German Grid Operator 50Hertz Awards €4.6 Billion Contract for Renewable Power Lines

03 Oct, 2023

German Grid Operator 50Hertz Awards €4.6 Billion Contract for Renewable Power Lines

German power grid operator 50Hertz has announced a significant milestone, signing a substantial 4.6 billion euro ($4.88 billion) contract with Denmark's NKT and Italy's Prysmian Group. This move is part of their ambitious plans to expand high-capacity submarine and land cables, crucial for Germany's transition to renewable energy sources.

These contracts encompass cables that will span a minimum of 3,500 kilometers, with the possibility of extending them by an additional 2,700 kilometers. Notably, this marks the largest single award decision in 50Hertz's history, a testament to the scale and importance of this project.

Germany's goal to generate 100% of its electricity from renewables by 2045 requires efficient transmission of onshore and offshore wind power from the north to the industrial south. The project's timeline envisions the production and installation of these systems commencing in 2025, with full commissioning expected in the mid-2030s.

The chosen technology involves 525-kV cable systems, each with a 2-gigawatt capacity, ideal for long-distance power transmission. These cables boast a remarkable lifespan of 40 to 60 years and will be manufactured in Germany and Sweden.

NKT's role encompasses responsibility for cables in the Baltic Sea, connecting offshore grids off the island of Ruegen and the energy hub on Denmark's Bornholm island, a portfolio valued at 3.5 billion euros. Furthermore, a groundbreaking agreement between Germany and Denmark aims to connect significant wind energy generation capacity on Bornholm to the mainland, with a substantial portion reaching Germany.

Meanwhile, Prysmian Power Link, a subsidiary of Italy's Prysmian Group, will supply and install an offshore grid connection system in the North Sea under a 1.1 billion euro ($1.17 billion) contract. Their projects, NOR-11-1 and DC31, will span approximately 1,000 kilometers, making them the world's largest cable installations of their kind. This signifies a significant step forward in Europe's renewable energy infrastructure, further solidifying its commitment to a sustainable energy future.