TenneT released its half year report at the end of last week. Beside showing a solid first half year of 2020, the grid operator also announced in a press release its intention to scale up its investment volume in renewable energy connections to 4 to 5 billion Euro annually within the next few years.
TenneT booked a revenue of 2,319 million Euro in the first half of 2020. This is an increase by 7.1% compared to 2019 (2,166 million Euro). The growth in revenue is mainly driven by a growing asset base and additional compensation for grid-related expenses, the grid operator says. Underlying EBIT increased by 7 million Euro to EUR 414 million in the first half of 2020 (first half 2019: 407 million Euro).
Growing role in the energy transition
TenneT is focusing on strengthning its role in the energy transition in the Netherlands, Germany and Europe in general. It launched its ‘Transforming TenneT’ programme for this purpose.
Manon van Beek, CEO: Van Beek: “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.
Increase in investments for renewable energy connections and further development of an European electricity market
In the first half of 2020 TenneT’s investment agenda increased by 30%, from 1.094 billion Euro in the first half of 2019 up to 1.408 billion Euro in 2020. In the next years, the company wants to scale up to an annual invest volume of 4 to 5 billion Euro to facilitate the growing share of renewable energy that needs to be connected and the further development of a borderless European electricity market.
TenneT is also investing heavily in innovations to better utilize and optimize the capacity and flexibility present in the existing electricity grids.
Van Beek: “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.”
TenneT currently has 14 offshore grid connections in operation. In the Dutch North Sea, it has the Borssele Alpha and Beta connections ready. In the German North Sea, with the recent BorWin 3 connection added, the company has now over 7 GW of connection capacity, divided over 12 connections. This exceeds the German government’s sustainability target of 6.5 GW by the end of 2020.
