TenneT creates, invests and researches for the energy future

12.03.2020

Promoting the energy transition is a priority objective of TSCNET shareholder TenneT, the Dutch-German transmission system operator (TSO). This is clearly reflected in the TSO’s just-published Integrated Annual Report. As in recent years, the Annual Report is accompanied by the Green Finance Report 2019.

In line with the energy policy and climate goals of the Netherlands and Germany, TenneT increased its investments yet again in 2019 and spent €3.1bn on the energy transition and supply security (grid availability of 99.9998% in 2019). This financial commitment is even to be stepped up: TenneT is planning annual investments of €4bn to €5bn for the future. The financial performance of the company, with revenues of €4.1bn in 2019 and an EBIT (excluding special effects) of €753m, supports these ambitious plans. Manon van Beek, CEO of TenneT, has every reason to be content with the sound development of the TSO: “We have made great strides again in pursuing our ambition to achieve a sustainable energy future for everyone. Not only in realising and developing new onshore and offshore connections, but also by the required far-reaching international cooperation and working on innovations in close coordination with relevant stakeholders.”

As regards offshore connections, TenneT has already exceeded in 2019 the German government’s expansion target for offshore wind power capacity in the North and Baltic Sea, which is 6.5GW for 2020. With last year’s commissioning of BorWin 3, TenneT’s ninth offshore grid connection system in DC technology, the TSO now has a total of twelve offshore grid connections in operation (nine in DC and three in AC technology) with a total capacity of 7.1GW. But TenneT is not resting on its successes to date: The connection systems DolWin5, DolWin6, and BorWin5 are being developed and will increase the offshore transmission capacity provided by TenneT for wind farms in the German North Sea to almost 10GW by 2025. In addition, Borssele Alpha, TenneT’s first offshore connection system in AC technology in the Dutch North Sea, was installed on schedule and is now ready for operation. Borssele Beta will be completed in 2020.

Onshore, TenneT has eight transmission lines under construction in Germany, more than ever before. In the Netherlands, the 60km-long Randstad 380kV North Ring power line was put into operation, reliably supplying Europe’s most densely populated area with electricity and providing transmission capacity for green energy. At European level, the “green” COBRAcable deserves special mention, which since 2019 directly connects the Dutch and Danish markets for the first time. The German and Norwegian markets will also be directly connected by the NordLink cable, which is currently under construction. On top of this, a proof-of-concept for the North Sea Wind Power Hub has shown the technical feasibility of the concept of multiple wind power distribution hubs in the North Sea.

All these grid expansion projects are complemented by innovative solutions and intensive research to better utilise TenneT’s existing transmission system. These include vehicle-to-grid pilots, the deployment of home storage systems in grid stabilisation and digital solutions for higher grid utilisation. Another long-term innovation project is Element One, a 100MW electrolysis plant to be built in Germany to promote an integrated energy system.

TenneT presents Integrated Annual Report 2019 and Green Finance Report 2019 (picture: TenneT)

Linkup
> See TenneT press release (html)
> Visit Integrated Annual Report 2019 site (html)
> Direct access to the report download (html)
> Open Green Finance Report 2019 (pdf, 802.38kB)

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50Hertz: More renewables, less redispatch

10.03.2020

For 50Hertz, the transmission system operator (TSO) from the north-east of Germany, the 2019 business year was successful in two respects: More renewable power than ever before was transmitted by 50Hertz. At the same time, fewer and fewer redispatch measures were required for congestion management. This of course also means that the TSCNET shareholder was able to continuously reduce its redispatch costs.

At the 50 Hertz annual media conference in the German capital of Berlin, the TSO presented the following figures: A total of around 60TWh of renewable energy was fed into the grid, mainly generated by wind and sun. This once again set a record in the 50Hertz control area, where renewable energies already cover up to 60% of the average annual electricity demand. In congestion management, 50Hertz was able to reduce the throttled energy volumes from 4TWh in 2018 to only 2.5TWh in 2019 and cut redispatch costs from €134m to €84m.

