TenneT’s Post

Wild developments in Dutch grid-connected batteries: 3 GW of capacity has its realisation quote for a grid connection signed (= under or close to construction) and a further 23.6(!) GW is now in queue (basic design quote signed) with transmission grid operator TenneT TSO B.V.. However, TenneT estimates that - by 2030 - only* 4 GW will be 'likely economically viable', due to the limited demand for ancillary services and balancing supply and demand. Above that, batteries would start to cannibalize each other's business case. TenneT sees a growing economic potential after 2030. *) Still a lot compared to the current 0.3 GW... #batteries #energystorage #electricity #BESS https://lnkd.in/eQ_JEm8c

TenneT recently released its forecast for Dutch #gridfees in 2025, which show a decrease compared to 2024, but less so than we had expected in our forecast from Feb-24. Our forecast was based on earlier released cost estimates from Autoriteit Consument & Markt (ACM) and Tennet. Since then multiple drivers have pushed up the costs for 2025 (for details see the slide below): 💸 Although this was framed as an exception in 2024, Tennet for 2025 would again like to introduce a 40% #prepayment of the next year’s energy correction. The prepayment raises costs for 2025, but lowers it for 2026. 🌊 Compared to Tennet’s forecast from last year the expected cost of the #offshoregrid in 2025/26 increased by 40%. 🏗 Tennet’s latest data indicates higher costs for other components in 2025 than based on the 2024 budget. 💼 On the plus side, Tennet expects the CAPEX method correction to be lower than the ACM’s forecast of last year. Note that these costs are still not definitive. Interested to know more about grid fees in the Netherlands? Feel free to reach out. We would be happy to support you on figuring out how these might impact your business and what can be expected in the years after 2026.

#mustread for everybody that wants to better understand the value drivers for flexible capacity resources - like gas power stations and batteries - and how market parties make money with asset-backed trading! As TenneT TSO B.V. we will start to use the framework from this paper in our #monitoringleveringszekerheid to evaluate the economic viability of the various assets in the power system and improve the quality of our national adequacy assessment.

Thrilled to share the latest contribution from our Market Analysis team at TenneT: a whitepaper outlining a new perspective for analysing the economic viability of power plants and other capacity resources in resource adequacy studies, all with the goal of better assessing the risks to future security of supply 💡 Some key highlights: 🛠 We introduce a new framework for high-level economic viability analysis (EVA) based on seven key value drivers, offering a simple but structured way to view potential market values and revenue streams. 🔍 Detailed exploration of the economic underpinnings for diverse types of capacity resources from renewables to flexible power plants. In particular we explain the key role of extrinsic or 'optionality' value for flexible power plants, which can constitute a significant share of a plant's total value. 💰 📘 Complete with some concrete examples and methodologies for quantifying the value drivers, it should be interesting for electricity market novices and experts alike keen on expanding their knowledge of the complex world of electricity markets and trading 📈    Big thanks to Remco Frenken from Gleam Consultancy & Management and my colleague Tjerk den Boer for their input, as well as several industry experts and market parties who provided valuable feedback! 👏  At TenneT we're always looking at how we can do better so if you have any feedback on our methodology, please let us know via the email address provided. You can download the whitepaper here:  https://lnkd.in/dC_NqAh7 #ResourceAdequacy #EconomicViability #PowerSystemReliability #ElectricityMarkets #TenneT #TSO 

At TenneT we are partner of the industrial transformation in #Europe. That is why I am happy to sign the #AntwerpDeclaration for a European Industrial Deal 🇪🇺🏭🤝on behalf of the TenneT employees. Together with more than 400 signatories from industries all over Europe, we support the call for a comprehensive action plan to strengthen Europe's competitiveness. TenneT is already contributing to the success of the industrial transformation with cost-efficient #grid operation and expansion. We are focusing on an integrated #climate-neutral system that takes a holistic view of #electricity, gas and heat and at the same time ensures security of supply. I am convinced that a EU Industrial Deal harmonized with the EU #GreenDeal can strengthen Europe's innovative capacity and industrial strength. #LightingTheWayAheadTogether #industry

