News: TYPO3 News Thu, 11 Aug 2022 14:34:19 +0200 Thu, 11 Aug 2022 14:34:19 +0200 TYPO3 EXT:news news-2706 Fri, 29 Jul 2022 09:30:00 +0200 EUR 1.6 billion of grid investments for carbon neutral future amid strong focus on energy security https://netztransparenz.tennet.eu/tinyurl-storage/detail/eur-16-billion-of-grid-investments-for-carbon-neutral-future-amid-strong-focus-on-energy-security/ In the first half of 2022 within a complex and unpredictable external environment TenneT continued its strong efforts to drive the energy transition, investing EUR 1.6 billion in the grid and once again maintaining a high grid availability of 99.999%. Underlying revenue increased by EUR 2,407 million to EUR 4,975 million.  In the first half of 2022 within a complex and unpredictable external environment TenneT continued its strong efforts to drive the energy transition, investing EUR 1.6 billion in the grid and once again maintaining a high grid availability of 99.999%. Underlying revenue increased by EUR 2,407 million to EUR 4,975 million. 

This was mainly due to increased compensation of grid-related expenses and the increased asset base. The underlying operating result increased by EUR 148 million to EUR 579 million. With energy security in the spotlight as never before, TenneT is focusing on both short-term and long-term solutions to deliver on its critical task: ensuring the continuous availability of electricity for nearly 43 million end-users across the Netherlands and Germany.

Short term: impact and focus on security of supply
The Ukraine war - a humanitarian, geopolitical and security crisis - has had a notable impact on TenneT’s activities. In the European ENTSO-E context TenneT has collaborated to synchronize the Ukrainian and Moldovan grids with the European grid to support electricity supply in those countries. The Ukraine war has also exacerbated rises in energy prices, as well as a strong awareness of the importance of security of supply. To this end, TenneT is seeing companies accelerating their electricity demand and governments becoming more proactive and ambitious in bringing about the energy transition. Both the Ukraine war and the COVID-19 pandemic have had a major impact on the prices of the raw materials TenneT uses in its assets. This includes steel, aluminium and copper. High market price-levels of energy have also led to a significant increase in grid expenses. These are costs TenneT must incur to compensate for grid losses, to maintain the energy balance on the grid, and to pay for alternative routes for the electricity when grid sections are congested or unavailable due to grid expansions. Under regulatory rules, these higher grid expenses are budget neutral and will be reimbursed through future tariffs.

The electrification drive among companies and industries and the fast-growing demand for electricity - including renewables - led to capacity issues (congestion) on TenneT’s grids in certain regions. This became most evident in the Dutch provinces of Noord-Brabant and Limburg where a temporary stop is set for new connection requests pending a congestion analysis. TenneT, in close cooperation with all stakeholders - such as the Ministry of Economic Affairs & Climate and the designated coordinator - is working hard on congestion solutions for these provinces and more broadly. There are four elements to this approach, with different responsibilities and varying degrees of involvement for the stakeholders involved. These are: making smarter use of the grid, speeding up grid expansions, increasing predictability through a more programmatic approach, and improving communications.

Mid/Long term: preparing now for a carbon-free energy system
Firstly, the innovative 2GW program will enable the faster development of offshore wind energy through economies of scale and the standardisation of 15 up to 20 2GW offshore wind connection systems by around 2030. The 2GW standard represents a huge step forward after today’s 0.7GW AC and 0.9GW DC offshore-connection systems. It will save time, resources and money, while doubling connection capacity by using fewer cables and platforms. TenneT plans to enter into a cooperation agreement with key market partners for a period of up to eight years. The agreement covers offshore platforms and onshore stations, as well as the converters for the two-way conversion between alternating and direct currents. The impetus of the large-scale tender underlines the long-term purpose of building up all the required resources such as industry sites, staff, and materials.
Secondly, TenneT has taken the first steps toward what it calls the Target Grid 2045. In close coordination and dialogue with governments, ministries, and other stakeholders, TenneT aims to design and build the electricity grid of the future. This must ultimately be ready by 2045. With Target Grid, TenneT is committed to making a timely and active contribution to the forward-looking path taken by the Dutch and German governments towards an affordable and achievable highly electrified climate-neutral energy system.

Manon van Beek, CEO TenneT, says: “Just as collaboration across countries is key to working on the Target Grid, the same is true for achieving energy security this winter. We’re all giving this our full attention right now. The tendency to focus too closely on our national interests doesn’t produce the right solutions. To become independent from Russian gas, and from fossil fuels in general, I believe we must become more dependent - on each other that is. This applies to the EU member states, but also to politics and industry, citizens and customers, suppliers and producers, regulators and TSOs. The recent Esbjerg Offshore Wind Declaration – through the Netherlands, Germany, Denmark, and Belgium agreed to jointly develop the North Sea as the green power plant of Europe - is a striking example of the kind of collaboration we need.”
Arina Freitag, CFO TenneT, says: “As a true cross-border TSO, we can really make a big and positive impact on Europe’s transition to a green energy system, assuming green growth is smart and  responsible. This means, for example, that regulations and the granting of permits must keep pace with the implementation of our investments. Furthermore, I expect that our current investment programme will require additional funding with both debt and equity capital. Sharp price increases for materials and other resources are at the root of the increasing costs of our projects. This will also have an impact on grid tariffs for consumers and businesses.”

Key accomplishments first half year 2022

In the first half of 2022, we made significant progress on several projects, most significantly:

  • In the Netherlands, offshore grid Hollandse Kust (zuid) Alpha and Beta - TenneT’s high voltage connections for offshore wind farms Hollandse Kust (zuid) - are ready for use. When fully commissioned in 2023, the 1,400MW wind farm area will generate green electricity equal to the annual consumption of more than two million households. Hollandse Kust (zuid) consists of an onshore high-voltage station, offshore cables and two offshore high-voltage alternating current transformer stations, located about 20 kilometres off the coast of The Hague.
  • In Germany, TenneT delivered a new 61 kilometres long high-capacity 380 kV power line between Emden and Conneforde. This new connection can transmit three-and-a-half times as much electricity as the previous one. It will primarily transport and distribute wind power from the North Sea. Onshore grid projects like this one are critical to the vision outlined in the Esbjerg Offshore Wind Declaration.
  • In May TenneT issued a EUR 3.85 billion green bond. Having issued a total of around EUR 17 billion of green debt confirms the company's ease of access to capital markets.  
  • Long-term senior unsecured credit ratings for TenneT Holding B.V. remained unchanged during the first half of 2022 and were reaffirmed by both Standard & Poor’s (A- / stable outlook) and Moody’s Investor Service (A3 / stable outlook) in April.

Read the online Interim Report here.

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news-2646 Wed, 04 May 2022 07:30:00 +0200 TenneT reconfirms position as top Green Bond Issuer – solid investor demand for its largest offering of EUR 3.85bn https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-reconfirms-position-as-top-green-bond-issuer-solid-investor-demand-for-its-largest-offering/ TenneT successfully issued the largest corporate Green  Eurobond transaction everIn volatile times TenneT’s strong financial profile assured a solid response from investors, with orderbooks touching the EUR 8bn mark after final terms, showing several triple digit orders and a well-diversified investor baseWith the offering, TenneT reconfirms its status amongst the top 3 corporate issuers of green debt financing globally, with currently approximately EUR 16.7bn billion outstanding, issued across different formats (senior, hybrid, USPP and Schuldschein) during the last 7 years
  • TenneT successfully issued the largest corporate Green  Eurobond transaction ever
  • In volatile times TenneT’s strong financial profile assured a solid response from investors, with orderbooks touching the EUR 8bn mark after final terms, showing several triple digit orders and a well-diversified investor base
  • With the offering, TenneT reconfirms its status amongst the top 3 corporate issuers of green debt financing globally, with currently approximately EUR 16.7bn billion outstanding, issued across different formats (senior, hybrid, USPP and Schuldschein) during the last 7 years
  • TenneT Holding B.V. (issuer ratings A3/A-, stable outlook) yesterday successfully launched and priced a senior Green Bond issue of EUR 3.85 billion, split in four tranches of EUR 1,250 million (term: 4.5 years, coupon 1.625%), EUR 1,000 million (term: 7.5 years, coupon 2.125%), EUR 750 million (term: 11 years, coupon 2.375%) and EUR 850 million (term: 20 years, coupon 2.750%) with the support of 6 active Joint Bookrunners: ABN AMRO, BNP Paribas, Commerzbank, NatWest Markets, Santander and UniCredit.

    Arina Freitag, TenneT’s Chief Financial Offier said: “Green financing aligns perfectly with our role in facilitating the backbone of a secure, reliable, and zero-carbon energy system, as our work contributes towards national and international climate goals, in particular our home markets in the Netherlands and Germany.” 

    Proceeds will be used to invest in eligible green power transmission projects in the Netherlands and Germany focused on connecting large-scale offshore wind farms to the onshore electricity grid and investments in the onshore transmission grid with the main objective to increase the transmission of renewable energy. Further details on these projects and project selection process is set out in TenneT’s Green Financing Framework dated March 2022, for which ISS ESG has provided a Second Party Opinion to confirm the alignment with the ICMA Green Bond Principles.

    Investing in green energy

    With annual planned investments expected to grow to at least EUR 6 billion by 2025, TenneT is heavily investing in the energy transition in Europe, making an important contribution to meet national climate targets and to connect everyone to a brighter energy future, whilst maintaining a solid financial position.

     

    The majority of TenneT's investments are directly related to the increase in renewable energy sources, such as wind and solar energy. Around 2030 TenneT expects to have realized at least 38 gigawatt (GW) of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea.

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    news-2507 Wed, 03 Nov 2021 07:30:00 +0100 Strong market reception for TenneT’s new EUR 1 billion Green Bond https://netztransparenz.tennet.eu/tinyurl-storage/detail/strong-market-reception-for-tennets-new-eur-1-billion-green-bond/ TenneT successfully priced a new EUR 1 billion senior Green Bond representing its largest ever issue-size.The market demonstrated keen interest for the offering with an order book of approximately EUR 2 billion.With the offering, TenneT reconfirms its status amongst the top 3 corporate issuers of green debt financing globally, with currently approximately EUR 13 billion of green debt issued across different formats during the last 6 years.
    • TenneT successfully priced a new EUR 1 billion senior Green Bond representing its largest ever issue-size.
    • The market demonstrated keen interest for the offering with an order book of approximately EUR 2 billion.
    • With the offering, TenneT reconfirms its status amongst the top 3 corporate issuers of green debt financing globally, with currently approximately EUR 13 billion of green debt issued across different formats during the last 6 years.

    TenneT Holding B.V. (issuer ratings A3/A-, stable outlook)  successfully launched and priced a 13.6 year senior Green Bond issue of EUR 1 billion with a coupon of 0.875% on Tuesday November 2nd. TenneT was supported on the transaction by 6 Joint Bookrunners: BNP Paribas, Deutsche Bank, HSBC, ING Bank, NatWest Markets and SMBC Nikko. 

     

    Proceeds will be used to invest in eligible green power transmission projects in the Netherlands and Germany focused on connecting large-scale offshore wind farms to the onshore electricity grid and enhancing the onshore transmission capacity for renewable energy. Further details on these projects and project selection process are set out in TenneT’s Green Financing Framework, updated in March 2021, for which ISS ESG has provided a Second Party Opinion to confirm the alignment with the ICMA Green Bond Principles.

     

    Investing in green energy

    With annual planned investments expected to grow to approximately EUR 5 to 6 billion within the next five years, TenneT is heavily investing in the energy transition in Europe, making an important contribution to meet national climate targets and to connect everyone to a brighter energy future, whilst maintaining a solid financial position.

    The majority of TenneT's investments are directly related to the increase in renewable energy sources, such as wind and solar energy. By 2030 TenneT expects to have realized approximately 28 gigawatt (GW) of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea, transmitting an amount of electricity sufficient to support the energy usage of approximately 28 million households.

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    news-2460 Thu, 16 Sep 2021 13:00:00 +0200 EIB finances TenneT electricity transmission corridor in the Netherlands, supporting renewable energy production https://netztransparenz.tennet.eu/tinyurl-storage/detail/eib-finances-tennet-electricity-transmission-corridor-in-the-netherlands-supporting-renewable-energ/ • EIB signs a EUR 250 million loan agreement with TenneT to fina nce the 40km high voltage electricity transmission corridor in the North of the Netherlands between Eemshaven and Vierverlaten, as well as the new high voltage substation in Vierverlaten. • The upgraded energy infrastructure will, amongst others, support the connection of North Sea wind farms to the electricity grid and ensure a high security of supply • This financing increases the aggregate total EIB commitment to TenneT projects to EUR 1.8 billion.

    EIB signs a EUR 250 million loan agreement with TenneT to fina nce the 40km high voltage electricity transmission corridor in the North of the Netherlands between Eemshaven and Vierverlaten, as well as the new high voltage substation in Vierverlaten.

    The upgraded energy infrastructure will, amongst others, support the connection of North Sea wind farms to the electricity grid and ensure a high security of supply

    This financing increases the aggregate total EIB commitment to TenneT projects to EUR 1.8 billion.

    The European Investment Bank (EIB) has signed a EUR 250 million loan agreement with TenneT Holding B.V. The financing will be used to build a 40-km long electricity transmission corridor from Eemshaven to Vierverlaten in the province of Groningen, in the north of Netherlands, enabling the transmission of rapidly growing amounts of offshore wind energy to users in the Netherlands and beyond. The new electricity transmission corridor will double the capacity of the existing 220kV circuit. The corridor financed by the EIB includes a new 380kV line from Eemshaven to Vierverlaten, combined with a 110kV line for part of the route, and a new 380/220kV substation in Vierverlaten.

    Once the new transmission lines are operational in 2024, the existing smaller capacity lines along the same route will be decommissioned and the project will result in an overall doubling of the capacity of the existing 220kV circuit. The new grid connection will allow for the avoidance of congestion on the Netherlands’ high voltage grid, especially once nearby wind farms under development are brought into operation and the project will further facilitate transfer of green electricity to demand centres. Eemshaven is already an important power generation hub in the Netherlands and this position will only be strengthened as, for example, it recently was designated also as the landing point for the planned offshore wind farm "Ten noorden van de Waddeneilanden" (700MW), by the Dutch Ministry of Economic Affairs.

    “Supporting clean energy transmission is one of the key goals for the EIB, as the EU Climate Bank.” stated EIB Vice-President, Kris Peeters. “The Netherlands’ ambitious targets for renewable energy generation would require more investment in the transmission network and I am pleased that the EIB can help provide financing to contribute to achieving these goals. This project will help to bring secure, sustainable electricity to users across the Netherlands and beyond.”

    Otto Jager, TenneT’s Chief Financial Officer, added: "TenneT is one of the largest investors in the European energy transition and long term partners as the EIB are needed to help finance this. Today’s transaction underlines our strong relationship with the EIB and we are proud that the EIB is financing this corridor which qualifies as a project of Common Interest of the European Union."

    The EIB has increased its total lending commitment to TenneT. With EUR 1.8 billion, the EIB is TenneT's largest lender. The EIB commitments are provided for the upgrading and expansion of TenneT’s electricity transmission networks in the Netherlands and Germany as well as (cross country) interconnectors.