Stefan Kapferer, CEO of 50Hertz, commented on the TSO’s success: “The north-east of Germany continues to evolve into a ‘green power plant’ of the energy transition in Germany. Even with a constantly growing share of wind and solar power in the grid, we keep the costs under control. With regard to the time after the exit from coal- and lignite-fired generation, we stand for the security of the power system and create the necessary preconditions.”

50Hertz keeps on creating the technical conditions for future success and is making good progress in grid optimisation, reinforcement and expansion. Last year, the offshore grid connection Ostwind 1 was officially commissioned. In addition, 50Hertz lines and substations have been reinforced. To improve the prognosis of grid losses, artificial intelligence (AI) is used in the 50Hertz grid. All this is not possible without sustained financial commitment. Thanks to consistently good business performance – annual result 2019: €178m (2018: €238m) – the TSO will significantly increase its infrastructure investments: In the period 2020 to 2024, investments will grow by €1.1bn to €4.2bn compared to the time span 2015 to 2019.

50Hertz presents impressive figures for 2019 and announces increased investments (picture of Kerstin Maria Rippel, Head of Communications & Public Affairs at 50Hertz, 50Hertz CEO Stefan Kapferer, 50Hertz CFO Marco Nix, and Chris Peeters, CEO of Elia Group: 50Hertz / Jan Pauls)

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Investing for the energy future

27.06.2019

TSCNET shareholder Amprion, one of the four German transmission system operators (TSOs), presents its Annual Report 2018 on a specially designed website. What, from a TSO’s perspective, is most necessary for the successful energy transition in Germany – the sustainable expansion of the transmission system so that green electricity can be provided nationwide – is clearly reflected in Amprion’s figures for 2018: Amprion further increased its investments in grid extension, which amounted to €763m in 2018 and were 8.5% higher than in the previous year.

However, it is not sufficient for TSOs alone to fulfil their role, especially as grid extension needs to be accelerated significantly to keep pace with the expansion of the renewables. Politics must also help by setting the right course to promote the cross-sector transformation of the energy system. Amprion therefore calls for a national master plan for electricity and gas. Dr. Klaus Kleinekorte, CTO at Amprion, explains: “It is not enough just to connect renewable energies to the grid. From our system responsibility, we have the task of integrating them into the energy system.” This requires innovative concepts and technologies such as power-to-gas.

Dr. Hans-Jürgen Brick, Chief Commercial Officer and CFO of Amprion, adds at the company’s annual press conference in the German capital of Berlin, that the expansion of the electricity system as outlined in the German Network Development Plan remains the indispensable basis for achieving the climate targets and the secure and cost-effective power supply of the German conurbations. “Amprion is thus investing more than €9.3bn in its grid over the next ten years.”

Amprion presents Annual Report 2018 (picture: Amprion)

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> See Amprion press release, in German (html)
> Visit Annual Report 2018 site, in German (html, with download options)

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50Hertz yearbook shows top score in renewables

07.06.2019

In its Yearbook 2018, the TSCNET shareholder 50Hertz has compiled on 105 informative and concise pages everything worth knowing about last year’s key figures, activities, infrastructure developments, market assessments, sustainability objectives and much more. For the current report, the transmission system operator (TSO) from North-East Germany has chosen a heading that fits the company’s philosophy: “Setting the pace for a successful energy transition”.

An outstanding yearbook figure is the regenerative share of 56.5% with which 50Hertz has confirmed its pioneering role in the integration of renewable energies in Central Europe. A share of 65% by 2030, the official government target in Germany, is thus already within reach. For its low-carbon future goals, the TSO relies on innovative concepts such as the flexibility platform of the WindNODE project, a digital procurement system designed to reduce the throttling of wind turbines in the event of grid bottlenecks.

