17/18TENNET TODAY 1

TenneT Today

Powering society for 20 years

Electricity at your fi ngertips, 24/7

Delivering power over land and sea Let there be LIGHT

WE ARE TENNET Can you imagine a world without light available at the flick of a switch? Or one without power available at your fingertips, whenever and however you need it? These are the things we take for granted in our modern, always-on society. But few of us stop to think of the work required to keep the electricity flowing, 24 hours a day, 365 days a year.

It’s a massive responsibility that we at TenneT are proud to shoulder. We operate the electricity grid for the and large parts of Germany, carrying power from where it is made – including wind, solar and biomass, as well as fossil and nuclear fuels – to 41 million people.

As renewable energy becomes more mainstream, we need to carry electricity over longer distances – from wind farms far out at sea, or solar panels on people’s homes. We carry it across borders, over ground, underground and under the sea, providing the power on which we all depend.

Many people have never heard of us. That’s fine. We’d rather be the power behind the scenes, keeping the lights on, no matter how much the wind blows or the sun shines. But if you do want to know a little more about us, read on.

We are TenneT – welcome to our world. TENNET TODAY 3

Let there be 41mln people connected in LIGHT the Netherlands and Germany

“ HOW DO We pride ourselves on the reliability of our grid, WE STAY with power available 99.99% PLUGGED IN?” of the time. AT A GLANCE 2 017 Getting electricity to wherever you need it is a complex business. Here’s a quick summary of the many things we depend on to do our work.

Grid availability SECURE SUPPLY

We work tirelessly to avoid power outages, by investing in and 99.9986% maintaining our grid.

Stakeholder meetings (public events)

756

22,573 km

High-voltage lines. Grid area: The Netherlands and a large part of Germany. STAKEHOLDER Long enough to reach more than half way around the world. MEETINGS Interconnectors 13 A recent survey showed that our reputation is good to very good.

Investments in 2017 (EUR million)

1,770 OUR REPUTATION

Gas Number of employees

Biomass Coal 3,187

Energy mix Solar Nuclear

Water Wind

10 years ago we 10 YEARS started connecting OFFSHORE offshore wind farms to the onshore grid. WHAT DO WE DO? MAINTAIN TRANSPORT CONNECT TENNET TODAY 7

We keep We bring the We connect the power on power to you across borders

A key part of our job is to We ensure that electricity Electricity knows no borders, maintain a safe and secure is delivered from its various and we believe north-west Europe balance between the supply sources to you, the user. We is better served by an integrated and demand of electricity, do this across thousands of electricity market. Therefore, making sure that power is kilometres of high-voltage grid we connect our electricity grid at your fingertips, whenever and infrastructure, which we with the countries around us. you need it. maintain and expand to keep This way we can establish a the power flowing as efficiently single market that guarantees and safely as possible. a reliable electricity supply at a fair price. At TenneT we have a clear and critical task: to keep the lights on for 41 million people across the Netherlands and Germany, 24 hours a day, 365 days a year. This is what we call ‘security of supply’ and it is at the heart of our business.

In our busy modern lives, we depend on electricity in almost everything we do. From using a computer or smartphone, to watching TV, cooking, or buying our groceries, electricity literally powers our lives. Making sure this power reaches users reliably and safely underpins everything we do. It’s no easy task, requiring us to deliver electricity across 22,573 kilometres of high-voltage cables, above and below the ground, across land and sea. As we use more and more renewable energy, the challenges of maintaining this secure supply increase. After all, the wind doesn’t always blow and the sun doesn’t always shine. Keeping you PLUGGED IN

So, for us, security of supply isn’t simply a question of building more lines or laying more cables. It’s about integrating all of these different types of energy into the system, while ensuring that we continue to serve society 24/7. Although very occasional outages can occur, we are proud to be one of the most reliable grid operators, keeping the power on for 99.99% of the time. To keep this up, we need to invest more in the maintenance and expansion of our grid, while devising increasingly ingenious ways to bring power to our consumers, with minimum disturbance to the environment and local communities. TENNET TODAY 9

Powering the Randstad megalopolis The Randstad region in central-western Netherlands includes the four largest Dutch cities, the Port of Rotterdam and Amsterdam Airport Schiphol. Keeping electricity reliably and safely supplied to this densely populated and economically important area is critical. In 2017, we strengthened our ability to do this with the launch of the Randstad 380 kV high-voltage connection, and in the future this will also play an important role in linking offshore wind farms into the onshore grid.

