Dutch grid operator TenneT has taken a significant step towards upgrading power infrastructure in Germany and the Netherlands. The company announced a groundbreaking framework agreement worth €1.9 billion ($2 billion) for the supply of 110 compensation coils and 160 power transformers, crucial components in ensuring a reliable and resilient electrical grid.

This landmark agreement, with a minimum term of two years and the option for up to five extensions of one year each, brings together renowned suppliers in the industry. Siemens Energy, Hitachi, GE, and SGB-SMIT will play pivotal roles in providing these essential components to enhance the grid's capabilities.

TenneT, as Germany's largest high-voltage grid operator, is at the forefront of efforts to modernize power lines, preparing them to connect numerous wind turbines and solar panels. The Chief Operating Officer of TenneT, Tim Meyerjuergens, emphasized the necessity of this transformation, stating, "The energy transition requires a complete system overhaul, not only with new power lines but also with state-of-the-art substations."

Of the total €1.9 billion, €1.16 billion is allocated for German substations, while €730 million is designated for the Netherlands. Each of the four suppliers involved will contribute roughly a quarter of the total volume, ensuring a balanced distribution of responsibilities in this critical grid infrastructure project.

This agreement underscores the commitment to strengthening the grid infrastructure to support the integration of renewable energy sources into the transmission grid via the distribution grid—a crucial aspect of the ongoing energy transition.

Source: reuters.com