TenneT Announces Major Projects to Modernize the Power Grid
The global energy revolution is underway, marked by the growing electrification of industry, the rapid expansion of heat pumps and recharging stations, and a steady increase in solar and wind power generation.
| Sectors | Power Grids, Distribution |
|---|---|
| Themes | Investments & Transactions, Financing, Project Development |
Energy evolution is underway, with the growing electrification of industry, the rapid installation of heat pumps and recharging stations, and the steady increase insolar and wind power generation. However, these developments require a major overhaul of the power grid, which was not originally designed for this purpose.
TenneT’s investment plans
TenneT, the national grid operator, today unveiled its onshore and offshore investment plans for the next ten years, aimed at preparing the power grid for the future. No fewer than 700 major infrastructure projects are planned, including network extensions, replacement investments, new customer connections, offshore wind farms and reconstruction projects.
Upgrading the Power Grid: Key Projects
Among upcoming projects, TenneT will develop five new large-scale “electric highways” (380 kV) over the next decade and upgrade 140 high-voltage substations. This represents a significant increase on the previous 2022 investment plan. Growing demand for additional grid capacity is the main reason for this increase, partly due to the transition to a more sustainable industry and the growth of heat pumps, charging stations, offshore wind turbines and solar farms.
Prioritization in the Growing Portfolio
Due to the demand for network capacity exceeding what can be achieved, the portfolio has been prioritized. To guarantee the reliability of the network, a significant proportion is invested in the maintenance and replacement of the existing network. In addition, high-priority projects, such as the MIEK projects, have been identified in close collaboration with the relevant authorities.
Accelerating Network Expansions
The investment plan also reveals the progress of current projects. Of the 252 network extension projects already planned, 60 have been brought forward compared with the investment plan of two years ago. This is due to both internal and external causes, not least the growing complexity of planning with an increasing number of projects and ever longer delivery times.
To speed up network expansion, outgoing Minister Jetten announced new measures on October 18. TenneT also drew up a seven-point plan earlier this year, in which it puts forward a number of necessary preconditions for the future energy system. Stakeholders can respond to the plans until November 29. The final plan will be submitted to the ACM regulator in early 2024.
