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TenneT Awards EUR 23 Billion in Contracts for Offshore Wind Grid Connections in North Sea

Illustration courtesy TenneT

TenneT Awards EUR 23 Billion in Contracts for Offshore Wind Grid Connections in North Sea

Mike Schuler
Total Views: 1291
March 30, 2023

TenneT, a leading Transmission System Operator (TSO), has awarded multiple multi-year contracts for the development of onshore and offshore converter stations and high voltage direct current (HVDC) technology totaling 22 gigawatts (GW).

These efforts will support the transformation of the North Sea into Europe’s green energy hub and help the region reach its offshore wind energy target of 65GW by 2030.

The awarded projects, valued at EUR 23 billion, are part of TenneT’s innovative 2GW Program, which aims to create a new market standard for offshore grid connection systems.

Hitachi Energy, Petrofac, and consortia of GE/Sembcorp Marine Offshore Platforms (SMOP) and GE/McDermott will collaborate with TenneT to connect eleven offshore wind farms in the Netherlands and Germany by 2031. TenneT’s 2GW Program consists of a standardized platform and a new certified cable system with a higher transmission capacity, crucial for the offshore energy transition.

Map courtesy TenneT

Sembcorp Marine called the award a landmark offshore renewables project to build the biggest and most advanced HVDC electrical transmission system and its largest offshore renewables endeavor to date. A Framework Cooperation Agreement (FCA) with GE/SMOP, valued at approximately EUR 6 billion, covers a five-year period with the option to extend for another three years. It includes three contracts to supply HVDC electrical transmission systems for three offshore wind farm projects in the Netherlands with a combined capacity of 6 GW.

The HVDC Offshore Converter Platforms will comprise a 25,500-tonne topside and a 9,500-tonne jacket foundation structure piled into the seabed. Construction of the platforms is set to commence from Q3 2024 at Sembcorp Marine’s Singapore and Batam, Indonesia yards. Offshore completion is expected between Q4 2029 and 2031.

“These are our largest and most advanced state-of-the-art offshore renewable energy projects to date,” said Sembcorp Marine Chief Executive Officer Chris Ong. “We thank GE and TenneT for their trust and confidence in our offshore construction capabilities.”

The consortium formed by GE and McDermott have been awarded two further HVDC contracts in Germany for a total of approximately EUR 4 billion.

“Together with our consortium partners Sembcorp Marine and McDermott, we are honored and pleased to play a key role in this critical infrastructure project for European energy security and decarbonization,” said Philippe Piron, CEO of GE Grid Solutions. “These awards confirm that GE’s Voltage-Sourced Converter HVDC technology is now recognized as one of the most advanced in the world.”

Petrofac and Hitachi Energy have been awarded a multi-year Framework Agreement covering six projects, each comprising the Engineering, Procurement, Construction and Installation (EPCI) of an offshore HVDC transmission station, onshore converter station and associated infrastructure. Each project will be executed under a standalone contract valued at over EUR 2 billion, totaling EUR 13 billion.

This groundbreaking program reinforces TenneT’s position as a frontrunner in offshore grid development and sets the stage for a new European energy landscape, as Europe strives to become the world’s first climate-neutral continent.

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