Mitsubishi has come to an agreement with TenneT to invest over $765m in offshore wind power connections in Germany.
The Japanese group will team up with the Dutch transmission system operator (TSO) to develop the high voltage cable projects BorWin 1 and BorWin2, helping to facilitate an essential part of Germany’s plan to transmit renewable power from the country’s north coast.
A contract was also confirmed for an investment in two more offshore projects, HelWin2 and DolWin2.
“This is an important step for our long term partnership with Mitsubishi Corporation,” says TenneT CEO Mel Kroon. “I am pleased that we managed to come to a final close shortly after the recent announcement of necessary improvements of the German Energy Law, which was enacted 1 January 2013.”
A key part of the legislation that came into force at the beginning of the year is a provision capping the liability on TSOs such as TenneT in the event of delayed or damaged offshore grid links, which observers believe will finally allow pension funds, insurance companies and other institutional investors to begin pumping capital into the sector.
TenneT says it is operating two and working on eight further projects to connect wind farms in the North Sea, and has committed almost €6bn in offshore infrastructure.
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