Sustainable action and social commitment are entrepreneurial principles for 50Hertz. To provide information on this, the Yearbook also contains a Corporate Social Responsibility (CSR) report. The CSR Report complies with the strict sustainability reporting standards of the Global Reporting Initiative (GRI) and is supplemented by the launch of the company’s own sustainability website.

50Hertz presents its Yearbook 2018 and launches CSR website (picture showing 50Hertz employees working at the Arkona offshore transformer station: 50Hertz / Jan Pauls)

Linkup
> See 50Hertz press release (html)
> Download 50Hertz Yearbook 2018, in German (pdf, 9.08MB)
> Visit the 50Hertz CSR website, in German (html)

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ČEPS: Solid finances and major investments

15.04.2019

The high revenues from cross-border capacity auctions and the higher than expected earnings from system services and transit flows were the main contributors to the successful business year 2018 of TSCNET shareholder ČEPS, the Czech transmission system operator (TSO). The company’s profit of CZK3.307bn (about €129m) before tax represents an increase of 14% in comparison to 2017. The total amount of energy transmitted through the Czech high-voltage grid has risen to 65,825 GWh, with a peak load of 11.964MW in February 2018.

ČEPS has also maintained its high level of investment: The TSO expended more than CZK3.8bn (about €148m) in the further development and modernisation of its transmission system. The most important ongoing investment projects include European Projects of Common Interest (PCIs) like the new 400kV double circuit line from Kočín in southern Bohemia to the Mírovka substation near Havlíčkův Brod in the Bohemian-Moravian Highlands, or the interconnections between the 420kV substations at Vernéřov (Karlovy Vary Region), Vítkov (Moravian-Silesian Region), and Přeštice (Plzeň Region).

Also worth mentioning are the modernisation and expansion of the Kočín substation, which is an important node of the transmission network and due to be completed in 2023, the start of construction for the modernisation of the Horní Životice substation in the Moravian-Silesian region and finish of upgrading the gas-insulated, metal-enclosed Chodow substation in Prague. These and other projects are part of the TSO’s long-term investment programme, the implementation of which is made possible by ČEPS’s stable financial position, strict cost control and good financial performance.

ČEPS reports on the successful business year (edited picture of construction work at Vítkov substation by Lubor Ferenc, Creative Commons, Wikimedia)

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> See ČEPS press release (html)

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Swissgrid presents good results despite grid expansion

03.04.2019

The business environment for European energy companies such as the Swiss transmission system operator (TSO) Swissgrid is demanding in times of the energy transition and the European market integration. Some political uncertainty factors with regard to networking at European level, the relocation of the company to its new headquarters in the “energy canton” of Aargau, and the revision of the legal framework for the Swiss energy sector were particular challenges for the TSCNET shareholder last year. Nevertheless, the TSO presents solid results at his annual media conference.

An integral element of Swissgrid’s forward-looking infrastructural planning is the “Strategic Grid 2025”. As part of this strategy, Swissgrid began in 2018 with the construction of two important overhead line projects in the cantons of Valais and Aargau. Worth mentioning is the line section at Gäbihübel near Bözberg/Riniken in Aargau, where Switzerland’s first underground cabling on the 380kV voltage level is being implemented. But even with the expansion of its infrastructure, Swissgrid managed to further reduce operating costs thanks to successful efficiency measures.

As far as the key figures are concerned, the company’s net profit rose slightly to CHF65.6m, while earnings before interest and taxes amounted to CHF119.4m, a decrease of 4.4% compared to the previous year. This is attributable to Swissgrid’s consistent reduction of volume and tariff-related timing differences, which led to a decline in invested operating assets. Yves Zumwald, CEO of Swissgrid, comments on the business year in a demanding environment: “Thanks to the consistent implementation of our efficiency measures and the great commitment of our team members, we are able to report a robust result.”

