Accelerating to a net-zero society Activity Report 2020 2 ALEGrO commissioned Elia Group Activity Report 2020 3
We connect generation & distribution Regulatory authorities Suppliers Public & partners authorities
Shareholders and investors Transmission Generation Press & general public Renewable energies classic energies Distribution
Energy suppliers Local communities
Consumers
European Distribution system system operators operators 3 Activities
Managing Balancing Facilitating the infrastructure the electricity system the market
Industrial clients and European consumers Industrial clients Production Employees
Academics NGOs & & energy federations professionals 4 ALEGrO commissioned
Accelerating to Contents a net-zero society Statement 1 The situation is becoming increasingly Interview with Chris Peeters and Bernard Gustin 2 clear. Urgent measures are needed to keep
Elia Group at a glance 6 climate change under control. As system
Legal Structure 8 operators in Belgium and Germany, our
Corporate bodies 10 mission is to realise the climate ambitions of
Four major trends that will shape the European Green Deal. We are therefore the future of the energy sector 12 accelerating our investment programme. Our story 14 We are preparing our on- and offshore grid Our strategy 16 infrastructure for the integration of large Act now 18 volumes of renewable generation in order to 2020 in numbers 20 electrify our society in a sustainable way. We
2020 Highlights 24 are increasingly doing this in cooperation
#COVID19 26 with other sectors and other countries. To maintain a reliable electricity system in this #Combined Grid Solution 30 rapidly changing context, we are investing #ALEGrO commissioned 38 heavily in digitalisation. In addition to our #E-mobility vision paper 44 social commitments, we are also improving #From 60 to 100 by 2032 50 our own internal activities and embedding
#First Green Bond of €750 million sustainable practices into our strategy. In successfully placed 56 this way, we are actively working to acceler-
#The Nest 60 ate the net-zero society.
#Elia Group launches Re.alto 66
#Brabo II enters service 70
About this report 2 Post-COVID recovery policy brings new opportunities Elia Group Activity Report 2020 3
Post-COVID recovery policy brings new opportunities
Anyone looking back at 2020 would be hard-pressed to avoid talking about the coronavirus crisis. How did the Group deal with it?
Chris Peeters: Keeping the lights on is embedded in our corporate culture. been supporting policymakers with our We immediately went into crisis mode. knowledge and expertise so they can Even before the first measures were make decisions for a strong recovery announced, we had already set up our policy within a framework that stretches Corona Task Force. The way our peo- far beyond the bounds of Elia Group. By operating in different ple coped with the restrictions was We have been examining four key areas: markets, we can learn from very impressive. Within 24 hours, all of energy efficiency, the accelerated digi- each other and set up in- our office-based teams were working talisation of the energy system, electric “ novation projects together remotely. All project sites were shut mobility and the decarbonisation of our that ensure we always stay down as a precaution, but within a week industry. In the areas of energy efficiency one step ahead. they were gradually reopened, with more and electrification, it’s possible to take
complex projects involving multiple con- very big steps forward right away. We Chris Peeters tractors being opened after a thorough also have several post-COVID candidates analysis. within our own portfolio. With regard to building infrastructure and digitalisation, Bernard Gustin: By the end of the year, there are various things we can quickly hardly any of our main projects were promote and enhance. experiencing delays. Some shifts were made, but the end result was in line with Bernard Gustin: Unlike in the post-war No event in recent history has impacted our soci- comfort in the fact that we chose the what we had budgeted and planned for. period, our infrastructure is still intact right direction a few years ago. Our busi- ety as much as the coronavirus pandemic. And Unlike other sectors, we have been less today. To get the economy back on track, ness model is not up for debate today. impacted financially. Not only did our we need to find projects that did not yet, despite the events of 2020, optimism reigns Our strategy anticipates social trends staff deal very flexibly with the crisis, they exist before or that are being acceler- at Elia Group. The European Commission’s recov- such as decentralisation, greening, Euro- also showed a lot of heart. In Belgium we ated. The European Green Deal and the pean integration and digitalisation. The ery plans confirm the ambitions of the European ran a very successful solidarity campaign energy transition are particularly impor- same underlying forces are reflected in Green Deal and focus on greening and digitalisa- on behalf of various anti-poverty funds tant in this regard. At the start of the the post-COVID recovery plans. tion, two of Elia Group’s strategic priorities. Accel- operated by the King Baudouin Founda- COVID-19 crisis, no one expected that the tion. The Board of Directors fully sup- accelerated greening of society would Chris Peeters: This means we are able erating the energy transition means new opportu- ported this spontaneous initiative. feature so prominently in the recovery to even anticipate the required acceler- nities. plans. Elia Group has an important role to ation. This will bring new opportunities How can Elia Group contribute to the play here. and strengthen the Group’s growth and post-COVID economic recovery? development. For example, our study on Everything points to the increasing Chris Peeters: The recovery policy electric mobility came at just the right acceleration of the energy transition. promoted by the European Union is time. Today in Germany, we are talking to What does this mean for Elia Group? based in part on the European Green players in the automotive industry about Deal. Given that our mission is to work Bernard Gustin: Many companies are accelerated implementation. We are also in the interest of society, we have been finding that their post-COVID strategy speeding our activities up with regard to focusing on our strengths. We have is no longer relevant. We can take great market forces and market operation.
Interview with Chris Peeters and Bernard Gustin, CEO and Chairman Elia Group
4 Post-COVID recovery policy brings new opportunities Elia Group Activity Report 2020 5
As we follow the path towards a forgotten about the importance of solar These companies have a lot of flexibil- What will the energy transition look climate-neutral society, it is clear energy either. Additional steps need to ity that can be used to accommodate like after 2030? that our seas will become the power be taken in digitalisation in order to opti- the variability of renewable energy. On Bernard Gustin: In terms of our busi- plants of the future. How is Elia Group mally integrate solar energy into our grid, the retail side, we have smart buildings ness, 2030 is just around the corner. The preparing for this? but the infrastructure has already been and everything they entail. That too is ultimate goal is a climate-neutral Euro- greatly expanded. For wind energy, the coming. We’ve entered into a number Bernard Gustin: 50Hertz achieved a pean society by 2050. We’re still right at situation is different. of partnerships with companies that are major world first with the Combined Grid the starting point so we’ve definitely got focused specifically on this sector. Solution project in the Baltic Sea. The Extensive electrification is required quite a way to go until we reach end of interconnector between Germany and in order to decarbonise our energy-in- New sectors, new stakeholders. What our story. Denmark also incorporates a wind farm. tensive industries. The Elia Group can we learn from them? In the longer term, how At the start of the COVID-19 crisis, This hybrid technology increases the effi- study on electric mobility has shown Chris Peeters: Chris Peeters: In working together, we no one expected that the acceler- ciency of the transmission cables and will how convergence with the mobility do we get enough carbon-free energy see overlapping problems. The transport ated greening of society would fea- be very important for unlocking offshore sector can lead to a rapid reduction to the consumer? We should already “ sector now better understands that ture so prominently in the recovery wind power generated further out at sea. in CO2 emissions. Do you foresee any be working on that today. We’re think- there are grid restrictions when it comes plans. Elia Group has an important other beneficial collaborations? ing about the infrastructure, systems Chris Peeters: Countries such as Bel- to charging vehicles, but smart charging and mechanisms needed to seamlessly role to play here. gium and Germany will experience a Chris Peeters: A number of tech com- can be beneficial for both parties. There achieve a climate-neutral society by shortage in terms of their own renewa- panies have contacted us of their own are also barriers we must overcome on 2050. In Europe, some countries will Bernard Gustin ble production and will have to source accord. But we’re also seeing companies our side. A single unified invoice that bills experience renewable energy shortages, it from outside their national borders. in the steel and chemical industries that the right user requires complex integra- while others will experience surpluses. – but it also works the other way around. Chris Peeters: Our industry needs to Today we are looking into which infra- want to make their production pro- tion with our grid. How can we identify Collaborative arrangements can be set As part of the Belgian-German ALEGrO accelerate. This is one area where it’s structure elements we will need in the cesses greener. They are asking for our who is charging what, when and at what up to deal with this. In addition, the EU project, Elia integrated a direct current important for all stakeholders to have the long term and how we can anticipate help because they realise that they will point on the network? Hydrogen Strategy must also be consid- (DC) interconnector into a meshed alter- same level of maturity. We are working the changes to come in order to have have to electrify part of their processes. ered. Europe as a whole is going to expe- Bernard Gustin: This once again shows nating current (AC) grid for the first time. simultaneously on many fronts, each of everything ready on time. We don’t want Ultimately, this will ensure that they have rience an energy shortage, which means that grid operators like Elia and 50Hertz The same feature will also be included in which has its own stakeholders going to be a bottleneck. But we have not a different relationship with our grid. some green gas will probably come from lie right at the centre of the energy Germany’s north-south corridors, such as at their own pace. It’s important to have system. And that entails new challenges. outside Europe’s borders. And it’s also in 50Hertz’s SuedOstLink project. governments, regulators, distribution We need to profile ourselves differently important to prepare for high-stress system operators and the commercial Bernard Gustin: In addition to our and make sure our services evolve. New periods. During long periods with little sector on board so that steps are taken technical expertise, we are also known We can take great comfort business models are emerging on the renewable production, we must have in the short term to deliver infrastructure as good partners. That’s not always the in the fact that we chose the fringes of ours and they are growing in sufficient backup resources. on time, integrate renewable energy and right direction a few years ago. importance. case with everyone. Just because you’re “ Energy policy is increasingly being electric cars, support industrial decar- Our business model is not up a great national champion, it does not defined at European level. Is this an bonisation and so on. In my view, the big for debate today. mean you’re great at European level. advantage for the Group, given that challenge for 2021 is convincing everyone Sometimes you make the right deal, We are indeed wit- of the need to pick up the pace. Bernard Gustin it’s active in multiple countries? but the integration process is a disaster. nessing more Eu- Lastly, whom would you like to Bernard Gustin: We are indeed witness- Collaboration between Elia and 50Hertz ropean integration thank? “ ing more European integration and coor- just works and that is widely recognised. and coordination, In order to become an even stronger and that feels very dination, and that feels very natural to Chris Peeters: As a crucial sector, we’ve multinational group, we’ve adapted our natural to us. us. We’re already an international Group, been able to fulfil our mission to work in company structure to remove all obsta- whereas many other system operators the interest of society. Our people have cles to further growth. Bernard Gustin remain quite national in their outlook. In always had confidence in the processes terms of size, we’re in the top 5 TSOs in What are your priorities for 2021? we’ve established for this purpose. That’s Europe, but in terms of influence, we’re in why I would like to express my sincere Bernard Gustin: We must ensure our the top 3. thanks to our employees and our sub- business continues to operate normally contractors. Chris Peeters: There is also the impor- against the highly unusual backdrop of tance of scale to consider. By operating the COVID-19 crisis, which is going to drag Bernard Gustin: I couldn’t agree more. in different markets, we can learn from on for a while. In addition, with our Act Our employees are working efficiently each other and set up innovation pro- Now programme, we are aiming for even under varying circumstances, whether Our industry needs to accelerate. jects together that ensure we always stay more ambitious sustainability goals. It’s at home, in the field or in our control We are working simultaneously on one step ahead. 50Hertz’s Combined also important to strike the right balance centres. I’m very proud of their amazing “ many fronts, each of which has its Grid Solution project in the Baltic Sea is between executing our ambitious strat- adaptability. own stakeholders going at their own the world’s first hybrid interconnector. egy while at the same time being flexible,
pace. In my view, the big challenge This technology will also be very impor- so as not to miss any opportunities that for 2021 is convincing everyone of tant for future projects in the North Sea arise in the rapidly changing context. the need to pick up the pace.
