SHAPING THE EUROPEAN ELECTRICITY ENVIRONMENT THE ELES GROUP is actively involved in the operation, management and strategic development of the Slovenian, wider regional and European electricity environment.
SUSTAINABILITY
FLEXIBILITY ENERGY EFFICIENCY
EXCELLENCE ELES d.o.o. electricity transmission INTERNATIONAL COOPERATION ADVANCED TECHNOLOGIES
KNOWLEDGE
BSP Energetska borza d.o.o. “We are developing electricity trading the transmission network of the future.”
Aleksander Mervar, MSc, “By developing power CEO of ELES d.o.o. more about ELES on p. 6–7 exchange trading, we are making the energy market more transparent.”
Anže Predovnik, MSc, CEO of BSP Energetska borza d.o.o. more about BSP Energetska borza on p. 8–9
2 The activities of our companies range from • electricity transmission and trading support, • energy-efficient and flexible production of aluminium and aluminium products, • to the development of information and communications technologies supporting the digitisation of electricity.
When it comes to business and development, the ELES Group cooperates with stakeholders in both Slovenia and the wider European and international environment. We manage the challenges of the future electricity supply efficiently.
Synergies are an integral part of both our day-to-day business and long-term strategies of individual companies and the group as a whole. Our business is ambitious and sustainably oriented. Therefore, we create value for our key stakeholders both in the short and long term. FINANCIAL STABILITY
DIGITISATION
COMPETENCE
TALUM d.d. Kidričevo production of aluminium, aluminium alloys and aluminium products STRATEGIC INNOVATIONS Stelkom d.o.o. information and communication services in the electricity sector
“We are co-creating the future with aluminium.” “We provide top-class ICT services to business
Marko Drobnič, users.” Management Board Chair of TALUM d.d. more about TALUM on p. 10–11 Igor Maher, CEO of Stelkom d.o.o. more about Stelkom on p. 12–13
3 The ELES Group is helping develop the Slovenian, regional and European electricity ecosystem, while our industrial activities also have a global reach. Our activities are indispensable for a reliable electricity supply.
Stelkom - TALUM Telecommunications solutions
TELECOMMUNICATIONS INFRASTRUCTURE FOR ELES - Stelkom ELECTRICITY Stelkom d.o.o. ELECTRICITY Synergies of the electricity and telecommunications PRODUCTION ELES - TALUM network Adapting the consumption NEDO Project FutureFlow Project
TALUM - BSP ELECTRICITY Purchase auctions TRANSMISSION ELES d.o.o.
BSP - ELES Integration of power exchange markets ELECTRICITY ELECTRICITY TRADING IMPORT BSP Energetska borza d.o.o.
ELES - BSP Custom-made auctions
Key synergies and cooperation projects between ELES Group companies
ELES - BSP ELES - TALUM
Custom-made auctions Adapting the consumption We conduct custom-made auctions for the purchase of electricity in We manage our electricity consumption dynamically by: order to: • responding to electricity grid demands and contributing to • cover losses in the transmission network, and the stability of the transmission system; • perform tertiary frequency control. • supporting ELES as the transmission network system operator in case electricity flows need to be balanced due to grid instabilities. Integration of power exchange markets We run projects aimed at integration of the Slovenian power exchange market into a single European electricity market in the following segments: FutureFlow Project • day-ahead trading (at all borders of the Slovenian electricity system); We are coordinating FutureFlow, an international research project. • intraday trading (XBID project – developing technologies and procedures for the implementation of a single intraday market coupling).
4 The ELES Group creates value in the following strategic areas
ACTIVE ELECTRICITY CONSUMPTION TALUM d.d. Kidričevo DIRECT Operation, management and CONSUMPTION development of the electric FROM THE GRID power system
Employees ELECTRICITY CONSUMPTION
ELECTRICITY DISTRIBUTION Society and environment
Business economics
ELECTRICITY EXPORT
Knowledge and innovations
ELES - Stelkom Stelkom - TALUM
Synergies of the electricity and Telecommunications solutions telecommunications networks Stelkom provides TALUM with comprehensive We recognise and strengthen the synergies of the electricity telecommunications solutions. and telecommunications networks – Stelkom’s extensive Together, we have introduced a modern, Windows OS-based optical network comprises three thousand kilometres of optical 3CX IP system that works in a virtual environment. cables installed in lightning conductors, wrapped around the phase conductor of power lines, hung on power lines or in underground ducts. TALUM - BSP
NEDO Project Purchase auctions We take part in the Slovenian-Japanese partnership – the NEDO research project, the largest infrastructure smart grid project in For TALUM’s demand, we conduct custom-made electricity Slovenia, which is managed and coordinated by ELES. purchase auctions.