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    news-2440 Thu, 29 Jul 2021 19:47:55 +0200 TenneT delivering on projects enabling the energy transition with record green financing in first half of 2021 https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-delivering-on-projects-enabling-the-energy-transition-with-record-green-financing-in-first-ha/ TenneT invested EUR 1,615 million in the Dutch and German high-voltage grids in the first half of 2021, a 14.7% increase compared to the first half of 2020 (EUR 1,408 million).Underlying operating result (EBIT) increased  to EUR 431 million in the first half of 2021 (first half of 2020: EUR 414 million).Underlining its robust financial position TenneT issued its largest ever (EUR 1.8 billion) and first green triple tranche Eurobond transaction. Solid financial performance and corresponding credit rating give TenneT good access to capital markets
  • TenneT invested EUR 1,615 million in the Dutch and German high-voltage grids in the first half of 2021, a 14.7% increase compared to the first half of 2020 (EUR 1,408 million).
  • Underlying operating result (EBIT) increased  to EUR 431 million in the first half of 2021 (first half of 2020: EUR 414 million).
  • Underlining its robust financial position TenneT issued its largest ever (EUR 1.8 billion) and first green triple tranche Eurobond transaction.
  • Solid financial performance and corresponding credit rating give TenneT good access to capital markets
  • In the first half year of 2021 TenneT, as a major enabler of the energy transition, was once again able to maintain a high security of supply of 99.99 percent for its 42 million Dutch and German end users. At the same time, higher European and national political targets to reduce CO2 emissions, a need for consensus among European countries on a clear, legal and regulatory European roadmap and the often complex integration of renewable energy solutions and corresponding new infrastructure into our living environment increase TenneT's efforts.  

    Manon van Beek, CEO: "As Europe's first cross-border TSO with expected annual investments to grow to EUR 5-6 billion, TenneT aims to achieve a timely delivery of onshore and offshore extensions and investments. Our energy system is undergoing a revolutionary development in which the high voltage electricity grids - the backbone of the energy system - are being used in a completely different way. Once built to meet the demand for energy, now it is changing into a multifunctional connector of electricity supply, demand and storage."

    Financial results

    TenneT’s financial performance in the first half year of 2021 remained solid. Underlying revenue of EUR 2,568 million increased by 10.7% compared to 2020 (EUR 2,319 million), mainly driven by a growing asset base and additional compensation for grid-related expenses. Underlying EBIT increased by EUR 17 million to EUR 431 million in the first half of 2021 (first half 2020: EUR 414 million).

    Key underlying results1

     

    EUR Million 30 June 2021  30 June 2020
    Revenue 2,568 2,319
    EBITDA1,016960
    EBIT  431414
    Investments 1,6151,408

    1 Contrary to IFRS, ‘underlying’ figures recognize regulatory assets and liabilities in connection with TenneT’s regulated activities whereas IFRS does not allow this. This means that amounts resulting from past events and which are allowed or required to be settled in future grid tariffs are recognized separately.  

    In May 2021, S&P and Moody’s confirmed TenneT’ s A- / A3 long-term unsecured credit ratings, with a stable outlook. In the same month TenneT went green again by successfully issuing its largest ever (EUR 1.8 billion) and first green triple tranche Eurobond transaction underlining its solid financial position and reinforcing TenneT's top-3 status as corporate issuer of sustainable, green debt financing in Europe, with currently over EUR 12 billion of green debt issued across different debt formats.  
    Otto Jager, CFO, commented: “The market, yet again, showed keen interest in our green investment offer. Our good credit rating with a stable outlook and our solid financial performance over a long period of time also give us excellent access to all capital markets."

     

    Key Results First Half Year of 2021

    High capacity connections to transport green electricity

    TenneT is showing very good progress on a large number of projects. Several thousand kilometers of new connections came and will come into operation in 2021, are under construction or are in the planning phase. Flagship project NordLink, the 1,400 MW subsea DC cable between Germany and Norway, is now fully in operation. For the first time, the electricity markets of both countries are directly connected,  ensuring the exchange of large amounts of sustainable power and additional security of electricity supply.

    TenneT's two largest onshore DC corridor projects SuedLink and SuedOstLink will be built completely underground and are crucial to transport northern wind production to meet demand for electricity in southern Germany. For SuedOstLink the orders for the converters were placed. For SuedLink partnering transmission system operators TenneT and TransnetBW welcomed the completion of the federal spacial planning. With this procedure, the Federal Network Agency ('Bundesnetzagentur') has made the almost 700-kilometer corridor of SuedLink binding.

    In the Netherlands TenneT connected wind farm Fryslân, which is the largest wind farm on an inland waterway in the world. A 55 kilometer long underground cable was used to connect the wind farm to the electricity grid. This is the longest underground high-voltage (110 kV) cable connection in the Netherlands.

    In April, crucial parts of the new high-voltage (380 kV) connection between Borssele and Rilland were installed. This power highway is essential for transporting the electricity of the existing and future wind farms in the North Sea in the southwest of the Netherlands. In addition, the new connection is important for the exchange of electricity with Belgium. The connection will be commissioned in 2023.

    According to planning the second jacket of TenneT's offshore transformer platform for the wind farm Hollandse Kust (zuid) has been installed. TenneT is realizing 3.5 GW of offshore grid connections for wind farms at the Dutch North Sea until 2023 using the same type of 700 MW transformer platform five times. This enables TenneT to build these projects more efficiently, faster and more affordable. Until 2030, TenneT is building 11.6 GW of offshore connection capacity for large offshore wind farms in the Netherlands.

    In Germany, that will be 16.7 GW, according to plan. In both countries use will be made of innovative 2 GW direct current connection systems, developed by TenneT together with suppliers and offshore wind farm developers.

    Paving the path for necessary system integration

    Integrated system planning, cooperation across borders, offshore and onshore, electrons and molecules. All are needed to meet the requirements of a new, smart and affordable energy system to be built between 2030 and 2050. That is why TenneT, Gasunie and the Dutch DSOs published the so-called II3050 (Infrastructure Outlook 30-50) in April. Some of the important conclusions: the infrastructure for electricity must be expanded on a large scale, a nationwide hydrogen transport pipeline network is needed, infrastructure for heat and CO2 must be constructed and more speed is needed since the current lead times for adjustments in the grid lead to bottlenecks. The fact that the Dutch government announced to come up with a plan to adapt existing natural gas transmission pipelines for the transport of hydrogen ('hydrogen backbone') is a direct and gratifying result of the insights presented in the II3050.

    Looking Ahead

    Elections and energy policy

    The formation of a new Dutch government and the German Bundestag elections later this year provide an excellent opportunity to make political choices based on social considerations. This concerns pressing matters such as costs, space requirements and feasibility. Clear roadmaps are needed for increased climate ambitions. Cooperation between governments, infrastructure companies and industry is of utmost importance.


    Find the Half Year Report 2021 here.

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    news-2369 Thu, 27 May 2021 09:44:26 +0200 TenneT goes Triple Green with EUR 1.8 billion Green Bonds https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-goes-triple-green-with-eur-18-billion-green-bonds/ TenneT successfully issued its largest ever and first Green triple tranche eurobond transaction Investors from 20 European countries placed orders of approximately EUR 4.0 billion, underlining TenneT’s international appeal and strong financial profile TenneT is a top-3 corporate issuer of sustainable, green debt financing in Europe, with currently over EUR 12 billion of green debt issued across different debt formats
  • TenneT successfully issued its largest ever and first Green triple tranche eurobond transaction
  • Investors from 20 European countries placed orders of approximately EUR 4.0 billion, underlining TenneT’s international appeal and strong financial profile
  • TenneT is a top-3 corporate issuer of sustainable, green debt financing in Europe, with currently over EUR 12 billion of green debt issued across different debt formats
  • TenneT Holding B.V. (issuer ratings A3/A-, stable outlook) yesterday successfully launched and priced a Green Bond issue of EUR 1.8 billion, split in three tranches of EUR 650 million (term: 6.5 years, coupon 0.125%),  EUR 500 million (term: 10 years, coupon 0.500%) and EUR 650 million (term: 20 years, coupon 1.125%) with the support of 6 active Joint Bookrunners: BNP Paribas, Deutsche Bank, HSBC, ING Bank, Rabobank and UniCredit.

    Proceeds will be used to invest in eligible green power transmission projects in the Netherlands and Germany focused on connecting large-scale offshore wind farms to the onshore electricity grid and enhancing the onshore transmission capacity for renewable energy. Further details on these projects and project selection process is set out in TenneT’s Green Financing Framework dated March 2021

    Investing in green energy
    With annual planned investments expected to grow to approximately EUR 5 to 6 billion within the next five years, TenneT is heavily investing in the energy transition in Europe, making an important contribution to meet national climate targets and to connect everyone to a brighter energy future, whilst maintaining a solid financial position.

    The majority of TenneT's investments are directly related to the increase in renewable energy sources, such as wind and solar energy. By 2030 TenneT expects to have realized approximately 28 gigawatt (GW) of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea, transmitting an amount of electricity sufficient to support the energy usage of approximately 28 million households.

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    news-2350 Thu, 08 Apr 2021 16:18:24 +0200 Transition to sustainable energy becomes visible in electricity mix https://netztransparenz.tennet.eu/tinyurl-storage/detail/transition-to-sustainable-energy-becomes-visible-in-electricity-mix/ Maarten Abbenhuis, TenneT's COO: "The energy transition is in full swing and is becoming increasingly visible in the electricity mix. We can see the clear advance of solar and wind electricity in the Dutch energy mix. In addition, the use of coal is continuing to decline as it is replaced by gas, which emits less CO2. Realising the energy infrastructure of the future is the big challenge for the Netherlands and Europe in the coming decade."  Maarten Abbenhuis, TenneT's COO: "The energy transition is in full swing and is becoming increasingly visible in the electricity mix. We can see the clear advance of solar and wind electricity in the Dutch energy mix. In addition, the use of coal is continuing to decline as it is replaced by gas, which emits less CO2. Realising the energy infrastructure of the future is the big challenge for the Netherlands and Europe in the coming decade." 

    • Electricity prices on the European wholesale markets dropped by 19% partly as a result of COVID-19. Especially in the first lockdown period a sharp decrease of market prices, afterwards a recovery is visible.
    • In 2020, the Netherlands produced more electricity than in 2019. Mainly with gas plants, solar parks and wind farms. Electricity from coal declines significantly. The Netherlands is a net exporter of electricity for the first time since 1981. 
    • Electricity generated by sun and wind increases by 40%, mainly due to the commissioning of 3.1 GW of installed capacity of solar panels and the commissioning of the offshore wind farms in  Borssele (1.4 GW).   

     

    These are the outcomes of the Annual Market Update 2020 of TenneT, cross-border grid operator in the Netherlands and a large part of Germany.

    Electricity market prices: prices down due to COVID-19 measures

    Electricity market prices in the Central West European (CWE) countries of the Netherlands, Belgium, Germany, France and Austria fell by 19 percent in 2020. The price decreases are mainly due to lockdown measures taken by governments in the COVID-19 pandemic. Due to partial or total lockdown measures, industry in some countries reduced or even halted its production, causing a sharp fall in demand for electricity and gas. From February to May a decline was visible, from June onwards market prices recovered to prices above the annual average of € 32 per MWh.

    Electricity generation: gas continues to gain ground on coal

    As was the case last year, the margins for gas were largely higher than those for coal. The lower efficiency compared to gas plants (40% coal, 55% gas) and the almost twice as high CO2 emissions of coal plants compared to gas plants worsened the competitive position of coal plants. From January to November, gas plants produced more electricity than coal plants, with a record low for coal in June and July. This applies to both the Netherlands and Germany. Exceptions in Germany to the Dutch pattern are the negative margins in February to May. This is caused by a high supply of electricity from sun and wind in Germany, which pushed the monthly average prices even below the healthy margins of both coal- and gas-fired power plants.   

    The Netherlands produced slightly more electricity last year than in 2019. Generation increased from 100 TWh in 2019 to 102 TWh in 2020. For the first time since 1981, the Netherlands was a net exporter of electricity. The Netherlands exported electricity mainly to the United Kingdom and Belgium. In Germany, on the other hand, production decreased by 26 TWh last year, mainly due to less generation from coal and lignite plants and nuclear power plants.

    Another sharp growth in renewable sources

    Of the weather-dependent sustainable sources of electricity, solar energy grew by far the fastest in 2020. In 2020, 7.3 GW of renewable capacity was added in the Netherlands, bringing the total capacity from all energy sources to 41 GW. The installed capacity of solar panels grew the fastest with 3.1 GW. As a result, 49% more solar energy was generated in 2020 than in 2019 (total sunshine 8 TWh). Electricity from offshore wind power grew relatively the fastest (+66%) due to the commissioning of 1.4 GW of capacity from the wind farms near Borssele (total offshore wind 6 TWh). Onshore wind generated 9 TWh last year, bringing the total generation from these sustainable sources to 23 TWh in 2020. This is approximately equal to the annual electricity consumption of the provinces of Noord-Holland and Utrecht combined.

    The share of sustainable electricity will further increase in the coming years with the realisation of wind farms at sea and on land and the growth of solar panels on land and on roofs. Maarten Abbenhuis: "In various places, the electricity grid is reaching the limits of its capacity to transmit all this sustainable power. TenneT and the regional grid operators are working hard to jointly accommodate all existing plans and the plans arising from the regional energy strategies (RES), so that the electricity grid remains sustainable, future-proof and affordable."

    About the Annual Market Update 2020

    The TenneT Annual Market Update provides an overview of relevant developments in the Central West European electricity markets, with a special focus on the Netherlands and Germany, the countries in which TenneT operates.  The Market Update 2020 highlights developments in the areas of: electricity prices; fuel prices (gas, coal, CO2 rights); consumption and various forms of electricity generation; subsidy schemes for sustainable electricity production; and interaction (e.g. imports and exports) between the Dutch system and those in neighbouring countries. Special attention is also paid to ensuring the stability and operation of the electricity system by showing the (price) developments for balancing (maintaining the balance between supply and demand) and redispatch (preventing congestion on the grid). 

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    news-2222 Thu, 05 Nov 2020 18:00:00 +0100 The corporate forum on sustainable finance gets involved https://netztransparenz.tennet.eu/tinyurl-storage/detail/the-corporate-forum-on-sustainable-finance-gets-involved/ Almost two years after its launch at the beginning of 2019, the 22 European companies participating in the Corporate Forum on Sustainable Finance (CFSF) as part of their commitment to the sustainability transition are taking stock of the progress they have made and of the growth of the sustainable finance market, which represents over US$1,000bn in sustainable bond issues worldwide. Current health and economic challenges have reinforced their conviction that finance has a crucial role to play in supporting projects that make a positive social and environmental impact.    Almost two years after its launch at the beginning of 2019, the 22 European companies participating in the Corporate Forum on Sustainable Finance (CFSF) as part of their commitment to the sustainability transition are taking stock of the progress they have made and of the growth of the sustainable finance market, which represents over US$1,000bn in sustainable bond issues worldwide. Current health and economic challenges have reinforced their conviction that finance has a crucial role to play in supporting projects that make a positive social and environmental impact.   

    With over €90bn outstanding at the end of October 2020, the members of the Corporate Forum, emanating from eight countries and five business sectors, including energy, utility, transport, real estate, and waste and wastewater recycling, account for nearly two third of European sustainable bond issues.

     

    As a platform for discussion and debate between issuers, the Forum aims to speak with a single voice on six ambitious sustainable finance commitments:

    • To integrate the concept of sustainability more deeply into companies’ financial strategies;
    • To work with investors to spur the development of a more sustainable economy through innovative financing instruments;
    • To increase corporate presence in international and national forums shaping the development of sustainable finance markets;
    • To actively participate in setting the standards and regulatory frameworks that govern sustainable finance instruments;
    • To liaise with rating agencies about more deeply integrating ESG criteria into the assessment of companies’ long-term financial sustainability ;
    • To leverage expertise and promote best practices on reporting the impact of strategies implemented.