Chris Peeters 6 Elia Group at a glance Elia Group Activity Report 2020 7
Elia Group at a glance
Regulated Activities
- is the Belgian transmission system operator for high-voltage electric- ity (30 to 400 kV) Non-Regulated Activities - has a legal monopoly as Belgium’s TSO and operates 8,781 km of high-voltage lines
- is responsible for developing, building and operating a robust electric- ity transmission system, with infrastructure onshore and offshore - offers support and consultancy services to - is responsible for developing services and mechanisms with a view to government bodies, utilities and other key developing the electricity market at national and European levels players around the world seeking support for the design and implementation of Germany future projects in the power sector - provides advisory services in asset man- agement, system operations, grid devel- - is a joint venture between Elia and National Grid Belgium opment and RES integration - marks a crucial step forward in the integration of the electricity grid between continental Europe and the UK
- has been in operation since 30 January 2019, under its own regulatory framework (cap & floor)
- is Elia Group’s very own corporate start-up to accelerate digitalisation of the energy sector - is one of Germany’s four TSOs and is responsible for ensuring a secure supply of electricity for 18 million people in northern and eastern - is the first European marketplace to allow Germany the exchange of energy data, digital prod- ucts and services via standardised energy - has a grid that covers an area greater than 109,360 km² and runs a APIs length of around 10,380 km - makes energy data easy to access and - is responsible for developing, building and operating the 150 to 380 kV integrate, enabling the industry to take a transmission grid, with infrastructure both onshore and offshore giant digital step forward towards more - is a leader in the secure integration of renewable energies, with over widespread adoption of Energy-as-a- 62% renewables successfully incorporated within its 50Hertz grid Service business models, ultimately driving forward a low-carbon energy future 8 Legal Structure Elia Group Activity Report 2020 9
Unregulated Legal Structure debt
99.9% 100%
Regulated debt
Eurogrid KfW Elia Transmission International Belgium
80% 50% 99.9%
20% Eurogrid GmbH Other Nemo Link Elia Asset minority stakes
100%
Elia Group acts as a holding company which owns Elia Regulated Transmission Belgium (Belgian Elia (Transmission debt TSO), Eurogrid International Engineering System Operator) (comprising the activities of 50% 50Hertz, the German TSO) and Elia Grid International (the Group’s international consultancy branch). Its main shareholder is 50% the municipal holding Publi-T. Elia Group (formerly Elia System Operator) has been listed on the regulated market of Euronext Brussels since June 2005. 10 Corporate bodies Elia Group Activity Report 2020 11
Elia in Belgium Corporate bodies Executive Committee GRI 102-18
Elia Group 50Hertz Elia Group Management Board in Germany Executive Committee
1 2
1 1 2 3 4
2
3 3 5 6 1 Chris Peeters Chief Executive Officer and Chairman
2 Catherine Vandenborre 4 Chief Financial Officer 4 3 Marcus Berger Chief Infrastructure Officer
4 Patrick De Leener Chief Customers, Market 5 5 7 8 and System Officer 1 Stefan Kapferer 5 Frédéric Dunon 50Hertz CEO Chief Asset Officer 1 Chris Peeters 2 Dr. Frank Golletz Elia Group CEO 6 Pascale Fonck Chief Technical Officer Chief External Relations 2 Stefan Kapferer 50Hertz CEO 3 Dr. Dirk Biermann Officer Chief Markets & System 7 Peter Michiels 3 Catherine Vandenborre Operation Officer Chief Financial Officer Chief Human Resources and 4 Marco Nix *In February 2021, Patrick De Internal Communication 4 Peter Michiels Chief Financial Officer Leener and Frédéric Dunon Officer Chief Alignment Officer swapped positions to make 5 8 Ilse Tant Sylvia Borcherding optimal use of the experience 5 Michael von Roeder Chief Human and skills of both managers. Chief Community Relations Chief Digital Officer Resources Officer Officer 12 The energy sector Elia Group Activity Report 2020 13 Four major trends Decentralisation and new market players
The trend towards decarbonisation will entail a proliferation of new, decentralised market players that will shape powered by technological innovations. This will lead to the increasing fragmentation of the energy sector into dispersed, smaller and local generation sources (such as electric vehicles, battery storage and heat pumps). Managing the operations of a complicated system of energy production will require increased flexibility on the part of TSOs. Operating a grid with thousands if not millions of decentralised resources will demand new strategies to integrate them into a reliable and efficient the future of the system. Greater flexibility and increasing digitalisation will be needed on behalf of service providers to keep the system balanced, as the role of conventional power plants and centralised distribution diminishes. energy sector Digital transformation The energy transition and the digitalisation of the sector are well underway and are set to accelerate in the years ahead. Transmission system operators (TSOs) Elia and 50Hertz We expect to see massive amounts of renewables coming are leading the way in the energy transition by online at all levels of the grid, along with increasing elec- trification, fragmented production and more international developing and implementing innovative technologies cooperation. Tackling this increasing complexity will require to build the infrastructure of the future. Responding to technological innovations to maintain a reliable and afforda- social and political demands for the decarbonisation ble energy supply. of the energy sector, we are harnessing innovation to Elia Group believes a new way of managing the future power deliver on our mission of providing reliable, sustainable system is required in order to maximise the benefits of the and affordable energy to all of our end consumers. energy transition. This will be enabled by digitalisation, which will connect all electrical devices and players across The energy landscape is undergoing a fundamental the system. The emergence of new digital technologies such transformation. Increasing reliance on renewable as artificial intelligence (AI), blockchain, cloud computing energy sources, decentralised production and growing and the Internet of Things will enhance our capabilities for gathering, transferring, processing and visualising data, and electrification are the way of the future, but they raise Decarbonisation of will increasingly automate the management of the power significant challenges for the energy system and its system. Indeed, we believe that successful innovation should stakeholders. As a result, transmission and distribution the energy sector encompass our sector’s entire value chain: from asset man- agement to system operation and market facilitation. system operators will need greater flexibility and The decarbonisation of the energy sector and increasing innovative solutions to keep the system in balance and reliance on renewables constitute an irreversible para- ensure a reliable, affordable and sustainable energy digm shift for the European energy system. Recognition of the need to combat climate change has not only supply. gained social momentum, but has also prompted gov- ernments to set ambitious targets. The European Green Deal recently raised the 2030 emission reduction target to 55% (compared with 1990) and aims for climate neu- Supranational coordination trality by 2050. The trend towards an increasing share of While the first two trends will yield a wealth of opportunities, they also introduce significant chal- renewables – solar, wind and green generation facilities lenges. The growing share of renewables and increasingly decentralised energy generation from such as offshore wind farms – is also driven by the rapid multiple market players are making the power system increasingly variable and complex. Across development and declining costs of renewable technol- Europe, we are already seeing grid infrastructure lag behind rapidly evolving renewable generation. ogies themselves. This is causing congestion problems and considerable ‘redispatching’ costs in some European coun- The old energy paradigm of centralised energy gener- tries, whose power markets are interconnected and integrated. Responding to these challenges often ation is soon to be a thing of the past. As the share of requires a supranational response to ensure the efficient and affordable flow of green energy from renewables accelerates, the distribution of energy over production to consumption centres. the electricity grid will have to change entirely in order to manage the myriad new sources of decentralised energy generation. The grid infrastructure will need to adapt accordingly. 14 Our Story Elia Group Activity Report 2020 15 Our Story What We Do
Developing Connecting markets
infrastructure We strive for a connected and efficient grid, reflected in an integrated European Keeping energy and consumers con- market. Elia Group cooperates objec- nected requires long-term investment in tively and transparently with all market an efficient, safe and reliable grid infra- players. We employ the latest techno- structure. Ensuring we are able to meet logical advances and create new ones not only today’s needs, but the needs where we see opportunities to optimise of future generations as well, means the transmission and distribution of developing and integrating renewable energy while managing consumption resources, such as offshore high-voltage demands. grids. Upgrading existing structures, such as interconnectors, means energy Operating systems reaches the market more quickly and efficiently. Balancing and coordinating an interna- tional, multi-sourced and connected grid with rapidly changing technologies and increasing demand is critical. To do this, Elia Group deploys and develops state- of-the-art processes and tools to monitor the grid in real time, all the time. 50Hertz Partnership
The German legislator has transferred the responsibility for coordinating and processing legal levy systems to promote environmentally friendly technologies to the transmission system operators. 50Hertz collects these levies as a trustee, administrates them and coordinates their distribution to recipients. If the elec- tricity from renewables is not marketed directly, we sell this electricity on the Elia Group power exchange. connects
Electricity is at the heart of what we do. As one of Europe’s top f ive transmission system operators (TSO), we ensure that over 30 million end users have access to reliable and increasingly renewable electricity. We operate 19,276 km of high-voltage connections while balancing generation and con- sumption. 16 Our strategy Elia Group Activity Report 2020 17
1. Grow beyond current perimeter to .2 deliver societal value Develop new services creating Our strategy value for customers in the energy system
Elia Group is well on the way to becoming a leading European TSO, working towards a successful energy transition for a sustainable world. However, as the energy landscape changes at an ever-faster pace, new and bigger challenges emerge. For Elia Group, this means that in order to remain relevant tomorrow, we have to continue improving our core activities today, delivering reliable services at an affordable price and at an accelerating pace in order to fulfil our societal mission. To that end, Elia Group will continue to build upon its three pillars of growth.
Our three strategic pillars
1. 3. Deliver the infrastructure of the future Grow beyond current perimeter to & develop and operate a sustainable Be relevant today deliver societal value power system and tomorrow Against a backdrop of increasing Euro- We are building the infrastructure of pean integration, we are actively shaping the future in Belgium and Germany and growth opportunities that will leverage transforming our core business in order our expertise and developing the new to become a digital transmission system skills required to ensure a successful operator. This is enabling the energy energy transition. transition in our home markets. 2. Develop new services creating value for customers in the energy system
We are providing the European market with digital tools to accelerate innova- tion in the energy sector, create energy services and initiate sector convergence by lowering barriers in our industry.
