Transmission system operator (TSO) TenneT Holding BV is planning a large-scale tender to seek partners to connect 40 GW of offshore expansion in the German and Dutch portions of the North Sea.
The tender with a total order value of up to EUR 30 billion (USD 31.56bn) will be aimed at ensuring that the resources and supply chains necessary for such a huge expansion will be developed and available.
For this purpose, TenneT plans to enter into a cooperation agreement with key market partners for a period of up to eight years in the areas of offshore platforms and onshore stations, as well as converters.
The announcement follows a decision by Germany, Denmark, Belgium and the Netherlands to pursue a tenfold rise in the installed wind capacity in the North Sea by 2050. The four countries pledged last month to reach at least 65 GW of offshore wind capacity by the end of the decade. TenneT will be responsible for almost two-thirds of the goal, ensuring the connection of 20 GW of offshore wind in each of the German and Dutch waters of the North Sea.
"In order to meet the challenges posed by this major expansion target and achieve its goals, we are breaking new ground in cooperation with our industry partners, sending a strong signal to the market with a large-scale tender. The goal is to set out a new kind of framework agreement that allows for scaling through efficiently expanding these new offshore systems - both for technology companies and for other transmission system operators," said COO Tim Meyerjuergens.
With this approach, TenneT aims to provide investment security and planning acceleration to the market.
TenneT's offshore grid capacity in the North Sea now includes around 7.2 GW in German waters and about 2.5 GW off the Dutch coast.
(EUR 1 = USD 1.052)
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