     

    What has been accomplished over the past two years?

    The CFSF responded to seven consultations held by the European Union over the past two years on: EU Taxonomy, EU Green Bond Standard, EU Climate Benchmarks and Benchmarks’ ESG disclosure, EU Renewed Sustainable Finance Strategy and EU Review of the Non-Financial Reporting Directive. The joint responses of the Forum’s members fed into the final drafts of the reports resulting from these consultations, particularly in the “eligible expenses” section of the “EU Green Bond Standard”. They also published a position paper on eligibility criteria for electricity grid investment.

    In addition, in view of the annual funding requirement for the sustainability transition, estimated at nearly €260bn by the European Commission in January 2020, and the need to propose a European taxonomy to ensure the proper allocation of financial resources, the Corporate Forum members contributed to the work as follows:

     

    • By proposing public feedback on the usability of the taxonomy (usefulness, key points on compatibility with other standards, risk of distortion of competition between member states).
    • By commenting individually on the taxonomies for their respective sectors of activity.

     

    In 2019, the Corporate Forum also initiated a dialogue with the main credit rating agencies (S&P, Moody’s and Fitch) on their methods for integrating ESG issues into their credit ratings. In 2020, the dialogue continued with rating agencies such as MSCI, V.E (Vigeo Eiris) and Sustainalytics, as well as with Principles for Responsible Investment, a UN-supported international network of investors.

    The Group has also paid particular attention to the development of new instruments enabling the development of the sustainable finance market (sustainability-linked bonds, social bonds, transition bonds, etc.).

    In the context of the current health and economic crisis, members of the Corporate Forum remain mobilized to get involved and share their common positions on sustainable finance with both regulatory authorities and investors.

    ]]>
    news-2214 Thu, 29 Oct 2020 22:45:00 +0100 TenneT wins prestigious FD Henri Sijthoff prize for 2019 Annual Report https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-wins-prestigious-fd-henri-sijthoff-prize-for-2019-annual-report/ We are proud to announce that our 2019 Integrated Annual Report has won the prestigious FD Henri Sijthoff prize for outstanding financial reporting.  We are proud to announce that our 2019 Integrated Annual Report has won the prestigious FD Henri Sijthoff prize for outstanding financial reporting. 

    Awarded every year by leading Dutch newspaper Het Financieele Dagblad, the Sijthoff prize is the highest recognition for financial reporting excellence in the Netherlands. It judges areas such as clarity of writing, transparency of information about the company, its strategy, corporate governance and corporate social responsibility.

    “I’m thrilled that TenneT has won this prestigious prize. This is an important recognition of the outstanding work by our team. It was the third time we had been nominated, so it’s wonderful to win at last.

    Congratulations to everyone involved, including our fellow nominees,’’ says Otto Jager, TenneT’s chief financial officer.

    "As we are creating a brighter energy future for the benefit of everyone in Germany and the Netherlands, we want to tell our story as clearly as possible. We are proud to be able to regularly report about our people, our assets and our operations in a transparent way. Together we lighten the way ahead to a sustainable energy system.”

    TenneT was one of three nominees in the non-listed companies category, along with NS and Triodos. Work has already begun on its 2020 Integrated Annual Report, which will be published in March 2021.

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    news-2156 Fri, 31 Jul 2020 08:45:00 +0200 Investments rising to EUR 4-5 billion a year in the next years - TenneT scaling up for European energy transition https://netztransparenz.tennet.eu/tinyurl-storage/detail/investments-rising-to-eur-4-5-billion-a-year-in-the-next-years-tennet-scaling-up-for-european-ener/ TenneT invested EUR 1,408 million in the Dutch and German high-voltage grids in the first half of 2020, a 30% increase compared to the first half of 2019 (EUR 1,094 million). Underlying operating result (EBIT) increased to EUR 414 million in the first half of 2020 (first half of 2019: EURO 407 million). TenneT is scaling up its organisation to invest EUR 4 to 5 billion annually to connect renewable energy sources and develop a borderless European electricity market. In July 2020, TenneT strengthened its balance sheet by issuing EUR 1 billion of green hybrid securities. Talks with the German government about a potential equity participation next to the Dutch State are on-going.
  • TenneT invested EUR 1,408 million in the Dutch and German high-voltage grids in the first half of 2020, a 30% increase compared to the first half of 2019 (EUR 1,094 million).
  • Underlying operating result (EBIT) increased to EUR 414 million in the first half of 2020 (first half of 2019: EURO 407 million).
  • TenneT is scaling up its organisation to invest EUR 4 to 5 billion annually to connect renewable energy sources and develop a borderless European electricity market.
  • In July 2020, TenneT strengthened its balance sheet by issuing EUR 1 billion of green hybrid securities.
  • Talks with the German government about a potential equity participation next to the Dutch State are on-going.
  • Despite the corona pandemic and due to extensive measures taken to ensure a safe and healthy work environment, TenneT made good progress in managing the complexity of connecting growing amounts of renewable electricity to the grid. At the same time, TenneT maintained a high security of supply of 99.99 percent for 42 million end users across the Netherlands and Germany.

    Further integration pays off

    TenneT, as Europe's first cross-border TSO, continued to facilitate the development of a borderless European electricity market. TenneT increasingly benefits from its integrated grid planning, management and operations approach. Manon van Beek, CEO: "Sharing best practices and lessons learned between our German and Dutch operations is paying off more and more in terms of an integrated approach to offshore and onshore grid expansion, better grid utilization due to European innovations and cross-border energy system planning."

    Offshore, TenneT is on track to move the energy transition in the Netherlands forward making use of  its extensive experience in Germany. Borssele Alpha recently saw its first power delivered by the neighbouring wind farm. Borssele Beta has become operational end of July, well before the formal delivery date of 31 August 2020. Therefore TenneT has now got fourteen offshore grid connections in operation, twelve in the German and two in the Dutch North Sea. The 12th offshore grid connection in Germany, Borwin 3, was completed in the first half of 2020. This brings the total connection capacity in the German part of the North Sea to over 7 GW, exceeding the German government's sustainability target of 6.5 GW by the end of 2020.

    In order to reduce the impact of AC lines and to increase the public acceptance of those projects, Germany recently decided to start a couple of 380kV AC underground cabling pilots. TenneT benefits from the experience it gained in the Dutch Randstad with the construction of 380 KV underground AC lines. Furthermore this experience is also transferred to the large DC corridor projects like SuedLink and SuedOstLink. These huge -TenneT’ s largest-  projects, which will be built completely underground, will be crucial to transport northern wind production to meet demand for electricity in southern Germany.

    Scaling up and unlocking flexibility through innovation

    “We’ve proven to be resilient to the challenges posed by the corona pandemic,” says Van Beek. “Our construction work on onshore and offshore electricity connections is progressing. As well as maintenance. Our investment agenda increased by 30% in the first half year."

    On top of all grid expansion and maintenance efforts, TenneT is also investing heavily in innovations to better utilize and optimize the capacity and flexibility present in the existing electricity grids. In April, TenneT together with Terna (IT) and Swissgrid (CH) launched Equigy, a new European crowd balancing platform, supported by blockchain technology. This platform will enable millions of European prosumers to actively offer flexible capacity of their electric cars, domestic batteries or solar panels to grid operators for the stabilisation of the electricity system and thus financially benefit from the energy transition.

    Van Beek continues: "On 1 July, we launched a new organisational structure with a new senior leadership team that will support the company’s growth and its role in the energy transition in the Netherlands, Germany and neighbouring countries. New departments will further focus on strategic partnerships, digitalization and energy system planning. The new organisation marks an important milestone in TenneT' s transformation, which also includes a sharpened strategy and more focus on leadership and culture.

    TenneT expects to scale up to an annual invest volume of EUR 4 to 5 billion within the next few years. CFO Otto Jager explains: "We are going to connect growing amounts of renewable electricity to the grid while facilitating the development of a borderless European electricity market. In light of future equity funding needs, the ongoing talks with the German government about a possible equity participation, next to the Dutch State, are welcomed by TenneT."

    Financial results and outlook

    TenneT’ s financial performance in the first half year of 2020 remained solid. Underlying revenue of EUR 2,319 million increased by 7.1% compared to 2019 (EUR 2,166 million), mainly driven by a growing asset base and additional compensation for grid-related expenses. Underlying EBIT increased by EUR 7 million to EUR 414 million in the first half of 2020 (first half 2019: EUR 407 million).

    Key underlying results (1)

     

     

     

     

     

     

     

    EUR Million

     

    30 June 2020

     

    30 June 2019

     

    Revenue

    2.319

     

    2.166

     

    EBITDA

     

    960

     

    877

     

    EBIT

    414

     

    407

     

    Investments

     

    1.408

     

    1.094

     


    In March 2020, TenneT raised EUR 250 million of funding from the European Investment Bank. The financing is linked to TenneT’ s Southwest 380 kV-west project, which will bring wind energy from the North Sea to users in the Netherlands and beyond.

    In May 2020, S&P and Moody’s confirmed TenneT’ s A- / A3 long-term unsecured credit ratings, with a stable outlook.

    In July 2020 TenneT issued EUR 1 billion of Green Hybrid Securities to further strengthen its balance sheet for the coming years, as 50% will be classified as equity by the credit rating agencies.

    Jager commented: “With the hybrid issuance, we have a robust capital structure for the coming years, but, given our growing investment programme, it is prudent to already now look further ahead for additional equity capital as we are currently doing in cooperation with the Dutch and German state.”

    Read more

    Find the Half Year Report 2020 here.

    (1) Contrary to IFRS, ‘underlying’ figures recognise regulatory assets and liabilities in connection with TenneT’s regulated activities whereas IFRS does not allow this. This means that amounts resulting from past events and which are allowed or required to be settled in future grid tariffs are recognized separately.  

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    news-2144 Thu, 16 Jul 2020 10:05:01 +0200 TenneT sparks the hybrid market with a EUR 1 billion Green Hybrid Bond https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-sparks-the-hybrid-market-with-a-eur-1-billion-green-hybrid-bond/ Investors show keen interest: issue 2.5 times oversubscribedGreen Hybrid further strengthens TenneT' s balance sheetLargest corporate green debt issuer in the Netherlands, with over EUR 9 billion issued 
    • Investors show keen interest: issue 2.5 times oversubscribed
    • Green Hybrid further strengthens TenneT' s balance sheet
    • Largest corporate green debt issuer in the Netherlands, with over EUR 9 billion issued 

    TenneT Holding B.V. (rated A3/A-) yesterday successfully priced a Green Hybrid Bond issue of EUR 1 billion with a coupon of 2.374% and a non-call period of 5.25 years. The issue will further strengthen TenneT' s balance sheet as it will receive 50% "equity credit" from the credit rating agencies. Proceeds will be used to invest in green projects in the Netherlands and Germany to connect large scale offshore wind to the onshore electricity grid and to enhance the onshore transmission capacity for renewable energy. The transaction was supported by ten banks: BNP Paribas and HSBC as joint structuring advisors and joint lead managers, Deutsche Bank and ING Bank as joint lead managers and ABN AMRO, Commerzbank, Lloyds Bank, NatWest Markets, Rabobank and SMBC Nikko as passive bookrunners.

    Investing in green energy

    In order to implement the sustainable energy policies of the Netherlands and Germany, drive the energy transition and carry out large-scale maintenance work on our high-voltage grids, TenneT' s annual investments are expected to grow from approximately EUR 2 to 3 billion today to approximately EUR 4 to 5 billion within the next five years.

    The majority of TenneT' s investments are directly related to the increase in renewable energy sources, such as wind and solar energy. In the period up to 2030, TenneT expects to have realized approximately 28 gigawatt (GW) of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea, transmitting an amount of electricity sufficient to power 38 million households for a full year.

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    news-2057 Thu, 12 Mar 2020 10:51:36 +0100 TenneT preparing to meet European energy system challenges https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-preparing-to-meet-european-energy-system-challenges/ TenneT's efforts to drive the energy transition, one of its strategic priorities, are increasingly focused on innovation, optimisation of the current high-voltage infrastructure and close cooperation with stakeholders like governments, society, other grid operators and market parties TenneT's efforts to drive the energy transition, one of its strategic priorities, are increasingly focused on innovation, optimisation of the current high-voltage infrastructure and close cooperation with stakeholders like governments, society, other grid operators and market parties

    •  In 2019 TenneT invested EUR 3.1 billion  in the energy transition and security of supply (99.9998% grid availability in 2019)
    • TenneT is preparing the company to facilitate an annual investment portfolio of EUR 4 – 5 billion to drive the energy transition
    • Underlying revenue amounted to  EUR 4.1 billion; EBIT (excluding special items) amounted to EUR 753 million
    • Social acceptance of new infrastructure, availability of equity financing and availability of the supplier market are crucial to TenneT's pivotal role in the energy transition.

     

    TenneT's efforts to drive the energy transition, one of its strategic priorities, are increasingly focused on innovation, optimisation of the current high-voltage infrastructure and close cooperation with stakeholders like governments, society, other grid operators and market parties. This is stated in the 2019 Integrated Annual Report that was published today by the Dutch/German transmission system operator TenneT. In line with the energy policies and national climate targets in TenneT's home countries, the Netherlands and Germany, TenneT also stepped up its investments in the energy transition in 2019.

    Clear strategic direction defined

    The report highlights TenneT's progress on a renewed strategy adopted in 2019, based on four pillars: Driving the energy transition, Maintaining security of supply, Energising our people & organisation and Safeguarding our financial health. In 2019 TenneT also posted solid financial results, to some extent affected by less favourable regulation particularly in Germany. A stable development of the profitability of TenneT's regulated activities is necessary for carrying out its extensive investment programme for the energy transition in the years ahead.

    Manon van Beek, CEO TenneT: "For TenneT, 2019 was both a successful and a challenging year. In 2019 we started the internal process for 'changing for growth' to prepare TenneT for its central and increasing role in the European energy transition and a new energy system. We have now successfully fully integrated the structure of our cross-border organisation, including the creation of several hundreds of new jobs across the company. We can be proud of that. The same applies to the availability of our high-voltage grids which improved slightly to 99.9998 percent, keeping our grids among the most reliable in the world. Financially, we delivered a solid performance in line with the expectations of our capital providers. Our EUR 3.1 billion investments are supporting the energy policies in the Netherlands and Germany. 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."

    KEY ACCOMPLISHMENTS IN 2019 DRIVING THE ENERGY TRANSITION

    Approximately one sixth of TenneT's total investments in 2019 were allocated to the maintenance of the existing high voltage grids; the other part was earmarked for newly built projects and grid expansions. A number of important projects to maintain the high security of supply and to drive the energy transition were completed or showed good progress in 2019.

    Unlocking new sources of renewable energy

    In 2019, TenneT already met and even exceeded the German government’s 2020 6.5 GW expansion target for sustainable North Sea and Baltic Sea wind power. BorWin 3, TenneT's ninth offshore direct current connection, has been commissioned. DolWin5, DolWin6 and BorWin5 are in development and will increase TenneT's transport capacity for wind farms in the German North Sea to almost 10 GW by 2025. After 2025 TenneT additionally plans more than 6.5 GW of transmission capacity to be installed by 2030. So TenneT is well prepared to meet future offshore goals as Germany's northern states and federal government want to more than double the country's installed offshore wind power capacity (North Sea and Baltic Sea) within ten years with a new expansion target of 20 GW by 2030, instead of the earlier goal of 15 GW.

