System operator TenneT has signed a multi-year contract (Corporate Framework Agreement) with eight contract partners who will supply and install the cables for the 110, 150, 220 and 380 kV onshore high-voltage AC connections in Germany and the Netherlands in the coming years.
In the coming years, TenneT will construct some 900 km of high-voltage in Germany and will realise some 4,000 km of high-voltage in the Netherlands. This so-called Corporate Framework Agreement, with a total estimated contract value of €1.5 billion, ensures the availability of materials and resources to realise the planned high-voltage projects on time. Half of the award is designated to investments in Germany and the other half to the Netherlands.
The 8 contract partners that were selected following a tendering procedure are: 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), and TKF BV Twentsche Kabelfabriek (The Netherlands).
Sjouke Bootsma, Director Supply Chain management at TenneT is delighted with the outcome of the tender: ‘We need reliable, proactive and innovative partners with high quality and safety standards. We are really looking forward to working closely with the partners in the coming years.’
Speed and simplification of projects
The transition from fossil to renewable energy demands a lot from the power grid. In order to meet the growing electricity demand, TenneT has to substantially expand the high-voltage grid. This not only requires a lot of specialised work, such as engineering work, it also demands speed and simplification in the execution of projects.
By building a long-term relationship with eight contract partners, TenneT expects to invest in smart ways of working and fast deliveries together 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. This should result in a time saving of just under six months.
Due to the larger scope within German projects and projects outside the standard cable system, TenneT works with mini-competitions. Therefore a standardized way of project-specific tendering incl. templates is implemented. This should also result in substantial time savings of around three months on average, TenneT said.
Expanding the electricity grid involves a lot of work. By focusing on long-term partnerships that create a stable collaboration, parties can focus more on innovation and adjust the production process and machinery. Specifically, this will be reflected in improved materials and design optimisation in the coming years.
TenneT also sees more and more opportunities to develop longer cables in one piece (depending on the voltage level) up to 5,000 metres. Currently, cables of around 1,500 metres are used. TenneT expects cables will be laid with a length of 3 to 3.5 kilometres within two years. Lengths that can soon also be realised with drilling. This should provide benefits in the area of unburdening the environment during construction, but also in terms of failures, speed and so on.