TenneT and Mitsubishi Corporation have signed a letter of intent to partner up in two more offshore grid connections. The grid connections, named HelWin2 and DolWin2, are both located in the German North Sea and of crucial importance for the integration of renewable energy in the German onshore grid.
In February of this year, TenneT and MC reached commercial agreement on MC’s equity investment in TenneT’s BorWin 1 and BorWin 2 offshore grid connection systems. MC is to acquire 49% of the nominal share capital in these offshore connections, subject to certain conditions. This letter of intent is an important step towards a further equity investment of MC in TenneT’s existing offshore grid investment program. As in the other projects, TenneT would retain majority ownership and would continue to operate these connections.
Renewable energy
The grid connections, Helwin2 and Dolwin2, connect a number of offshore wind farms in the German North Sea to the onshore electricity grid and have a combined total capacity of 1,590 megawatt, involving an aggregate investment of approximately EUR 1.7 billion and an expected third-party equity stake around EUR 340 million. The connections bring enough energy onshore to supply 1.5 million households with renewable energy and are both due to be completed by 2015.
Fulfilment of existing offshore portfolio
Mel Kroon, CEO TenneT, regards the letter of intent as a further step in the development of the German infrastructure for renewable energy: “ TenneT is making an essential contribution to the energy transition in Germany, by bringing offshore wind energy onshore and strengthening onshore connections. This letter of intent is a next and logical step in the partnership with MC and another crucial step towards fulfilment of our existing offshore project portfolio. With this letter TenneT continues to fulfil the equity raising schedule announced last year, involving an equity injection of EUR 600 million by the shareholder, confirmed last year and MC’s recent equity participation of EUR 240 million in Borwin1 and Borwin2. Furthermore it demonstrates that this new concept, allowing investors to invest in separate clusters of regulated assets, is indeed attractive. We expect that the talks with MC will result in an agreement this year “.
Offshore grid connections
Currently TenneT is working on nine projects to connect wind farms in the German North Sea. These essential projects total to 5,000 megawatt of renewable electricity, enough energy to supply 5 million households. With these projects TenneT contributes with a unprecedented amount of over 5.5 billion Euros to the German energy transition.
[mappress] Offshore WIND Staff, March 06, 2012; Image: TenneT