5 ELES d.o.o.
By providing RELIABLE ELECTRICITY TRANSMISSION, we contribute to the quality of life and social development in Slovenia and the region.
Operation The Slovenian electricity system is managed and overseen from a modern and internationally established centre. We maintain a balance between electricity production and consumption, and provide system services.
Infrastructure By maintaining, building and modernising the electricity grid infrastructure, we meet the growing demand for electricity and ensure its safe and efficient transmission. Our on-site maintenance crew provides an optimal response to the physical events and maximises the reliability of ELES infrastructure.
Strategic innovations We demonstrate our ongoing commitment to innovation by participating in major research, development and pilot projects financed by ELES, grants from EU, and other funds. In doing so, we cooperate with international and domestic stakeholders, helping develop the electricity sector in Slovenia and Europe.
Future orientation With sustainable, systematic and professionally organised efforts in developing innovative projects that are integrated into all of our strategic activities, we are developing the transmission network of the future. We participate in many international projects, seeking solutions to the most challenging issues regarding the future of electricity and its transmission between producers and consumers.
Ownership Milestones
ELES d.o.o. is 1924: 1964: 1974: 1990: wholly owned by % 100 the Republic of the beginnings the construction of a a parallel operation of Elektro-Slovenija d.o.o., Slovenia. of electricity 220-kV grid began; the Slovenian and Western a public company for transmission in 8 years later, the European electricity system electricity trading was Slovenia. construction of a was established. established. 400-kV grid began.
6 Our results (data for 2017)
Business operations Employees Environment
Operating income: Number of employees: Ensuring optimum EUR 185.5 million 566 utilisation of existing equipment by installing Net profit/loss: Added value per employee: smart transmission network management EUR million EUR ,000 16.8 149 systems, such as SUMO EBITDA: Educational structure: (a system for determining operation limits) and or more employees EUR 49.9 million 72% WAMPAC (Wide Area have at least a 3-year Monitoring Protection and Investments: higher professional Control), EUR 50 million education, taking into account the more than 9,000 hours environmental aspects and of further education and efficient use of materials training per year, when constructing power facilities, low turnover, preserving biodiversity efforts to improve and monitoring energy and radiation electromagnetic radiation literacy. when maintaining power facilities.
2014: 2016: 2017: a 2 x 400-kV Beričevo–Krško the strategic orientations set out in FutureFlow, MIGRATE and NEDO are some of the major power transmission line began the Long-Term Strategic Business Plan research and innovation projects that we coordinate or operating regularly, this being for 2016–2020 are a response to the in which we are involved. Another innovative project, ELES’ greatest investment challenges and findings of an in-depth SINCRO.GRID, is aimed at developing intelligent so far. analysis of the external and internal transmission and distribution infrastructure of the future. environment.
7 BSP Energetska borza d.o.o.
By constantly DEVELOPING POWER EXCHANGE TRADING, we make the energy market more transparent, secure the financial safety of exchange transactions, and make the use of power generation, distribution and transmission infrastructure more efficient.
We provide Slovenian power exchange members with high-quality and comprehensive services of a liquid, competitive and transparently organised electricity market, thereby providing them with safe trading and reducing their risks and costs. We are also becoming the regional centre for conducting long-term auctions. We allow almost 40 members of the power exchange to trade in the following segments: • day-ahead market, • intraday market, • balancing market.
Future orientation • Increase of the trading volume at all power exchange segments and development of new exchange products. • Diversification by introducing new areas of exchange operations and by positioning ourselves as an auction centre for long-term purchases and sales of electricity. • Application of good management practices and care for good employee relations.
Ownership Milestones
BSP Energetska 2011: 2012: borza d.o.o. is 50% 50% owned by ELES. introduction of market coupling at the Slovenian-Italian beginning of intraday trading and enabling border; implicit allocation of day-ahead transmission trading on the balancing market (ELES, Borzen). capacity.
8 Our results (data for 2017)
Business operations Trading Education and training
Assets: Total trading volume Organisation of trainings EUR 10.98 million (day-ahead, intraday and for BSP members and other balancing market): professionals employed in Equity: 7.53 TWh the energy sector willing to consolidate and increase EUR million 2.90 their knowledge of ROE: Conducting long-term electricity trading. custom-made auctions for % 20.7 long-term products for ELES There are two types of training: ROA: and SODO. • exchange trader training 5.6% and Added value per employee: • tailor-made workshops. EUR 135,891 Net financial settlement value: over EUR 340 million
2015: 2016: 2018: the Energy Agency made BSP a designated electricity day-ahead market coupling at the establishment of a regional centre market operator for performing single day-ahead and Slovenian-Austrian border; beginning of for long-term auctions in cooperation intraday market coupling in the Republic of Slovenia. implicit allocation of intraday transmission with ELES, SODO and TALUM; 10th capacity at the Slovenian-Italian border. anniversary of the company.
