TenneT has signed a framework agreement worth almost €2bn for substations in Germany and the Netherlands to drive the energy transition.
The Dutch transmission system operator struck deals with Siemens Energy, Hitachi Energy, GE Grid and Royal SMIT, to supply 110 shunt reactors and 160 power transformers, with each supplier awarded approximately a quarter of the total volume.
Of this amount, €1.16bn is allocated for German substations and €730m for substations in the Netherlands. In total, 98 power transformers were tendered for Germany, and 61 for the Netherlands. 68 shunt reactors were allocated for the Netherlands, and 38 for Germany. These assets will be deployed not only in maintenance projects but also in new construction projects.
The framework agreement possesses a minimum term of two years and offers the option to extend the contract up to five times, each for one year.
The successful closing of the framework agreement marks a crucial step in optimizing and maintaining TenneT’s transmission grid.
Tim Meyerjürgens, COO of TenneT, explains: “The energy transition requires a complete system overhaul, not only with new power lines but also with state-of-the-art substations. To enable the integration of renewable energies into the transmission grid via the distribution grid, we need a significant number of new high-performance transformers.
“At the same time, our substations will assume system services for frequency and voltage stability, which were previously provided by conventional power plants. For this, we require additional equipment such as shunt reactors.”