.3 Deliver the infrastructure of the future & develop and operate a sustainable power system 18 Act now Elia Group Activity Report 2020 19
Integration of the Sustainable vating and enabling people to contribute Development Goals (SDG) their best to our common targets are key As early as 2018, we started integrating to our success and to achieving sustaina- You can read the full the Sustainable Development Goals ble performance. Our employees, suppli- overview of our sustai- (SDG) into our strategy. ers and other stakeholders are valuable nability policy in the Elia Group Sustainabi- assets; we work hard to safeguard their lity Report 2020. As a company providing a service for health and safety and protect them from Act Now FOR A SUSTAINABLE WORLD society, we are keenly aware of our social discrimination. responsibilities and strive to build a more sustainable world through our approach, Our culture fosters sustainable behav- decisions, and actions. This includes all of iour, which in turn supports our long- For a sustainable future our internal processes like maintenance, term strategy and ensures that the engineering, grid development and the interests of society are met. Naturally, we purchase of assets. We want to embed fulfill all relevant laws, regulations, and Elia Group as an enabler We believe that, given our unique posi- CO2 reduction and sustainable deci- necessary controls. tion and role as facilitator of the electric- sion-making in our DNA. We will increase In order to meet our strategic ambitions, of the energy transition ity market, we should deliver an effective our focus on the environmental impact we will set up concrete and measure- contribution to the decarbonisation of of our activities, even though this will able actions to ensure that a sustaina- Climate change is one of the main chal- the electricity sector. We are achieving mean adding an additional layer of com- ble approach is embedded across Elia lenges of the 21st century. Decarbonising this through developing activities that plexity to our decision-making processes Group’s activities. We will continuously the energy system is a must to keep the With our new 50Hertz today are within the realms of possibility and approach. Since good decision-mak- reassess our daily activities so that sus- global average temperature increase well strategy #from60to- and that will make a difference in the ing in a complex environment requires tainability becomes a compass for our below 2°. The electricity sector carries a 100by2032 and the Elia successful and efficient realisation of the “ considering issues from multiple per- organisation, as we aim to build a more lot of decarbonisation potential. Electric- Group Sustainability energy transition. spectives, increasing diversity across the sustainable world. ity as an energy carrier is today already Initiative Act Now, we company will enable us to cope with this This ambition is already embedded in our the most cost-efficient solution in most are making a significant complexity. Attracting talent and moti- strategy, which focuses on the delivery sectors. Further electrification based on contribution to achieving “At both Elia and 50Hertz, the interest and RES integration is hence the most effi- of CAPEX projects and offshore growth European, national and re- motivation of our colleagues for this group programme are strong. The journey to cient way to realise the energy transition. to integrate renewables, on digitalisation gional sustainability goals. Elia Group’s lighthouse ambitions and market incentives to support access become a sustainable company started and The fact that investors the challenge is great and exciting. Thanks to As Elia Group, we are at the centre of the to flexibility, and in collaboration with With our Elia Group sustainability initiative Act Now in 2020, we defined concrete meas- trust us with regard to our the Act Now programme, sustainability will electricity system. We are thus well- urable targets related to how we will embed sustainability in our business processes several actors to push electrification and activities, projects and be part of the DNA of our company.” placed to identify the levers necessary facilitate access to renewable energy. along our value chain in the coming years. We will focus specifically on five fields of plans under the current Igor Lefebvre, - 40 years young for the realisation of the decarbonisation Moreover, relevant actions undertaken in action – our so-called lighthouse ambitions: regulatory framework in Head Environment - started at Elia in 2017 of the power system. By doing so, we that regard will support and contribute Germany is reflected in the & CSR at Elia - lives and works in believe that we, together with all other to the decarbonisation of our own activi- Belgium successful placement of fight against climate change actors involved in the energy transition, ties and operations at Elia Group. our first Green Bond in May want to be carbon neutral by 2040 will provide society with value-for-money We 2020. power to fuel business and live.”
Marco Nix, protect the environment, conserving resources and Concrete examples Chief Financial Officer at nature, thus generating a positive impact on 50Hertz biodiversity - SF6, a gas used to insulate electric lines, It is our belief that through constant We integrate ecological design into all steps of our projects is very harmful to the environment. We innovation and delivering the infra- want to abolish the use of herbicides completely are going to monitor leaks more strictly. structure of the future, we will be In the future, we will also build stations “ where SF6 is no longer needed. able to maximise the impact of the energy transition on the reliability ensure that all our employees and everybody we col- - We encourage our employees to opt for and sustainability of the power sys- We laborate with arrive home safe and sound every day sustainable mobility solutions: public tem. Through the set-up of the Act transport and/or cycling. We are also Now programme, we will ensure that going to green our own fleet. Old diesel we are setting the right priorities in promote diversity and inclusion and provide equal cars will be replaced by electric vehi- our strategy and our internal pro- We opportunities cles. cesses, linking back to sustainability goals, and that we are reinforcing - The hardware of our installations a sustainability mindset inside our are committed to our societal role and the values (pylons, cables, etc.) currently consists companies. of society largely of non-recycled materials. We conduct our activities with integrity expect our major suppliers to offer Ilse Tant, are transparent about expected behaviours and sustainable alternatives within 10 or 15 Chief Community Relations We do not tolerate ethical breaches years. Their R&D departments are work- Officer a Elia ing hard on this.
- We have 800 substations in Belgium that we have to heat and light. The energy we use for this will be green.
20 2020 in numbers Elia Group Activity Report 2020 21 2020 in numbers Financial
Environmental Social Operational
€ billion 291 9.7 new hires (Elia Group) regulatory asset base 1,142 km (Elia group)
inspections were carried out on 30mio construction sites (Elia Group) end Users (Elia Group) 2,723 €308.1mio employees (Elia Group) Adjusted Net Profit (Elia Group) 19,276 km 62% percentage of renewable of high voltage lines and cables energy integration (50Hertz) (Elia Group)
€1.71 24 nationalities (Elia Group) gross dividend per share (Elia Group) 99.99% 411.74km of birdmarkers installed reliability of the grid (Elia) as of 31/12/2019 (Elia Group) &
22 Highlights of 2020 Elia Group Activity Report 2020 23 Elia 50Hertz
Installed capacity Installed capacity Photovoltaics Onshore wind 4,788 MW 19,138 MW
Conventional Conventional energy Renewable energy Renewable energy energy 14,865 MW 21,396 MW 9,357 MW 36,129 MW
25,148 57,525 Megawatts (MW) Megawatts (MW)
Wind power Offshore wind 4,599 MW Geothermal energy 1,068 MW and landfill, sewer and mine gas Biomass Hydropower 67 MW 2,023 MW 117 MW Photovoltaics Hydropower 13,552 MW 281 MW Biomass 779 MW
Evolution Evolution
Development of the RE share in electric supply Development of the RE share in electricity supply in Elia grid area in 50Hertz grid area 15% 13% 70% 62.0 60.0 60% 56.5 12% 53.4 50.9 50% 47.8 8.44% 42.2 9% 38.3 6.79% 40% 35.8 28.3 6% 4.74% 30% 25.6 4.01% 20% 3% 10%
0% 0% 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 24 Highlights 2020 Elia Group Activity Report 2020 25
# First €750 million Green Bond successfully placed 2020 Highlights In May, Eurogrid GmbH – 50Hertz’s parent company – issued the first Green Bond in the company’s his- 2020 was a year of unprecedented challenges. As a provider of crucial services, Elia Group tory, securing €750 million which was faced with the difficult task of protecting our staff whilst ensuring business continuity, will help finance the grid connec- tions for two offshore wind farms so that our 30 million end users had ongoing access to a reliable energy supply throughout in the Baltic Sea. The bond demon- the pandemic. Despite these challenges, Elia Group employees worked hard to protect and strates the high degree of confi- maintain the grid network and successfully deliver a number of ambitious projects. This # From 60 to 100 by 2032 dence the financial markets have in year’s Annual Report therefore reflects their hard work: it focuses on the Group’s project Elia Group’s sustainability strategy and investment plans. (read more In July, 50Hertz announced an ambitious highlights and features some of the members of staff who went the extra mile to make on page 56). them possible – all in the interest of society. new goal for 2032: ensuring that 100% of the electricity carried across its grid is generated by renewables. 50Hertz will continue to work closely with a range of stakeholders, some of whom are already making huge efforts to decarbonize their processes, to explore additional ways of facilitating the transition to a sustainable # COVID-19 future (read more on page 50).
Elia Group’s digitalisation strategy and newly established COVID-19 Task Force played key roles throughout 2020, allowing us to ensure business continuity whilst also keeping our staff protected throughout the # Elia Group launches re.alto pandemic. We were safely able to maintain re.alto, Elia Group’s own start-up, was security of supply and engage with our launched in Belgium in September. stakeholders, from supporting non-profits re.alto is the first European digital mar- to guaranteeing attendance to key meet- ketplace to be built specifically for the ings and events through virtual means exchange of energy data and services. (read more on page 26). # E-mobility vision paper # The Nest Real-time data can be bought and sold Published in November, Elia Group’s e-mo- Elia Group launched the Nest, its by stakeholders across the value chain, bility vision paper outlines how better digital incubator, in September. It encouraging energy savings, sustainable alignment between the power and mobil- acts as a laboratory, enabling the adjustments and cost-effective meas- ity sectors can deliver important societal rapid development, prototyping ures – ultimately supporting decarboni- # Brabo II enters service sation (read more on page 66). # Combined Grid Solution benefits. The paper identifies enablers and testing of ideas related to for making both sectors more sustaina- digital technology – which is key Brabo II, the second of three Brabo ble whilst enhancing consumers’ driving to driving the energy transition. In October, 50Hertz and Danish system oper- sub-projects, has now been completed. experience, so encouraging the wide- The Nest strengthens Elia Group’s ator Energinet inaugurated the world’s first The sub-project strengthened the grid spread adoption of electric vehicles and commitment to innovation, com- hybrid offshore interconnector, which con- infrastructure around the Port of Ant- ultimately contributing to the decarboni- plementing initiatives such as its nects German and Danish wind farms and werp, so enabling the importing of more sation of society (read more on page 44). Innovation Week and Open Inno- allows the transmission and trade of energy electricity from the Netherlands and vation Challenge, which are held between both countries. The project has responding to growing electricity con- # ALEGrO commissioned annually (read more on page 60). been paving the way for future joint offshore sumption in the area. Whilst Brabo I and grid projects (read more on page 30). 10 years of joint work undertaken by II have now been completed, Brabo III is TSOs Elia (Belgium) and Amprion (Ger- due for completion in 2024 (read more many) culminated in the completion on page 70). of the ALEGrO interconnector. ALEGrO enhances the security of electricity sup- ply to Belgium and Germany, and better facilitates the integration of renewables into the grid; it will therefore act as key feature of the integrated European elec- tricity system (read more on page 38). 26 COVID-19 Elia Group Activity Report 2020 27
Guarantee of stability # COVID-19 in uncertain times Some 24 hours after the announcement of the first lockdown measures in Belgium (March 2020), 95% of employees were already working from home and all project sites had been shut down. After a short interruption of just a few days, Elia Group gradually resumed on-site project work by implementing modified working methods in close collaboration with our contractors. By the end of the year, the situation across our project sites had all but returned to normal. Project sites in Germany were less impacted by the COVID-19 measures, one of the exceptions being the commissioning of the Combined Grid Solution project, the hybrid interconnector between Germany and Denmark. That project had to cope with travel restrictions imposed on the Danish team members.
Our digitalisation strategy, which had special hygiene measures and occupa- already been consistently pursued tional safety regulations were introduced before the pandemic, facilitated the on top of existing measures related to rapid transition of the company’s the pandemic. Social aspects were also employees to working from a home taken into account and employees were office. With respect to health protec- offered help for coping with everyday life tion and occupational safety, additional in this new situation.