9 TALUM d.d. Kidričevo
CO-CREATING THE FUTURE with aluminium.
Higher added value due to innovation and development partnerships The strategic orientation of the TALUM Group is slim, energy-efficient, and environmentally friendly aluminium production and processing. TALUM belongs to a narrow range of the most efficient producers of electrolytic aluminium and aluminium alloys in the world. We achieve growth with our above-standard billets, which have higher added value. We are among the world’s largest and most technologically advanced manufacturers of slugs for tubes and containers. Castings are important for our growth. Apart from low-pressure and gravity casting, we have successfully entered the segment of high-pressure casting of aluminium products. By developing new technological solutions, we maintain continuous growth in our heat exchanger production and expand our presence from refrigerating technology to other activities. In our R&D innovation centre and in cooperation with external partners, we are developing new materials, products and technological solutions. Our core competitive advantages are know-how, creativity and innovation of our employees. Cooperation and synergies with external partners, lean and efficient processes, and an achievement culture are the cornerstones of our success.
Future orientation • Boosting innovation and development in all business segments, with an emphasis on sustainability and digitisation. • Focusing on increasing the number of employees due to our production and sales growth.
Ownership Milestones
TALUM d. d. is 1954: 1981: 1988–1992: 86% owned by 86% ELES. aluminium was poured out we began producing narrow we entered the first phase in modernising of an electrolytic furnace for and wide aluminium strips primary aluminium production by constructing the first time. A year later, and wires, as well as slugs the C1 Electrolysis Hall, equipped with a new regular production began. and evaporators. prebaked anode technology. TALUM ranks among the most modern aluminium manufacturers.
10 Our results (data for 2017)
Infrastructure and Business operations Production and sales knowledge
Operating income: Production and sale of Setting up a development EUR 350 million aluminium products: and innovation centre almost 150,000 allowing a systematic Net profit for the tonnes, implementation of targeted financial year: research and the promotion of innovation, EUR 2.7 million which can be broken down into: optimising and upgrading EBITDA: • production and sale of energy infrastructure, 23.9 million slugs: TALUM’s School of Investments: 36,000 tonnes Knowledge providing per year, EUR 16.9 million a sufficient number of employees with relevant • full production skills. capacity of electrolytic aluminium: 84,500 tonnes, • development of processing methods and products with higher added value by purchasing primary and waste aluminium.
2001–2004: 2006–2007: 2015–2018: we finished the second phase of we established a new work unit – we began a new strategy with an emphasis on modernising primary aluminium Castings, and produced the first profitability through innovation, and launched high- production by constructing the C2 castings using a gravity casting pressure mould casting; we had record production and Electrolysis Hall and a modern foundry. machine. sale of slugs.
11 Stelkom d.o.o.
WE PROVIDE TOP ICT SERVICES to business users in a high-quality backbone network.
Advanced custom solutions for business customers We offer customers a wide selection of reliable ICT services and the use of advanced technologies. Flexible and professional, we create custom solutions for our customers. We are focused exclusively on business customers, providing them the highest quality of services.
Future orientation • Invest into the expanding optical networks of owners on the backbone and access levels and implement transmission systems to increase the utilisation of the existing network and reduce the cost of hiring telecommunication networks and services from external suppliers. • Implement a colocation service for open base stations, which will provide long-term stable income. • Continue establishing nodes in neighbouring countries to upgrade global telecommunication connectivity.
Ownership Milestones
Stelkom d.o.o. is 2003–2018: 2005–2018: 56% owned by 56% ELES. we have become one of the most important we have been providing telecommunication services providers for the state telecommunication for one of the global ICT service providers in our infrastructures HKOM and ARNES. region – BRITISH TELECOM.
12 Our results (data for 2017)
Business operations Development
Total income: Boost the portfolio with two new global IP transit EUR 6,545,283 providers: Net profit: • global operator TATA: establishing a 10G connection, EUR 183,515 • global operator Telecom Italia Sparkle: a 1G connection. Focus on strategic marketing with the following goals: Investments in the following areas:
• implement value-added services, • upgrade the capacity of our partner companies,
• establish a central inspection • implement the Stelkom portal, which will allow system for telecommunication users to access the connection parameters and infrastructure, monitor activities at all stages of the sale process, implementation and service provision, • become main provider and manager for telecommunication infrastructure • open international POPs (POP – Point Of Presence – of other ICT owners and providers colocation): Zagreb, Milan, Belgrade, Sarajevo, and that are directly owned by the state. Frankfurt.
