TenneT invests 30% more in grid expansions
In the first six months of fiscal year 2024, TenneT increased its investments, spending €4.6 billion on growth.
Image for illustration purposes.
The Netherlands, Arnhem: In the first six months of fiscal year 2024, TenneT increased its investments, spending €4.6 billion on growth compared to €3.5 billion in the same period of 2023. This is mainly related to higher investments in the 2GW offshore Program and several onshore projects where milestones have been met.
The company enhanced its work pace to deliver grid capacity for customers and prepare the grid for the clean energy system. Strengthened by the increased investments in assets, it maintained a high grid availability in the first half of 2024, even during times of intensive work on the high-voltage grids and grid expansions. Earnings for the first six months of the year were higher than in the same period last year. Underlying EBIT increased by €72 million to €1.002 billion.
For the period until 2045, TenneT plans to construct over 3500 km of grid connections on land and at sea in Germany, and 2500 km in the Netherlands. This requires significant expansion of the onshore grid with hundreds of new transformers and dozens of high-voltage substations, while also building an integrated offshore grid in the North Sea.
In June, discussions between TenneT Holding and the KfW, acting on behalf of the Federal Government of Germany, regarding the full sale of TenneT Germany, were terminated, triggering a reconsideration of the disclosure and presentation policy of TenneT Germany as held for sale. Furthermore, the contribution received from the shareholder, the Dutch state, for an amount of €1.6 billion last year has been reclassified from current financial liability to equity as the shares in TenneT Germany will not be transferred to KfW. The latter was a condition for distribution of the €1.6 billion to the shareholder and that condition will not be met as the negotiations were terminated.
Source: TenneT
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