release (html)
> Open Eurobar presentation (pdf, 829.2kB)

See article on single page

Foundation laid for DolWin6 converter

28.05.2020

With a dozen operating offshore connection systems for wind farms in the German North Sea totalling a transmission capacity of 7.132GW, the Dutch-German transmission system operator (TSO) TenneT has already in 2019 exceeded the German government’s expansion target for offshore wind energy capacity for 2020 by more than half a million GW. A further 900MW will be provided by DolWin6, like the predecessor projects DolWin3 and BorWin3 a high-voltage direct current (HVDC) connection. The DolWin kappa offshore platform in the Wadden Sea near the island of Norderney will convert the three-phase wind current into DC for transmission via a 45 kilometre submarine cable to the East Frisian mainland and from the landing point via an underground cable, also around 45 kilometres long, to the TenneT site in Emden/East.

Here, the TSCNET shareholder is constructing the DolWin6 onshore converter station and a substation on 23,500m² to reconvert the DC into three-phase current for feeding into the onshore extra-high voltage grid. A significant milestone for DolWin6 was reached on 27 May: The laying of the foundation at the converter construction site was celebrated in Emden/East by embedding a time capsule with coins, a regional daily newspaper, and construction plans into the foundation stone. Due to the Covid-19 pandemic, the event was only celebrated with the most important project managers from TenneT and the plant constructor Siemens.

Concrete preparations for DolWin6 began in the summer of 2017 and 2018 with horizontal drilling on Norderney. In September 2019, the foundation work commenced in Emden/East. Work on the DolWin kappa offshore platform at a dockyard in Cádiz/Andalusia also started in mid-2019 and the DolWin6 cable laying will follow from summer this year. The completion of the HVDC offshore connection is scheduled for 2023.

TenneT celebrated the laying of the foundation stone for the DolWin6 converter in Emden/East (picture: TenneT)

Linkup
> See TenneT press release, in German (html)

See article on single page

50Hertz turns to green financing

08.05.2020

The grid connections Ostwind 1 and 2 to the offshore wind farms in the Baltic Sea northeast of the German island of Rügen belong to the infrastructure projects of 50Hertz, one of the four German transmission system operators (TSOs), which contribute to a sustainable European energy future. Ostwind 1 is already in operation and connects the wind farms “Wikinger” and “Arkona” via two offshore platforms with the Lubmin substation in the Bay of Greifswald. The Ostwind 2 project will connect the nearby wind farms “Arcadis Ost 1” and “Baltic Eagle” to the German extra-high voltage grid. The future transmission capacity of both connections is approximately 1.5GW.

To financially secure these forward-looking projects, the TSCNET shareholder is now active on the green investment market as corporate issuer of Green Debt: On 6 May 2020, Eurogrid GmbH, the parent company of 50Hertz, has issued its first Green Bond in the amount of €750m on the regulated market, thus securing the liquidity for the two offshore projects and further grid expansion necessary for the energy transition.

Marco Nix, CFO of 50Hertz, comments on the bond issue: “With the first Green Bond in our company’s history, we are securing part of the necessary investments in the grid infrastructure over the next few years.” Especially in view of the current difficult economic circumstances, the great interest of the financial markets in the bonds was proof of the confidence in the TSO’s sustainability strategy and investment plans. “The transaction is an important cornerstone in driving forward the expansion of our grid and thus the energy transition,” adds Marco Nix.

50Hertz has successfully issued its first Green Bond in the amount of €750m (picture: 50Hertz)

Linkup
> See 50Hertz press release (html)

See article on single page

TenneT develops 525kV HVDC offshore cable system

20.04.2020

In just 10 years, 40% of the Dutch electricity demand will be covered by offshore wind power. Furthermore, the Dutch-German transmission system operator (TSO) TenneT will increase the German offshore grid connection capacity to 17GW by 2030. To meet these high ambitions, the TSCNET shareholder expands its current connection plans and additionally intends to implement a total of five 2GW offshore connections in the Dutch IJmuiden Ver wind energy area and in the German LanWin and BalWin areas. However, since such 2GW offshore grid connections do not yet exist, innovative project development is necessary.