Participation in the international research project of the Slovenian-Japanese partnership – NEDO.
2007: 2016–2018: 2016: we entered the international market by establishing a hub we have actively participated in we established the first open base in Vienna, a large international junction. We established the NEDO international project. station for providing a colocation a wireless broadband radio network in the areas with the service in Zagrad near Celje. largest population density.
13 ELES Group companies, with their business, professional, trading and other activities, are present in several countries all over the world.
ELES Group – key performance indicators (data for 2017)
Business operations
Net sales: EUR 523.7 million Net profit/loss for the year: EUR 20 million Operating profit/loss (EBIT): EUR 31.6 million Net profit before amortisation, tax and interest (EBITDA): EUR 76.1 million Equity: EUR 366.3 million Total assets: EUR 807.5 million
Investments
Investments: EUR 67.4 million
Employees
Number of employees as at 31 December 2017: 1,963
The data apply to the ELES Group, which consists of the controlling company ELES d.o.o., and its subsidiaries TALUM d.d. and Stelkom d.o.o.
BSP d.o.o. is a jointly controlled company for which we do not perform full consolidation, but rather apply the equity method.
14 ELECTRICITY ELECTRICITY SUPPORT ICT SERVICES ALUMINIUM TRANSMISSION TRADING IN THE ELECTRICITY PRODUCTION SECTOR
15 Geographical presence of ELES d.o.o.
We participate in the European Network of Transmission System Operators for Electricity (ENTSO-E)
Our participation in the ENTSO-E takes place on three levels: • we remain in close contact with neighbouring countries, both for day- to-day operation and for optimisation and sharing of power reserves. This also includes our cooperation with Bosnia and Herzegovina as a member of the Bosnian-Serbian-Croatian (hereinafter referred to as the BSC) control block, and Hungary as a direct neighbour, with which we plan to build a cross- border line in the near future; • the countries of continental Europe (from Greece to the south, Germany and part of Denmark to the north, Romania to the east and Portugal to the west, the list includes a total of 24 countries and their transmission system operators) use the same frequency and are committed to the same operating rules as we are; • the relations with all ENTSO-E members, which, in addition to the already listed We participate in the Transmission System Operator (first and second level of cooperation), Security Cooperation (TSC) include the Baltic, Scandinavian and island countries (Great Britain), which have separate electricity networks from continental Europe.
More information: https://www.entsoe.eu/ In an effort to coordinate planning for the safe operation of interconnected transmission networks of 11 countries We provide cross-border transmission capacities in continental central Europe, the TSC connects 14 system operators. The Cooperation, as one of the leading Regional We are integrated into the common European market via Security Cooperation Initiatives (RSCI), develops and neighbouring countries, with which we have established implements procedures for the development of common several cross-border lines, namely on the borders with computer models of transmission systems and the Austria, Italy, and Croatia. We are best-connected with coordination of congestion countermeasures, the aim of Croatia with four connections (3 x 110kV, 2 x 220kV and which is: 3 x 400kV), followed by Austria with two connections • coordinated provision of safe operation, (2 x 400kV, 220kV), and Italy, also with two connections (220kV and 400kV). • coordinated calculation of cross-border transmission capacities, The number of connections and their capacity at the border reflect the size of cross-border transmission capacities • coordinated planning when disconnecting transmission offered to market players for commercial purposes in devices, order to transfer power between neighbouring countries. • coordinated assurance of self-sufficient customer supply, The involvement of ELES in Europe will soon be further and strengthened with the construction of the 2 x 400kV Cirkovce–Pince power line on the Slovenian-Hungarian • coordinated management of critical operating border, which will establish the last missing connection with conditions. a neighbouring country. More information: https://www.tscnet.eu/
16 We manage the BSC control block
We manage the BSC control block, which, in addition to ELES, includes system operators: • Croatian transmission network HOPS and
• Bosnian-Herzegovinian transmission network NOS BiH. The BSC block has existed in this organisational form since the breakup of Yugoslavia. Adoption of the European network codes and guidelines defining the legal framework for block cooperation has made work within the block somewhat difficult because Bosnia and Herzegovina is not a member of the EU and is thus not directly bound to comply with said EU legislation. Within the BSC block, we seek synergies through joint provision of the necessary reserves in the block and in close cooperation with all block members when balancing deviations. The balancing of deviations is developed so as to enforce the cooperation rules prescribed by the European network codes and guidelines.
