Dutch/German transmission system operator TenneT expects to scale up investment volume to €4bn to €5bn in the next few years.
The TSO invested over €1.4bn in the Dutch and German grids in the first half of 2020, a 30% increase on the same period last year when just under €1.1bn was invested.
TenneT reported underlying operating profit of €414m for the first six months of the year, up from €407m in 2019.
Underlying revenue was more than €2.3bn, an increase 7.1% on the almost €2.17bn reported in the first half of last year.
This was mainly driven by a growing asset base and additional compensation for grid-related expenses, the company said.
TenneT said: “Despite the corona pandemic and due to extensive measures taken to ensure a safe and healthy work environment, TenneT made good progress in managing the complexity of connecting growing amounts of renewable electricity to the grid.
“At the same time, TenneT maintained a high security of supply of 99.99% for 42 million end users across the Netherlands and Germany.”
TenneT chief executive Manon van Beek said: “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 chief financial officer Otto Jager said: “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 said offshore it is on track to move the energy transition in the Netherlands forward making use of its extensive experience in Germany.
Borssele Alpha recently saw its first power delivered by the neighbouring wind farm. Borssele Beta has become operational end of July, well before the formal delivery date of 31 August 2020.
The company now got 14 offshore grid connections in operation, 12 in the German and two in the Dutch North Sea.
Van Beek said: “We’ve proven to be resilient to the challenges posed by the corona pandemic.
“Our construction work on onshore and offshore electricity connections is progressing. As well as maintenance. Our investment agenda increased by 30% in the first half year.”
He added that on 1 July, the company launched a new organisational structure with a new senior leadership team that will support the company’s growth and its role in the energy transition in the Netherlands, Germany and neighbouring countries.
“New departments will further focus on strategic partnerships, digitalisation and energy system planning. The new organisation marks an important milestone in TenneT’s transformation, which also includes a sharpened strategy and more focus on leadership and culture.”