Dutch transmission system operator TenneT has announced that it will increase its annual investment in grid infrastructure to at least €6bn ($6.6bn) by 2025.
Last year, the company invested €4bn in the expansion and maintenance of its grids to address its energy transition challenges.
TenneT also plans to increase its investments in the future to support the increase in renewable electricity production and electrification needs.
The company said it will also focus on the ‘smart’ use of its grids.
TenneT CEO Manon van Beek said: “Even as we work at speed to build and maintain our grid for a fossil-free future, demand for grid capacity in the here and now is also growing fast.
“Linear growth alone cannot solve this squeeze, and we are looking at many ways to make smarter use of our existing grid, as well as investing much time and effort into so-called system thinking.
“To this end, we are focusing on faster project delivery, proactive planning, and innovative solutions.
“In this context, I would like to thank the many experts and partners who dedicated themselves to developing the Target Grid and the Wind Power Booster.”
TenneT said that it is focused on addressing issues such as restrictions on new electricity grid connections faced by the customers, as well as congestion issues on the Dutch national grid.
The company has also mentioned the conflict between Russia and Ukraine and has called for better European cooperation and alignment.
It added that the conflict could serve as an ‘important additional driver to accelerate a sustainable energy system’.
TenneT posted an underlying revenue of €6.4bn for the fiscal year 2021 (FY21), compared with €4.45bn a year earlier.
The company’s earnings before interest and tax (EBIT), excluding earnings from special items, increased from €796m to €801m year-over-year.