TenneT plans to invest $24bn in electricity infrastructure over next decade
The Dutch government-owned electrical grids TenneT has announced its plan to invest €22bn ($24.25bn) in new onshore and offshore electricity infrastructure the coming decade.
The proposed plan follows TenneT's announcement of increased 2015 revenue.
TenneT said that revenue has increased from €2.32bn in 2014 to €3.29bn ($3.63bn), mainly due to the growing asset base as a result of investments.
The Transmission system operator also said it invested a record €2.4bn in 2015 for the maintenance and expansion of high-voltage grids.
TenneT intends to finance the latest investment program by the issuance of more green bonds, among others.
In Germany, TenneT plans to install 7.1GW of offshore connection capacity by 2019, exceeding the government's aim of 6.5GW of installed offshore wind energy capacity by 2020.
At present, TenneT operates 40% of electricity grid in Germany, reported Reuters.
The firm is also planning to undertake projects in the Netherlands including maintenance of the existing onshore grid, as well as expansion of grids to accommodate larger and more volatile electricity flows.
TenneT CFO Otto Jager commented: "Our financial performance is in line with the growth in our asset base. We have a stable basis to finance our investment portfolio the coming years, through debt from institutional investors and equity from retained earnings.
"On the Dutch side, we expect part of the required financing to be provided by a capital contribution from our shareholder within the coming years."
By 2023, the Dutch Government expects to have 3.5GW of installed offshore wind capacity.
Image: TenneT has invested €2.4bn for maintenance and expansion of high-voltage grids in 2015. Photo: courtesy of Witthaya Phonsawat/ FreeDigitalPhotos.net.