Carrying wind power from north to south in Germany In Germany, we have started work on a new 380 kV connection between Audorf/Sud and Hamburg/Nord, running for 69 km. This will be an essential artery for carrying wind energy generated in the north of Germany to consumers in the south of the country. Connections like this are becoming essential in Germany as we work to carry wind-generated electricity over long distances from offshore wind farms to onshore end-users. What is the grid? HOW WE TRANSMIT ELECTRICITY

The high-voltage grid is the backbone of the electricity Power plants supply system. It is used for the transport of large quantities of electricity over relatively long distances, mostly via Renewables In-feed High-voltage grid high-voltage lines above the ground. Electricity generated at sea is transported via subsea cables and then connected Import to the high-voltage grid.

Sources of electricity Our high-voltage grid Managing the grid The electricity flowing through Because wind farms and power The government entrusts us our grid is generated from both plants are often far away from with building and managing the conventional and renewable where electricity is used, we need high-voltage electricity system. fast-growing energy sources, to carry it over large distances To do this, we work with many including energy from wind, solar without major losses on the way. stakeholders: politicians, and biomass. The offshore wind This is why we transport electricity municipalities, communities, power is transported to the shore at 110,000 volts and higher: NGOs, regulators, regional via subsea cables, where it is fed up to 1,700 times higher than operators and many more. into the transmission grid. the electricity from your socket. TENNET TODAY 11

Large industries

Consumer/ High-voltage grid Transmission/ distribution prosumer

Export

TenneT

“ WHAT DO We expect to invest around EUR 28 billion YOU INVEST over the next 10 years TO MAINTAIN in offshore and onshore THE GRID?” grid infrastructure. Providing a sustainable and secure supply of electricity to society is about more than volts, power lines and turbines. It’s also about talking, listening and doing the right thing.

ENGAGINGwith STAKEHOLDERS

When we enable power to be delivered to how they need it. So, there is a balance your home, there is a significant amount of to achieve. A discussion to be had. technology and infrastructure that needs to be in place, built over land and sea. That’s why an open and honest dialogue As we do this, we are fulfilling our most with our stakeholders is so important. important duty – to power society – but From the outset of any project, we engage we must also do this responsibly. with everyone affected, listening to their questions and needs. We make all the Whenever we plan new infrastructure, information everyone needs easily available, we are aware of the consequences for take concerns very seriously, and work communities and the natural environment. hard to minimise the impact of our work. However, our investments also bring progress, meeting consumers’ growing After all, it’s good to talk. And it’s even appetite for energy, delivered where and better to listen. TENNET TODAY 13

SuedLink/SuedOstLink in Germany In terms of cable length and the scale of investment, these are two of the biggest energy infrastructure projects in Europe. We set up a unique process of integrating stakeholders into the early stages of planning before work began, including the legal process. Using an online planning tool that shows the work of our environmental planners, stakeholders can share information, such as any potential obstacles to the routes we are investigating.

STAKEHOLDERS

Borssele – Tilburg connection In 2017, we held many different stakeholder meetings to discuss the construction of the new high-voltage line between Borssele and Tilburg – a rural area in the Netherlands. We listened carefully to the concerns of local residents and found ways to blend the overland connection into the landscape. After a process of extensive dialogue, challenging negotiations were settled harmoniously, with everyone accepting the process. Looking back at 2008 20 years of achievement TenneT takes over management of the 110 kV in the European and 150 kV grids from the Dutch regional grid electricity market operators.

