(Source: European Investment Bank)
- EIB signs a €250 million loan agreement with TenneT to finance the 40km high voltage electricity transmission corridor in the north of the Netherlands between Eemshaven and Vierverlaten, as well as the new high voltage substation in Vierverlaten.
- The upgraded energy infrastructure will, amongst others, support the connection of North Sea wind farms to the electricity grid and ensure a high security of supply.
- This financing increases the aggregate total EIB commitment to TenneT projects to €1.8 billion.
The European Investment Bank (EIB) has signed a €250 million loan agreement with TenneT Holding B.V. The financing will be used to build a 40km long electricity transmission corridor from Eemshaven to Vierverlaten in the province of Groningen, in the north of the Netherlands, enabling the transmission of rapidly growing amounts of offshore wind energy to users in the Netherlands and beyond. The new electricity transmission corridor will double the capacity of the existing 220kV circuit. The transmission corridor financed by the EIB includes a new 380kV line from Eemshaven to Vierverlaten, combined with a 110kV line for part of the route, and a new 380/220kV substation in Vierverlaten.
Once the new transmission lines are operational in 2024, the existing smaller capacity lines along the same route will be decommissioned and the project will result in an overall doubling of the capacity of the existing 220kV circuit. The new grid connection will allow for the avoidance of congestion on the Netherlands’ high voltage grid, especially once nearby wind farms under development are brought into operation and the project will further facilitate transfer of green electricity to demand centres. Eemshaven is already an important power generation hub in the Netherlands and this position will only be strengthened as, for example, it recently was designated also as the landing point for the planned offshore wind farm “Ten noorden van de Waddeneilanden” (700MW), by the Dutch Ministry of Economic Affairs.
“Supporting clean energy transmission is one of the key goals for the EIB, as the EU Climate Bank.” stated EIB Vice-President, Kris Peeters. “The Netherlands’ ambitious targets for renewable energy generation would require more investment in the transmission network and I am pleased that the EIB can help provide financing to contribute to achieving these goals. This project will help to bring secure, sustainable electricity to users across the Netherlands and beyond.”
Otto Jager, TenneT’s Chief Financial Officer, added: “TenneT is one of the largest investors in the European energy transition and long term partners as the EIB are needed to help finance this. Today’s transaction underlines our strong relationship with the EIB and we are proud that the EIB is financing this corridor which qualifies as a project of Common Interest of the European Union.”
The EIB has increased its total lending commitment to TenneT, now totalling €1.8 billion. The EIB is TenneT’s largest lender. The EIB commitments are provided for the upgrading and expansion of TenneT’s electricity transmission networks in the Netherlands and Germany as well as (cross country) interconnectors.
The EIB is owned directly by the EU Member States – the Netherlands owns 5.2% of its shares – and with 27 sovereign states as backers can therefore borrow funds at very favourable rates on the capital market. This enables the EIB to provide long-term financing for sound investments that contribute to the European Union’s policy goals. The EIB made approximately €1.9 billion available in loans for projects in the Netherlands in 2020.
TenneT is a leading European grid operator. We are committed to providing a secure and reliable supply of electricity 24 hours a day, 365 days a year, while helping to drive the energy transition in our pursuit of a brighter energy future – more sustainable, reliable and affordable than ever before. In our role as the first cross-border Transmission System Operator (TSO) we design, build, maintain and operate 23,900 km of high-voltage electricity grid in the Netherlands and large parts of Germany, and facilitate the European energy market through our 16 interconnectors to neighbouring countries. We are one of the largest investors in national and international onshore and offshore electricity grids, with a turnover of €4.5 billion and a total asset value of €27 billion. Every day our 5,700 employees take ownership, show courage and make and maintain connections to ensure that the supply and demand of electricity is balanced for over 42 million people. Lighting the way ahead together.