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)

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> See 50Hertz press release (html)

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Ostwind 1 in regular operation

14.02.2020

In April 2019, the Arkona wind farm in the “Westlich Adlergrund” cluster in the Baltic Sea near the German island of Rügen was commisioned, giving the go-ahead for full operation of the Ostwind 1 grid connection of TSCNET shareholder 50Hertz, the transmission system operator (TSO) from northeast Germany. Ostwind 1 is the first grid connection in the Baltic Sea with 220kV three-phase current technology, which enables a higher transmission capacity.

Now Ostwind 1 has gone into regular operation and the two connected wind farms, besides Arkona also the Viking wind farm, have been successfully connected to the onshore grid on schedule. But 50Hertz considers this success no cause to rest on its laurels, for the expansion of offshore wind energy must continue if the energy transition is to succeed. This is why the TSO has already made good progress with the follow-up project Ostwind 2.

For instance, 50Hertz has long since begun preparations for the construction of three submarine cable systems for the Ostwind 2 project. For the land section, the 12 nautical mile zone of Mecklenburg-Western Pomerania and an approximately 5km-long section in the exclusive economic zone, the building permits have already been issued. 50Hertz has set up a new website for the Ostwind 2 project, where further information can be found.

Ostwind 1 grid connection of 50Hertz in the Baltic Sea has gone into regular operation (picture of Arkona wind farm: Ein Dahmer / CC BY-SA 4.0)

Linkup
> See 50Hertz press release (html)
> Visit Ostwind 2 project website (html)

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