TenneT has signed a multi-year contract (Corporate Framework Agreement) with eight contract partners following a tendering procedure. These parties will supply and install the cables for the 110, 150, 220 and 380 kV onshore high-voltage AC connections in Germany and the Netherlands on behalf of TenneT in the coming years.

Availability of materials and resources

This so-called Corporate Framework Agreement ensures the availability of materials and resources to realise the planned high-voltage projects on time. In the coming years, we will construct about 900 km of high-voltage lines in Germany, and TenneT will build about 4,000 km of high-voltage lines in the Netherlands. This extensive award has a total estimated contract value of €1.5 billion, with one-half designated for investments in Germany and the other half for the Netherlands. 

Speed and simplification of projects

The transition from fossil to renewable energy places heavy demands on the power grid. Households are switching to heat pumps, roofs are full of solar panels, wind farms provide sustainably generated energy, and businesses and industries want to switch to electricity en masse. To meet this demand, TenneT has to expand the high-voltage grid substantially. This not only requires a lot of specialised work, such as engineering work, it also demands speed and simplification in the execution of projects.

Partnership – fast deliveries

By building long-term relationships with eight contract partners, TenneT expects to invest in smarter ways of working and faster deliveries with the parties. Especially in times of scarcity and capacity shortages, working together is crucial. Within the Framework Agreements, suppliers know what their portfolio will look like in the coming years. With that knowledge, market parties can stock up on standard materials. Although we have no obligation to purchase this way, we make it easier and more efficient for projects. Selected projects can then have their cables delivered on demand, which, compared to the current way of working, saves just under six months. Because German projects and projects outside the standard cable system have a larger scope, we run mini-competitions. Therefore, we implement a standardised, project-specific tendering process, incl. templates. This also results in substantial time savings of around three months on average.

Technical developments

TenneT realises that expanding the electricity grid involves a lot of work. That is one reason for working closely with these specialised companies. By focusing on long-term partnerships that create stable collaboration, parties can focus more on innovation and adjust production processes and machinery. Specifically, this will be reflected in improved materials and design optimisation in the coming years. More importantly, we see more and more opportunities to develop longer cables in one piece (depending on the voltage level), up to 5,000 metres.

While we still work with cables of around 1,500 metres, within two years we will be laying cables 3 to 3.5 kilometres long. Lengths that can soon also be realised with drilling. And that really is a step forward in terms of burdening the environment during construction, but also in terms of failures, speed, etc.

In the coming years, the following companies will supply the cables for TenneT’s projects:

  • Brugg Kabel GmbH (Germany/Switzerland)
  • LS Cable & System Ltd. (South Korea)
  • NKT GmbH & Co. KG (Germany)
  • Prysmian Netherlands B.V. (The Netherlands)
  • Südkabel GmbH (Germany)
  • Taihan Netherlands B.V. (The Netherlands/South Korea)
  • TBEA Shandong Luneng Taishan Cable Co., Ltd. (China)
  • TKF BV Twentsche Kabelfabriek (The Netherlands)

Original announcement: TenneT
Image: Courtesy of TenneT

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