Swissgrid reports solid results in its Annual Report 2018

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> See Swissgrid media release (html)
> Open Annual Report 2018 (pdf, 1.4MB)

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50Hertz plans to invest some €3.4bn

26.02.2019

Northeast Germany – and thus the control area of TSCNET shareholder 50Hertz, one of the four German transmission system operators (TSOs) – continues to be a pioneer in the integration of renewable energies in Central Europe. For the second year in a row, renewables accounted for more than half of electricity consumption, and once more a new record was set with a regenerative share of 56.5% (2017: 53.4%). The installed capacity of renewables rose to 32.9GW, which is why Boris Schucht, CEO of 50Hertz, had every reason to express his contentment with this development during the 50Hertz balance sheet press conference on 26 February 2019 in the German capital of Berlin: “We are proud that with this record share of renewables, we can contribute to a successful energy transition.” Since this share will increase continuously in the 50Hertz control area, the federal growth target of 65% for 2030 can be achieved as early as 2021.

At the same time, the costs for congestion management, mainly caused by redispatch, fell significantly last year, by an impressive €100m to around €105m. This is due in particular to the effect of the extra-high voltage line “Südwest-Kuppelleitung” (aka “Thuringian Power Bridge”) and two now fully operational phase-shifting transformers (PSTs) on the borders with Poland and the Czech Republic respectively. But also in the future, the expansion of the transmission infrastructure must keep pace with that of the renewables. 50Hertz is taking this into account with exceptionally high investments in the transformation of the energy system. These are facilitated by the TSO’s excellent operating results. Over the past five years, 50Hertz has already invested over €3bn in the grid (€492m in 2018). By 2023, 50Hertz plans to spend a further €3.4bn (€420m in 2019).

Among the outstanding infrastructure projects are the “Ostwind 1” offshore connection, which has been in trial operation since last year, and the “Combined Grid Solution”, a Danish-German interconnector in the Baltic Sea that links the German “Baltic 2” wind farm with the Danish “Kriegers Flak” farm and will be connected to the grid in 2019. The supra-regional DC project “SuedOstLink” is making significant progress, too, as the federal sector planning is underway and the European tender for the underground cables has been launched. 50Hertz CTO Dr. Frank Golletz, who will take over the function of Boris Schucht as interim CEO from 1 March 2019, announced the continuation of the TSO’s ambitious investment program. Golletz also pointed out that the political and regulatory framework must be optimised and made innovation-friendly to realise the energy transition.

50Hertz presents excellent results for 2018 and announces further sustainable investments in its transmission grid (illustration using pictures of 50Hertz)

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> See 50Hertz press release (html)
> Open press conference presentation, in German (pdf, 4.09MB)

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TenneT presents Annual Report

21.02.2019

The transition to significantly more solar and wind energy in the power grid continues to have a substantial impact on the business operations of TSCNET shareholder TenneT, the Dutch-German transmission system operator (TSO). The apparent progress made by TenneT in this respect is reflected in the TSO’s just published Integrated Annual Report 2018, which is accompanied by the Green Finance Report 2018. To further advance the energy transition, TenneT focuses on the innovation and optimisation of the existing transmission system as well as on major national and international grid expansions. Manon van Beek, CEO at TenneT, refers to the necessity “to expand and reinforce our grids both onshore and offshore” and further explains: “We must also use the capacity of this infrastructure better, more flexibly and efficiently with the help of technology.”

TenneT again achieved a very good financial result in 2018. On an underlying revenue basis of €4.2bn, the TSO invested €2.3bn (2017: €1.8bn) in the energy transition and security of supply, with remarkable success, as grid availability in 2018 was 99.9988% within TenneT’s control area. And apart from the ensured reliability of the current transmission system, TenneT also wants to guarantee security of supply in the future. Since the energy future cannot be realised without inventive concepts, TenneT was and will be very active in innovation research for a flexible and affordable energy system based on solar and wind energy as well as green hydrogen. Several research projects are currently underway with renowned partners from industry and science.