‘NorNed’ commissioned as world’s longest HVDC subsea cable (700MW), linking Norwegian and Dutch markets. 1998 TenneT is formed when the Dutch government formally appointed us to operate the country’s national 2003 high-voltage TenneT takes trans mission grid. over the regional network operator B.V. Transportnet Zuid-Holland (TZH). 2006 TenneT starts to bring Europe’s electricity markets together, as cross-border electricity trading and pricing begins for France, Belgium and the Netherlands. TENNET TODAY 15 2016 TenneT is legally incorporated as an offshore electricity grid operator in 2010 the Netherlands. We conclude our TenneT acquires the German first contract for subsea cables linking high-voltage grid from E.ON, the offshore grid. We also introduce our making TenneT Europe’s 2013 vision for a North Sea Wind Power Hub, first cross-border TSO. The Randstad 380kV with the potential to serve wind power Electricity market integration Zuidring goes into to tens of million Europeans by 2050. extends to central-western operation, supplying Europe, including electricity to the densest DolWin2, the most powerful grid Germany and . urban area in the connection for offshore wind farms, Netherlands. The project goes into operation (900MW). BorWin1, the first DC sees unprecedented offshore platform (400MW) lengths of high-voltage goes into operation. cables laid underground.

2011 2018 BritNed, a The 57-km 380 kV 1,000MW subsea connection linking electricity link Doetinchem in the between Great Netherlands with Britain and the Wesel in Germany 2009 Netherlands is 2014 was commissioned, Opening of the first commissioned. Electricity market allowing further AC grid connection BritNed is a integration development of the for the offshore wind joint venture extends to north- north-west European farm Alpha Ventus. between TenneT west Europe, electricity market. and National including Great Grid UK. Britain, the Nordics and the 2017 Baltics, and south- With 10 out of 13 planned grid west Europe, connections in operation, TenneT provides coupling the more than 5,300MW transmission Iberian peninsula. capacity in the German North Sea.

TenneT opens We also opened an office in Brussels. an office in Berlin.

17/18

TenneT Tomorrow

Energy in a changing world Challenge of renewables Innovation for the future As a grid operator, we have a very clear role and a big responsibility. We are driven by a burning desire to keep the lights on, ensuring that all of the Netherlands and a large part of Germany have a reliable, secure and high-quality electricity supply. This is our mission. Our MISSION Vision Values TENNET TOMORROW 3 As a grid operator, we have a very clear role and a big responsibility. We are driven by a burning desire to keep the lights on, ensuring that all of the Netherlands and a large part of Germany have a reliable, secure and high-quality electricity supply. This is our mission. Our As security is our biggest concern, we feel it’s safer and more reliable for our grid to be linked into the wider north-west European network. This doesn’t only make the supply of power more reliable and stable, but also more cost-effective for you, the consumer. Encouraging this integration of the European market, and facilitating its evolution, is a core part of our vision. This is particularly important as more and more renewable energy flows into the grid. It makes the market more complicated to manage and design, MISSION requiring more innovation and cross-border collaboration. As our work is so essential to the smooth running of society, we hold ourselves to the highest values of quality and integrity.

Quality requires the highest standards of safety in everything we do. Integrity means being open, honest and respectful in the way we serve society, particularly local communities, Vision partners and employees.

Our brand values The TenneT brand is built on our commitment to be responsible, engaged and connected. This is our Values promise to the outside world, describing how we serve our stakeholders and how we want them to see us.

June 2018

TenneT Holding B.V. and TenneT TSO B.V. Mariëndaal Centre of Excellence, Utrechtseweg 310, 6812 AR Arnhem, The Netherlands, T +31(0)26 373 1111

TenneT TSO GmbH Bernecker Straße 70, 95448 Bayreuth, Germany, T +49 (0)921 507 400

Concept & Design: DartGroup, Amsterdam, The Netherlands Copy: Stampa Communications, Amsterdam, The Netherlands Engage with stakeholders DELIVER stakeholder value

Lead NWE electricity Secure supply integration

Innovating for the future TENNET TOMORROW 255

As a grid operator, we have a big responsibility in society. To help us stay focused and committed to delivering value to our stakeholders, we have four strategic goals that will always be our main priorities.

Engage with stakeholders DELIVER stakeholder value

Lead NWE electricity Secure supply integration To keep the lights on at all times, a secure and reliable supply of electricity is our biggest concern. This not only means investing in the infrastructure needed to carry electricity from where it is generated to where our users consume it, but also safely integrating the growing amount of sustainable electricity into our grid.

To achieve a truly secure supply, we consider it safer and more reliable for our grid to be linked into a cross-border European Innovating for network, which is why we take a leadership role in the development the future of an integrated north-west European electricity market.

As we invest, build and grow, we aim to minimise our impact on the environment and communities and we work closely with our stakeholders, talking to them and listening to their questions and needs.

