Power Technology

Daily Newsletter

11 August 2023

Daily Newsletter

TenneT awards $1.6bn high-voltage cable orders to eight companies

The eight companies will supply cables for 900km of connections in Germany and 4,000km in the Netherlands.

Transmission system operator (TSO) TenneT has chosen eight companies to supply high-voltage alternating current (AC) cables in Germany and the Netherlands on projects worth a total of €1.5bn ($1.6bn).

The companies selected following a tender are Brugg Kabel, LS Cable & System, NKT, Prysmian Netherlands, Südkabel, Taihan Netherlands, TBEA Shandong Luneng Taishan Cable and TKF BV Twentsche Kabelfabriek.

They were chosen under a corporate framework agreement that takes account of the availability of materials as well as resources to complete projects on time.

TenneT plans to build 900km of connections in Germany and 4,000km in the Netherlands.

Under the multi-year contracts, the companies will supply and install cables for 110, 150, 220 and 380kV onshore high-voltage AC connections across the two countries.

TenneT supply chain management director Sjouke Bootsma stated: “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.”

The grid operator is developing long-term relationships with its contract partners and will be investing in smart ways of working and fast deliveries.

This approach helps the companies to adjust their production processes and machinery, and to prioritise innovation. This will translate into enhanced materials and design optimisation in the future.

TenneT also anticipates more scope for the development of longer cables, with single pieces up to 5,000m in length.

The company stated that “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."

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.