TenneT plans to invest Eur16 billion ($22.3 billion) into the German and Dutch power grids over the next decade, the Dutch state-owned transmission system operator said Wednesday.
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Of this, TenneT expects to invest Eur5 billion in the Dutch high-voltage grid and Eur11 billion in its grid in Germany, of which Eur7.5 billion are estimated for offshore wind connections, it said in its annual report. "The European energy sector is facing the unprecedented consequences of the changes on the energy markets," said TenneT CEO Mel Kroon.
"The relatively low price for coal vis-a-vis natural gas and diverging national energy policies -- which may include sometimes drastic but often temporary incentive and subsidy schemes for sustainable energy -- lead to an uncertain investment climate."
"The current situation in Europe is that grids as well as power markets are linked, but energy policies are not," the TenneT CEO added. The grid operator is working steadily toward the integration of European electricity markets, it said.
As a case in point, in 2016 a new Dutch-German interconnector will be operational, while a capacity upgrade of an existing interconnection is also planned for the near future, it said.
Furthermore, TenneT has advanced plans for a subsea DC cable between Germany and Norway (NordLink), and it is investigating the possibility for a subsea cable from the Netherlands to Denmark (COBRAcable), it said.
In Germany, TenneT is expected to deliver 8 GW of transmission capacity for offshore wind farms in the German North Sea.
It has also taken the first steps towards the development of an 800-km (496-mile) direct current link from the north of Germany to the south. The so-called SuedLink project is envisaged to have two 2 GW lines to be developed with TransnetBW, it added.
In the past year, Tennet invested Eur1.88 billion of which Eur1.33 billion were in German offshore grid connections, it said.
Considering the higher level of investment in Germany compared with the Netherlands, revenues and EBIT in Germany have increased at a relatively higher pace, it added.
In 2013, 29% of revenues were generated in the Netherlands and 71% in Germany, TenneT said.
Overall, underlying EBIT increased to Eur620 million from Eur363 million in 2012, while underlying revenues increased to Eur2.2 billion from Eur1.8 billion in 2012, it said in its annual report.
The Dutch state-owned grid operator bought E.ON's high-voltage grid in Germany in 2010 for Eur885 million.
With approximately 21,000 km of high-voltage lines and 36 million end users in the Netherlands and Germany its ranks among the top five grid operators in Europe.
--Andreas Franke, firstname.lastname@example.org
--Edited by Jonathan Dart, email@example.com
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