And as we invest for the future, innovation is central to everything we do, enabling our business to serve a fast-changing energy market and society’s rapidly evolving needs. ENERGY in a changing world The energy industry is going through a period of unprecedented change, with the clean power revolution accelerating faster than ever. To keep pace, TenneT must think carefully about how it can facilitate change while supporting a secure and stable energy market.

Twenty years ago, wind and to our new world of renewables accommodate this change in solar power accounted for a is doubling each year. No our system, while continuing fraction of the energy market. wonder some observers are to ensure a secure and stable Today, nearly two-thirds of the calling this the new industrial energy market. When the new power generation capacity revolution. sources of power reaching added each year comes from your home are changing so renewable sources. Meanwhile, As we stand on the brink of a rapidly, we can’t afford for the sales of electric vehicles are new energy era, now is a crucial lights to flicker. You still need outpacing conventional cars by time for TenneT. Being the first to depend on us when you a factor of eight and the storage European cross-border grid reach for that switch. capacity of large battery operator, we need to think systems that will be crucial carefully about how we can

So what are the key factors in this ever-changing energy world? TENNET TOMORROW 7 1 2 3 4 Electricity can Energy from more Countries will Technology and be generated sources is more increasingly work innovation are anywhere, by complicated to together more important ENERGY anyone deliver than ever For decades, society Our challenge is to This energy revolution To serve society in this in a changing world relied on a relatively connect all these varied is not confined to challenging energy simple electricity model, power sources to the the Netherlands or future, we need smart, requiring it to be grid, bundle the Germany – it affects innovative solutions, The energy industry is going through a period of unprecedented carried from where it electricity together and the whole of Europe, using the best modern change, with the clean power revolution accelerating faster is generated – usually a transport it reliably and and beyond. After all, technology. That’s why fossil-fuel power station safely across land and electrons, wind and we are using blockchain than ever. To keep pace, TenneT must think carefully about – to where it is sea to you, the end- sun do not respect technology, to help how it can facilitate change while supporting a secure consumed. In today’s user. Compared to borders. As Europe’s us manage the world of renewable the old linear model, largest cross-border unpredictable balance and stable energy market. energy, electricity can where one power grid operator, we can between demand and be generated in any station would serve a lead the way in helping supply that the shift to Twenty years ago, wind and to our new world of renewables accommodate this change in place where the wind large area, this requires all the players in this renewable energy has solar power accounted for a is doubling each year. No our system, while continuing blows or the sun shines, fundamentally different complicated story created. We have joined fraction of the energy market. wonder some observers are to ensure a secure and stable from wind farms far out skills and poses new – including other forces with IBM, Sonnen Today, nearly two-thirds of the calling this the new industrial energy market. When the in the North Sea, to challenges. And it also grid operators and in Germany and new power generation capacity revolution. sources of power reaching solar panels on the costs more money: governments – work Vandebron in the added each year comes from your home are changing so roofs of homeowners. in the next decade we together to create Netherlands to create renewable sources. Meanwhile, As we stand on the brink of a rapidly, we can’t afford for the These ‘prosumers’ are plan to invest heavily a secure, stable new solutions for sales of electric vehicles are new energy era, now is a crucial lights to flicker. You still need now contributing energy in onshore and offshore integrated European managing our grid, outpacing conventional cars by time for TenneT. Being the first to depend on us when you into the grid and electricity infrastructure energy market. including harvesting a factor of eight and the storage European cross-border grid reach for that switch. helping to store energy in the Netherlands power from car batteries capacity of large battery operator, we need to think in home batteries and and Germany. and home energy systems that will be crucial carefully about how we can electric vehicles. storage systems.

