South Korean cable maker LS Cable & System said Monday it had won an order worth 2 trillion won ($1.5 billion) as part of the largest-ever transmission network project launched by Dutch state-run grid operator.
The Korean firm is forming a consortium together with Belgian construction companies Jan De Nul and Denys to secure the deal.
The project aims to connect a North Sea offshore wind farm with inland areas of Germany and the Netherlands through high-voltage direct current (HVDC) cables.
LS Cable & System plans to supply 525-kilovolt undersea and underground cables starting in 2026.
Before launching the project, TenneT had requested major wire companies to take a one-year long-term reliability test as a precondition for participating in the bid. LS Cable & System completed the test conducted in accordance with TenneT’s technical specifications and international standards in October last year.
HVDC enables the transmission of large amounts of current over long distances with lower electricity losses compared to transmitting power in alternating current (AC) form. As a result, the demand for HVDC is on the rise for long-range transmission networks. HVDC cables are also used in renewable energy sectors such as offshore wind power and solar power systems.
The transmission voltage has been increased from the existing 320 kilovolts to 525 kilovolts, and Voltage Source Converters technology allows free transmission directional change.
Only a few firms have developed both technologies successfully worldwide, and LS Cable & System is the only Korean company to do so.
The company said it had been preparing for the market's expansion, establishing a factory exclusively for HVDC.
“We are planning to make additional investments as the market is growing rapidly around Europe and North America,” it added.