Offshore deal with Tennet: Siemens Energy secures order worth billions

Offshore deal with Tennet
Siemens Energy secures billion-euro order

The Dutch grid operator Tennet wants to invest billions in expanding wind farms in the North Sea. Siemens Energy is now receiving lucrative orders. The company speaks of a “milestone for the European energy transition”.

The energy technology group Siemens Energy, in a consortium with the Spanish company Dragados Offshore, has received several orders from the Dutch power grid operator Tennet with a total volume of almost seven billion euros. It is about the delivery of technology for three grid connections in the German North Sea, as Siemens Energy announced. The projects should ensure that a total of six gigawatts of offshore wind power can be transported on land.

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According to industry circles, the order amount will go equally to Siemens Energy and Dragados Offshore. “The framework agreement with Tennet is an important milestone for the European energy transition,” said Siemens Energy board member Tim Holt at a Tennet press conference in Berlin. The network expansion must be pushed forward. Siemens Energy relies on partnerships both within Germany and abroad. His company is already working successfully with Dragados Offshore. In January, the companies in the consortium had already received an order from the electricity network operator Amprion for the construction of two converter stations with a volume of over four billion euros.

The three grid connections “BalWin3”, “LanWin2” and “LanWin4” are intended to transport the electricity from wind farms in the German North Sea to grid connection points in Wilhelmshaven and in the Heide area. Each of the systems has a transmission capacity of two gigawatts. Siemens Energy will manufacture the main electrical components, such as switchgear, transformers and converter technology, in its plants in Europe. Dragados Offshore takes on the construction and offshore installation of the platforms.

Tennet had already awarded eleven contracts with a total volume of 23 billion euros for the connection of North Sea wind farms at the end of March. These went to consortia led by Hitachi Energy and General Electric. With the three other orders, the total amount increases to around 30 billion euros, explained Tennet board member Tim Meyerjürgens. The result is the transmission capacity of offshore wind energy in the order of 28 large power plants in the German and Dutch North Sea.

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