“In all our considerations and actions, the health of our employees while maintaining operational capability The coronavirus pandemic has presented was our top priority. Thus, after the society with profound changes and new first lockdown ended in 2020, we had to quickly ensure that the necessary challenges. For Elia Group, this means “Thanks to the COVID-19 Task Force set measures were implemented in all producing in-depth analyses, adapting up early on, we were able to respond places: workplaces, construction sites, appropriately and flexibly to the new employee canteens, meeting rooms, pandemic plans and acting prudently. challenges. Within a short period of lifts and other public areas. Unfortu- Since the Belgian and German authorities time, our colleagues on the task force nately, this will remain necessary for developed a broad set of measures for some time.” consider our activities to be crucial, we all sites in coordination with manage- prioritised the continuation of our activi- ment and communicated recom- - 55 years young mended actions to all employees. Jochen Müller, - lives and works in Germany ties in order to ensure business continuity. The Task Force continuously adjusted Head of Task Force plans in line with changing conditions. - started at 50Hertz at 50Hertz in 1992 To supervise this process, an internal task Despite the unprecedented situation, - loves riding his force was set up across multiple depart- we were therefore able to meet our motorbike goals on time.” ments. Maintaining security of supply and
protecting the health and safety of our - 42 years young employees and contractors are our main Jeroen François, - started at Elia in 2011 Want to know more about the impact of corona on our - lives & works in business? Our colleagues Barbara, Bart and Walter of the Head of Task Force priorities. Belgium taskforce team tell you about their experiences in this video. Elia - always in for To watch the video click on this link or simply scan the QR snowboarding, code with the camera your smartphone to start the video. travel & adventure ▶ http://bit.ly/Corona-Taskforce-AR2020
28 COVID-19 Elia Group Activity Report 2020 29
Merci² event
On Friday 11 December 2020, more than 700 Elia colleagues took part in Merci², a digital event to thank our employees for Did you know? We stay the incredible work they have done during this very special year. The event, which connected included testimonials from colleagues, messages from management and interac- Support for anti-poverty funds tive moments, ended with a highlight: the results from Elia employees taking part Commitment to In May, the members of Elia’s Management Board unanimously in the Fit4Charity challenge! Thanks to all decided to contribute their entire salary for that month to the the kilometres they travelled on foot or social causes King Baudouin Foundation in support of its COVID-19 fund by bike, we raised €12,500 for two can- for combatting poverty. The Board of Directors and company cer support associations: Kom op Tegen Every year, 50Hertz contributes staff voluntarily followed suit, with a total of €255,000 donated. Kanker and Télévie. to social causes in its grid area Back in April, Elia Group contributed the budget set aside for First virtual Elia Group through donations and spon- the organisation of its Annual General Meeting to three King sorships. We support numerous Baudouin Foundation solidarity funds, and even topped up the Management Days 2020 initiatives, associations and amount to a total of €100,000. organisations, including the The Elia Group Management Board (EGMB) - for- Rennsteig autumn run in the merly the Elia Group Committee (EGC) - invited Thuringian Forest, the Baltic the Group’s German and Belgian senior man- Sea relay marathon in Dier- agers and local functions to discuss the further hagen, and a large number of development of the Group’s strategy. During local non-profit institutions. the livestream, the 80 participants were able Long-standing sponsorship to engage with EGMB by asking questions and partners continued to receive chatting live. The speakers and moderators were support during the coronavirus in a production studio and the participants were period. In addition to its existing livestreamed using their computers’ cameras commitments, 50Hertz decided and sound systems when asking a question, just at the end of the year to like reporters in a news broadcast. increasingly support non-profit associations in its grid area via donations instead of Christmas presents for business contacts. Digital public Elia named Top Employer again participation Elia was named one of the best employers in Belgium for The early involvement of all stakeholders in the third year in a row. The Top Employer label is awarded the planning and implementation of grid to companies committed to providing an excellent working expansion projects was particularly impor- environment for their employees. A total of 72 Belgian compa- tant for 50Hertz, including during lockdown. nies received the distinction this year. Over the past year, Elia That’s why we increasingly implemented has focused strongly on improving the digitalisation of the HR digital formats for informal public partic- management process and developing its corporate culture. As ipation at the beginning of the year. The well as being wonderful recognition for all its hard work, the Onboarding during the pandemic information provided on project websites accolade will also make the company more attractive to new for individual grid expansion projects was expanded and made more user-friendly, and talent. In April 2020 alone, 50Hertz welcomed 35 new employees and Electricity consumption greater use was made of films, visualisations, provided digital onboarding from home. Introductory events maps and texts. In addition, telephone below average Top Employer is an important label that we at Elia are very and introductions to the various departments took place digi- proud of. In this video, our colleague Dorien explains more consultation hours previously announced in about the importance of this award. To watch the video tally without any problems. Likewise, digital informal appoint- The gradual restriction on activities to prevent the spread of the local press created an additional space click on this link or simply scan the QR code with the ments for open discussions within teams also offered colleages coronavirus had a noticeable impact on electricity consump- camera your smartphone to start the video. for direct exchange with mayors, residents, ▶ http://bit.ly/TopEmployer-AR2020 new opportunities to get to know each other. tion in Belgium. Total consumption in 2020 was 7% below the To watch the property owners, interested citizens and video click average for the previous five years. As electricity generation was on this link or Our colleague Marie-Laure started at Elia the day the schools representatives of associations. This facility sufficient, but demand was down significantly, the average price simply scan the went into lockdown in Belgium. Marlon, Burak and Fred tell you was actively used. Other formats, such as QR code with of electricity also dropped below normal at times. In Germany, the camera your all about how they got to know the company from home and planning forums and expert workshops, many sectors stayed up and running to a broad extent. The coro- smartphone to share their experiences as new Elia Group employees in this were held virtually. The response was posi- start the video. navirus measures therefore had a slightly less noticeable impact video ▶ http://bit.ly/OnboardingCorona tive throughout. on the electricity system : electricity consumption dropped by 4% compared with 2019. 30 Combined Grid Solution Elia Group Activity Report 2020 31
# Combined A world premiere Grid Solution connects Europe In October 2020, 50Hertz and Danish grid operator Energinet inaugurated the world’s first hybrid offshore interconnector, integrating both German and Danish offshore wind farms. This allows CGS to transmit offshore wind power to Denmark and Germany. The line can also be used as an interconnector for cross-border power trading.
This makes CGS a technical and market Up to 400 MW of additional capacity in innovation that serves as a model for each direction is now available for power future offshore power grids. The grid transmission between eastern Denmark connections operated by 50Hertz for the and the German bidding zone. The inter- Baltic 1 and Baltic 2 wind farms (Ger- connector enables the most favourable many) and the grid connection to the types of generation in both countries to Kriegers Flak wind farm (Energinet/Den- meet electricity demand. For the first mark), which is currently under construc- time, an interconnector is transmitting tion, are partly shared with CGS. Two offshore wind power and providing The Kriegers Flak - Combined Grid Solu- 25 km submarine cables with a capacity transmission capacity for cross-border tion (CGS) connects the Danish region of of approximately 200 MW each running power trading in a joint technical facility. Sjælland with Mecklenburg-Vorpommern between the Baltic 2 and Kriegers Flak This is an important prerequisite for the in Germany. Built as an interconnector, the substations link the two grid connection future expansion of offshore wind energy systems. use in both the North Sea and Baltic Sea, line is an innovation in the energy tran- but can also serve as a model for other sition since it is the first hybrid offshore projects worldwide. interconnector which not only connects wind farms in two countries, but which can also be used to transmit and trade 50Hertz welcomes the European Commission’s decision to grant an energy in both directions. No comparable exemption for the Combined Grid Solution project’s interconnection project has yet been accomplished any- capacity. Under current legisla- where in the world. tion, 70% of interconnection ca- pacity must be put on the market To watch the video explaining the Combined Grid for electricity trading. In a hybrid Solution project, click on this link: solution, the wind farms would be ▶ http://bit.ly/CGS-inauguration disadvantaged. The exemption Simply scan the QR code with the camera your stipulates that, after deducting smartphone to start the video. forecasted wind production, the remaining capacity must be made available to the market. 32 Combined Grid Solution Elia Group Activity Report 2020 33
Borderless power flow The brain in Neuenhagen - a digital control unit
Since the transmission grids of eastern CGS consists of both hardware and event of physical deviations by relying Denmark and Germany do not operate software components. The ‘brain’ of on the double converter in Bentwisch. “What we’ve done together here is abso- synchronously, adjustments are required the hybrid interconnector is the Master The back-to-back converter in Bentwisch lutely pioneering work. For me personally, CGS is the project of my life so far.” at the transition points. A double con- Controller for Interconnector Operation also plays an important role in terms of verter (back-to-back converter) at the (MIO). Installed at 50Hertz’s Control grid stability by safely integrating a grow- Elke Kwapis, - started at Elia 2015 Bentwisch substation near Rostock Centre, this digital control unit recon- ing volume of offshore electricity into Head of Line Projects - lives and works in makes this possible. Two converters are ciles the requirements of the electricity the system. In addition to active power, at 50Hertz Germany connected directly one after the other. market and electricity generation, which ‘reactive power’ is also needed in order One converter converts the three-phase depends on Baltic Sea wind conditions. to maintain voltage when transmit- “Our cooperative relationship with our Danish current (AC) from the Nordic intercon- The most important task of MIO is to ting electricity over lines in alternating partners has been a great success. The Baltic nected system into direct current (DC). enable the optimal and efficient use of current. Until now, reactive power has Sea offers additional attractive opportunities to leverage this experience and further con- Another converter then converts this the interconnector while avoiding over- mainly been provided by conventional nect offshore wind across several countries direct current directly back into three- loading. To that end, it does not control power plants. The double converter can efficiently and flexibly. With CGS we demon- phase current, which now matches the the market-based exchange of electricity provide part of the necessary reactive strated that we have mastered the technol- continental European synchronous area. between Denmark and Germany solely power compensation for the northeast- ogy and the necessary project knowledge.” As a result, electricity can flow smoothly based on forecasts. It must also maintain ern part of the 50Hertz grid area. - 49 years young in both directions. voltage and balance in real time in the Henrich Quick, - lives and works in Berlin Head of Offshore - started working at 50Hertz at 50Hertz in 2014 - loves swimming and some reading about astrophysics “With MIO, we are mak- ing optimum use of the interconnector and man- aging the market-based exchange of electricity between Germany and Denmark. For us, MIO is a blueprint for future “CGS is very important innovative system man- for Denmark. It is one of agement methods.” the keys to a 100% green society. For me, our col- Anne Katrin Marten, laborative partnership has Head of Operational been the best. Germans Planning and Danes are neigh- Department 50Hertz bours. We’re different, but we accept each other’s - 34 years young differences.” - lives and works in Germany
- started working at 50Hertz Per Obbekaer, in 2016 Project Manager - is an early bird and loves at Energinet discovering the world
“Being part of the CGS project team was a unique challenge and a once-in-a-lifetime experience. I would love to be involved in future projects of this kind.”