The integration of 2GW offshore grid connections into the onshore grid requires a suitable certified cable system that operates at a voltage level of 525kV DC using extruded insulation types. TenneT has contracted a total of eight cable suppliers to develop these “next-level” submarine cables for the intended high-performance offshore connections. An extruded 525kV high voltage direct current (HVDC) cable system with a 2GW output is currently not implemented in any project worldwide and would thus set a new standard for the connection of offshore wind farms.

The new cable system is expected to reduce manufacturing and installation costs for the entire connection concept, including the HVDC offshore and onshore transformer stations. A reduction in dredging costs is also anticipated, as all cables can be laid in a single trench. Moreover, fewer offshore platforms and shore stations are required, resulting in lower emissions and environmental impact. The adoption of a 525kV 2GW grid concept is a logical step for TenneT after the installation of eight standard AC connections in the Netherlands. The TSO can already draw on extensive experience with DC projects in Germany.

TenneT has contracted eight cable suppliers to develop a 525kV HVDC offshore cable system with a 2GW capacity (exemplary picture of Riffgat cables: TenneT)

Linkup
> See TenneT press release (html)

See article on single page

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)

Linkup
> See TenneT press release (html)

See article on single page

TenneT creates, invests and researches for the energy future

12.03.2020

Promoting the energy transition is a priority objective of TSCNET shareholder TenneT, the Dutch-German transmission system operator (TSO). This is clearly reflected in the TSO’s just-published Integrated Annual Report. As in recent years, the Annual Report is accompanied by the Green Finance Report 2019.

In line with the energy policy and climate goals of the Netherlands and Germany, TenneT increased its investments yet again in 2019 and spent €3.1bn on the energy transition and supply security (grid availability of 99.9998% in 2019). This financial commitment is even to be stepped up: TenneT is planning annual investments of €4bn to €5bn for the future. The financial performance of the company, with revenues of €4.1bn in 2019 and an EBIT (excluding special effects) of €753m, supports these ambitious plans. Manon van Beek, CEO of TenneT, has every reason to be content with the sound development of the TSO: “We have made great strides again in pursuing our ambition to achieve a sustainable energy future for everyone. Not only in realising and developing new onshore and offshore connections, but also by the required far-reaching international cooperation and working on innovations in close coordination with relevant stakeholders.”

As regards offshore connections, TenneT has already exceeded in 2019 the German government’s expansion target for offshore wind power capacity in the North and Baltic Sea, which is 6.5GW for 2020. With last year’s commissioning of BorWin 3, TenneT’s ninth offshore grid connection system in DC technology, the TSO now has a total of twelve offshore grid connections in operation (nine in DC and three in AC technology) with a total capacity of 7.1GW. But TenneT is not resting on its successes to date: The connection systems DolWin5, DolWin6, and BorWin5 are being developed and will increase the offshore transmission capacity provided by TenneT for wind farms in the German North Sea to almost 10GW by 2025. In addition, Borssele Alpha, TenneT’s first offshore connection system in AC technology in the Dutch North Sea, was installed on schedule and is now ready for operation. Borssele Beta will be completed in 2020.

Onshore, TenneT has eight transmission lines under construction in Germany, more than ever before. In the Netherlands, the 60km-long Randstad 380kV North Ring power line was put into operation, reliably supplying Europe’s most densely populated area with electricity and providing transmission capacity for green energy. At European level, the “green” COBRAcable deserves special mention, which since 2019 directly connects the Dutch and Danish markets for the first time. The German and Norwegian markets will also be directly connected by the NordLink cable, which is currently under construction. On top of this, a proof-of-concept for the North Sea Wind Power Hub has shown the technical feasibility of the concept of multiple wind power distribution hubs in the North Sea.

All these grid expansion projects are complemented by innovative solutions and intensive research to better utilise TenneT’s existing transmission system. These include vehicle-to-grid pilots, the deployment of home storage systems in grid stabilisation and digital solutions for higher grid utilisation. Another long-term innovation project is Element One, a 100MW electrolysis plant to be built in Germany to promote an integrated energy system.

TenneT presents Integrated Annual Report 2019 and Green Finance Report 2019 (picture: TenneT)

Linkup
> See TenneT press release (html)
> Visit Integrated Annual Report 2019 site (html)
> Direct access to the report download (html)
> Open Green Finance Report 2019 (pdf, 802.38kB)

See article on single page