We are involved in the ITAMS/ITOMS consortium We manage or participate in international R&D, innovation and investment projects Being members of the ITAMS and ITOMS stands for International ITOMS consortia makes it possible to Transmission Operations and In the scope of the Horizon 2020 research projects, we assess our work on an international level. Maintenance Study, i.e. an international mainly work with companies and organisations from the comparison of the cost-effectiveness ITAMS stands for International following EU countries: Italy, Austria, Hungary, Croatia, of maintenance by transmission Transmission Asset Management Study, France, Germany, Romania, Serbia, Belgium, Spain, and system operators. Transmission system i.e. an international comparison of the United Kingdom. operators (TSOs) from different transmission asset models and systems. continents or from different regions We cooperate with Croatia in strategic investment The following companies or countries in the consortium are represented as projects financed by the CEF programme. We also work are included in the ITAMS consortium as follows: on NEDO, an advanced investment project, together of 2018: with our Japanese partner. • USA: 6 or 7 TSOs, • Europe: ELES (Slovenia), Fingrid (Finland), Terna (Italy), Amprion • Scandinavia: 4 or 5 TSOs, (Germany), Litgrid (Lithuania), • Europe: 8 or 9 TSOs, Statnett (Norway), SSE (Scotland), • Africa / Asia / Middle East: from 8 to Tennet TSO B.V. (the Netherlands); 10 TSOs, • Asia / South Pacific: Powerlink • Australia: 5 or 6 TSOs. (Australia), • Middle East: Transco (the United Arab Emirates) and OETC (Oman).
17 Geographical presence of BSP d.o.o.
BSP membership Market Coupling Members who make sale or purchase offers in one of Companies with which we have direct operational the BSP trading segments have origins in: the Czech relations are based in the following countries: Republic, Switzerland, Denmark, Italy, Great Britain, Austria, Luxembourg, Germany, Italy and Croatia. Slovenia, Belgium, Croatia, Slovakia, Hungary, Romania, Germany, Austria, and the Netherlands.
Project management Participation in implementation projects Companies that participate in an implementation We participate in various projects together with project for which BSP performs certain paid tasks are other power exchanges and system operators from based in the following countries: Slovenia, Austria, across the EU, Norway, and Switzerland. Croatia, Poland, the Czech Republic, Slovakia, Hungary, Romania and Norway (and for the IBW region: Italy, Switzerland, Greece, and France).
18 Geographical presence of Stelkom d.o.o.
Stelkom’s presence on international markets: Austria, Italy, Croatia, Serbia.
Virtual presence: Germany, the Netherlands, Hungary, Bosnia and Herzegovina, Macedonia, Romania, Bulgaria.
Geographical presence of TALUM d.d.
TALUM’s export markets in 2017: Germany, Spain, Switzerland, Italy, Poland, the Czech Republic, Austria, Turkey, Slovakia, San Marino, Croatia, Bosnia and Herzegovina, France, Sweden, Brazil, the United Kingdom, Argentina, Hungary, Macedonia, Egypt, the Netherlands, Bulgaria, Chile, Finland, Morocco, Serbia, Portugal, Tunisia, the Islamic Republic of Iran, Estonia, South Africa, Montenegro, Belgium and Colombia.
19 www.eles.group
ELES, d. o. o., sistemski operater prenosnega elektroenergetskega omrežja
Hajdrihova 2, 1000 Ljubljana, Slovenia T: + 386 1 474 30 00 E: [email protected] www.eles.si
BSP Energetska borza, d. o. o.
Dunajska 156, 1000 Ljubljana, Slovenia T: + 386 1 620 76 76 E: [email protected] www.bsp-southpool.com
Stelkom, telekomunikacije in storitve, d. o. o.
Špruha 19, 1236 Trzin, Slovenia T: +386 1 620 22 00 E: [email protected] www.stelkom.si
TALUM Tovarna aluminija, d. d., Kidričevo
Tovarniška cesta 10, 2325 Kidričevo, Slovenia T: +386 2 79 95 100 E: [email protected] www.talum.si
Publisher: ELES d.o.o., Hajdrihova ul. 2, 1000 Ljubljana Content design: Consensus d.o.o. Texts: ELES Group and Consensus d.o.o. Creative design: KOFEIN DIZAJN Photos: archives of ELES Group, Anže Godec and iStockphoto Ljubljana, September 2018