TenneT planning €200bn investment over next decade
Image credit: 123rf.com
TSO TenneT has announced a €200 billion ($216.9 billion) investment plan for grid expansions across their operations in the Netherlands and Germany until 2034.
TenneT announced the investment plan alongside their results for 2024.
In the Netherlands, the company cites their onshore and offshore investment plans that have been approved by the Dutch regulator ACM, including grid extensions, replacement investments, new customer connections and connection systems for offshore wind energy.
Among other things, TenneT will develop five larger new electricity highways (380kV) over the next ten years and is in the process of modernising and expanding the capacity of 140 high-voltage substations.
In Germany, TenneT and the other three TSOs presented their Grid Development Plan (NEP) 2037/2045 to the Federal Network Agency (BNetzA).
The investment plan was announced alongside the company’s results for 2024, which were below expectations.
The company’s underlying revenue for the year decreased by €792 million ($895.7 million) to €8.4 billion ($9.1 billion). Underlying revenue in 2023 reached €9.2 billion ($9.9 billion) in 2023.
The result says the decrease in revenue comes courtesy of falling energy prices.
Have you read:
TenneT looks to optical networking to communicate with offshore grid assets
50Hertz and TenneT launch Green Grid Compass for electricity bidding data
According to the company, in 2024, the overall costs for ancillary services such as redispatch, grid losses, reserve power plants and control power decreased, resulting in lower underlying revenue. Additionally, in Germany specifically, revenue decreased due to lower regulatory rates for return on equity.
Last week, German DSO E.ON announced a decrease in their EBITDA, saying they would not raise investments in its next plan due to a lack of visibility on Germany’s future regulatory framework.
TenneT says that to maintain the pace and scale of its investments, it will continue raising debt and equity.
Commenting in the company’s annual report was Arina Freitag, TenneT’s chief financial officer:
“Electricity grids are at the core if we want to meet the climate target of no more than 1.5 degrees Celsius temperature rise. TenneT‘s large scale investments in the energy transition are therefore no-regret. For more and smarter grids to be realised, we need to mobilise private capital for TenneT Germany.”
Since January 1st, TenneT has operated via two national organisations in the Netherlands and Germany to facilitate growth and the sale of its German arm after negotiations with German state-owned bank KfW fell through in June, 2024.
According to Reuters reportage, however, company executives have said the door remains open to the German state to buy its operations in the country.
In 2024, TenneT and the Dutch state agreed upon two shareholder loan facilities totalling €44 billion to safeguard the financing of TenneT’s planned investments in the Netherlands and Germany up to and including 2026. The loans drawn from the facility are granted at market conditions.
