Accelerating the Energy Transition
A tender of over €400 million to the market, how do you approach this?
In the dynamic world of the energy transition, Masters In Lean has made a valuable contribution to increasing predictability and execution capability at Alliander. Masters in Lean consultant Sjoerd started as a business consultant on a project focused on bringing a large number of high-voltage substations to the market through a tender process (contracting for construction), covering a period of at least eight years.
Sjoerd was asked whether he would take on the role of interim (Agile) Product Owner. The goal?
To bring a major tender to market for the client Alliander, covering 180 high-voltage substations with a total value of more than €400 million. A major challenge, so you can probably guess the answer. Without hesitation, Masters In Lean took on this challenge. The preparation phase of such a tender is one of the most critical stages, so the work started immediately!
Alliander is a Dutch grid operator. Liander is responsible for the distribution of energy in the northern, eastern, and western parts of the Netherlands. As a grid operator, it is mainly active in the provinces of Gelderland, Friesland, Flevoland, North Holland, and South Holland. Liander is responsible for the construction, maintenance, and management of these transmission and distribution networks for electricity, gas, and heat.
Challenge
You may wonder: why build 180 additional high-voltage substations? As has been reported in various news reports, the electricity grid in the Netherlands is becoming increasingly congested. The more densely populated the country becomes with housing, the more electricity these homes require, and the more strain is placed on the energy network. This creates the risk that the grid will eventually become overloaded. In some cases, a single substation can supply electricity to as many as 50,000 homes. Alliander’s goal is to realise these 180 new substations by 2030.
The challenge lies, on the one hand, in the risk profile of this project. In such a large-scale tender, the difficulty often lies in finding the right parties capable of executing the work, both in terms of capacity and quality. These are projects where safety is of critical importance. A large number of materials and cables are involved, and any failure can have major consequences. As a result, the safety risk in this case is very high.
On the other hand, the challenge lies in the fact that, as product owner, you work with many different stakeholders and teams, all of whom must move in the same direction toward a shared objective: the tender must contribute to the feasibility, accuracy, and reliability of the execution of the projects.
The biggest personal challenge for Sjoerd was: “The constant change of people in the team, which requires continuous adjustment and re-briefing. There are also frequent changes in the executive layer to which we report, which creates a different dynamic. When many new people join the team, it can lead to information gaps and put project efficiency at risk. In addition, the different perspectives from various organisational units are also a challenge. The task is to arrive at one shared and widely supported solution.”
Solution
With the challenges clearly in focus, Sjoerd and the team adopted a proactive approach. In his role as Product Owner, he and the team worked in a SAFe (Scaled Agile Framework) way, adapted to the specific needs of a non-IT-related project. The emphasis was placed on the tendering process, a complex effort requiring close collaboration within a multifunctional team.
The team consisted of various roles, including operations/business (such as multiple involved roles from Qirion), procurement specialists, contract managers, sourcing professionals, and business consultants, altogether around 10–12 team members. This diverse composition not only brought unique challenges but also required continuous flexibility, alignment, and frequent briefings. It truly was a collective effort, with everyone pulling together toward the same goal.
Results
The journey that started with a challenge evolved into a series of actions and efforts that resulted in a sustainable success for Alliander. With a planned milestone of award, contract start (just before the 2023 construction holiday), and project completion (end of 2023), Sjoerd successfully transferred responsibility for the tender and implementation to a newly established programme team.
The highlight of this project was, of course, the award of the tender in July 2023, with the contract starting after the end of the objection period at the end of July. A celebratory signing in September 2023 marked the official start of the implementation phase. In July 2023, the first preparatory steps were taken for the construction of the high-voltage substations, and in October 2023 the first piles were driven into the ground, marking the official kick-off of the project.
Sjoerd’s motivation came not only from achieving results with a diverse and enjoyable team, but also from the fact that these efforts make a meaningful contribution to the energy transition. Especially at a time when the electricity grid is reaching its limits, the construction of these substations not only supports sustainability but also creates capacity and employment within the grid system.
We provide tailor-made solutions focused on results, at all levels of the organization. I would be happy to have a no-obligation conversation with you!
Loeffen Managing Partner