European grid operator Tennet has secured a €250 million ($293.3 million) loan from the European Investment Bank (EIB) to expand the energy transmission network in the Netherlands.
The aim is to ensure increased transportation of offshore wind energy capacity, which continues to see an increase in generation in Eemshaven in the province of Groningen.
A 40km electricity transmission line will be built to deliver electricity from Eemshaven to Vierverlaten. The new electricity transmission corridor will almost double the capacity of the existing 220kV circuit which was also financed by the EIB.
In addition to the new 380kV line, Tennet will also build a new 380/220kV substation in Vierverlaten.
The transmission line is expected to be operational by 2024 when existing smaller capacity lines along the route will be decommissioned.
The project is expected to avoid congestion on the Dutch high voltage grid when more renewable energy projects in the region are brought online.
Renewable energy projects to be developed in Eemshaven include the 700MW ‘Ten noorden van de Waddeneilanden’ offshore wind farm planned by the Dutch Ministry of Economic Affairs.
Kris Peeters, vice president of the EIB, said: “Supporting clean energy transmission is one of the key goals for the EIB, as the EU Climate Bank.
“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 that the project falls under efforts to achieve energy transition goals.
“…we are proud that the EIB is financing this corridor which qualifies as a project of Common Interest of the European Union.”
The loan increases EIB’s funding to Tennet to €1.8 billion ($2.1 billion).
Tennet designs, builds, maintains and operates 23,900 km of high-voltage electricity grid in the Netherlands and large parts of Germany, and facilitates the European energy market through 16 interconnectors to neighbouring countries.