Mitsubishi pledges support to TenneT

Thursday, 24 January, 2013 - 15:15
TenneT has found an investor for four of the eight grid connections it must install to German offshore wind farms. (Graphic: TenneT)

The grid operator TenneT will receive a cash injection from the Mitsubishi Corporation to connect four German offshore wind farms to the grid. The Japanese corporation will stump up a total of €576 million for the BorWin 1 and 2 projects , as well as HelWin 2 and DolWin 2.
 
For its 49% stake in the BorWin projects Mitsubishi will invest €240 million. The company will make a further commitment of €336 million for the HelWin 2 and DolWin 2 projects. The four grid connections with a total capacity of 2.8 GW represent a €2.9 billion investment. TenneT holds a 51% stake in all four grid connections, thus retaining its controlling interest.

"I am pleased that we managed to come to a final close shortly after the recent announcement of much-needed improvements to the German energy law enacted on 1 January 2013," says TenneT CEO Mel Kroon. "This is an important step for our long-term partnership with Mitsubishi Corporation," he adds.

"The equity commitment of Mitsubishi Corporation further strengthens our balance sheet and keeps us on the right track to financing our offshore investments," says TenneT CFO Eelco de Boer. "These transactions were developed in close cooperation with the Bundesnetzagentur. They demonstrate that the German legal and regulatory regime is attractive to institutional investors."

Lex Hartmann, TenneT’s director of corporate development, confirmed that the conditions for investors had fundamentally improved in an interview with the Frankfurter Allgemeinen Zeitung. The paper quoted Hartman saying, "This gives me confidence that we'll find investors for the other grid connections." "I'm sure that over the next few months we will conclude other deals to finance additional planned grid connections, such as Dolwin 3 and Borwin 3 and 4," says Hartman.

Katharina Garus

 

TenneT Offshore projects

Capacity

Technology

BorWin1 (in operation)

400 MW

DC

BorWin2

800 MW

DC

DolWin1

800 MW

DC

DolWin2

900 MW

DC

HelWin1

576 MW

DC

HelWin2

690 MW

DC

SylWin1

864 MW

DC

Nordergründe

111 MW

AC

Riffgat

108 MW

AC

Alpha Ventus (in operation)

60 MW

AC

Total capacity

5,309 MW

Total investment [€]

Approx. 5.8 bn


Source: TenneT


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