    Borssele Alpha, TenneT's first alternating current (AC) offshore platform on the Dutch part of the North Sea, was installed on schedule and is now ready for use. Another seven of these 700 MW standardized platforms will be delivered by 2027 for connecting future offshore wind farms to the onshore grid. The next offshore connection system, Borssele Beta, will be completed by 2020. TenneT expects to have realised a total of almost 10 gigawatts (GW) of offshore connection capacity by 2030 in the Dutch North Sea. For the IJmuiden Ver wind area TenneT expects to use two 2 GW converter platforms in combination with 525 kV cable. A world's first, this new standard saves on costs and ensures a smaller spatial footprint.

    Offshore wind has a major impact on the onshore grid

    The energy transition can only be successful if the growth of offshore wind energy and onshore solar energy is developed in an integrated way with onshore grid expansions.

    Important steps were taken in 2019 in the planning and licensing phase for SuedLink, the North-South connection in Germany. The preferred corridor for this 2 x 2 GW underground (DC) cable connection was presented followed by extensive stakeholder dialogues and approval procedures being started. This corridor is planned to run from Schleswig-Holstein to Bavaria and Baden-Württemberg. TenneT and fellow German TSO TransnetBW launched EU-wide tenders for the convertor stations, key components of the project.

    TenneT is working in Germany on more large-scale onshore high-voltage connections than ever before. No fewer than eight high-voltage lines are under construction, including Wahle-Mecklar (230 kilometres), Mittelachse and the Westküstenleitung, which transport large amounts of wind energy from the north to end users further south.

    After five years of construction, the 60-kilometre-long Randstad 380 kV North Ring connection was commissioned. The new transmission line delivers a reliable electricity supply to millions of households and companies in the Dutch Randstad region. Moreover, this power highway will provide the required transmission capacity for green electricity produced by North Sea wind farms. Other large projects in preparation or under construction are Zuid-West 380 kV Oost and West, Eemshaven-Vierverlaten and increasing the capacity of the national 380 kV ring.

    Energy transition only successful with a European approach

    With the 'green' COBRA cable, which became operational in September 2019, the Dutch and Danish markets are directly connected for the first time. Sustainable electricity for nearly two million households can now be efficiently imported or exported. The undersea cable of more than 300 km also ensures greater security of supply for society. The German and Norwegian markets will be connected to each other directly for the first time with the NordLink cable connection that is currently being built. It is expected that this over 600 km long interconnector will be ready for operation in 2020 and facilitate the exchange of 'green' power on a large scale.

    TenneT's international solution to meet Europe's climate objectives after 2030 has provided new insights. An extensive study by the North Sea Wind Power Hub consortium has shown that an internationally coordinated roll-out of multiple 'Hub-and-Spoke' projects -  combining wind power connections, coupling energy markets through interconnection and smart integration in the onshore energy grid, including power to gas – is technically feasible. It will also increase societal welfare and support security of supply.  Each 'Hub-and-spoke' project of 10 – 15 GW and either platform of island based will be part of a step-by-step approach, providing adaptability to balance scale, development times and environmental compatibility.

    INNOVATION TO IMPROVE GRID UTILISATION

    Because the societal cost associated with the energy transition are rising and the incorporation of large infrastructure projects into the living environment often leads to discussions and litigation, TenneT is also explicitly looking for solutions that do not necessarily require costly grid expansions. The company initiates and participates in a large number of initiatives to make smarter use of existing assets and use new technologies.

    TenneT, for example, is carrying out pilots with a number of large automotive companies and suppliers of home batteries to enable 'crowd balancing'. TenneT strongly believes in a future in which electric cars and home appliances, such as home batteries, are used to unlock flexibility in power supply and demand and thus contribute to balancing the grid. With Daimler (Mercedes-Benz Energy) and BMW TenneT started successful pilots showing EV-batteries can indeed make a significant contribution to grid stabilization and system reconstruction. A role previously reserved only for conventional power plants.

    The innovative InnoSys project is aimed at designing digital solutions that will ensure the existing capacity of the high-voltage grid can be better used for the significantly growing need of sustainable electricity transport. Such an automated grid control system could prevent additional grid investments.Another longer-term innovation project includes the development - together with Thyssen Gas and Gasunie Germany - of a 100 MW electrolysis plant that can deliver green hydrogen for industry in phases as from 2022 and can serve as storage of sustainable energy in the form of gas.

    FINANCIAL

    TenneT's financial results were in line with expectations. 2019 underlying revenue of EUR 4,084 million decreased with 3% compared to 2018. Underlying EBIT decreased from EUR 853 million in 2018 to EUR 768 million in 2019. Excluding special items, underlying EBIT decreased by 9% to EUR 749 million in 2019, mainly driven by a reduced regulatory rate of return on equity in Germany, due to the start of the new 5-year regulatory period, partly offset by a higher regulatory asset base due to investments.

     

    Key underlying  financial figures (in millions of euros)20192018
    Revenue4,0844,176
    Earnings before interest and taxes (EBIT)768853
    EBIT, corrected for special items753826
    Investments in fixed assets3,0642,253

     

     

    Investments & financing: equity financing challenges ahead

    Otto Jager, TenneT's CFO: "As a result of the sustainable energy policy in the Netherlands and Germany, our investments are expected to increase further. In order to keep the company financially healthy, we expect to need EUR 2 to 3 billion of additional equity in the next four years. A number of solutions are conceivable. Any solution needs to be flexible, scalable and must not split the company. We are in close consultation with our shareholder (the Dutch State) about the best way forward. Earlier in the year under review, our shareholder announced that it would present its vision to parliament in 2020."

    Capex (investments) totalled EUR 3,064 million in 2019, of which EUR 1,131 million in the Netherlands and EUR 1,925 million in Germany. As a result of these investments, the net interest-bearing debt position increased by 9% to EUR 9,500 million at 31 December 2019.

    Leading in sustainable financing

    TenneT values its position as a leader in sustainable finance. In January of 2019 TenneT received EUR 500 million of proceeds from its first Green Private Placement in the U.S., which demonstrates TenneT's ability to further diversify its sources of funding and investors to finance its substantial investment plans.

    In May, TenneT issued a European green bond in two tranches, of 11 and 20 years, totaling EUR 1.25 billion. This bond will be used for investments in the transmission of renewable electricity from offshore wind farms to the onshore grid. Four Dutch offshore projects are also part of the green debt-financed portfolio, which up to now also includes nine offshore projects in Germany. In November TenneT Holding B.V. refinanced its EUR 2.2 billion sustainable Revolving Credit Facility (RCF) and increased the principal to EUR 3 billion. With more than EUR 11 billion of green debt and sustainable funding available, TenneT is the largest corporate issuer of green debt instruments in the Netherlands.

    Senior unsecured credit ratings as of 31 December 2019

     

    Long-term ratingShort-term rating
    Standard & Poor’sA- (stable outlook)A-2
    Moody’s Investor ServiceA3 (stable outlook)P-2

     

     

    INVESTMENT OUTLOOK

    The energy policies adopted by the Dutch and German governments are strongly focussed on making the energy system more sustainable. In order to be able to implement these policies on time, TenneT expects to increase its investment level to EUR 4 to 5 billion annually in the coming years as a result of the phase out of coal- and nuclear power plants and the strong growth of offshore wind energy. The increase in annual investments is due, for example, to the German decision to increase the capacity of offshore wind farms from 15 GW to 20 GW. The Dutch government has also initiated a major expansion of offshore wind energy in 2030, which means that TenneT must have realised 9.6 GW of connection capacity for offshore wind farms in the Dutch part of the North Sea by that year.
    Other large onshore projects in the Netherlands are ‘Zuidwest 380 kV’, ‘Noordwest 380 kV’ and the upgrade of the national 380 kV ring. In Germany the largest projects are the long-distance, underground direct current connections called SuedLink and SuedOstLink, connecting the northern part of the country with the south.

    2019 Integrated Annual Report and 2019 Green Finance Report

    For more information about TenneT, please consult the 2019 Integrated Annual Report, which is available on the website annualreport.tennet.eu/2019/annualreport. 

    TenneT has published the 2019 Green Finance Report in relation to the 'green' financing of TenneT's investment portfolio by issuing green bonds (since 2015).

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    news-1980 Thu, 07 Nov 2019 15:12:20 +0100 TenneT signs a EUR 3 billion sustainable RCF to further drive the energy transition https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-signs-a-eur-3-billion-sustainable-rcf-to-further-drive-the-energy-transition/ The signed RCF by TenneT is the  largest sustainable RCF in the BeneluxTenneT has over EUR 11 billion of green debt and sustainable funding available Refinancing re-affirms TenneT’s commitment to social responsibility
  • The signed RCF by TenneT is the  largest sustainable RCF in the Benelux
  • TenneT has over EUR 11 billion of green debt and sustainable funding available
  • Refinancing re-affirms TenneT’s commitment to social responsibility
  • TenneT Holding B.V.(rated A3/A-) refinanced its EUR 2.2 billion Revolving Credit Facility (RCF) and increased the principal to EUR 3 billion. The pricing of the facility is linked to TenneT's ambition to be fully climate neutral in 2025.

    The maturity date of the RCF, which can be used for general corporate purposes, is extended to November 2024 with two one-year extension options. The agreed accordion options gives TenneT the flexibility to further increase the RCF. 

    Participating banks in the single tier RCF are: Rabobank (Sustainability) Coordinator,  ABN AMRO, BNP Paribas, BNG, Deutsche Bank, HSBC, ING Bank (Agent), Lloyds, NatWest and SMBC.

    Investing in the energy transition

    TenneT is driving the European energy transition and expects to invest EUR 35 billion in offshore and onshore grid connections across the Netherlands and Germany over the next ten years. Approx. 80 percent of TenneT's investments are directly related to the energy transition and renewable electricity production, such as wind and solar energy. In the period up to 2030, TenneT expects to have realized approximately 25 gigawatts (GW) of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea, transmitting electricity sufficient to power 31 million households for a full year.

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    news-1920 Tue, 30 Jul 2019 08:00:00 +0200 TenneT on track driving energy transition https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-on-track-driving-energy-transition/ Continued high grid reliability, coupled with progress on unlocking flexibility and initiatives to optimise the use of existing grid infrastructure. Underlying operating result (EBIT) increased from EUR 362 million (first half of 2018) to EUR 407 million in the first half of 2019.In the first half of 2019, EUR 1,094 million (first half of 2018: EUR 904 million) was invested in German and Dutch high-voltage grids.Thereof TenneT invested EUR 612 million in GermanySuccessful issuance of in total EUR 1,75 billion in green financing instruments.
  • Continued high grid reliability, coupled with progress on unlocking flexibility and initiatives to optimise the use of existing grid infrastructure.
  • Underlying operating result (EBIT) increased from EUR 362 million (first half of 2018) to EUR 407 million in the first half of 2019.
  • In the first half of 2019, EUR 1,094 million (first half of 2018: EUR 904 million) was invested in German and Dutch high-voltage grids.
  • Thereof TenneT invested EUR 612 million in Germany
  • Successful issuance of in total EUR 1,75 billion in green financing instruments.
  • TenneT is making progress in driving the European energy transition, as the Half Year Report of the German-Dutch grid operator shows. In the first half of 2019, TenneT has managed to maintain the high level of 99.99% security of supply, which is a growing challenge because of the increased feed-in of volatile renewable energy. To cope with this challenge in the future, TenneT has set up a number of strategic initiatives and partnerships to join forces across sectors. Following the Infrastructure Outlook 2050 published earlier this year, TenneT is taking next steps in planning of the energy system for 2030, in cooperation with Gasunie and the regional grid companies. The Power-to-Gas pilot project “ELEMENT EINS”, a joint initiative of Thyssengas, Gasunie and TenneT, has been selected by the federal government of Germany as one of 20 “real laboratories of the energy transition” to be funded by the government

    In Germany and the Netherlands, TenneT is working together with regional grid companies and market parties on smart solutions to optimise the use of existing electricity infrastructure. The InnoSys 2030 project in Germany aims to optimise the transport capacity of existing infrastructure by new IT solutions and automated operation. The GOPACS-project - Grid Operators Platform for Congestion Solutions - in the Netherlands provides new market-based possibilities to reduce congestion in the electricity grid. TenneT is also taking the next steps in the blockchain pilot project to unlock flexibility for balancing the electricity system from decentralised sources, such as home batteries and electric vehicles.

    TenneT also has continued to expand its positions as leading Offshore TSO. In Germany, TenneT has awarded the 14th Offshore grid connection DolWin 5. TenneT will increase its current offshore transmission capacity of 6,232 MW in the German part of the North Sea to almost 9 gigawatts by 2024.
    In the Netherlands, the development of the offshore grid with the Borssele Alpha and Beta projects is on schedule. TenneT will provide a total of 10.6 gigawatts1 (GW) of connection capacity for offshore wind farms in the Netherlands by 2030.

    1 GW existing wind parks, 3,5 GW following from the Energy Agreement for Sustainable Growth (2013) and 6,1 GW following from the Roadmap Wind at Sea 2024 – 2030 (2018).

    TenneT is carrying out a large number of onshore projects to guarantee the transport and thus the security of supply of a growing quantity of green electricity from new production locations on land and at sea, from the Netherlands, Germany and other European countries.

    In Germany, the proposed 700 km corridor for the direct current connection (DC) SuedLink was presented in February, together with project partner TransnetBW. SuedLink and SuedOstLink2 , which will also be laid underground and covers almost 600 kilometres, will be transporting large volumes of sustainable wind energy from the north to the south of Germany from around 2025.
    Also TenneT’s largest German AC project, the 230km line between Wahle (near Braunschweig) to Mecklar in Hesse, which also will transport green energy from the North to Southern Germany, is making significant progress, with building activities in 3 of 4 sections. The important reinforcement of the 380kV crossing of the Elbe between Hamburg (Nord) and Dollern in Lower Saxony is expected to get into operation by the end of the year.

    The German and Norwegian markets will be connected to each other directly for the first time with the NordLink cable connection that is currently being built. The commissioning of this 623-km-long interconnector is expected to start in 2020 (full completion in 2021).The subsea COBRA cable between the Netherlands and Denmark has 'landed' at the connection point in Eemshaven and will be put in operation later this year.

    Manon van Beek, CEO: "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."

    2 SuedLink is being developed by TenneT and TransnetBW, SuedOstLink by TenneT and 50Hertz.

    Underlying operating results

    In the first half of 2019 TenneT's underlying revenue of EUR 2,166 million increased with 10.2% compared to 2018 (EUR 1,966 million), mainly due to additional revenue generated by a growing asset base and reimbursements for increased grid expenses.

    The increase of EBIT by 12.4% to EUR 407 million is partly due to a change in the regulatory treatment of costs related to operating the grid, such as grid losses and balancing expenses. Compared to 2018, the reimbursement of such costs has changed from a fixed budget to a pass-through methodology, as they are largely out of the company’s sphere of influence.  

    The implementation of the new lease standard (IFRS16) has led to an increase in depreciation and a reduction in operational costs. As a result, EBITDA increases, while the impact on EBIT is limited. As a result of the large number of projects - in development and execution - supporting the energy transition, investments increased by EUR 190 million (+21%) compared to the first half of last year.

