TenneT is set to sign an agreement with Danish power transmission company Energinet.dk to develop an offshore energy hub in the North Sea.

In June 2016, TenneT announced its plan to build large renewable European electricity system, known as North Sea Wind Power Hub, which involves the construction of one or more islands, called Power Link Islands.

The islands with interconnections will be built around Dogger Bank, roughly at the centre of the North Sea.

The wind power generated from the hub will be distributed and transmitted over direct current lines to the North Sea countries of the Netherlands, Denmark, Germany, Great Britain, Norway and Belgium.

TenneT said that the development of North Sea Wind Power Hub will help make the energy transition both feasible and affordable.

TenneT CEO Mel Kroon said: “This project can significantly contribute to a completely renewable supply of electricity in Northwest Europe.”

The firm is also currently under discussions with other potential partners including North Sea transmission system operators and other infrastructure companies.

Energinet.dk CEO Peder Østermark Andreasen said: “Offshore wind has in recent years proved to be increasingly competitive and it is important to us to constantly focus on further reduction in prices of grid connections and interconnections.

“We need innovative and large-scale projects so that offshore wind can play an even bigger part in our future energy supply.”

The trilateral agreement for the construction of the hub is planned to be signed on 23 March 2017 between TenneT Netherlands, Energinet.dk and TenneT Germany during the upcoming North Seas Energy Forum.

Separately, TenneT announced its plan to invest €25bn over the next 10 years, in onshore and offshore grids in the Netherlands and Germany to ensure reliable power supply.

By 2025, TenneT aims to increase its installed offshore transmission capacity in the German North Sea from current 5.2GW to more than 10GW.

Image: Illustration of the Power Link Island in the North Sea. Photo: courtesy of Energinet.dk.