TenneT’s maximum revenue from the offshore grid is EUR 22 million

In 2017, Dutch transmission system operator TenneT is allowed a maximum revenue of more than EUR 22 million for its tasks associated with constructing and operating the offshore grid. This has been announced today by the Netherlands Authority for Consumers and Markets (ACM). TenneT is expected to get these revenues through a subsidy from the Minister of Economic Affairs.

ACM’s has set the maximum revenue for TenneT as the operator of the offshore grid using the method decision that ACM released in October 2016. This method decision contains the rules that ACM has set for calculating the maximum revenue of TenneT for 2017. ACM has decided that the reasonable return that applies to the onshore grid will also apply to the offshore grid. Furthermore, ACM has opted for a compensation for the operating costs without a financial settlement afterwards, since this will stimulate TenneT to keep costs efficient.

Recouping efficient investments

The current Dutch administration aims to have an additional 3,500 MW of wind capacity built offshore. This will help towards the government’s plans to have 16 percent of its energy mix come from renewable sources by 2023. TenneT will build a transmission grid between the offshore wind turbines and the onshore grid. ACM regulates TenneT because the operator enjoys a monopoly position. TenneT has to recoup its investments in the construction of the offshore grid, insofar such investments are efficient. As soon as the offshore grid becomes operational, ACM will assess the efficiency of the costs incurred by the grid operator. In this way, ACM helps create an affordable, secure, and sustainable supply of energy.