Sebastian Wagner, Offshore Project Manager at 50Hertz “Combined Grid Solution is not just a milestone for the green transition in Germany and Denmark. It is - 49 years young also an innovative solution, which I am sure will be a - lives and works in Germany cornerstone in the planning of future energy islands - started working at 50Hertz and the massive expansion of offshore wind, which is in 2008 so important in ensuring European climate neutral- - enjoys swimming, skiing and ity.” biking
Thomas Egebo, CEO of Energinet 34 Combined Grid Solution Elia Group Activity Report 2020 35
Key facts
Dan Jørgensen, Minister for Climate, Energy and Utilities, stated that CGS is a testbed for the seamless integration of multiple wind farms and shows how we can use renewables across countries. a combined 400MW length of around starts at the 50Hertz 235km substation 235km The interconnector, which has 03combined length a transmission capacity of up to 400 MW, starts at the 50Hertz The line sections have a total Bentwisch substation near combined length of around Rostock and ends at Denmark’s 235 kilometres. CGS connects Germany and Bjaeverskov substation in the Denmark via two offshore wind Sjælland region. farm grid connections. Inauguration of 06 the Combined 2016/2017 German and Scandinavian power grids do not operate Grid Solution Thesynchronously, German and but Scandinavian are now powerconnected grids through do not operate a double On 20 October 2020, 50Hertz synchronously,converter at the but Bentwisch are now (Germany) and Energinet (Denmark) 04 connectedsubstation nearthrough Rostock. a double inaugurated the Combined Grid converter at the Bentwisch Solution (CGS), the world’s first offshore CGS is a joint project ofby EnerginetEnerginet Construction started in late substation near Rostock. hybrid interconnector. Due to COVID-19, 2016/early 2017. and 50Hertz. It is co-financed by the inauguration was held as a digital/ the European Commission as a hybrid event and took place in Berlin project of common interest (PCI). in the presence of German Federal Minister of Economic Affairs and Energy, Peter Altmaier. The interconnector is controlled by the Master Controller Interconnector Operator (MIO), installed at the 50Hertz 08Control Centre in Neuenhagen near Berlin. Peter Altmaier, Federal EU Commissioner Kadri Minister for Economic Simson explained that Affairs and Energy, the EU is a world leader in said that the Com- offshore wind generation. bined Grid Solution is To maintain and expand a European flagship this position, we need The converter hall in Bentwisch is project for cross-bor- pioneering projects like the half the size of a soccer field and der cooperation in Combined Grid Solution. the field of offshore just under 15 metres high. wind energy, which can play an important role in the future on the path towards a cli- mate-neutral Europe. 36 Combined Grid Solution Elia Group Activity Report 2020 37
Did you know?
Nautilus, another possible interconnection project
With respect to the European electri- The European Commission has high- city market, new interconnections are lighted the project’s importance within needed to promote the energy transi- the European context, calling Nautilus The offshore success tion and address associated challenges. a project of common interest (PCI). To this end, the need to strengthen However, its timetable, location, route story continues... the north-south axis and build east- and capacity are still subject to further west links has been clearly identified in studies. Elia and National Grid Intercon- In late 2020, the transmission system Europe. After Nemo Link, the Nautilus nector Holdings Limited (NGIHL) are operators active in the Baltic Sea region project could be another opportunity to conducting a bilateral feasibility study collaborated to establish an offshore grid link Belgium and the UK. before confirming whether or not this in the Baltic Sea. The memorandum of interconnector will be built. understanding (MoU) for the Baltic Off- shore Grid Initiative was signed not only by 50Hertz but also by Fingrid (Finland), Svenska Kraftnät (Sweden), Energinet (Denmark), Elering (Estonia), AST (Latvia) Bornholm Energy Island and Litgrid AB (Lithuania). Norway’s Stat- In line with their joint letter of intent, nett will also participate as an observer. 50Hertz and Danish system operator As part of the joint venture, common Energinet intend to cooperate on the planning principles for the Baltic Sea Bornholm Energy Island project, which offshore energy grid will be developed will connect a planned offshore hub on and should be included in ENTSO-E’s Bornholm Island in the Baltic Sea with, ten-year development plan. Joint studies initially, 2000 MW of wind capacity for are being planned to support the stake- both countries. The project is a continua- holders’ vision of the Baltic Sea offshore tion of the successful cooperative venture grid contributing to CO2 reduction and between the two system operators on the the development of an environmentally Kontek interconnector and Kriegers Flak - friendly energy system of the future. Combined Grid Solution (CGS) projects. Back in October 2020, the EU Baltic Sea Also Elia and Energinet have signed a states signed the Baltic Sea Offshore letter of intent. They will set up a working Wind Declaration, a joint declaration of group to examine the feasibility of a sub- intent on offshore wind energy in the sea cable between Belgium and Denmark Baltic Sea. The cooperation envisaged by that would link the high-voltage grids of these countries includes jointly planned MOG II, extending the modular offshore grid to both countries over a distance of more areas for wind energy use in order to fur- than 600 km. ther maximise the potential of offshore connect new offshore generation units to the wind energy. mainland On the Danish side, the interconnector would connect to a new ‘energy island’ Ostwind 2 (50Hertz’s grid connection The MOG II project aims to develop and for the generation and transmission of to be built 80 km off the Danish coast project) will connect two new offshore ble energy. To transmit the electricity to build new offshore grid infrastructure electricity. MOG II will provide an effi- and to which a large 10 GW wind farm wind farms in the Baltic Sea to 50Hertz’s the mainland, two offshore substations to link new wind farms in the Belgian cient, reliable means of connecting new will eventually be connected. This would transmission grid on the German main- will be built, three sea/shore cable sys- part of the North Sea to the mainland offshore generation facilities to the main- give Belgium direct access to the renew- land by the end of 2023. Once com- tems will be laid and the Lubmin onshore grid. This is in line with Belgium’s energy land and will thus make a substantial able bulk generation we need in order to pleted, the wind farms will have a total substation will be expanded. The first strategy and the Belgian government’s contribution to facilitating RES integra- decarbonise our energy-intensive industry capacity of 725 MW, which means they cables were installed in the fourth quar- commitment, in the Marine Spatial Plan tion in Belgium. MOG II will also help and achieve the European climate targets. will supply 750,000 homes with renewa- ter of 2020. for 2020-2026, to identifying new zones Belgium meet its climate targets.
38 ALEGrO commissioned Elia Group Activity Report 2020 39
The first interconnector # ALEGrO between Belgium and Germany
commissioned ALEGrO connects the grids operated by transmission system operators Elia (Belgium) and Amprion (Germany). Despite the COVID-19 pandemic, the original schedule was maintained. The project was completed on time thanks to the remarkable work carried out by both system operators working in close collaboration with the Belgian and German authorities and local and regional administrations. As a result, ALEGrO began commercial operation in late 2020. After nearly 10 years of solid collaboration, it is time to look back on this unique and historic milestone together with the project team.
ALEGrO is a key link in the construction of
an integrated European electricity system. “The construction works started in 2018, in the middle of winter, with The interconnector will have a transmis- snow, cold weather and a lot of rain. In the beginning, we faced teething problems which needed to be resolved. We adapted the procedures and sion capacity of 1,000 MW, equivalent to methods so the remainder of the works could run smoothly. Looking back, I realise it was a unique and historic project. We’re talking about the amount consumed by a city of one 90 km of cable and two converter stations. That is a lot to build in such million inhabitants. The connection deliv- a short time. The teams should be proud of what they achieved. For me personally, the moment we finished digging the tunnel and arrived at ers multiple benefits: it enhances security the other end after a year and a half was incredible.” of supply for both countries, facilitates Els Celens - Enjoys playing the Project Leader, the energy transition by allowing better piano when not ALEGrO integration of renewable energies, con- occupied with the kids tributes to price convergence and makes the connected regions more economically “The collaboration between Elia and attractive. Amprion was very good. We complemented each other and were able to share tasks and consult one another. It was a relief that everything worked well during commission- ing, without anything blowing up or tripping. We all felt a certain sense of pride that we were able to successfully connect the plant to the grid with the help of all of the project “The biggest challenge was to bring the different power partners.” transformers to the site. They were picked up in Nuremberg, Maximilian Stumpe transported by boat and delivered to the nearby port. A special Assistant Project convoy was needed to bring them to the site. The most memo- Manager for the rable moment for me was when the converter station in Lixhe Control & Protection was first switched on. It took hundreds of thousands of work Converter (Amprion) hours by different teams and dozens of different companies who all worked together. ALEGrO was definitely the project of a lifetime. It will contribute great value to society and will support the integration of renewable energy.” You can also watch our colleagues tell you about their experiences on video. To watch the video click on this link or simply scan the Jérôme Mathot - 33 years young QR code with the camera your smartphone Project Leader for Lixhe - lives and works in Belgium to start the video. Converter Station (Elia) - started working at Elia in 2011 ▶ http://bit.ly/ALEGrO-commissioned - devoted father and keen sportsman 40 ALEGrO commissioned Elia Group Activity Report 2020 41
Key facts
The interconnector is operated by transmission system operators Elia (Belgium) and Amprion (Germany). 12cm The underground connection between the converter stations comprises two cables, which ALEGrO is the first electricity measure 12 cm in diameter. Introducing the “The success of the energy transition de- interconnector between pends very much on the rapid expansion Belgium and Germany. Evolved Flow Based of networks. The new electricity connec- Technically speaking, ALEGrO is tion between Belgium and Germany is also a first for the Walloon Region not only important for our two countries, of Belgium, marking the first time methodology but also for electricity trading and sys- tem security across Europe as a whole. an interconnector using HVDC Therefore, today is also a good day for technology and a converter The ALEGrO interconnector is located in the centre of the meshed alter- the internal energy market.” station have been built in nating current (AC) grid. This makes operating it quite challenging and years Wallonia. Angela Merkel, 10 requires close coordination between neighbouring system operators in Actual works began in January German Chancellor Nearly 10 years of solid collab- order to avoid overloads. Thanks to the newly developed Evolved Flow 2019 and ended in October 2020. oration and ongoing dialogue Based method, congestion is taken into account. This is an important between Elia and the local and development for enabling a higher degree of grid optimisation and a regional authorities made it stepping stone in the implementation of Elia’s flex-in-market design for possible to complete the project. preparing the EU energy system to face the challenges of 2030.
Recent years have seen the construc- 1. take into account congestion on the The Evolved Flow Based approach ena- tion of several HVDC interconnectors, meshed AC grid. This means that bles optimal use of the ALEGrO intercon- including Nemo Link, the first intercon- ALEGrO will not cause overloads in nector on the day-ahead market. It not nector between Belgium and the United the grids operated by connecting and only optimises exchanges in Belgium 90km Kingdom. These interconnectors were neighbouring TSOs. By doing so, we and Germany, but in the entire Central 90 km of HVDC power MW built at the edges of the European AC are ensuring secure grid operation. West European (CWE) region. Further- 1000 system to allow for greater electricity more, the DC interconnector -as a fully lines connect the Lixhe “ ALEGrO is an important facilitator 2. create maximum social welfare. ALE- The ALEGrO interconnector will for sustainable energy. Germany and exchange between asynchronous areas. controllable device- is able to influence (Belgium) and Oberzier GrO strongly impacts the meshed AC (Germany) converter make it possible for the two Belgium made the same strategic As a result, the impact on the rest of the congestions in the European meshed choices for energy production: away grid, but this can be used to its advan- stations. countries to exchange 1,000 MW grid is quite low, enabling relatively sim- AC grid. This marks the first ever imple- from nuclear, and in full support of tage. The controllable direct current (1 GW) of additional electricity, ple integration. As ALEGrO is at the heart mentation of the Evolved Flow Based climate-neutral energy sources. (DC) link can steer flows over AC lines approximately equivalent to the of the meshed grid, it required a more methodology. It will serve as the basis for ALEGrO firmly links these two strat- in the right direction, allowing more electricity consumption of a city egies. It will allow for a better distri- complex approach. In order to give the the further integration of new DC inter- exchanges and greater welfare. with a population of one million. bution of wind energy during on- and market maximum flexibility when using connectors into the European grid. off-peak moments.” the ALEGrO interconnector, we had to 3. optimise the interconnector directly in devise a methodology that would: the market coupling algorithms. We Alexander De Croo, Belgian Prime Minister allow the markets to determine ALEGrO’s optimal set-point by pro- viding full flexibility. This will in turn enable the greater integration of renewable energy. 42 ALEGrO commissioned Elia Group Activity Report 2020 43
Energy Minister Tinne Van der Straeten stated that the ALEGrO project Did you know? is an important step in developing a common future for our countries.
