Dutch transmission system operator (TSO) TenneT has signed a framework agreement worth €1.9bn with Siemens Energy, Hitachi Energy, GE Grid and Royal SMIT for the construction and modernisation of substations.

The framework contract involves the procurement of power transformers and compensation coils for Germany and the Netherlands.

It is executed for a minimum term of two years and offers the possibility to extend the contract up to five times each for one year.

Under the contract, the four suppliers will deliver 110 compensation coils and 160 power transformers for the two countries. Each of the companies secured about a quarter of the total agreement volume.

TenneT said that €1.16bn of the total amount is allocated for German substations while the remaining €730m is assigned for substations in the Netherlands.

The total number of power transformers tendered for Germany and the Netherlands are 98 and 61, respectively. Besides, the Netherlands has bagged 68 compensation coils with 38 coils allocated for Germany.

According to the TSO, the assets will be deployed in maintenance projects as well as in new construction projects.

TenneT COO Tim Meyerjürgens said: “The energy transition requires a complete system overhaul, not only with new power lines but also with state-of-the-art substations.

“To enable the integration of renewable energies into the transmission grid via the distribution grid, we need a significant number of new high-performance transformers.

”At the same time, our substations will assume system services for frequency and voltage stability, which were previously provided by conventional power plants. For this, we require additional equipment such as compensation coils.”

In May this year, TenneT awarded contracts to Allseas and Heerema Marine Contractors for the transportation and installation of at least fourteen 2GW offshore platforms in the German and Dutch parts of the North Sea.