The European Investment Bank (EIB) has signed a EUR 250 million loan agreement with TenneT for the western section of the Zuidwest 380kV offshore grid project in the Netherlands.
The financing will support the construction of a new 380kV transmission line, combined with a 150kV line for part of the route, from the substation at Borssele to a new substation at Rilland.
According to EIB, one of the main reasons for the upgrade is the ongoing growth of offshore wind power generation capacity off the Dutch southwest coast as part of the 1.4GW Borssele Wind Farm Zone.
The new grid connection is expected to allow for the avoidance of congestion on the high voltage grid once the wind farms are in operation and will facilitate the transfer of offshore electricity to demand centers.
“The switch from traditional fossil fuels to renewable energy sources is one of the biggest challenges the world is currently facing. It is an immense task for transmission system operators ,” said Otto Jager , CFO of TenneT.
“This project in the southwest of the Netherlands will support us in maintaining our strong track record in the availability of our electricity grids. At the same time, this connection facilitates the integration of sustainable offshore wind energy into the Dutch electricity system.”
This financing increases the total EIB commitment to TenneT projects to EUR 1.8 billion, used for the upgrading and expansion of the company’s electricity transmission networks in the Netherlands and Germany as well as interconnectors.