So what are the key factors in this ever-changing energy world? Connecting across BORDERS

Electricity doesn’t recognise borders. Nor do the wind and sun. Therefore, in an energy market dominated by sustainable electricity, it makes no sense to think on a national scale. To maintain the security of our electricity supply and integrate vast amounts of renewable energy into the grid, we are building an inter-linked, cross-border energy market in north-west Europe. TENNET TOMORROW 9

Doetinchem-Wesel connection An example of our work to build cross-border electricity connections can be seen in a new interconnector we are building between Doetinchem in the Netherlands and Wesel in Germany. When completed in late 2018, the 57-km-long connection will carry 1,500 MW of electricity. This is our fourth high-voltage connection between the Netherlands and Germany, demonstrating our investment in the development of an integrated electricity market that can provide a stable and secure supply of electricity, wherever it comes from. BORDERS

NordLink: The ‘green cable’ Our NordLink cable connecting the German and Norwegian grids is also known as the ‘green cable’. When fully operational in 2020, it will be the first direct connection between the two countries’ energy markets. With its capacity of 1,400MW, the interconnector can provide renewable energy for more than 3.6 million German and carry electricity generated by approximately 466 wind turbines of 3MW each. This is comparable to the capacity of a large conventional power plant. This is another important example of how we are developing an integrated European electricity market, while helping to increase the supply of sustainable energy, like hydroelectric and wind power. In our business, we can never stand still. The energy market, driven by changing social demands and new technology, is always challenging us to think far ahead. To keep the electricity flowing, innovation has never been more important. INNOVATING

One of the challenges of renewable electricity is that it is, by nature, unpredictable. Although weather forecasting is becoming more sophisticated, we still don’t know exactly how much the wind will blow, or the sun will shine. This means that the inflow of renewable electricity into the grid can be volatile, which doesn’t meet society’s demand for uninterrupted supplies of electricity 24 hours a day, 365 days a year. To achieve this, we need electricity reserves to balance the highs and lows. Traditionally, this has been provided by fossil fuel-burning power plants, but now TenneT is exploring innovative solutions, accessing green electricity from new sources, like home storage systems and electric cars. TENNET TOMORROW 1911

German prosumers balance the grid As many prosumers use batteries to store their solar-generated electricity, we are teaming up in Germany with the home energy battery manufacturer, Sonnen GmbH. Together, we are creating a network of linked home battery storage, capable of absorbing and emitting power in a matter of seconds, whenever required. Using the open-source software technology, blockchain, we can quickly view how much power is available in this network at any time. This is currently a pilot project, with around 6,000 German households signed up.

Electric car pilot in Amsterdam Electric cars are perhaps the most visible symbols of society’s green energy revolution. At TenneT we see possibilities of working with them that go beyond transportation. For example, in Amsterdam, we are conducting a pilot project with the energy supplier Vandebron to see how electric car owners can make the capacity of their car batteries available to help TenneT balance the grid. Although a few car batteries won’t make a difference to a national electricity grid, several million could. Without compromising the availability of power in their car batteries, Vandebron’s service allows excess capacity to be fed back into the grid, balancing fluctuations between supply and demand. In the last 20 years we have seen As TenneT marks its 20th anniversary, we stand a revolution in the energy market, at a crossroads. The last two decades have seen spectacular change in the energy market, as as renewables have moved from sustainable electricity has become a mainstream niche to mainstream. The coming reality. We have transformed our business and invested in our infrastructure to accommodate decades will see even more change, and facilitate this change. Looking ahead, with ever-more ingenious solutions as countries strive to meet the CO2 reduction targets set in the Paris Agreement, sustainable required to meet the needs electricity production will hit new heights. of society. To achieve this ambition, international cooperation, ground-breaking innovation and determination will be required.

At TenneT, we already have an example of what this future could look like, with a vision of how to harness even more wind power from the North Sea and connect it into the grids of different European markets. This vision is called the North Sea Wind Power Hub (NSWPH). TENNET TOMORROW 13

“ WHERE IS Currently, we have three connections between the Netherlands and TENNET Germany, one with Great Britain, OPERATING two with Belgium, two with Austria, one with the , one CROSS-BORDER with , two with Denmark CONNECTIONS?” and one with .

Built on an artificial island far out The size of this project involves in the North Sea, the NSWPH partnership between many would be a hub for collecting different players. TenneT, wind power from the huge with its expertise in offshore number of wind farms in the area, power and cross-border then sending it onshore to the energy markets, is one of North Sea-bordering countries via the prime movers, working subsea power cables. When it’s in a consortium that also ready, the NSWPH could supply includes Energinet, Gasunie renewable energy to 80 million and the Port of Rotterdam. people across Europe by 2050. The scale and ambition of this hub is unprecedented and clearly demonstrates the potential of the North Sea as a sustainable source of European wind power for many years into the future.