TenneT Benefits from Offshore Wind Industry

High-voltage transmission grid operator TenneT continued to provide very high system reliability (99.9999%), benefiting 36 million end-users in the Netherlands and Germany. Financial results in the first half of 2014 were solid. Increases in revenue and EBIT kept pace with the company’s ongoing investments in grid reinforcements and expansions.

Importantly, the Dutch Minister of Economic Affairs also announced his intention to appoint TenneT as grid developer and operator for the offshore electricity grid in the Dutch part of the North Sea. In line with the National Energy Agreement, TenneT expects to construct grid connections for offshore wind farms with a total capacity of 3,450 MW in the Dutch part of the North Sea by 2023, with a required investment volume of EUR 2 to 3 billion.

Highlights:

• TenneT makes additional investments of EUR 760 million in grids in the Netherlands and Germany during first half of 2014
• Underlying operating profit (EBIT) grows from EUR 237 million to EUR 368 million during the same period
• Equity capital base strengthens by up to EUR 384 million through offshore partnership with Copenhagen Infrastructure Partners in DolWin3 project
• TenneT to be appointed as Dutch offshore grid developer and operator

TenneT CEO Mel Kroon commented:

“Next to our large investments in German renewable energy connections, we are very pleased to be appointed for the development and operation of the Dutch offshore grid. As such, TenneT will not only be the most important investor in the transition to a more sustainable energy supply in Germany but also in the Netherlands. Across borders, we are applying our extensive and unique expertise to provide access to electricity generated by wind farms located near and far shore. Thanks to this know-how we can develop an offshore electricity grid in the Netherlands at lower cost, more quickly, in a structured manner, and with less impact on the environment.”