TenneT to invest €22bn over next decade

10 March 2016 (Last Updated March 10th, 2016 18:30)

Dutch Government-owned electrical grid operator TenneT has announced plans to invest around €22bn in infrastructure over the next decade in Germany and the Netherlands.

Dutch Government-owned electrical grid operator TenneT has announced plans to invest around €22bn in infrastructure over the next decade in Germany and the Netherlands.

This amount will be invested in onshore and offshore grid assets, a move to support its shift to renewable energy sources, reported Renewables.seenews.com.

The firm intends to raise the amount through issuance of more green bonds, reported Reuters. The announcement was made in TenneT's 2015 annual report.

"We will continue to work hard and to invest to maintain the quality of our existing grid, as well as to be able to transport large volumes of renewable energy from new sources."

TenneT stated that it intends to form an integrated power market across Europe. In the Netherlands, it plans to invest in maintenance of the present onshore grid assets, as well as focus on expansion of onshore grid infrastructure.

The Dutch Government also intends to appoint TenneT to design, build and manage an offshore grid on the North Sea that will make 3,500MW of renewable wind energy available for the Netherlands by 2023.

In Germany, TenneT installed five new direct current offshore connection systems, taking available capacity for transporting wind energy generated at sea to 4,300MW, which powers millions of households with green electricity.

By 2019, TenneT expects to have completed 7,100MW of offshore connection capacity, exceeding the German Government's target of 6,500MW of installed offshore wind energy capacity by 2020.

In 2015, the company reported underlying revenues of €3.29bn, compared with €2.32bn a year previously, because its asset base had grown due to investments.

TenneT CEO Mel Kroon said: "We will continue to work hard and to invest to maintain the quality of our existing grid, as well as to be able to transport large volumes of renewable energy from new sources."