Siemens Energy Wins Billion-Euro Contract To Supply Technology For North Sea Offshore Grid Connections

20 April 2023: Siemens Energy, in collaboration with Spain’s Dragados Offshore ACS.MC has been awarded contracts with a total value of around 7 billion euros to transport wind farm power to northern Germany.

Siemens Energy has announced that as part of their agreement with TenneT IPO-TTH.AS, they will provide the necessary technology for three offshore grid connections in the North Sea.

As per the statement in the official press release of the company, three offshore grid connections - BalWin3, LanWin2, and LanWin4 - will be utilising high-voltage direct current (HVDC) transmission technology to transport a combined capacity of 6 gigawatts (GW) to the shore.

"In the global race against climate change, grid expansion must be able to keep pace with the accelerated expansion targets for renewable energies. Shorter contracting processes, large-scale tenders and standardisation of solutions show how grid operators and manufacturers are already pulling together to get green energy to consumers faster," said Tim Holt, member of the Siemens Energy Executive Board. He also added that, "However, in order for the industry to continue ramping up capacity, all available levers must now be pulled at the policy level as well - from raw material and skilled labour strategies to further streamlining permitting processes at all levels."

Industry sources report that the contract will be split evenly between Siemens Energy and Dragados Offshore. Siemens Energy will produce the primary electrical parts at their manufacturing units located in Europe, while the construction and installation of the raised platforms close to the wind farms will be managed by Dragados Offshore.

Towards the end of the previous month, TenneT granted 11 agreements worth a combined 23 billion euros to link North Sea wind farms to the network. These were awarded to groups headed by Hitachi Energy and General Electric.

The project underscores Siemens Energy's commitment of providing innovative and sustainable solutions for the future. By leveraging its expertise in offshore wind power and grid connections, Siemens Energy is well-positioned to play a crucial role in the transition towards a more sustainable energy mix.