    Key underlying results3

    Amounts in millions of euro30 June 201930 June 2018
    Revenue2,1661,966
    EBITDA877699
    EBIT407362
    Investments in tangible fixed assets1,094904
    Senior unsecured credit ratingsA-/A3A-/A3


    3 Contrary to the International Financial Reporting Standards (IFRS), the so-called ‘underlying’ figures reflect regulatory assets and liabilities in connection with TenneT’s regulated activities. This means that amounts resulting from past events and that are allowed or required to be settled in future grid tariffs are recognized as assets or liabilities.

    Green Financing

    In January, TenneT received EUR 500 million of proceeds from its first Green Private Placement in the U.S., which demonstrates TenneT's ability to further diversify its sources of funding and investors to finance its substantial investment plans.
    In May, TenneT issued a European green bond in two tranches, of 11 and 20 years, totalling EUR 1.25 billion. This bond will be used for investments in the transmission of renewable electricity from offshore wind farms to the onshore grid. Four Dutch offshore projects are also part of the green debt-financed portfolio, which up to now also includes nine offshore projects in Germany. With more than EUR 8 billion in sustainable financing issued, TenneT is the largest corporate issuer of green debt instruments in the Netherlands.

    Otto Jager, CFO: "We have an excellent track record in and access to the debt capital markets. This gives us ample room to finance our extensive investment programme in a very cost effective manner. However, to maintain our strong credit ratings, we expect the need to raise EUR 2 to 3 billion of equity capital within the next 5 years as well. We are in a constructive dialogue with our shareholder, the Dutch Ministry of Finance, to determine the best way forward on this matter.“

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    news-1886 Wed, 12 Jun 2019 14:50:54 +0200 XBID – 1st anniversary and announcement of 2nd Wave Go-Live https://netztransparenz.tennet.eu/tinyurl-storage/detail/xbid-1st-anniversary-and-announcement-of-2nd-wave-go-live/ XBID, the Single Intraday Coupling (SIDC) solution, is one year old today! Since the successful go-live on June 12th/13th, 2018 over 16 million trades have been executed. Expansion of the SIDC into 7 further countries is expected in Quarter 4, 2019. XBID, the Single Intraday Coupling (SIDC) solution, is one year old today! Since the successful go-live on June 12th/13th, 2018 over 16 million trades have been executed. Expansion of the SIDC into 7 further countries is expected in Quarter 4, 2019.

    The SIDC parties are pleased to recognise a successful first year of operation with high and growing numbers of trades together with stable and robust performance. Over 16 million trades have been successfully completed since go-live in June 2018.

    Preparation and testing are now well underway for a 2nd wave go-live which is expected to be launched towards the end of Quarter 4 2019. The following countries are actively involved in this expansion: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania and Slovenia, together with the bordering countries who are already operational from the first go-live. These are Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, the Netherlands, Norway, Portugal, Spain and Sweden.

    A 2nd Wave Pre-Launch Event is being planned for early October 2019 to brief stakeholders ahead of the Go-Live. A Trial Period with Market Parties is also being arranged to provide opportunities for new users to gain familiarity with the SIDC solution and undertake their own tests in preparation.

    The Co-Chairs of the SIDC Steering Committee, Jean Verseille, and Stefano Alaimo, stated: “We are very pleased to have reached this important milestone of one year of operations. The growth in trading demonstrates the important role of an integrated intraday market. We look forwards to the further expansion and development of SIDC. With seven countries due to go-live by the end of 2019 this would bring the geographic coverage of SIDC to an 21 countries. There are also discussions underway about a 3rd wave Go-Live.”

    SIDC is also being developed to deliver additional benefits and later in 2019 a second release of SIDC is due to be deployed. Importantly, for Market Parties, this will increase the order book depth to 100, a significant increase from the current depth of 31.

     

    Contact:

    50Hertz Transmission GmbH 
    Volker Kamm, T +49 30 5150 3417, M +49 172 3232759, E volker.kamm(at)50hertz.com 

    Amprion GmbH 
    Andreas Preuß, T +49 231 5849 13785, M +49 172 2407116, E andreas.preuss(at)amprion.net 

    TenneT TSO GmbH 
    Ulrike Hörchens, T +49 921 50740 4045, M +49 151 17131120, E ulrike.hoerchens(at)tennet.eu  

    TransnetBW GmbH
    Regina König, T +49 21858 3155, M +49 173 650 7067, E r.koenig(at)transnetbw.de 

     

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    news-1873 Mon, 20 May 2019 19:02:42 +0200 TenneT goes green again: issues EUR 1.25 billion of green financing https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-goes-green-again-issues-eur-125-billion-of-green-financing/ Green bond investors put in orders of more than EUR 5 billionFinancing re-affirms TenneT’s commitment to social responsibilityLargest corporate green debt issuer in the Netherlands, with over EUR 8 billion issued
  • Green bond investors put in orders of more than EUR 5 billion
  • Financing re-affirms TenneT’s commitment to social responsibility
  • Largest corporate green debt issuer in the Netherlands, with over EUR 8 billion issued
  • TenneT Holding B.V. (rated A3/A-) today successfully launched and priced another Green Bond issue of EUR 1.25 billion, split in two tranches of EUR 500 million (term: 11 years, coupon 0.875%) and EUR 750 million (term: 20 years, coupon: 1.500%) with the support of five banks: ABN AMRO, Barclays, HSBC, NatWest Markets and SMBC Nikko. Proceeds will be used to invest in green projects in the Netherlands and Germany to connect large scale of offshore wind to the onshore electricity grid.

    Investing in green energy

    Over the next ten years TenneT expects to invest EUR 35 billion in offshore and onshore grid connections across the Netherlands and Germany, driving the energy transition. Approx. 80 percent of TenneT's investments are related to renewables, such as wind and solar energy. In the period up to 2030, TenneT expects to have realized approximately 25 gigawatts (GW) of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea, transmitting electricity sufficient to (every year) power 31 million households for a full year.

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    news-1786 Wed, 09 Jan 2019 11:29:41 +0100 Announcement publication integrated annual report and annual results for 2018 https://netztransparenz.tennet.eu/tinyurl-storage/detail/announcement-publication-integrated-annual-report-and-annual-results-for-2018/ On Thursday, February 21rd, 2019, TenneT Holding BV will publish its integrated annual report and annual results for the year 2018. 

    On Thursday, February 21rd, 2019, TenneT Holding BV will publish its integrated annual report and annual results for the year 2018. 

    On the same day (in the morning), a press conference is planned at the HSM yard in Schiedam, where TenneT is building projects for offshore wind energy.

    For more information / details or to register journalists can contact TenneT Media Relations: +31 26 373 2600 (tel.) or press@tennet.eu (e-mail). 

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    news-1570 Tue, 14 Aug 2018 08:31:01 +0200 EIB reaffirms support for Nordlink interconnector with EFSI-backing https://netztransparenz.tennet.eu/tinyurl-storage/detail/eib-reaffirms-support-for-nordlink-interconnector-with-efsi-backing/ European Investment Bank (EIB) closes a EUR 100m single investor tap of TenneT's 2017 hybrid bond to support the construction of NordLink interconnector between Norway and GermanyTransaction backed under European Fund for Strategic Investments (EFSI), part of successful Juncker Plan. This marks EIB’s first participation in a market hybrid bond issuance
  • European Investment Bank (EIB) closes a EUR 100m single investor tap of TenneT's 2017 hybrid bond to support the construction of NordLink interconnector between Norway and Germany
  • Transaction backed under European Fund for Strategic Investments (EFSI), part of successful Juncker Plan. This marks EIB’s first participation in a market hybrid bond issuance
  • TenneT Holding B.V. and the EIB today closed the issuance of EUR 100 million hybrid capital by TenneT (rated A3/A-). EIB has purchased EUR 100 million hybrid securities to be consolidated and form a single series with TenneT’s hybrid Securities programme launched on 12 April 2017. 

    The European Investment Bank has herewith reaffirmed its support for the Nordlink interconnector between Germany and Norway. After the signature in 2017 of loans to TenneT and Statnett, the EIB has now subscribed to a hybrid bond issue by TenneT to further support the project. The financing was made possible by the European Fund for Strategic Investments (EFSI), central pillar of the successful Investment Plan for Europe, which was launched by the EIB Group and the European Commission to boost the competitiveness of the European economy. 

    The EIB Vice-President Ambroise Fayolle commented: “This interconnector is a major project in a world where renewable energy is of such importance. This last step completes the EIB support for this project, which is exactly the type of project the EIB was set up to do sixty years ago. The security of supply and effective use of renewable energy remain high on the agenda for EIB financing and we are glad that this aligns completely with the objectives of the EFSI. We are excited that we are able to support this project while participating in TenneT’s hybrid bond tap, alongside other investors”

    Otto Jager, TenneT’s Chief Financial Officer, added: “Today’s transaction underlines the further deepening of our strong relationship with the EIB. In addition to the senior commitments of EUR 1.5bn, the EIB today supports one of the most challenging projects for the establishment of an interconnected renewable energy market in Europe. We are proud that we are the first issuer of a market hybrid bond with the EIB as participant and we are looking forward to further extend our relationship with the EIB in the near future.”

    European Commission Vice-President for the Energy Union Maroš Šefčovič said: "We need forward-looking investments into modern energy infrastructure with adequate interconnections, in particular to integrate renewables into the grid. It is a vital element of our energy security as well as our climate action. This smart combination of renewable power generation – solar and wind in Germany and hydroelectric in Norway – underlines our firm commitment to bring clean power to millions of people." 

    The NordLink interconnector is being developed by the Norwegian TSO Statnett and DC Nordseekabel, each with 50% ownership. DC Nordseekabel is equally owned by TenneT and the German promotional bank KfW, and is responsible for the construction of the German part of the project. Once completed, a bipolar high voltage direct current (HVDC) link will connect Norway and Germany across the North Sea with a rated capacity of 1400 MW and a total length of 624 km. NordLink will improve diversification and security of supply, enhancing electricity market integration in both countries, and more widely between Northwest Europe and Scandinavian countries. It is also designated as a Project of Common Interest in the Priority Corridor Northern Seas Offshore Grid. 

    Background Information

    The European Investment Bank (EIB) is the European Union’s long-term financing institution lending for investments that contribute to achieving the EU’s objectives. Founded in 1958, it operates in the 28 EU Member States, the EU’s neighbour countries and more than 100 other countries around the globe. Since 1994 the Bank can lend to eligible projects in Iceland under the EFTA Facility. This mandate enables the Bank to support projects notably in the sectors of energy, environment, research, development and innovation located in the territories of the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland).

    The NordLink interconnector is being developed by the Norwegian TSO Statnett and DC Nordseekabel, each with 50% ownership. DC Nordseekabel is equally owned by TenneT and the German promotional bank KfW, and is responsible for the construction of the German part of the project. The NordLink interconnector will be the first high voltage cable directly connecting German and Norwegian electricity markets. NordLink is designed to have a capacity of 1,400 MW and a total length of approx. 624 kilometers. 

    About The Investment Plan for Europe

    The Investment Plan for Europe focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects. The European Fund for Strategic Investments (EFSI) is the central pillar of the Juncker Plan. It provides a first loss guarantee, allowing the EIB to invest in more, often riskier, projects. So far, the projects and agreements approved for financing under the EFSI are expected to mobilise EUR 335 billion in investments and support around 700 000 SMEs across all 28 Member States. Find the latest EFSI figures by sector and by country here, or see the FAQs.

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    news-1336 Wed, 23 May 2018 08:06:11 +0200 TenneT issues EUR 1.25 billion of Green Bonds https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-issues-eur-125-billion-of-green-bonds/ Market provides TenneT again with long-dated bonds supported by a sizeable order book of around EUR 2.5 billionTenneT has for the first time added two Dutch offshore projects (Borssele Alpha and Borssele Beta) to its Green Bond portfolio including so far nine offshore projects in Germany TenneT is the largest (corporate) issuer in the Netherlands of green debt with a total of  EUR 6.25 billion of green issuances 
    • Market provides TenneT again with long-dated bonds supported by a sizeable order book of around EUR 2.5 billion
    • TenneT has for the first time added two Dutch offshore projects (Borssele Alpha and Borssele Beta) to its Green Bond portfolio including so far nine offshore projects in Germany
    • TenneT is the largest (corporate) issuer in the Netherlands of green debt with a total of  EUR 6.25 billion of green issuances 

    TenneT Holding B.V. (rated A3/A-) successfully launched and priced another Green Bond issue under its green bond program of EUR 1.25 billion, split in two tranches of EUR 500 million (term: 10 years, coupon 1.375%) and EUR 750 million (term: 16 years, coupon 2.00%) with the support of five banks: BNP Paribas, Deutsche Bank, ING Bank, Lloyds and Rabobank.

    Investing in green energy

    TenneT’s investments in offshore and onshore grid connections across the Netherlands and Germany are expected to total EUR 28 billion over the next 10 years.

    In the period up to 2019, TenneT is realizing over 7,000 megawatts (MW) of connection capacity for offshore wind farms in the German sector of the North Sea, transmitting electricity equivalent to the annual power consumption of approx. 10 million households. By 2023, TenneT expects to have realized 3,500 MW of connection capacity in the Dutch sector of the North Sea, corresponding to the annual power consumption of close to 5 million households.

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    news-1098 Fri, 23 Feb 2018 08:00:00 +0100 TenneT focuses on increasing resilience of the electricity grid while maintaining high security of supply https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-focuses-on-increasing-resilience-of-the-electricity-grid-while-maintaining-high-security-of-s/ TenneT invested EUR 1,770 million in 2017 in order to facilitate the energy transition while maintaining a high level of security of supply in the high-voltage grids (99.99% in 2017).Underlying revenue totalled EUR 3,948 million in 2017, with EBIT amounting to EUR 742 million (excluding special items). Energy transition requires a data-based, more flexible electricity grid combined with investments in grid expansions.TenneT is preparing the electricity system for the participation of millions of electricity consumers using new software in pilot projects testing blockchain technology.
    • TenneT invested EUR 1,770 million in 2017 in order to facilitate the energy transition while maintaining a high level of security of supply in the high-voltage grids (99.99% in 2017).
    • Underlying revenue totalled EUR 3,948 million in 2017, with EBIT amounting to EUR 742 million (excluding special items).
    • Energy transition requires a data-based, more flexible electricity grid combined with investments in grid expansions.
    • TenneT is preparing the electricity system for the participation of millions of electricity consumers using new software in pilot projects testing blockchain technology.

    Dutch-German Transmission System Operator (TSO) TenneT is again presenting healthy financial results in the Integrated Annual Report 2017 and Financial Statements 2017 published today. The annual report further shows TenneT is working on an upgraded and robust electricity grid by combining new onshore and offshore infrastructure with the introduction of a more flexible electricity system and intelligent software based on blockchain technology.

    TenneT CEO Mel Kroon commented: “In 2017 we made good progress on realizing our strategic priorities. Of essential importance is the fact that we have once again succeeded in safeguarding the high availability of our grids. And at the same time we're preparing our grids for a (near) future based on a fully sustainable energy landscape. Now modern society is increasingly dependent on electricity, the costs of renewable electricity decrease significantly and ‘green power’ is supplied by a wide range of sources at countless locations, we must shift to a new electricity system that can support this revolution. This means that we need to develop a more flexible system with sufficient capacity for the storage of electricity in hydrogen form and in batteries. The participation of millions of ‘prosumers’ in the electricity market is also of great importance because  much less conventional and easily controllable capacity for electricity generation will be available in the future to maintain the supply-demand balance in the power grid. The balancing role of conventional power plants will be partially taken over by consumers with electric vehicles, solar panels or home batteries. Collectively, they can provide the required flexibility while also making money in the process.”