🌟 Big changes ahead in the energy market! 🌟 The balancing services market has just become more efficient with TenneT's new Merit Order List (MOL) methodology for both #aFRR & #mFRR capacity markets. One of the most impactful changes? Capacity prices now reflect true market dynamics, no longer controlled by a few market players. This marks a huge leap toward a more competitive and transparent energy landscape! ⚡ What does this mean for the market? 🔹More competitive capacity market: The new system challenges the dominance of big players who have long relied on indivisible bids. 🔹Increased flexibility: Independent bids for different asset groups allow for more nuanced market participation and will increase the liquidity. 🔹Efficient resource allocation: TenneT's merit order list method ensures an optimal selection of capacity bids. At #Flexcity, we were ready from the start. After months of preparation and dedicated effort, we’re proud to have embraced this shift from day one. This is a significant achievement for us as a Balance Service Provider, enabling us to unlock even more value for our partners in this evolving market. 💡 Ready to seize new opportunities? Get in touch [email protected] and learn how Flexcity can elevate your energy strategy #BalancingServices #TenneT #EnergyFlexibility #Innovation #NL

Recent updates highlight major advancements in energy infrastructure that are poised to impact the European and South American markets: Significant Investment Surge by TenneT TSO GmbH to Expand European Grid Looking ahead, TenneT is focused on significant expansions to support the European energy transition. By 2045, the company aims to construct over 3,500 kilometers of new grid connections in Germany and 2,500 kilometers in the Netherlands, along with numerous new transformers and high-voltage substations. This ambitious plan also includes developing an integrated offshore grid in the North Sea. Read more: https://lnkd.in/dAjtVnBp WEG Chile SpA Supplies Massive Transformer for Wind Farm in Chile This key piece of equipment, a 435-ton transformer, will play a critical role in harnessing and converting wind energy into a stable power supply for the region. Read more: https://lnkd.in/dHpGxBYa #EnergyInfrastructure #RenewableEnergy #GridExpansion #WindEnergy #Sustainability #CleanTech #EnergyInnovation

“…Two of Germany’s biggest utilities are putting deals worth billions of euros on hold after the government failed to buy part of Tennet Holding BV, operator of the country’s biggest power-grid network. EnBW Baden-Württemberg AG and RWE AG have delayed plans to sell their stakes in German transmission grids while they await clarity on Berlin’s next steps, according to people familiar with the matter. Germany, Europe’s largest economy, is planning to merge the nation’s four high-voltage networks as it seeks to achieve carbon neutrality by 2045. The overhaul could cost as much as €300 billion ($333 billion), but the needs are acute: existing infrastructure is aging and power demand is set to soar as the nation seeks to link its industrial heartland in the south with wind energy in the north. In June, Chancellor Olaf Scholz’s ruling coalition ditched plans to buy the full German unit of Dutch state-owned Tennet after it proved to be too expensive. Officials are still considering a minority share, but the collapse of the deal — a political setback for the government — is now stalling other negotiations. EnBW has been looking to sell part or all of its remaining stake in grid operator TransnetBW GmbH, said people who declined to be named as the matter is private. Last year, state-owned bank KfW paid about €3 billion for a 25% share of the network in southwest Germany. Meanwhile, RWE is exploring “various options” for its 25.1% share in grid operator Amprion GmbH, which covers much of the west, Chief Financial Officer Michael Müller told reporters on an earnings call earlier this month. The stake was valued at around €1.6 billion, Bernstein analysts including Deepa Venkateswaran said in a research note in May. Both companies have parked their sales efforts due to the deadlock surrounding Tennet in Germany, the people said. Both RWE and EnBW declined to comment. The two utilities — which don’t have their own transmission lines — are investors in the grid operators. They have an interest in selling these stakes to help finance hefty investments in their own transformation as part of the energy transition. RWE is planning to spend as much as €55 billion and EnBW up to €40 billion by 2030.”

📈 Today, our Integrated Annual Report is published. Increasing electrification continues to drive a strongly growing demand for transmission and connection capacity. With safe working for all involved at the forefront, TenneT is accelerating grid capacity expansion through a multitude of projects, prioritizing speed and delivery. 🚀 Our focus: build, build, build. Realism and transparency guide us in ensuring feasibility, delivery, and affordability. Timing and execution may shift, but TenneT's investments secure not just affordability today, but long-term sustainability, energy security and a competitive industry. 🌍💡 #AnnualReport #SustainableEnergy #TenneT #EnergisingTodayAndTomorrow