TenneT on track for the energy transition

31.07.2019

Highly satisfactory business results and maintenance of the high level of 99.99% security of supply, are hallmarks of the half year report of the Dutch-German TSCNET shareholder Tennet. The latter is a growing challenge for the transmission system operator (TSO) because of the increased feed-in of volatile renewable energy. But above all, the report illustrates the commitment of the TSO to the European energy transition.

To take further steps in shaping the energy system of the future, TenneT has launched a series of strategic initiatives and partnerships to join forces across sectors. TenneT is participating in a German power-to-gas pilot project and is working together with regional grid operators and market partners on smart solutions to optimise the use of existing electricity infrastructure. The TSO is also involved in blockchain pilots to create flexibility for balancing the power system from decentralised sources.

TenneT has further strengthened its position as a leading offshore TSO. In Germany, TenneT has awarded DolWin 5, the 14th offshore grid connection. TenneT will increase its current offshore transmission capacity from 6,232MW in the German North Sea to almost 9GW by 2024. In the Netherlands, too, the development of the offshore grid with the Borssele Alpha and Beta projects is on schedule. TenneT intends to provide a total of 10.6GW of connection capacity for Dutch offshore wind farms by 2030. The TSO is also carrying out several onshore projects to ensure the transport of the growing amount of green electricity and thus security of supply in its control areas. Important interconnecting projects are the NordLink cable connection, which is currently being built to directly link the German and Norwegian markets for the first time. The COBRAcable between the Netherlands and Denmark has “landed” at the Dutch shore and will go into operation this year.

These developments are complemented by solid and impressive figures: Underlying operating result (EBIT) rose from €362m (first half of 2018) to €407m in the first half of 2019. €1,094m (first half of 2018: €904m) were invested in the Dutch and German high-voltage grids (of which €612m in Germany) and a total of €1.75bn green bonds were successfully issued. Manon van Beek, CEO of TenneT, comments on the report: “We have embarked on an irreversible transition to a sustainable society and a new energy system. This requires investments, not only in new electricity connections, but also in innovations and digitalisation. We have to move to holistic energy system thinking and also work on solutions to make better use of the existing high-voltage grids. We are convinced that this is the way forward to limit social costs and at the same time maintain a very high security of supply.”

TenneT presents its half year report 2019 (picture: TenneT)

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Investing in energy transition – TenneT report

25.07.2018

The Half Year Report of the Dutch-German TSCNET shareholder TenneT does not only provide satisfactory figures, but also shows that the business of a transmission system operator (TSO) with a control area from the seashores to the Alps is essentially divided into two parts: connecting offshore wind energy capacity to the onshore grid and ensuring the transport of sustainable generated electricity to wherever it is needed. To further support the energy transition, TenneT is accelerating the realisation of large-scale projects in the Dutch sector of the North Sea and on the German mainland. The TSO’s commitment to the European energy future is reflected with a total of €904m of investments in the transmission systems in the first half of 2018 ‒ not only impressive compared to the first half of 2017 (€750m).

By 2030, TenneT plans to have connected a total of 11.5GW of offshore wind energy to the grid in the Netherlands. Three years earlier, in 2027, the TSO aims to achieve a total transmission capacity of 11GW for the German North Sea. The most outstanding onshore infrastructural projects are the German supraregional extra-high voltage lines SuedLink and SuedOstLink with a length of 700km and 580km, respectively, and a combined capacity of 6GW. Both DC lines will partially be realised by means of underground cabling and are joint ventures of TSCNET shareholders. On SuedLink, TenneT cooperates with TransnetBW, and on SuedOstLink with 50Hertz. To help financing its investments in the transmission of the renewables, TenneT in March 2018 again has issued long term green bonds in two tranches with a nominal total value of €1.25bn. Altogether, TenneT has issued €6.25bn in green bonds to date.

Mel Kroon, CEO at TenneT, emphasises the company’s “central position in the energy transition” and considers that the construction of new infrastructure alone is not enough to meet the challenges of the future, “but also the development of innovative hard- and software systems for real-time coordination of the variable supply of green electricity.” Mr Kroon expresses the need for a new energy system, and points out the unexploited potential of green hydrogen for flexibility and storage solutions: “Following the successful development of offshore wind energy, we now need to focus on promoting the production of green hydrogen in order to facilitate long-term energy storage and make the industrial and transport sectors far more sustainable.”

TenneT, the Dutch-German TSO, presents the Half Year Report 2018

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Investing in green energy

23.05.2018

The expansion of the transmission infrastructure for the integration of renewable energies is a cardinal obligation for transmission system operators (TSO) in the 21st century. As far as TSCNET shareholder TenneT is concerned, the ongoing efforts of the Dutch-German TSO to promote sustainable energy sources are not limited to the physical implementation of infrastructure projects. TenneT is also active on the financial market as the largest corporate issuer of Green Debt in the Netherlands.

Now, the TSO has again successfully issued €1.25bn of long term Green Bonds on the Dutch market in two tranches of €500m and €750m respectively. This adds up to €6.25bn of green issuances since TenneT established its green financing framework in 2015. Over the next 10 years, TenneT’s investments in Dutch and German offshore and onshore grid connections are expected to total €28bn. With the inclusion of the Dutch offshore projects Borssele Alpha and Borssele Beta, eleven projects are currently part of the Green Project Portfolio and financed through TenneT’s Green Bonds.

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Collaboration and innovation – TenneT report

28.07.2017

A whole lot of aspects from the half-year report of TSC member Tennet are worth mentioning, but what might be considered as especially valuable and forward-thinking is the continuing effort of the Dutch-German transmission system operator (TSO) in promoting the European energy collaboration and market integration. Tennet complements these efforts with the development of digital solutions for the renewable’s integration to facilitate the energy transition.