    In 2017, TenneT therefore set up two pilot projects in the Netherlands and Germany to enable electricity consumers to take part in the electricity market. By collaborating with a so-called ‘aggregator’ (in this case Vandebron in the Netherlands and Sonnen in Germany) and applying blockchain technology, the capacity of all the pooled batteries can be utilized, enabling consumers to directly conduct transactions and in this way contribute to the energy transition, and – crucially – to maintaining the balance between supply and demand on the high-voltage grid. Assuming these pilot projects turn out to be successful, TenneT intends also to collaborate with other interested parties to create the electricity system of the (near) future.

    Financial results and investments

    Key underlying  financial figures (in millions of euros)20172016
    Revenue3,9483,227
    Earnings Before Interest and Taxes (EBIT)897834
    EBIT, corrected for special items742701
    Investments in tangible fixed assets1,7701,848
    Total Assets20,41218,974

     

    TenneT CFO Otto Jager commented: “Our strong results enable us to continue to finance the necessary investments in the energy transition. The capital markets recognize us as a stable and reliable issuer of bonds, allowing us excellent access to a broad range of financing sources.”

    Underlying revenue and EBIT

    TenneT’s 2017 underlying revenue of EUR 3,948 million increased substantially from EUR 3,227 million in 2016, mainly due to increased reimbursements for expenses to balance demand and supply and additional revenue generated by the company’s growing asset base. Underlying EBIT increased from EUR 834 million in 2016 to EUR 897 million in 2017. Excluding special items (such as certain non-recurring reimbursements of offshore activities and releases of certain provisions), underlying EBIT grew as well, from EUR 701 million in 2016 to EUR 742 million in 2017. EBIT growth was mainly driven by the increase in our asset base.

    Investments and financing

    Capital Expenditure (CAPEX) totalled EUR 1,770 million in 2017, of which EUR 736 million was invested in the Netherlands and EUR 1,032 million in Germany. To meet the financing requirements resulting from its large investment portfolio, TenneT successfully completed the first-ever issue of green hybrid securities in April 2017 in a total amount of EUR 1 billion, classified as equity. In addition, TenneT issued EUR 1 billion in green bonds during 2017.

    Senior unsecured credit ratings as of 31 December 2017

    Long-term ratingShort-term rating
    Standard & Poor’sA- (stable outlook)A-2
    Moody’s Investors ServiceA3 (stable outlook)P-2

     

    New offshore grid connections for wind farms

    The development of an offshore system to connect wind farms off the Dutch coast to the onshore grid is proceeding according to plan. This concerns the Borssele, Holland Coast South and Holland Coast North wind farm zones, which together account for a total capacity of 3,500 megawatts (MW).

    For the medium term, TenneT sees opportunities for further expansion of wind energy capacity in the Dutch sector of the North Sea. A capacity increase of approx. 7,000 MW is possible during the 2023-2030 period, divided across different zones off the west coast of the Netherlands and north of the Wadden Sea Islands. The roadmap for offshore wind energy currently being prepared by the Dutch government will provide definitive answers in this respect. TenneT is consulting closely with the Ministry of Economic Affairs and Climate Policy about these developments.

    An artificial island to be constructed in the North Sea between the Netherlands and the UK is a possible solution if direct-current (DC) connections are used instead of alternating-current (AC) connections, as has been done so far. This solution would make it possible to accommodate the scale of future offshore wind farms and their greater distance from the coast. If the transport cables are then also used to trade electricity between the Dutch and UK markets, the utilization rate of the infrastructure will increase substantially from 45 to 80 percent.

    Ten TenneT offshore grid connections are currently operational in the German sector of the North Sea: three AC and seven DC connections. This brings the total capacity currently available for the transmission of offshore wind power to more than 5 gigawatts (GW). That is more than enough to transmit the current total installed capacity of offshore wind farms. TenneT has already achieved over 80 percent of the German federal government’s 2020 expansion target for offshore capacity. TenneT expects to complete two new offshore grid connections in 2019, bringing the total operational offshore connection capacity to over 7 GW. The total capacity is expected to increase to over 10 GW by 2025.

    In 2017, TenneT transported a record quantity of wind energy generated in the German sector of the North Sea, namely 16 terawatt-hours (TWh). This would be enough to supply green electricity to German railway operator Deutsche Bahn for over 18 months. The 2017 figures represent an increase of almost 50% compared to 2016 (11 TWh), and an increase of more than 100% compared to 2015 (7 TWh).

    In 2016 TenneT announced its long-term vision (2030-2050 period) for an ‘energy island’ far offshore in the North Sea, which would allow wind farms with a combined capacity of up to 100 GW to be connected to the German, Dutch, UK, Belgian, Norwegian and Danish electricity markets. The consortium that is exploring the possibilities for the construction of this so-called ‘North Sea Wind Power Hub’ was expanded in 2017 to include Gasunie and the Port of Rotterdam Authority, alongside the original partners (TenneT Netherlands, TenneT Germany and the Danish TSO Energinet.dk).

    Connecting electricity markets

    In the coming years, TenneT will significantly expand the cross-border electricity connections (interconnectors) between the Netherlands, Germany and other countries, adding flexibility to the electricity system. This will also have positive effects on price harmonization, the exchange of renewable electricity, and the security of supply in the countries involved. The construction of two new offshore interconnectors is already well underway: the NordLink subsea high-voltage cable between Germany and Norway, and the COBRAcable between the Netherlands and Denmark. The COBRAcable is scheduled for completion in 2019, and the NordLink project is expected to be ready in 2020.

    The Dutch section of the new interconnector between Doetinchem (Netherlands) and Wesel (Germany) will be completed in 2018. The German section is being realized by grid operator Amprion, and is taking longer to construct than initially expected. The capacity of the existing interconnector between Meeden (Netherlands) and Diele (Germany) will be increased in 2019, while the existing bi-directional Dutch-Belgian transmission capacity is to be increased gradually until it has more than doubled by 2022.

    Outlook

    The German government has pledged to move to a decarbonized economy by the middle of the century, and has set a target of at least 80% renewables for gross power consumption by 2050. There are similar developments in the Netherlands, as the government is committed to the accelerated decommissioning of existing coal-fired power plants by 2030 at the latest.

    All this means that TenneT’s work to develop a grid that can accommodate even larger quantities of renewable energy is more important than ever. Growing its business to keep pace with these developments will require an expected investment of approximately EUR 28 billion over the coming ten years.

    The planned investments in the Netherlands are related to grid expansions and an extensive maintenance and replacement programme for the existing grid infrastructure, among other projects. The main projects are the offshore grid (3,500 MW), Randstad 380 kV North Ring, South-West 380 kV, North-West 380 kV, the upgrade of the national 380 kV ring, the Doetinchem-Wesel interconnector, and the COBRAcable. In anticipation of political decision-making, the further development of the offshore grid in the Netherlands after 2023 has not been included in the overall investment plan.

    At hundreds of kilometres in length, the DC connections SuedLink and SuedOstLink are the most high-profile onshore projects in Germany, because of their impact on the human environment and the high costs for society. The German government has introduced legislation to ensure that these connections are (largely) installed underground (i.e. as cables). In addition to the planned DC connections, over 20 major projects are currently in the planning or execution phase.

    Integrated Annual Report 2017 and Green Finance Report 2017

    More information about TenneT may be found in our Integrated Annual Report 2017

    TenneT has also prepared a Green Finance Report 2017 in connection with the issue of so-called ‘green bonds’ (starting in 2015) to finance the company’s investment portfolio. 

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    news-1043 Mon, 11 Dec 2017 07:00:00 +0100 Industrial issuers of €26 billion in green bonds pledge to double down on green financing https://netztransparenz.tennet.eu/tinyurl-storage/detail/industrial-issuers-of-EUR26-billion-in-green-bonds-pledge-to-double-down-on-green-financing/ On the occasion of the Paris 2017 Climate Finance Day, nine of Europe’s largest industrial emitters of green bonds (EDF, Enel, ENGIE, Iberdrola, Icade, Paprec, SNCF Réseau, SSE and TenneT) publicly announce their pledge to further develop one of the most dynamic segments of sustainable finance today, the green bond market.  On the occasion of the Paris 2017 Climate Finance Day, nine of Europe’s largest industrial emitters of green bonds (EDF, Enel, ENGIE, Iberdrola, Icade, Paprec, SNCF Réseau, SSE and TenneT) publicly announce their pledge to further develop one of the most dynamic segments of sustainable finance today, the green bond market. 

    These companies have joined forces to voice their commitment to the green bond market as part of their strategy, financing policy and their active engagement in the reporting debate and dialogue with investors. The pledge also calls upon other industrial corporates to consider issuing green bonds.

    The signatories of today’s pledge commit to a long-term presence in the market, that green bonds will be at the heart of their (project) financing and business lines, and that they will implement stringent reporting procedures.

    This announcement, on the morning of Climate Finance Day and the day before the One Planet Summit in Paris, is a clear signal that green bonds are and will continue to play a significant role in finance and reaching the goals set at the Paris Agreement two years ago.

    Ten years after the first green bond issuance, this market, has turned into an exciting place in particular, thanks to companies committed to tackling climate change, to a growing awareness to environmental protection, low-carbon transport and buildings as well as energy efficiency. So far, all nine companies have issued a total of €26 billion in green bonds which accounts for over 10% of total outstanding green bonds.

    Together the signatories draw on their experience to call upon other industrial companies to consider issuing green bonds, which will further strengthen this market and enhance its interest from the growing share of climate-minded investors. 

    Xavier Girre, Group Senior Executive Vice President, Group Finance, at EDF said: “Since EDF’s first issuance in 2013, Green Bonds have become central in financing the Group’s strong ambitions in renewables. Through this pledge, EDF reiterates its commitment as a frequent issuer aiming for the highest standards and an active corporate contributor to shaping sustainable finance solutions.”

    Alberto De Paoli, Chief Financial Officer at Enel said: “Enel’s position as one of the leaders of the energy transition is based in large part on the way in which sustainability and innovation form the basis of all aspects of the Group’s industrial plan, including its financial strategy. Green bonds are a powerful instrument for promoting and supporting the transition towards a low carbon economy, and Enel will continue to play a prominent role in their ongoing growth and development in the global capital markets.”

    Judith Hartmann, Chief Financial Officer & Executive Vice President of ENGIE said:  “With €5.25bn of green bonds issued since 2014, ENGIE confirms its commitment to lead the energy transition and to drive actively the development of sustainable finance. By matching the company´s long-term view and investors´ sustainability goals, ENGIE considers green bonds as a critical lever to shape tomorrow´s low carbon and socially responsible energy world.”

    José Sainz Armada, Chief Financial Officer of Iberdrola, said: “Ever since incorporating Sustainable Development Goals to the company’s strategy, Iberdrola has become the largest European issuer of green bonds, the perfect source of long-term finance for projects making an environmental difference. Through independent certification, private investors guided by ethical principles ensure their funds are managed with a sustainable perspective and the strictest social criteria.”

    Victoire Aubry, Chief Financial Officer of Icade, declared: “As a player involved in environmental transition, Icade aims to be at the forefront of sustainable real estate. In this context, beginning of September, Icade  has  issued successfully, its  first  green  bond  for  a  total  of  € 600 million. This green  bond  is  fully  in  line  with  the proactive CSR policy pursued at all levels of the organisation. It will support Icade’s ambition to be a leading player in CSR among Real Estate Investment companies”

    Charles-Antoine Blanc, Chief Financial Officer of Paprec Group declared: “As a company fully dedicated to environmental services and more specifically waste recycling, we have started to issue green bonds by 2015 for an aggregate amount of 705 million euros. Those green bonds have allowed us to develop the company significantly since then with respect to our CSR policy but also Green Bond Principles.”

    Hugues de Nicolay, Deputy CEO – Finance & Purchasing - SNCF Réseau said: “In order to reach the objectives set by the Paris Climate Agreement and to foster a transition towards low carbon transportation, SNCF Réseau has decided to place Green Bonds at the heart of its financing strategy. Our objective is to become a leading player on this market not only in terms of volume - in less than 12 months, we launched three Green Bonds for a total amount of 2.65 billion euros - but also in terms of high-level standards.”

    Gregor Alexander, Finance Director of SSE, said: “We are pleased our issuance earlier this year shows our commitment to SSE’s sustainability and responsibility principles. It sends out a clear and unequivocal message to stakeholders, that SSE supports the transition to a low carbon energy system and wants to see a sustainable economy in the UK and Ireland in the long term.”

    Otto Jager, Chief Financial Officer of TenneT: "Issuing green bonds related to certain activities or projects is a first important step by an enterprise in taking responsibility for its social and environmental impact. I expect that in the future the ESG record of a company as a whole will become just as an important factor for investors as its financial performance."

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    news-955 Fri, 28 Jul 2017 08:00:00 +0200 TenneT gives strong impulse to European collaboration and digitalisation of the electricity system to facilitate energy transition https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-gives-strong-impulse-to-european-collaboration-and-digitalisation-of-the-electricity-system-t/ Steady steps taken towards international collaboration to unlock large scale offshore wind energyInnovative projects based on block chain technology to prepare system for strong growth in renewable electricity feed-inEUR 750 million invested in Dutch and German high-voltage grids in first half of 2017Underlying operating result (EBIT) rises from  EUR 414 million to EUR 478 millionEUR 2 billion issued in ‘green’ (hybrid) bonds
    • Steady steps taken towards international collaboration to unlock large scale offshore wind energy
    • Innovative projects based on block chain technology to prepare system for strong growth in renewable electricity feed-in
    • EUR 750 million invested in Dutch and German high-voltage grids in first half of 2017
    • Underlying operating result (EBIT) rises from  EUR 414 million to EUR 478 million
    • EUR 2 billion issued in ‘green’ (hybrid) bonds

    In the first half year of 2017, TenneT has pressed on with its efforts to promote European energy collaboration. The TSO has entered into a partnership with its Danish counterpart Energinet for the long-term development of a North Sea Wind Power Hub that will help ensure the affordable, large-scale supply of offshore wind energy. In Germany and the Netherlands, TenneT is working together with IBM and start-ups sonnen and Vandebron using block chain technology to facilitate local, flexible electricity generation.

    TenneT CEO Mel Kroon commented: “There are two key enablers of the transition to a more sustainable electricity supply system. Firstly, we need further integration of the North-West European electricity markets and therefore closer collaboration, so we can better cope with larger amounts of weather-dependent wind and solar energy. Secondly, we must develop smart, innovative systems that efficiently match the demand for electricity with the fluctuating supply from these  ‘green’ energy sources. This can be accomplished using smart software solutions.

    European perspective

    Further North-West European market integration is needed to achieve the long-term sustainability targets that have been defined. A consortium consisting of TenneT Netherlands, TenneT Germany, Energinet.dk, with  additional partners to be expected, has been set up for this purpose. 

    In June 2017, TenneT also opened an office in Brussels to ensure a permanent presence in the administrative heart of Europe. Furthermore, TenneT’s Chief Operating Officer Ben Voorhorst has been appointed as President of ENTSO-E (European Network of Transmission System Operators for Electricity) with effect from 1 July 2017.

    Underlying operating results (HY 2017)

    Underlying revenue grew up to EUR 1,966 million in the first half of 2017, mainly driven by the reimbursement of payments made to electricity generators for shifting electricity production to avoid overloads on the grid or to keep supply of and demand for electricity in balance. As these so called system service expenses are compensated on a pass-through basis, this does not affect underlying operating profit (EBIT). Underlying EBIT grew from EUR 414 million to EUR 478 million, in line with the growth in the company's asset base in the Netherlands and Germany.