Especially in terms of wind energy, TenneT is setting standards by reaching a new milestone in Germany and bringing almost 17TWh of offshore wind energy ashore in 2018. TenneT’s total connection capacity for offshore wind farms grew to 6,232MW. The BorWin3 and DolWin6 projects, which will be completed in 2019 and 2023 respectively, will further increase capacity to more than 8,000MW in Germany, while the development of an offshore grid in the Dutch North Sea is also progressing as planned.

Another important operational objective of TenneT is the further integration of the Northwest European electricity market, which is essential for the success of the European energy targets. One of TenneT’s current projects is the Doetinchem-Wesel link between the Netherlands and Germany, which went into operation in September 2018. In addition, the COBRAcable subsea connection between the Netherlands and Denmark has “landed” at the Eemshaven connection point and will be commissioned this year. Also worth noting is the NordLink cable connection currently under construction, which will be the first direct link between the German and Norwegian markets. The 624km interconnector is expected to come on stream in 2021. TenneT will then be operating 16 interconnectors in total.

TenneT presents its Integrated Annual Report 2018 and Green Finance Report 2018 (picture: screenshot taken from video “50 Hertz – The challenge of continuous electricity”, TenneT – Youtube)

Linkup
> See TenneT press release, (html)
> Visit Integrated Annual Report 2018 website (html)
> Open Green Finance Report 2018 (pdf, 2.84MB)

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Swissgrid reports solid results

24.04.2018

According to Yves Zumwald, CEO of the Swiss transmission system operator (TSO) Swissgrid, the TSCNET shareholder looks back on a “solid financial year in a challenging environment in 2017”. Since the changes in the European and Swiss energy system increase the demands on secure grid operation, Swissgrid has been preparing for the future in 2017 by introducing the “Strategy 2022”. This strategy maps out the development and implementation of important measures for the continuing security of Switzerland’s electricity supply.

Due to the reduction in the Weighted Average Cost of Capital (WACC), the earnings before interest and taxes and the financial result decreased in 2017 in comparison to the preceding year. At the same time, the Swiss TSO managed to reduce operating expenses thanks to successful efficiency measures. Beyond that, important infrastructural milestones were realised in 2017, including the commissioning of a power line section between Châtelard and La Bâtiaz in the Swiss Canton Valais to transport the electricity generated by the new Nant de Drance pumped storage power plant. However, the extension of the transmission system is still not proceeding quickly enough and important projects are stuck in the planning and approval stage due to outer conditions.

> See Swissgrid media release (html, with access to annual report)

Picture: Swissgrid

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Grid modernisation and profit increase in Czechia

23.04.2018

High revenues from cross-border capacity auctions and system services, sustainable business practices, and well-considered investments in the Czech transmission system belong to the mainstays of a very succesful business year 2017 for TSCNET shareholder ČEPS, the Czech transmission system operator (TSO). The profit of CZK2.897bn (about €114m) before tax represents an increase of CZK824.6m (about €32.5m) in comparison to 2016. As in previous years, ČEPS continued to diligently maintain and expand the national grid in 2017 and spent more than CZK3.5bn (about €138m) on the transmission infrastructure. At the same time, ČEPS transferred a total of 63,372GWh of electricity through the Czech transmission system, which reached a peak load of 11.769MW on 24 January.

The most important milestone in grid modernisation was the installation of four new phase-shifting transformers (PSTs) in the northern Bohemian substation in Hradec u Kadaně, which have been in full operation since September 2017. Jan Kalina, Chairman of the ČEPS Board of Directors, comments on the state-of-the-art PSTs: “These special transformers allow transferring maximum amounts of electricity without threatening the reliability of supplies in the Czech Republic and as such they significantly protect the Czech electricity system against dangerous electricity flows from abroad.” Other major projects completed in 2017 include the reconstruction of the Čechy Střed transformer station in the Central Bohemian Region and the construction of a new 400/110kV transformer station at Vernéřov in the region of Ústí nad Labem.

> See ČEPS press release (html)

Picture: Screenshot taken from video “PST transformátory v rozvodně Hradec u Kadaně z pohledu dronů” (ČEPS, YouTube)

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