In the first half of 2023, TenneT almost doubled its investment in grid expansion and replacement, compared to the same period last year.
The €3.5bn investment is in line with TenneT’s expectations and earlier announcements of a growing investment portfolio to support the strong political and its intrinsic ambition to drive the energy transition in the Netherlands and Germany, the company said.
In the first half of 2023, TenneT concluded several exceptionally large and long-term framework agreements to develop high-voltage infrastructure for the energy transition.
These included framework contracts for 14 grid connection systems for offshore wind energy, each with 2GW capacity.
These agreements – which include converter stations, cable systems, transportation, and installation – have a total market value of more than €40bn.
The onshore and offshore high-voltage grid operator’s underlying EBIT increased by €351m to €930m in the first half of 2023.
TenneT chief executive Manon van Beek (pictured) said: “The huge grid expansion and maintenance task we carry out for the energy transition does not take place overnight.
“With our hundreds of projects, both onshore and offshore, now and over the next two decades, we are realising the electricity system of the future with a clear end picture in mind: Target Grid 2045.
“Achieving economies of scale, innovating together with the market, international cooperation and timely and governmental supported long-term infrastructure planning are key in making a carbon-neutral energy system feasible and affordable for households, industries, suppliers and TenneT itself.”
Arina Freitag, TenneT’s chief financial officer, added: “The societal, political, but certainly also financial efforts regarding the energy transition are of unprecedented proportions. TenneT is gearing up for this.
“We continue to be engaged in discussions with the German government, to explore a sale of TenneT’s German activities to the German State on acceptable terms.
“Such a transaction would enable the creation of two strong, national Transmission System Operators (TSOs) with a European focus that will continue to closely cooperate, particularly on the North Sea and that are capable of executing our investment agenda of around €111bn.
“The recent shareholder contribution of €1.6bn and the €8bn credit facility we concluded in this first half of 2023 provide ample financial headroom.”