    Investments in further strengthening the electricity infrastructure in the Netherlands and Germany in the first half of 2017 remained at high level. Investments in tangible fixed assets amounted to EUR 750 million during this period.

    Key underlying results 

    EUR Million30 June 201730 June 2016
    Revenue 1,9661,546
    EBITDA796715
    EBIT478414
    Investments tangible fixed assets  750875
    EUR Million30 June 201730 June 2016
    Net interest-bearing debt, adjusted7,4377,347
    Equity5,2774,792
    Total assets 20,25118,974


    Financing

    The issuance of TenneT's ‘green’ hybrid bonds (EUR 1 billion) in March 2017 was followed by another senior green bond issue of EUR 1 billion in June. Both bond issues will be used to finance investments in the transmission of renewable electricity from offshore wind farms to the onshore electricity grid. The Green Financing page on TenneT’s website provides an overview of the eight offshore projects to be financed through the issuance of ‘green’ debt instruments.

    TenneT’s expanding green bonds and loans programme is entirely in line with its extensive investment portfolio.  Otto Jager (CFO TenneT): "Being the first ever corporate issuer of hybrid equity underlines our ongoing commitment to further develop a green financing market. We view this as an integral part of our social responsibility."

     

    TenneT’s credit ratings as at 30 June 2017 have remained unchanged compared to 2016:

    Long-term ratingShort-term rating
    Standard & Poor’sA- (stable outlook)A-2
    Moody’sA3 (stable outlook)P-2

     

    Major grid expansion projects in the Netherlands and Germany

    TenneT is currently completing the construction phase of the Dutch section of the fourth cross-border electricity connection between the Netherlands and Germany – from the Dutch town of Doetinchem to Wesel across the border. Construction work on the ring connection in the northern part of the so called Randstad area (Randstad 380 kV Noord Ring) is proceeding according to plan. Work has also begun on two other major onshore projects in the Netherlands: South-West 380 kV – West & Rilland and North-West 380 kV.

    TenneT’s onshore projects in Germany are both large scale and challenging due to the long distances and large number of stakeholders involved, the permit procedures and the technical and legal complexities. Nevertheless, a large number of new electricity connections have reached the construction phase. These include the newly built  connections between Northern Germany and Denmark and the so called Westküstenleitung. The long-distance underground direct-current connections SuedLink and SuedOstLink are in the process of approval.

    Two offshore projects are currently under development in the Netherlands: Borssele Alpha and Borssele Beta. Both 700 MW offshore grid connections (consisting of offshore transformer substations and subsea cables) are expected to be completed in 2019. They are the first of a total of five grid connections to be constructed in the Dutch sector of the North Sea for future wind turbine farms. The total connection capacity to be realized by 2023 amounts to 3,500 MW. The new 700 MW COBRA cable between the Netherlands and Denmark is expected to become available to the market in 2019.

    The German offshore grid connections DolWin3 (capacity: 900 MW) and BorWin3 (capacity: 900 MW) are currently under construction. By 2019, TenneT is planning to have realised 7,132 MW of connection capacity for offshore wind farms in Germany.

    Construction work on the NordLink project – a direct cable (1,400 MW) between the hydro powered Norwegian market and the German wind and solar based electricity market  – is well underway. This subsea cable is scheduled to be operational by 2020.

    Learn more about TenneT? Click here.

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    news-930 Mon, 12 Jun 2017 18:03:45 +0200 TenneT issues another EUR 1 billion of Green Bonds https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-issues-another-eur-1-billion-of-green-bonds/ TenneT is the largest (corporate) issuer in the Netherlands of green debtThis green bond follows the first ever green hybrid of EUR 1bn issued earlier in 2017 and totals all green issuances to EUR 5 billion 
    • TenneT is the largest (corporate) issuer in the Netherlands of green debt
    • This green bond follows the first ever green hybrid of EUR 1bn issued earlier in 2017 and totals all green issuances to EUR 5 billion 

    TenneT Holding B.V. (rated A3/A-) today successfully launched and priced another Green Bond issue under its green bond program of EUR 1 billion, a dual tranche of each EUR 500 million with a maturity of 8 year (coupon of 0.75%) and 12 year (coupon of 1.375%) with the support of five banks: ABN AMRO, HSBC, NatWest Markets, Rabobank and SMBC Nikko.

    Investing in green energy

    Today’s announcement relates to the issuance of Green Bonds for investments in the transmission of renewable electricity from offshore wind farms to the onshore electricity grid. The eight offshore projects financed with the proceeds can be viewed through green financing.

    TenneT’s investments in offshore wind energy projects across the Netherlands and Germany are expected to total EUR 9 to 11 billion over the next 10 years. In the period up to 2019, TenneT is realizing over 7 gigawatts (GW) of connection capacity for offshore wind farms in the German sector of the North Sea, transmitting electricity equivalent to the annual power consumption of approx. 10 million households. By 2023, TenneT expects to have realized 3.5 GW of connection capacity in the Dutch sector of the North Sea, corresponding to the annual power consumption of close to 5 million households.

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    news-921 Tue, 23 May 2017 15:03:44 +0200 Announcement publication Half Year Results and Half Year Report 2017 https://netztransparenz.tennet.eu/tinyurl-storage/detail/announcement-publication-half-year-results-and-half-year-report-2017/ On friday, July 28th 2017, TenneT Holding BV will publish its half year report 2017 and financial results for the first half year of 2017. On friday, July 28th 2017, TenneT Holding BV will publish its half year report 2017 and financial results for the first half year of 2017.

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    news-889 Thu, 13 Apr 2017 12:19:54 +0200 Notice of Redemption in relation to EUR 500 million outstanding Perpetual Capital Securities https://netztransparenz.tennet.eu/tinyurl-storage/detail/notice-of-redemption-in-relation-to-eur-500-million-outstanding-perpetual-capital-securities/ On 13 April 2017, TenneT Holding B.V. as Issuer, has noticed the Securityholders  of TenneT's €500,000,000 Fixed-to-Floating Rate Perpetual Capital Securities issued on 9 February 2010  that TenneT has elected to call and redeem, and will redeem, pursuant to the Issuer's call option all of its outstanding Securities on 1 June 2017. On 13 April 2017, TenneT Holding B.V. as Issuer, has noticed the Securityholders  of TenneT's €500,000,000 Fixed-to-Floating Rate Perpetual Capital Securities issued on 9 February 2010  that TenneT has elected to call and redeem, and will redeem, pursuant to the Issuer's call option all of its outstanding Securities on 1 June 2017.

    The Securities will be redeemed at their principle amount together with any interest accrued thereon, including any Arrears of Interest, up to (but excluding) the Redemption Date. The full text of the Notice of Redemption is available at: www.tennet.eu/nl/bedrijf/investor-relations/hybrid/  

    Definitions

    Unless the context otherwise requires, capitalised terms used but not defined herein have the same meaning as assigned thereto in the Terms & Conditions of the Capital Securities (the "Conditions") set forth in the prospectus dated 4 February 2010 for the Capital Securities.

    TenneT Holding B.V. 
    Attention: Jeroen Dicker, Group Treasurer
    P.O. Box 718
    6800 AS Arnhem
    The Netherlands

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    news-867 Wed, 29 Mar 2017 16:15:00 +0200 TenneT issues first-ever Green Hybrid Bond https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-issues-first-ever-green-hybrid-bond/ EUR 1 billion of proceeds to finance high-voltage grid connections to offshore wind farmsMarket shows keen interest with an order book of approx. EUR 3 billion 
    • EUR 1 billion of proceeds to finance high-voltage grid connections to offshore wind farms
    • Market shows keen interest with an order book of approx. EUR 3 billion 

    TenneT Holding B.V. (rated A3/A-) today successfully launched and priced the first-ever green hybrid bond, in an amount of EUR 1 billion with a coupon of 2.995% and a non-call period of 7 years with the support of five banks: Barclays and  Deutsche Bank as (joint structuring advisors and joint bookrunners) and BNP Paribas, HSBC Bank and ING Bank as (joint bookrunners). The hybrid bond has received an instrument rating of Baa3 and BB+ by Moody's and S&P respectively.

    Otto Jager, TenneT’s Chief Financial Officer, said: “Today’s inaugural Green Hybrid Bond issue demonstrates our ongoing commitment to green financing instruments and the further development of the green financing market. It provides an excellent way to finance our green investment portfolio, which facilitates the transition to renewable energy, while supporting our credit ratings at the same time."

    Investing in green energy

    TenneT’s investments in offshore wind energy projects across the Netherlands and Germany are expected to total EUR 9 to 11 billion over the next 10 years. In the period up to 2019, TenneT is realizing over 7,000 megawatts (MW) of connection capacity for offshore wind farms in the German sector of the North Sea, transmitting electricity equivalent to the annual power consumption of approx. 7 million households. By 2023,  TenneT expects to have realized 3,500 MW of connection capacity in the Dutch sector of the North Sea, corresponding to the annual power consumption of close to 3.5 million households. 

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    news-847 Wed, 08 Mar 2017 08:00:00 +0100 TenneT further facilitates energy transition, while posting stable financial results https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennet-further-facilitates-energy-transition-while-posting-stable-financial-results/ Over 2016, the high-voltage grids operated by TenneT continued to achieve a high security of supply of 99.9999 percent uptime. This was supported by a significant level of investment (EUR 1,848 million) and solid financial results, as presented today in TenneT’s integrated annual report and 2016 financial statements. Over 2016, the high-voltage grids operated by TenneT continued to achieve a high security of supply of 99.9999 percent uptime. This was supported by a significant level of investment (EUR 1,848 million) and solid financial results, as presented today in TenneT’s integrated annual report and 2016 financial statements.

    TenneT CEO Mel Kroon: ‘Our society is becoming more and more dependent on electricity. Investments in the high-voltage energy systems are in everyone’s interest as they facilitate the transition to renewable energy and at the same time maintain security of supply. Large-scale generation from renewable sources takes place at non-conventional locations on land and at sea. If we want to exploit all this green electricity in our Northwest-European region to the full, we cannot do without new power transmission links, both onshore and offshore. Innovations, partnerships and international cooperation are vital for this. In 2016, we have taken effective steps in all of these areas and we will continue to do so in the years to come.’

    Energy transition: offshore wind

    In 2016, the Dutch government assigned TenneT as the Netherlands’ offshore grid operator. This means TenneT will be responsible for the development, construction and operation of an offshore energy system that, by 2023, will transport 3,500 MW (the annual power consumption of approximately 4 million households) of sustainable wind power from the North Sea to private and business users. A number of onshore and offshore geological surveys have been carried out for the Borssele and Hollandse Kust Zuid wind farm zones. For Borssele (2 × 700 MW), the tendering process  for the required cables (late 2016) and offshore transformer platforms (early 2017) has been completed, and for Hollandse Kust Zuid the preferred route, via Maasvlakte North, has been determined. For the third designated wind farm zone, Hollandse Kust Noord, TenneT started the first preparations.

    The tenders for the Borssele wind farms produced striking results. With 7.27 and 5.45 cent per kWh, the winning tenders were well below previous auction results. This is partly due to low market prices for steel and other commodities and low financing costs, but also due to the fact that wind farm developers have the security of having TenneT as the designated offshore grid operator.

    For the medium term, TenneT sees opportunities for further expansion of wind power capacity in the Dutch part of the North Sea. The 'IJmuiden Ver' zone, for instance, can accommodate enough wind farms to generate thousands of megawatts. These wind farms could be connected to the grid using conventional methods or perhaps a hybrid method, in which the cable would also function as an interconnector between the Netherlands and the United Kingdom – a so-called “wind connector”. During 2016 TenneT announced its long-term vision for an “energy island” further offshore on the North Sea, which could connect wind farms with a combined capacity of up to 70 gigawatts to the German, Dutch, Belgian, Norwegian and Danish electricity markets. In this “hub-and-spoke” model, the wind connector concept could be implemented on a large scale.

    In the German part of the North Sea, TenneT currently operates nine offshore grid connections: two alternating-current (AC-) and seven direct-current (DC-) connections. This brings the current total available capacity for transmission of offshore wind power to 5,221 MW. This is more than enough to transport the total installed capacity of 3,783 MW generated by offshore wind farms. By 2019 TenneT expects to have 7,132 MW offshore transmission capacity installed. By 2025 this is expected to grow to more than 10 GW.

    Optimization of international electricity markets

    In 2016, TenneT reaffirmed its leading role in initiating and implementing cross-border transmission capacity to facilitate the market – a strategy dating back to 2002. The construction of two new cross-border offshore electricity connections was started in 2016: a 1,400 MW connection between Germany and Norway (NordLink) and a 700 MW connection between the Netherlands and Denmark (COBRAcable). Onshore, the expansion of cross-border transmission capacity is also in full operation with the construction of the (1,500 MW) Doetinchem-Wesel link and the upgrade of the existing Meeden-Diele connection between the Netherlands and Germany. Also an increase in the cross-border transmission capacity between the Netherlands and Belgium is in preparation.

    Financial results and investments

    Key underlying*) financial figures (in millions of euros)20162015
    Revenue3,2273,290
    Earnings before interest and taxes (EBIT)8341,075
    EBIT, corrected for special items701704
    Investments in tangible fixed assets1,8482,405
    Total fixed assets18,97415,424
    Net interest-bearing debt, adjusted7,3475,736
    Dividend to Dutch State146196

    *) Contrary to IFRS, ‘underlying’ figures recognise regulatory assets and liabilities in connection with TenneT’s regulated activities whereas IFRS does not allow this. This means that amounts resulting from past events and which are allowed or required to be settled in future grid tariffs are recognized separately.

    Underlying revenue and EBIT

    TenneT’s 2016 underlying revenue of EUR 3,227 million decreased from EUR 3,290 million in 2015, mainly due to lower reimbursement of system service expenses, offset by additional revenue generated by our growing asset base. Underlying EBIT decreased from EUR 1,075 million in 2015 to EUR 834 million in 2016. Excluding special items, underlying EBIT was in line with prior year, i.e. EUR 701 million in 2016 compared to EUR 704 million in 2015. Higher revenue due to a larger investment base was offset by higher operating expenses and lower income from non-regulated activities.

    TenneT CFO Otto Jager commented: "Our solid financial results mean that we can continue to finance investments in the energy transition. At the same time, as largest Dutch corporate issuer of 'green debt', we support the development of a sustainable investor market."

    Investments & financing

    Capex totalled EUR 1,848 million in 2016, of which EUR 575 million in the Netherlands and EUR 1,273 million in Germany. This continuing high level of investment also explains the increase of the net interest-bearing debt position to EUR 7,347 million at 31 December 2016.

    To meet the higher funding need resulting from the large investment portfolio, TenneT successfully completed a EUR 500 million green Schuldschein issue in May and issued a total of EUR 1.5 billion of green bonds in 2016. At the end of 2016, TenneT’s shareholder, the Dutch State represented by the Ministry of Finance, committed to contributing up to EUR 1.2 billion of additional equity over the 2017-2020 period to be paid out in four tranches. The final tranche of EUR 410 million in 2020 is conditional and will be granted if necessary, taking into account TenneT's financial situation at that time.