Inauguration of the ALEGrO WALL-E newest maintenance interconnector team member
Did you know that Elia is running an innovation initiative that explores the use of robots to assist inspection and maintenance activities in extreme or hazardous locations? Several in-field tests and What is demonstrations have been organised in recent months to verify the feasibility and usefulness of a black start? this approach. The results are promising, especially on the ALEGrO site. Since the aim is to keep the Our teams achieved a world first when installation in operation continuously, and in view of they carried out a ‘black start’ via ALE- the high-risk environment, the technicians only have GrO. Should Belgium ever be hit by a access for maintenance once a year. The robot, on blackout, the interconnector can be the other hand, has the advantage of being able to used to re-feed the Belgian grid from access the installation at any time and could help to Germany. This also works in the opposite detect water leaks which, although minor, might trip direction. In bringing this project to a the entire installation. successful conclusion, our teams once again demonstrated their technical leadership.
DC vs AC
Some 90 km of HVDC power lines con- nect the Lixhe (Belgium) and Oberzier (Germany) converter stations. These two stations will convert the direct current (DC) used for the interconnector line into alternating current (AC), which is used across 98% of the Belgian grid. Direct On Monday 9 November 2020, system current enables the transmission of large operators Elia and Amprion inaugu- volumes of electricity in either direction rated the first electricity interconnector over long distances. Moreover, reactive between Belgium and Germany. The power, which helps to secure stable livestreamed event took place in the North Rhine-Westphalia Minister- City Hall of Aachen and was attended, voltage levels, can be managed perfectly, President Armin Laschet said that meaning you choose the direction and through this connection, we are either in person or digitally, by German manage energy flows between both strengthening our cooperation with- Chancellor Angela Merkel, Belgian in the European internal electricity countries. Power capacity between market and we can support each Prime Minister Alexander De Croo, North the two countries can also be adjusted other in restructuring the energy Rhine-Westphalia Minister-President system with a view to furthering the Armin Laschet and Belgian Energy Minis- between 0 and 1000 MW. energy transition. ter Tinne Van der Straeten. 44 E-mobility vision paper Elia Group Activity Report 2020 45
# E-mobility Accelerating to net-zero: vision paper redefining energy and mobility In its vision paper, published in November 2020, Elia Group describes how better alignment between the power and mobility sectors can deliver societal benefits and push electric mobility towards widespread adoption. With transport currently accounting for a quarter of Europe’s CO2 emissions and electric vehicle (EV) technology close to maturity, the mobility sector can make a major difference in a short time. However, successful convergence between the power and mobility sectors can only be achieved if current barriers are removed and additional value streams are unlocked and developed.
2. Open data access to open up unlimited possibilities for consumer Elia Group has identified three services The e-mobility vision paper enablers that can give consumers is available online. Simply To enable new EV services, the grid a superior driving experience while click the link to read the needs to understand EVs and vice versa. making the power and mobility paper. This requires efficient data exchange and ▶ http://bit.ly/EliaGroup_ sectors more sustainable. Studies communication between all players in the e-mobility value chain and con- sumers. Providing data and agreeing to a service should become as easy as paying with your mobile banking app. 2. OPEN DATA ACCESS The development of digital identities for consumers (citizens) by a trusted gov- ernment agency is the necessary basis for consumers to share their data easily, securely and openly for everyone who provides services designed to enhance 1. PHYSICAL & the EV driver experience. DIGITAL INFRA STRUCTURE
EV DRIVER In our role as a transmission system oper- 1. Physical & digital infrastructure to improve charging comfort ator, Elia Group publishes forward-looking studies to keep our finger on the pulse of More than 80% of charging will happen at home or work. We need to put maximum 3. Market rules enabling new consumer the market. In 2020, Elia Group published effort into providing smart charging infra- services to exploit EV flexibility a vision paper on e-mobility that identifies structure. In the short term, charging infra- three enablers for the adoption of electric structure needs to be supplemented with a 3. MARKET RULES The development of EVs will lead to a change in the (limited) number of fast charging facilities ENABLING NEW relationship between consumers and electricity. vehicles as soon and as widely as possible CONSUMER along major transport routes in order to SERVICES However, the regulatory framework as well as the to achieve a sector transformation with overcome range anxiety and allay any hesi- processes and tools available in the power sector tation about switching to EVs. Complement the fastest and greatest CO2 impact in the are not really adapted to current consumer needs. coming decade. this with the gradual development of charg- Therefore, new approaches to market organisation ing options for people in urban areas and need to be designed where consumers, either alone big cities, and charging infrastructure as a or via an intermediate service provider, can optimise barrier to EV uptake will soon disappear. their electricity consumption by following certain (price) signals, and benefit accordingly. 46 E-mobility vision paper Elia Group Activity Report 2020 47
Elia Group
“By 2030, EVs will no longer be merely a Stakeholders means of getting from A to B, but will contrib- ute greater value and become a crucial part of consumers’ daily lives, integrating with other Day 2020 devices and services at home or at work. Just like the smartphone is no longer merely a tool for making phone calls, but is also a way to order food, pay bills, book flights and more.”
“Smart charging delivers multiple benefits to Josephine Delmote, - 28 years young EV drivers. Our studies show that the annual - started at Elia in 2017 Strategy Analyst at cost of electricity for charging is reduced by - lives and works in Elia €30-€55, or a 15%-30% reduction, for a typical Belgium EV driver. Next to that, the electricity used - foodie and runner for charging is generated by technologies emitting less CO2 compared to uncoordi- nated charging, resulting in an additional CO2 reduction of 10%.”
Carsten Bakker, “To decarbonise our society, we need to sus- Market Analyst at tainably redesign both the energy system and Elia mobility. In our study, we have analysed the common interfaces between the energy and - 27 years young mobility sectors and identified key starting - lives and works in points for a successful ramp-up of e-mobility. Brussels With this, we aim to make an important Did you miss out on the livestream? - started at Elia in 2019 contribution to successful sector conver- You can watch the recording online. - loves traveling and gence, ensure secure systems and the grid To watch the video click on this link triathlons integration of electric vehicles.” or simply scan the QR code with the camera your smartphone to start the video. Richard Ihlenburg, - 32 years young ▶ http://bit.ly/SHD2020-Event Project Manager - lives and works in Group Strategy at Berlin 50Hertz - started at 50Hertz in 2015
“Electric vehicles are a key asset for managing Elia Group presented its vision paper titled ‘Accelerating to grids with a high share of net-zero’: redefining energy and after mobility during its wind and solar. We need annual Stakeholders Day on 20 November. The presenta- to unlock their enormous flexibility potential. To do tion of the Elia Group study focused on the key enablers for so, both the hardware breaking down barriers to electric mobility uptake and for and software of our unlocking additional value streams for consumers through electricity grids need to energy services. The presentation was followed by an be adapted to make the most of these ‘batteries industry and policy debate with representatives from the on wheels’, enabling energy and mobility community. 50Hertz also presented is smart charging and vehi- strategic objective on going from 60 to 100% consumption cle-to-grid solutions.” coverage by variable renewables by 2032.
Julia Poliscanova, The event was quite a technical feat seeing as it was Senior Director, livestreamed simultaneously from studios in Brussels and Vehicles and Berlin. An additional challenge was posed by the keynote E-mobility of Transport & Environment speakers, some of whom were present in the studios, while others were recorded live via their webcams. 48 E-mobility vision paper Elia Group Activity Report 2020 49
Did you know?
European TSOs want a greener economy
In a joint statement, high-voltage grid operators from Austria, Belgium, France, Germany, Italy, the Netherlands, Spain and Switzerland announced that they want to help stimulate an ever-greener economy as soon as possible – a refer- ence to the European Green Deal. Elia and 50Hertz regularly align their preven- tion plans and specific measures with 50Hertz and Stromnetz neighbouring TSOs in order to limit the Internet of Energy consequences of the COVID-19 pan- Berlin launch project to testing, as part of an 18-month coopera- demic on people, the electricity supply ecosystem ends first integrate electric vehicles tive project, what kind of data exchange and the European economy. is needed between market players and sandboxing phase how balancing power can be provided by By 2030, the German government would a network of electric cars. In October 2020, the first sandboxing Elia joins Belgian Alliance like to see seven to ten million electric phase of the Internet of Energy (IO. For the joint project, VW subsidiary Elli vehicles on German roads. They can Energy) project came to an end. Eight for Climate Action will, among other things, create the con- make an important contribution to bal- Belgian pilot projects were completed. In ditions for bundling the storage capacity ancing fluctuations in power generation 2021, a second sandboxing phase will be Elia has joined the newly established Bel- of electric cars so that they can partici- from wind and solar energy, thereby sta- launched to focus on new opportunities, gian Alliance for Climate Action (BACA), pate in the balancing power markets via bilising the electrical system. To be able including electric mobility and house- which wants to see a greater focus on aggregators. In the long term, it is also to use these and other ‘flexible consum- hold appliances, which have not yet been decarbonisation. By joining the alliance, conceivable that the electricity stored ers’ to accelerate the energy transition, analysed in depth. Elia is demonstrating its commitment in car batteries could potentially be fed digital metering systems – so-called to meeting the Paris climate targets back into the public electricity grid if The collaborative innovation initiative smart meter gateways (SMGW) – and and inspiring other companies to do the there is temporarily insufficient elec- IO.Energy was launched in February control equipment are needed. Together same. BACA is a coalition of 51 Belgian tricity from renewable energies to meet 2019. Belgium’s energy system oper- with Elli and Bosch.IO - subsidiaries of organisations and was founded by The demand. Bosch subsidiary ators teamed up with 60 companies, Volkswagen AG and Robert Bosch GmbH Shift and WWF. - distribution system operator Stromnetz Bosch.IO, which specialises in IoT and public bodies and academic institutions Berlin and 50Hertz are investigating and digital projects, is contributing its exper- to bridge the gap between digitalisa- tise at the interfaces between transmis- tion and sustainability and to promote Elia Group joins European sion and distribution system operators innovation in the energy sector. It aims To watch the video click on this link or and charging stations. to develop new services through the Clean Hydrogen Alliance Our colleague Florian tells you more simply scan the QR code with the camera exchange of data between all sector your smartphone to start the video. As part of Elia Group’s Consumer Cen- Elia Group joined the European Clean about how the process of charg- players. The focus is on end users, who ing electric cars can be influenced ▶ http://bit.ly/EV-charging-AR2020 tricity Programme, 50Hertz and numer- Hydrogen Alliance, which is working will be able to tailor their generation and without any loss of comfort for cus- ous partners are running initial tests towards the ambitious deployment tomers and how smart meters can consumption to grid needs using a digi- on the functions of the highly secure of hydrogen technologies by 2030. In provide customers with incentives tal communication platform. to make their vehicles and charging smart meter gateway infrastructure in joining the alliance, Elia Group will closely infrastructure available for system Germany. These central communica- monitor developments and prepare services. tion units are installed by measuring for the efficient integration of renewa- Florian Reinke, point operators, among others, on the ble hydrogen in the interest of society. Market Development at 50Hertz property of many electric car owners In addition to rising energy efficiency - 33 years young with their own charging infrastructure. and accelerated electrification, ‘green - lives and works in Germany They receive and store data and make gases’ such as renewable hydrogen will - started at 50Hertz in 2016 it available to network operators and be needed to help decarbonise sectors - passionate South / South-East Asia traveler and committed to run his other market players, such as electricity such as chemicals, steel and long-haul first Marathon in 2021! suppliers. transport. 50 From 60 to 100 by 2032 Elia Group Activity Report 2020 51
# From 60 A climate and industrial to 100 by 2032 policy initiative With the pandemic, a new strategy and the inauguration of the world’s first hybrid offshore interconnector in the Baltic Sea, the year 2020 was special for 50Hertz in many ways. In this interview, CEO Stefan Kapferer reviews the past months and explains how the year of COVID-19 led to a new strategic direction.
