TenneT, the Dutch transmission system operator, has recently finalized a substantial framework agreement valued at nearly €2 billion, aimed at fortifying substation infrastructure in Germany and the Netherlands, in line with the ongoing energy transition.
Under this extensive arrangement, TenneT has entered into agreements with prominent suppliers, including Siemens Energy, Hitachi Energy, GE Grid, and Royal SMIT, to provide a total of 110 shunt reactors and 160 power transformers. Each of these suppliers has been assigned approximately a quarter of the overall volume.
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Of the allocated budget, €1.16 billion has been earmarked for German substation projects, while €730 million will be allocated for substation developments in the Netherlands. This substantial investment will facilitate the acquisition of 98 power transformers for Germany and 61 for the Netherlands. Additionally, 68 shunt reactors will be designated for the Netherlands, with 38 allocated for deployment in Germany. These critical assets will be utilized not only in ongoing maintenance initiatives but also in the construction of new substations, essential for the evolving energy landscape.
The framework agreement carries a minimum duration of two years and offers the flexibility to extend the contract up to five times, with each extension spanning one year.
The successful conclusion of this framework agreement represents a pivotal stride in TenneT's strategic efforts to enhance and sustain its transmission grid.
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Commenting on the significance of this development, Tim Meyerjürgens, COO of TenneT, emphasized, “The energy transition necessitates a comprehensive overhaul of our system, encompassing not only the installation of new power lines but also the establishment of cutting-edge substations. These substations play a vital role in facilitating the integration of renewable energy sources into the transmission grid via the distribution network. We require a substantial number of high-performance transformers to support this transition. Simultaneously, our substations will assume crucial system services, including frequency and voltage stability, previously provided by conventional power plants. This calls for the inclusion of additional equipment such as shunt reactors to ensure a robust and reliable energy infrastructure.”
