Japan-based Mitsubishi Corporation (MC) has signed an agreement with TenneT Holding to purchase a 49% equity stake in two offshore transmission cable projects in Germany.
The €1.2bn projects, BorWin1 and BorWin2, have been acquired through the company's wholly owned special purpose company.
TenneT and MC will develop the two offshore grids connections, which will have a total capacity of 1,200MW.
MC will maintain and operate the 400km long transmission cables and related transformers for a period of at least 20 years, under the current German regulation; while TenneT will be the majority owner for the project.
It is in line with the German Government's plans to double its renewable energy generation, mainly by offshore wind generation, from the present 17% to 35% by 2020.
The offshore transmission cables will transfer clean electricity produced by offshore wind farms to the on shore grid in Germany.
Currently, TenneT is working on nine projects to connect wind power facilities in the German North Sea.
These projects will produce a total of 5,000MW of clean electricity, which is enough to supply 5 million households.
TenneT is also working in Germany on projects to improve north-south connections, necessary for the transportation of electricity to the main consumption areas in the south of the country.
MC will continue to expand its presence in the offshore transmission cable operation business, paying particular attention to new projects in Germany and the UK.