2020 was a unique year in many tion. A task force was set up very quickly respects. What did it mean for which helped us to make the right deci- 50Hertz? sions prudently and clearly - and to keep adapting them to the situation. Person- Stefan Kapferer: “The past year proved ally, I am convinced that the way we have that 50Hertz can ensure 100% power worked under these crisis conditions has supply to the grid area at all times, even strengthened us: we can rely on each in extraordinary situations. We were con- other across all hierarchical levels! 50Hertz launched an economic and cli- fronted with a pandemic – a first for us mate initiative for its grid area: the eastern –and immediately took measures to pro- And, of course, 2020 also made it crystal tect our employees from infection. Par- clear how important a consistent digi- German states as well as the cities of Ber- ticularly intensive measures were taken talisation strategy is. We were already lin and Hamburg. Under the slogan From for employees in system operations and well-positioned and were able to enable 60 to 100 by 2032: New Energy for a Strong grid management, who are unable to the majority of our colleagues to work work from home. Despite these difficult Economy, 50Hertz has set itself the goal of from home within a very short time. At conditions, operations – and thus the the same time, we used the year to make securely covering electricity demand in its supply of electricity to around 18 million even more focused and rapid progress in grid area with 100% renewable energy by people in our grid area – ran reliably. digitalisation.” And not only that: we were also able to 2032. In 2020, the annual average share of About Stefan Stefan Kapferer (55) has been complete grid expansion projects and we renewables was about 62%. CEO of 50Hertz since Decem- started new ones. ber 2019. He was previously Chief Executive Officer of Of course, in the light of the pandemic, the German Association of our top priority is still to ensure that Energy and Water Indus- tries (BDEW) and Deputy we can all work safely, whether at our Secretary-General of the headquarters in Berlin, the control centre Organisation for Economic Cooperation and Develop- in Neuenhagen, the regional centres or ment (OECD) in Paris from the construction sites in our grid area. To 2014 to 2016. Prior to that, Ste- this end, we developed a comprehensive fan Kapferer held the post of State Secretary in the Federal action plan in spring 2020 in consultation Ministry of Economics in Ber- with our Belgian colleagues that sets out lin (2011-2014). Stefan Kapferer instructions and recommendations for comes from Karlsruhe, stud- ied administrative sciences working safely and healthily together, in Constance, is married and and we have continuously adapted this has two children . plan in line with the incidence of infec- 52 From 60 to 100 by 2032 Elia Group Activity Report 2020 53
How did the coronavirus influence the In the midst of the pandemic, 50Hertz implementation of projects in 2020 has set itself an ambitious strategic and what’s next? goal with its From 60 to 100 by 2032 – New Energy for a Strong Economy “We are incredibly proud that we were The energy transition is our number one priority. initiative. By 2032, 100% of electricity able to inaugurate and commission the Together with our German partner KfW, we fully consumption in the 50Hertz grid area world’s first hybrid offshore intercon- support the entire 50Hertz organisation in its efforts is to be covered by renewable “ nector, the Kriegers Flak - Combined to cover the electricity demand in their grid area energies. What’s behind this? Grid Solution, together with our project with 100% renewable energy by 2032. This is fully in partner Energinet. This connection “With the European Green Deal, the EU line with Elia Group’s strategy and the ambitions of between Denmark and Germany, which wants to become climate-neutral by the European Green Deal. Their objective emphasis- simultaneously transmits offshore wind 2050, a goal that had already been set es the pioneering role that 50Hertz is playing in the power to both countries, is certainly a out in Germany’s Climate Protection Act integration of large quantities of renewable energy technological milestone and an excellent in 2019. production in both the German and European ener- example for future offshore wind pro- gy systems.” At the same time, energy-intensive jects not only in the North Sea and Baltic industries are making massive efforts to Sea, but in other parts of the world, too. Chris Peeters, decarbonise their production and pro- We were also able to complete and com- CEO of Elia Group and chairperson of cesses and become climate-neutral, for the 50Hertz Supervisory Board mission the Stendal/West - Wolmirstedt which they need green electricity. overhead line. In our grid area alone, around 800,000 In addition, we started preparatory people were employed in industrial com- tunnelling work for the diagonal power panies in 2020. That’s almost 100,000 link in Berlin - one of the most important more than 10 years ago. Access to elec- projects for the energy transition in the tricity from renewable energy sources a clear signal in terms of climate policy In other words, we need a massive greater Berlin area. In the SuedOstLink will be essential for these industries in and, above all, industrial policy. In 2020, expansion of renewables - and we still HVDC project, most of which will be laid the future. In concrete terms, the greener the share was already around 62%. Our see great potential here, both offshore underground, we are well on schedule the electricity and energy supply, the role is to securely integrate this con- and onshore. In the Baltic Sea alone, with the planning and approval process more attractive the location. Our extra- stantly rising share of volatile renewables additional areas with a total capacity of and have managed to continue with high-voltage grid will play an important into our grid, our system and the market. around 2 GW could be developed for the construction. In 2020, we awarded role in helping these industries decar- We are addressing this challenge and offshore wind faster than planned. The the major contract for the 525 kV cable bonise. And this is where 50Hertz will actively shaping it!” situation is similar on land. Mecklen- in collaboration with TenneT, which is also think and act across sectors in the burg-Western Pomerania, for example, responsible for the southern part of the Ultimately, however, the necessary future. For example, we want to work is a sleeping wind giant. Even though project. Lastly, we got the green light to expansion of renewables depends on with the business, science and politics we have some large onshore wind farms get started on the Uckermark line and other stakeholders. How can 50Hertz communities to find solutions for the there, on average there is only one wind the Berlin Northern Ring. We can be very support this as a transmission system cost-effective production of hydrogen, turbine turning for every twelve square satisfied with what we achieved - espe- operator? the decarbonisation of heat supply, and kilometres of land. cially in this extraordinary year.” the successful integration of e-mobility “Of course, 50Hertz will not build any And the fact that after 20 years the first into the electricity market. power plants in the future. However, wind turbines are coming off the EEG we will persistently ask our politicians We decided to actively support this enor- subsidy this year is - despite all the risks questions, for example: Where will the mous transformation process with its to steady development - also an opportu- green electricity come from to cover the major challenges and therefore launched nity to make technological leaps. Repow- forecasted consumption of around our From 60 to 100 by 2032 - New Energy ering makes it possible to multiply the 117 TWh in 2032 in our grid area? To do for a Strong Economy initiative. We want output of onshore wind turbines without that, the installed capacity of renewable to do everything possible to cover 100% having to develop new areas. However, We want to do everything possible to cover 100% of energies in eastern Germany would have of total electricity consumption in our a lot of convincing has to be done at the total electricity consumption in our grid area with to double from around 35 gigawatts grid area with renewable energies by local and regional level to win over an renewable energies by 2032. In 2020, the share was (GW) today to around 66 GW by 2032. “ 2032. By doing so, we are sending out increasingly critical public. already around 62%. ”
Stefan Kapferer 54 From 60 to 100 by 2032 Elia Group Activity Report 2020 55 Did you know?
#100% renewables: Intelligently integrating
How is the initiative being received by renewable energy sources into the 50Hertz grid those for whom is it intended? What is By 2032, 50Hertz wants its grid to securely operate on 100% renewable energy. the response like? Since digital transformation is necessary for this goal to be reached, 50Hertz is In the case of ground-mounted photo- “Our many discussions with representa- developing a new digital grid control system. The name of this future system is voltaics, we can see just how dynamic tives from the business community, pol- ‘Modular Control Centre System’ (MCCS). - and positive - the development can be. itics and associations make it clear that There are a number of very large projects we have hit a target with our initiative Over the years, 50Hertz has repeatedly will inherit more responsibility as the integrate new technologies and services in the pipeline in our grid area that rely for connected cooperative thinking and upgraded its grid to support the inte- integration platform will act as a central into the modules (such as automation exclusively on Power Purchase Agree- action. Whether it is BASF with its hydro- gration of a large amount of renewables connector; on the other hand, it means and artificial intelligence) and connect ment (PPA) financing. But here, too, gen pyrolysis project in Schwarzheide in into the system and make its infrastruc- 50Hertz will be granted greater inde- with other useful data sources. Fur- there will be discussions on the ground. Lusatia, Linde in the Leuna, the ture available to national and interna- pendence from solution providers in the thermore, the integration platform will This dialogue is important and we as Bitterfeld and Halle chemical triangle, or tional electricity trading companies on market due to the reduced complexity of enable faster and more cost-effective transmission system operators fully ArcelorMittal in Hamburg, there is great a non-discriminatory basis. In 2020, in the individual modules. support it. We see ourselves as an active connections with additional systems. interest everywhere in ideas for getting order to further their success in these enabler, offering our expertise in the Such a data-centric approach will offer more green electricity into the system. areas, 50Hertz decided to develop its An individual module could be, for exam- management of complex systems and immediate synergies for the whole of Elia At an initial roundtable early this year, own grid control system with partner ple, a forecasting tool for wind power public participation.” Group. we discussed – together with IG BCE, companies. Innovation has lain at the feed-in for the next day or a grid security state representatives from our grid area heart of this process: the new “brain” has calculator. Both the final design of the The impact of this new approach on and leaders of the relevant business and to deal with ever-increasing complexity modules and how to sensibly procure the market energy associations – what can and must while at the same time enabling con- them on the market need to be consid- With the modular approach, we can be be done. The task now is to drive this dia- stant stable system operations (over long ered. In-house development at the Elia more precise when searching for the logue forward and achieve some initial Group Software Factory is also an option. distances without conventional energy right manufacturer. If we need a module tangible results. We do not just want to The modules need clearly defined inter- feed-in and whilst being confronted with which can provide a specific grid calcula- talk - we want to act together with our faces and must neither be too small- frequent regulatory changes). Moreo- tion, we will be able to look for a partner partners to provide concrete support to scale nor too complex. ver, additional challenges linked to the company with whom we can specifically our grid area in its transformation into a increased use of the existing grid, con- The advantages of this approach develop this feature only. If we need to sustainable industrial location.” gestion management (redispatch), and As part of our current grid control sys- include forecasts in a module, we will the complex interactions between TSOs What would you like to see from tem, the tools we use often communi- be able to look for experts specialised and DSOs need to be carefully managed. policymakers? What course would cate in a bidirectional manner with each in this one area. This will result in higher Consequently, there is a strong need for have to be set? other and data exchange is not always product quality and will give us a wider a decentralised system that incorporates standardized. With the MCCS, the mod- range of potential module suppliers to “For me, this is a matter of essentially flexible consumers. three factors. First, awareness must ules will only be able to communicate choose from. be established at all levels around the Behind the modular approach with each other via the central platform. We are in frequent dialogue both with fact that the energy transition cannot Due to the high complexity of system Moreover, an entirely new feature of the other TSOs and DSOs. As more of them be achieved without additional space – requirements, we initially divided the MCCS is that the standardised interfaces adopt this modular approach and its including for wind energy production. new control system into ten individual between the modules will be designed associated integration platform, the This applies both to areas at sea and on modules. These modules will all be con- by us at 50Hertz - not by the manu- market will increasingly feature individ- land. Second, planning and approval nected and they will interact via an inte- facturer of the overall system, as was procedures have to become faster. This gration platform, which we predefined previously the case – meaning that the ual service offerings. Suppliers will have does not necessarily require new laws; it ourselves and which we will operate later. MCCS will thus be much more flexible the opportunity to develop sustainable would be sufficient if the state authori- The integration platform will support and agile. If a module no longer meets solutions and new product standards. ties were given better financial and per- data exchange between the individual the system requirements, we will be able TSOs and DSOs will benefit from higher sonnel resources. Thirdly, we must jointly MCCS modules, but will also form a to adapt it to suit them or will simply quality products and expertise on behalf consider how the regulatory framework blueprint for an enterprise application/ replace it. Thanks to shorter adaptation of these individual services. We can all for sector coupling/convergence can be generic usage across the Group. This and development cycles, we will be able benefit from this – from 50Hertz and Elia improved step by step without creating is a completely new approach for us as to implement changes more rapidly. Group through to other system operators new exceptions that burden the general TSO: on the one hand, it means 50Hertz These shorter cycles will also allow us to and suppliers. public.” 56 First €750 million green bond successfully placed Elia Group Activity Report 2020 57