    Senior unsecured credit ratings as of 31 December 2016

    Long-term ratingShort-term rating
    Standard & Poor’sA- (stable outlook)    A-2
    Moody’s Investor ServiceA3 (stable outlook)P-2

    Dividend

    Dutch society also financially benefits – via TenneT’s shareholder, the State of the Netherlands – from TenneT's activities. Over the financial year 2014 TenneT distributed a dividend of EUR 116.5 million, followed by EUR 196 million over 2015 and EUR 146 million over 2016. From 1999 to 2017, the State of the Netherlands received a total of EUR 905 million in aggregate dividends from TenneT.

    Outlook

    Over the next ten years TenneT expects to invest EUR 25 billion in onshore and offshore grid infrastructure across the Netherlands and Germany. These grid expansions will ensure a reliable supply of renewable energy throughout Europe and in TenneT’s service areas in particular. The ongoing coupling of the European energy markets will lead to more convergence of electricity prices in the various European countries, and will make electricity more affordable for end users.

    In the Netherlands, planned investments include maintenance of the existing grid as well as grid expansions to accommodate larger and more volatile electricity flows. The largest projects are the offshore grid (3,500 MW), the Randstad 380 kV North Ring, South-West 380 kV, North-West 380 kV, the upgrade of the national 380 kV ring, Doetinchem-Wesel and COBRAcable.

    In Germany, too, new or upgraded electricity connections are required to accommodate the strong and continued growth in renewable energy generation, often at non-traditional locations. More than 20 large-scale projects are currently in the planning or implementation phase. TenneT is also preparing for two unique underground direct-current connections stretching over many hundreds of kilometres, i.e. SuedLink and SuedOstLink. The German government introduced legislation to ensure that, for the most part, these connections are installed underground. This does mean that implementation of these projects will be delayed by a number of years and that the cost will be significantly higher than originally anticipated.

    Innovation

    Similar to the earlier Randstad 380 kV South Ring project, the North Ring will include almost 10 kilometres of 380 kV cable (AC), for which TenneT will use a newly developed 380kV cable with a core made out of aluminium instead of copper. In addition to its high transmission capacity and long service life, this new type of cable will result in cost savings of 20 to 30 percent.
    For overhead 380 kV connections, including the Randstad 380 kV North Ring, South-West 380 kV, North-West 380 kV and Doetinchem-Wesel, TenneT will continue to use its innovative Wintrack pylons. Due to their slender design, these pylons significantly reduce the size of the electromagnetic field and have less of a visual impact on the environment.

    Furthermore, TenneT is examining the possibilities for electricity storage using batteries, which would increase the flexibility and efficiency of the power grid even with strong growth in fluctuating supply from renewable sources (wind and solar). In a pilot project in 2016, TenneT and NewMotion utilized the charging systems of thousands of electric vehicles to contribute to the stability of the grid. In 2017, TenneT will work together with different parties in a number of pilot projects aimed at making the grid more flexible and keeping it solid.

    Integrated Annual Report 2016

    More information about TenneT may be found in our Integrated Annual Report 2016, which is published at annualreport.tennet.eu

    Related to TenneT's green funding of its investment portfolio through the issuance of Green Bonds (since 2015), TenneT published the Green Finance Report 2016.

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    news-801 Wed, 21 Dec 2016 11:00:00 +0100 Additional equity for TenneT investments in the Netherlands formally agreed https://netztransparenz.tennet.eu/tinyurl-storage/detail/additional-equity-for-tennet-investments-in-the-netherlands-formally-agreed/ The process for the State of the Netherlands to make an additional capital increase in TenneT has been formally completed. In July 2016 Finance minister Jeroen Dijsselbloem submitted the intention to make the capital increase to the House of Representatives.   As a shareholder the State will make available €1,190 million of additional equity to the state-owned enterprise to enable the financing of future investments in the Dutch grid. TenneT contributes significantly to a sustainable, reliable and affordable supply of energy. To continue doing so, the company will invest substantially in strengthening the onshore grid in the coming period. The connection of offshore wind farms in the North Sea is also pivotal to achieving the Dutch Cabinet’s sustainability ambition. 

    The process for the State of the Netherlands to make an additional capital increase in TenneT has been formally completed. In July 2016 Finance minister Jeroen Dijsselbloem submitted the intention to make the capital increase to the House of Representatives.  

    As a shareholder the State will make available €1,190 million of additional equity to the state-owned enterprise to enable the financing of future investments in the Dutch grid. TenneT contributes significantly to a sustainable, reliable and affordable supply of energy. To continue doing so, the company will invest substantially in strengthening the onshore grid in the coming period. The connection of offshore wind farms in the North Sea is also pivotal to achieving the Dutch Cabinet’s sustainability ambition. 

    By law TenneT is responsible for the reliability, safety and security of supply of the Dutch high-voltage grid. Installation of the offshore grid is now also a formal task of TenneT. In the years up to and including 2025, TenneT expects to have to invest between five and seven billion euro in maintaining, renovating and if necessary enlarging the grid in the Netherlands. Approximately one third of this amount is needed to connect offshore wind farms.

    Important for economy and society

    TenneT's investments are of great importance to the security of (power) supply and thus society. By enlarging and strengthening the onshore grid and installing the offshore grid, TenneT makes a key contribution to a sustainable, reliable and affordable supply of energy. Moreover the investments being made by TenneT are necessary to be able to fulfil the arrangements contained in the National Energy Agreement and the Cabinet’s sustainability ambition.

    Scale of capital injection

    In the letter to the House of Representatives on 12 July this year, minister Dijsselbloem said that a number of basic principles had been applied to determine the amount of the additional capital increase. The same principles are embodied in government policy on state-owned enterprises. The minister wrote that the first basic principle was to retain TenneT’s creditworthiness. It means TenneT will remain financially healthy and retain sufficient possibilities to raise money on the capital market. This is of great importance to the financing of the company’s investment programme. In its shareholder role the State will contribute only to investments in the Dutch part of the grid administrator’s operations. The shareholder will not provide capital until actually needed by TenneT. The additional equity of €1,190 million will be divided into four tranches spread over four years. TenneT intends to draw down the first tranche of €150 million early January 2017. In 2019 the State will examine whether the fourth tranche of €410 million is still necessary (in its entirety).

    Return

    TenneT will use the capital increase for investments in the Dutch grid. On these investments TenneT achieves a return higher than the interest expenses payable by the State. As a shareholder the State benefits through higher profit distributions. So in addition to the societal benefits of TenneT’s investments the State also obtains a financial advantage.

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    news-749 Mon, 10 Oct 2016 20:58:24 +0200 Again a successful issue of Green Bond TenneT https://netztransparenz.tennet.eu/tinyurl-storage/detail/again-a-successful-issue-of-green-bond-tennet/ TenneT successfully issues another Green Bond with very long maturityToday’s EUR 500m Green Bond issue brings total long-term debt in green format to EUR 3bnTenneT largest (corporate) issuer in the Netherlands of green debt
    • TenneT successfully issues another Green Bond with very long maturity
    • Today’s EUR 500m Green Bond issue brings total long-term debt in green format to EUR 3bn
    • TenneT largest (corporate) issuer in the Netherlands of green debt

    TenneT Holding B.V. (rated A3/A-) today successfully launched and priced another Green Bond issue, a EUR500m (17 year) bond issue with a coupon of 1.25% with the support of three banks, Lloyds Bank, Rabobank and Royal Bank of Scotland.

    Investing in green energy

    Today’s announcement relates to the issuance of Green Bonds for investments in the transmission of renewable electricity from offshore wind farms to the onshore electricity grid. The following offshore projects are financed with the proceeds:

    • DolWin1 (commissioned 2015): a 165 km HVDC (high voltage direct current) link with 800 MW capacity.
    • SylWin 1 (commissioned 2015): a 205 km HVDC link with 864 MW capacity.
    • DolWin2 (commissioned 2016): a 135 km HVDC link with 916 MW capacity.
    • DolWin3 (commissioning 2017): a 162 km HVDC link with 900 MW capacity.
    • BorWin3 (commissioning 2019): a 160 km HVDC link with 900 MW capacity.
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    news-694 Fri, 29 Jul 2016 08:00:00 +0200 TenneT’s half-year figures show good progress and continued high security of supply https://netztransparenz.tennet.eu/tinyurl-storage/detail/tennets-half-year-figures-show-good-progress-and-continued-high-security-of-supply/ Security of supply remains high at 99.999%EUR 875 million invested in Dutch and German high-voltage grid in first half of 2016Revenue increases from EUR 1,395 million to EUR 1,546 million Underlying operating result (EBIT) decreased by EUR 76 million to EUR 414 million due to lower impact of special items EUR 1.5 billion of new green bonds and green loans issued
    • Security of supply remains high at 99.999%
    • EUR 875 million invested in Dutch and German high-voltage grid in first half of 2016
    • Revenue increases from EUR 1,395 million to EUR 1,546 million
    • Underlying operating result (EBIT) decreased by EUR 76 million to EUR 414 million due to lower impact of special items
    • EUR 1.5 billion of new green bonds and green loans issued

    In the first six months of 2016, TenneT has succeeded in maintaining the security of electricity supply at an exceptionally high level of 99.999%, and has made further progress in integrating the North-West European electricity markets. These core activities were complemented by a solid financial performance. Regretfully an employee from Liandon, one of TenneT's contractors, was fatally injured in a work accident that occurred in February 2016. 

    Energy transition

    The energy transition is in full swing, not only in Germany but also in the Netherlands. Earlier this year, the Dutch Senate provided the required legal basis for the development of offshore wind energy in the Dutch part of the North Sea. Subsequently, the Dutch regulator (ACM) certified TenneT as offshore grid operator in July. As a result, the Dutch minister of economic affairs can now officially appoint TenneT as developer and operator of offshore grid connections in the Dutch part of the North Sea. In June, TenneT presented its vision for further integration and collaboration among the countries bordering the North Sea with a view to achieving medium- to long-term sustainability targets. The development of an artificial island in the middle of the North Sea that can serve as a ‘hub and spoke’ for a European sustainable energy supply system is central to TenneT’s North Sea Infrastructure concept. 

    TenneT CEO Mel Kroon commented: “In this part of Europe the energy transition means the availability and demand of renewables has to be connected over big distances which requires infrastructure. In addition, further North  West European integration and collaboration on the energy transition is essential if we want to continue achieving societal sustainability targets in the future.”

    Financial results

    In the first half of 2016, TenneT continued to invest heavily in reinforcing the electricity infrastructure in the Netherlands and Germany in order to maintain the existing high level of security of supply and to integrate renewable energy sources into the grid. Investments in tangible fixed assets totalled EUR 875 million in the first six months of 2016. 

    Key underlying1 financial results

    (Figures in millions of euros)30 June 201630 June 2015
    Revenue1,5461,395
    EBIT414490
    Investments in tangible fixed assets8751,196
    (Figures in millions of euros)30 June 201630 June 2015
    Total assets16,88115,424
    Net interest-bearing debt, adjusted6,6825,703
    Equity3,7363,803

    Underlying revenue rose from EUR 1,395 million in the first half of 2015 to EUR 1,546 million in the first six months of this year. This increase is attributable to the growth in TenneT's asset base and compensation of the increased costs of system services. Underlying EBIT decreased from EUR 490 million at 30 June 2015 to EUR 414 million at 30 June 2016, mainly due to the impact of special items which were higher in 2015. Among others this related to the release of offshore liability provisions and an incidental gain on the sale of APX shares in 2015. The underlying result for the first half of 2016 was negatively impacted by a change of discount factor applied to German pension provisions, which will be settled in future tariffs.

    The regulatory authorities in the Netherlands (Authority for Consumers & Markets, ACM) and Germany (Bundesnetzagentur, BNetzA) both announced plans to reduce the permitted (‘regulatory’) rate of return. The regulatory rate of return on equity capital is proposed to be decreased from 5.6% to 4.9% (after tax) in the Netherlands, and from 9,05 % (7.4% after tax) to 6,91 % (5.6% after tax) in Germany. Final decisions are expected this fall.

    TenneT CFO Otto Jager commented: “The operating performance we have realized is in line with our total investments and supports our debt portfolio, which currently amounts to EUR 5.8 billion. However, a stable regulatory regime is essential in order to continue obtaining financing to support our extensive investment agenda.”

    Financing

    In June 2016, TenneT issued EUR 1 billion in so-called ‘green bonds’ for investments in the transmission of renewable electricity from offshore wind farms to the onshore electricity grid. In May 2016, TenneT also issued EUR 500 million in ‘green loans’ in Germany. The issue of green bonds and loans demonstrates TenneT’s commitment to working with stakeholders to continually improve and innovate in efforts to realize a more sustainable energy future. As the first Dutch corporate issuer of green bonds, TenneT today will open the trading day on the Euronext stock exchange in Amsterdam. 

    Earlier this month, the Dutch State announced its intention to make an additional equity contribution of up to EUR 1.2 billion over the years 2017-2020 for financing of required investments in the Dutch electricity grid. 

    TenneT's senior unsecured credit ratings remain unchanged in the first half of 2016:

    Long-term ratingShort-term rating
    Standard & Poor’sA- (stable outlook)A-2
    Moody’sA3 (stable outlook)P-2

     

    Progress on onshore grid expansion projects in the Netherlands

    In the Netherlands the construction of a number of large high-voltage infrastructure projects is going according to plan. TenneT has started work on the construction of a fourth cross-border electricity connection (interconnector) from Doetinchem in the Netherlands to the German town of Wesel. The construction of the so-called North Ring of the Randstad 380 kV connection (serving the northern section of the Randstad conurbation) is also proceeding apace. In both the North and South-West of the Netherlands, TenneT and the Dutch Ministry of Economic Affairs are consulting closely with local and regional stakeholders about the expansion and upgrading of the electricity grid.

    DC connections and underground cables in German onshore grid projects

    TenneT has been officially designated to construct the SuedOstLink connection between the federal states of Saxony-Anhalt and Bavaria. This will be the second largest direct-current (DC) onshore electricity connection in Germany, after the SuedLink connection. In January 2016, the German parliament adopted a law that prioritizes the underground installation of DC cables. This means that the routes of DC connections will be redesigned at many locations to make underground installation possible. The long distances of the German onshore grid connections, the substantial number of stakeholders as well as technical, permitting and licensing complexity make these projects challenging and costly.

    Offshore developments

    In March 2016 the Dutch Senate approved the amended Electricity Act, which formalizes TenneT’s role as the developer and operator of the offshore electricity grid. In the coming years TenneT will build five identical offshore platforms with a total capacity of 3,500 MW (powering 3.5 million households with green electricity in the Dutch sector of the North Sea in order to transport wind energy to the onshore grid. In Germany, TenneT is working on the DolWin3, BorWin3 and Nordergründe offshore grid connections, which have a joint capacity of 2,827 MW. These projects will increase the total wind energy capacity connected to the German grid to 7,132 MW by 2019. 

    TenneT has also started preparations for the construction of NordLink, the first high-capacity electricity cable (1,400 MW) between Norway and Germany. NordLink will complement TenneT’s existing subsea power cables with Norway and with the United Kingdom, as well as the three existing onshore high-voltage connections between the Netherlands and Germany (with a fourth one under construction). In the autumn of 2016 TenneT will start work on the COBRACable, a new 700 MW interconnector that will connect the Dutch and Danish electricity grids. 

     

    1 Contrary to the International Financial Reporting Standards (IFRS), the so-called ‘underlying’ figures reflect regulatory assets and liabilities in connection with TenneT’s regulated activities. This means that amounts that result from past events and that are allowed or required to be settled in future grid tariffs are recorded as assets or liabilities.

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