NKT has signed a framework agreement for power cables supporting Dutch grid upgrade.
To support growing renewable energy production and the need to upgrade and modernise the regional power grid, Dutch distribution system operator Enexis has entered into the long-term agreement with NKT for medium voltage (MV) power cables.
Over the next eight years, Enexis Netbeheer intends to lay several thousand kilometres of underground power cables to expand the power grid in the Dutch provinces of Groningen, Drenthe, Overijssel, Brabant and Limburg to prepare for an increasing amount of renewable energy.
Enexis manages more than 150,000 km of electricity cables.
NKT will begin supplying MV power cables from mid-2025 onwards under this framework agreement and will deliver, broken down as 600 km of cables per year over the next eight years.
The framework agreement includes an option to extend for an additional four years.
“We are delighted that NKT will be a supplier for our expansion operation over the coming years.
“We want to guarantee supply security of the requisite cables on par with increasing volumes, which is why we are scaling up the number of power cable suppliers.
“For the Enexis service area alone, we need a total power cable length that would take us around the world twice.
“We are really talking about a staggering amount of cable. We look forward to our future collaboration,” said Enexis CEO Rutger van der Leeuw.
Carlos Fernandez, EVP Applications, NKT, added: “We are proud to be a key supplier.
“We have a long history with Enexis and have supplied medium-voltage cables to many projects over the years.
“We look forward to strengthening our relationship even further with this framework agreement supporting their efforts to upgrade the Dutch electricity grid as well as connect more renewables projects.”
The majority of the MV power cables will be produced at the factory in Asnaes, Denmark, which is being expanded in the coming years as part of NKT’s announced investments across three MV cable factories.
In 2023, 48% of the Netherland’s electricity was generated from renewable sources such as solar, wind and water.
The amount of electricity produced from wind energy in 2023 increased by 35% year-on-year, while solar energy increased by 24%.