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