Mel Kroon, CEO at TenneT, mentions two essential catalysts of a sustainable European energy future: “Further integration of the North-West European electricity markets” to improve green energy management, as well as “smart, innovative systems” to match future energy demand and supply. Among TenneT’s most prominent international projects are the so called Power Link Island, a North Sea Wind Power Hub to be developed jointly with Danish TSO Energinet, the COBRAcable between the Netherlands and Denmark, or the NordLink cable to connect the Norwegian and German electricity markets. TenneT’s key initiative in terms of smart software solutions is the research on block chain technology fostering local, flexible electricity generation.

The company’s European commitment is emphasised by the opening of a representative office in Brussels in June and the appointment of Ben Voorhorst, Chief Operating Officer of TenneT, as President of the European Network of Transmission System Operators for Electricity (ENTSO-E) in March. As far as TenneT’s operating results in the first half of 2017 are concerned, the TSO reports satisfactory figures, with profits before interests and taxes growing to €478m. Infrastructural investments in the Netherlands and Germany remained on a high level since large-scale grid extension projects, on- and offshore, are being implemented continuously. To help financing these investments in the transmission of the renewables, TenneT has yet again succesfully issued long term green bonds with a nominal total value of €2bn in March and June respectively.

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TenneT continues green financing

13.06.2017

The commitment of TSC member TenneT to sustainable financing concepts for investments in the transmission of electricity from offshore wind farms remains steady: The Dutch-German transmission system operator (TSO) yet again has succesfully issued long term green bonds on the Dutch financial market. With two tranches of each €500m, TenneT has underpinned its status as the most important issuer of green debt in the Netherlands.

Altogether eight Dutch and German offshore projects benefit from TenneT’s green financing framework, which the TSO established in 2015. The planned investments in offshore wind energy are expected to total €9 to €11bn over the coming years, presumably resulting in the realisation of connection capacities totalling over at least 15GW in the Dutch and German sectors of the North Sea.

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Illustration: TenneT

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TenneT committed to offshore wind power

30.03.2017

Promoting the renewables from the perspective of a transmission system operator (TSO) is more than constructing pylons or laying cables. This is impressively demonstrated by TSC member TenneT. The Dutch-German TSO does not only provide the adequate infrastructure which is needed to integrate the renewables, but also develops innovative financing instruments to help realise its ambitious grid projects.

TenneT TSO GmbH (Germany) reports for 2016 a new peak concerning the feeding-in of wind energy. Last year, the TSO has transmitted about 10.8TWh of electric power from offshore wind farms in the German part of the North Sea into the German grid. This is an increase of 47% over 2015 and also means, that the North Sea wind power transferred by TenneT alone accounts for 13.9% of the total German wind power generation in 2016. Lex Hartmann, managing director of TenneT, explains the company’s progress in terms of grid extension: “The time in which there was not enough connection capacity in the North Sea to transmit wind energy from sea to land is thus finally passed.” But Hartmann also puts his finger on the sore spot: “Offshore wind power comes to nothing if the extension of the onshore power grid does not keep pace with the extension of renewable energy.” Here the legislature is also obligated and coordinated action by all parties at European level is essential.

The pleasant news from Germany are accompanied by financial actions of TenneT TSO B.V. On 29 March 2017, the Dutch subsidiary of the binational TSO has issued the first-ever Green Hybrid Bond expected to generate a total of €1bn. The bond proceeds are destined to finance grid connections to offshore wind facilities. Otto Jager, CFO at TenneT, says: “Today’s inaugural Green Hybrid Bond issue demonstrates our ongoing commitment to green financing instruments and the further development of the green financing market.”

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> See TenneT press release on bond issue (html)

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TenneT pledges impressive investments

09.03.2017

Stable financial results and an ongoing commitment to the success of the energy transition: These are the landmarks of TenneT’s business year 2016 presented in the company’s integrated annual report. Moreover, the Dutch-German transmission system operator (TSO) and TSC member is contented to report that its high-voltage grids in the Netherlands and Germany achieved a high supply security of 99.9999 percent uptime in 2016.

TenneT invested nearly €1,85m in tangible fixed assets in 2016. Above all, offshore facilities could benefit from this significant high level of investments. This is hardly a surprise, since last year the Dutch government appointed TenneT the Netherlands’ offshore grid operator, while in the German part of the North Sea, nine offshore grid connections are currently operated by the Dutch-German TSO. To cover the investments in the transmission of sustainable energy, TenneT successfully issued a total of €1.5bn of green bonds in 2016. A further major concern is the increase in cross-border transmission capacity, and TenneT has achieved excellent results also in this field.

TenneT’s plans for the future are accordingly ambitious. The company intends to invest €25bn in grid infrastructure in the Netherlands and Germany over the next ten years in favour of future regional and supra-regional supply of renewable energy. Commenting the figures, TenneT’s CEO Mel Kroon particularly emphasised, that in order to fully exploit the northwest European potential of sustainable energy, “innovations, partnerships and international cooperation” are of the highest importance. “In 2016, we have taken effective steps in all of these areas and we will continue to do so in the years to come.”

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Picture: TenneT

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Further green bond issue by TenneT

11.10.2016

Following the public offering of green bonds in May and July 2016, the Dutch-German transmission system operator (TSO) and TSC member TenneT has yet again succesfully issued another long term green bond on 10 October. The €500m bond issue equates to a total long-term debt in green format of €3bn.

TenneT’s green bonds are funding investments in the transmission of sustainable energy thus creating an environmental and climate related benefit. The current bond issue supports the connecting of five offshore wind farm projects to the onshore grid. TenneT is the largest corporate issuer of green debt in the Netherlands.

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