On July 27, the Dutch TSO, TenneT, published initial drafts of an offshore realization agreement (“Offshore REA”), offshore connection & transmission agreement (“Offshore CTA”) and offshore general terms & conditions (“Offshore GTC”), for public consultation. The realization agreement should be distinguished from the realization agreement published by the Dutch Ministry of Economic Affairs and reported in our Alert two weeks ago. Interested parties can submit written comments on these TenneT drafts by using the templates provided by TenneT, up to the date of the legal expert meetings organized by Tennet, of which the first is to take place after this summer.

In addition to the realization agreement published by the Dutch Ministry, parties developing a wind farm on the Borssele offshore site will be requested to enter into the Offshore REA, CTA and GTC, now published by TenneT. These documents are largely based on precedents used by TenneT and the proposal to overhaul the Electricity Act and Gas Act is currently under review by the Dutch Parliament.  

The Offshore REA and CTA are quite brief agreements setting out the basics for realization of the connection of the wind farm and the subsequent connection and transport of electricity. Some of the issues they raise involve TenneT's right to amend the design, to receive full reimbursement of costs and its rights to commissioning and compliance testing. The Offshore CTA (but not the Offshore REA) contains a step-in provision for the lenders, which is most likely a result of the lessons-learned from recent larger project-financed wind farm projects. The draft Offshore GTC are more comprehensive and merit a closer look in such areas as the standard of care of the TSO, its suspension and termination rights, and its limitations on liability.