TenneT’s €1.9 B substation investment
TenneT has awarded a framework contract worth €1.9 billion for the construction and modernisation of substations.
Image for illustration purposes.
Netherlands, Arnhem: TenneT has awarded a framework contract worth €1.9 billion for the construction and modernisation of substations.
TenneT, together with Siemens Energy, Hitachi Energy, GE Grid and Royal SMIT, has signed a framework agreement worth €1.9 billion for the supply of 110 compensation coils and 160 power transformers for Germany and the Netherlands, with €1.16 billion being allocated for German substations and €730 million for substations in the Netherlands. Each supplier has been awarded approximately a quarter of the total volume. The closing of the framework agreement marks a crucial step in optimizing and maintaining TenneT’s transmission grid. Substations in Germany and the Netherlands must be adapted to meet the growing demands of the energy transition.
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, whiche were previously provided by conventional power plants. For this, we require additional equipment such as compensation coils.” Reflecting on the contract signing, he adds: “With today’s signing of the framework contract, we are sustainably ensuring the construction and modernisation of our substations, driving the energy transition in Germany and the Netherlands.”
The framework agreement underscores the strategic partnership with the four suppliers. It possesses a minimum term of two years and offers the option to extend the contract up to five times, each for one year. In total, 98 transformers were tendered for Germany, and 61 for the Netherlands. 68 compensation coils were allocated for the Netherlands, and 38 for Germany. These assets will be deployed in maintenance projects, and also in new construction projects.
Source: TenneT
#GE Grid#Hitachi Energy#investment#Royal SMIT#Siemens Energy#substation#Tennet