# First Securing liquidity for further grid €750 million expansion
In May 2020, 50Hertz’s parent company, Eurogrid GmbH, secured liquidity Green Bond for the necessary further expansion of the grid for the energy transition with a first Green Bond in the amount of €750 million. Robert Weigert, Head of Treasury at Eurogrid GmbH, explains the challenges and what the successfully green financing is being used for. placed
Which projects will 50Hertz use the tion, 50Hertz’s projects also contribute €750 million for and what criteria towards the United Nations Sustainable does a project have to meet to be Development Goals (SDGs), specifically considered ‘green’ financed? SDG 7, Affordable and clean energy and SDG 13, Climate action – and thus feed Robert Weigert: “Our Green Bond will into Elia Group’s sustainability initiative, help finance the Ostwind 1 and 2 grid With the first Green Bond in our compa- Act Now.” connections for the offshore wind farms ny’s history, we are securing part of the northeast of Rügen. The wind farms What else did 50Hertz and Eurogrid necessary investment in the grid infra- have a combined capacity of around 1.5 have to do in advance to successfully structure over the next few years. In view gigawatts. To be considered ‘green’, a issue their first Green Bond? of the difficult economic environment project must first meet the requirements for a sustainable green project defined “50Hertz continuously worked on its caused by the coronavirus pandemic, in our Eurogrid Green Bond Framework sustainable business orientation and financial market participants interested in (GBF). After project selection, an inde- constantly expanded its sustainability our company are showing that they have pendent third party verifies whether our reporting in recent years. The progress is being reflected and rewarded in our a high level of confidence in our sustaina- GBF meets the requirements set out in the international Green Bond Principles, steadily rising sustainability ratings that bility strategy and investment plans. The among others, and whether the selected Eurogrid/50Hertz receive from interna- transaction is a key component in driving projects pay into it. This assessment is tionally recognised rating agencies, such forward the expansion of our grid and thus documented and recorded in a Second as Sustainalytics and Vigeo Eiris. We are Party Opinion (SPO) - in our case by currently above average for comparable the energy transition. Vigeo Eiris. In addition, these projects are companies in our industry in all rated also eligible under the EU Action Plan for areas. With Vigeo Eiris, for example, we Robert Weigert Financing Sustainable Growth, as they started 2016 with a rating of 50 points contribute to the EU environmental goal in the lower midfield and were already - 53 years young of mitigating climate change. The aim is able to achieve 57 out of 100 points in the - lives and works in Germany current 2020 rating. This means we are - started at Eurogrid in 2011 to increase the number of households - discovering the world is that can be supplied with wind energy - continuing to place ourselves in the my world thus avoiding CO2 emissions. In addi- second-highest performance level 58 First €750 million Green Bond successfully placed Elia Group Activity Report 2020 59
(Robust) and are already scratching And what is the consequence of What are the next steps? the surface of the highest category placing the bond? Are you now in a “We are currently preparing our first (Advanced). We are also achieving con- better position than before? Did you know? report in connection with the Green sistently good results in Sustainalytics “Of course! This Green Bond has further Bond, where we will provide our inves- assessments, where we are classified as improved our standing on the scene in tors with transparent and public infor- an outperformer in most fields and even markets. It has also enabled us, among mation about the use of the money and as a leader in the highest category. other things, to join the NASDAQ Sus- the impact of our activities that were Elia share trends In addition to the SPO, we had our Green tainable Bond Network (NSBN). As you financed with the Green Bond. This Bond certified by the Climate Bond Initi- know, NASDAQ is the well-known Amer- includes, for example, data on working The year 2020 again saw a strong perfor- ative (CBI). This certificate from the CBI, ican technology exchange. This platform and safety conditions during construc- mance by the Elia Group share, despite which has been driving the Green Bond provides investors with detailed informa- tion and maintenance activities. Above strong volatility on the financial markets market forward enormously for years, is tion and data on investment opportuni- all, of course, the Green Bond Report driven by the COVID-19 pandemic. Given a significant seal of quality and investors ties in environmental and climate-related includes how much renewable energy Eurogrid earns good its limited exposure to COVID -19 and sup- have very much welcomed this voluntary projects. This facilitates due diligence, has been provided, how many tonnes credit and sustainability ported by the realisation of solid financial additional step.” i.e. the selection and monitoring of of CO2 have been avoided as a result, results, the Elia Group share yielded a total investments. The NSBN lists over 200 and what percentage of households are ratings annual return of 25.61%, easily outperform- Green Bonds, including the first €750 using renewable energy.” ing peers and the BEL 20 Index. Following In the current financial rating from million Green Bond successfully placed the capital increase in 2019, the share’s Standard & Poors (S&P), as well as in the by 50Hertz parent company Eurogrid liquidity further increased upon Elia Group recently performed assessment by sus- in May. Our inclusion in the NSBN was joining the MSCI Belgium Index and the tainability rating agency Vigeo Eiris (V.E), announced on a giant screen in New SE European Utility Index in 2020. Driven Eurogrid GmbH holds a good position York’s Times Square.” by its strong performance, Elia Group in terms of credit standing and sustain- received the BelMid Company of the Year ability as an economic unit along with 2020 award, representing the highest transmission system operator 50Hertz relative increase in market capitalisation and 50Hertz Offshore, despite a difficult for 2020. market environment due to the coronavi- rus pandemic.
S&P confirmed the unchanged result of BBB+ with a stable outlook for Eurogrid and certified 50Hertz’s good track record in the implementation of the investment programme. Consequently, it is expected that the upcoming onshore and offshore projects, which are accompanied by additional financing, will be realised as planned.
The total score for the V.E sustainabil- ity rating improved to 57 (2018:52). This means that Eurogrid, under the opera- tional management of 50Hertz, has been maintaining the second-highest per- formance level (Robust) and is already approaching the highest category “As a company providing a service for society, we have a duty to be (Advanced, 60 points and higher). Elia signs first line of credit linked more explicit about our targets and actions with regard to reducing CO2 emissions and achieving carbon neutrality, the circularity of our assets, to sustainability performance targets safety, environmental and diversity targets, and ethics/compliance objectives. We want to make our company more resilient and more Elia signed a €650 million revolving credit facility (RCF) agreement transparent to our internal and external stakeholders. Without com- that is tied to three of Elia’s sustainability performance targets. As a promising the safety of our employees and the grid, we are making our first step towards a sustainable financing strategy, the agreement processes more sustainable and aim to be completely climate neutral shows that Elia aims to be more ambitious and explicit about the by 2040. Signing this first line of credit linked to sustainability perfor- mance targets is fully in line with this commitment.” importance of its environmental, social and corporate governance (ESG). Lieve Kerckhof, Accounting - 56 years young - lives and works in Belgium The sustainability performance targets that impact the credit facili- & Finance - started at Elia in 1999 ty’s pricing mechanism are related to the company’s efforts to fight Officer at Elia - loves travel, art and cooking climate change and its health and safety performance. 60 The Nest Elia Group Activity Report 2020 61 # The Nest A digital incubator
In September 2020, Elia Group launched the Nest, its digital incubator with two physical locations in Brussels and Berlin. This laboratory enables the rapid development, testing and prototyping of digital ideas within a sandbox environment. The Nest not only has infrastructure providing access to all necessary data and digital technology expertise (e.g. artificial intelligence, Internet of Things, blockchain), but it also focuses on using agile methodologies and techniques such as design thinking and UX methods.
To scale innovation, Elia Group invites Three days a week, the entire team works all employees to submit their innovative together on developing the prototype in ideas to the Nest for developing func- a highly focused manner. By applying an tioning prototypes that can solve daily agile mindset, which in practice means business challenges. Anyone can submit using scrum or kanban methodologies, ideas to managers of the Nest. Idea the objective is broken down into small owners have to describe their idea, their pieces. These pieces are translated The rapid development of digital technol- hypothesis and its strategic relevance into concrete deliverables (increments) ogies offers numerous opportunities to and then pitch it in front of a jury, the during each sprint, which can take one Nest Panel, which uses predefined qual- to four weeks. During regular sprint deal with the growing complexity of the ification criteria to decide which ideas reviews, the team presents to their cus- energy sector. There are two key objec- can ultimately enter the Nest for a proto- tomers: the business departments that tives: transform into a digital TSO to deliver typing cycle typically lasting 12 weeks. will adopt the prototype in their daily operations if it is successful. even greater quality and efficiency in our Once an idea has been selected, the Nest core business and internal processes; and managers assign a multifunctional team providing all the relevant expertise –data build new data-driven business models to analysts, data engineers, data scientists, secure competitiveness, long-term growth UX/UI designers, agile coaches and and Elia Group’s relevance in the future. technical experts – to the idea owner, who will then start his or her journey as a product owner.
The Nest provides equipment and tools to fit the team’s needs and promote creativity, team work and easy proto- type building. This playful easy-to-deploy environment is packed with gadgets to ensure the focus is put on creative content. 62 The Nest Elia Group Activity Report 2020 63
“With the Nest, we want to foster a new culture of innovation focusing on co-crea- A typical tion, feedback and agile development, where prototyping practices are applied within a sandbox environment and where failure is journey in seen as an opportunity. The potential busi- ness impact and value of the innovation will decide whether the prototype is transferred The Nest “End user input is one of the key principles of to the business, pivoted to a second cycle an agile mindset. In this sense, short feedback in the Nest or discontinued. In any case, the 03 cycles are crucial for identifying as early as team always celebrates their journey and possible what is important to the customer leverages their learnings throughout other Team set-up and what is not, and for establishing what will business activities.” 02
work and what will not. This way, the team Qualification can consider the feedback in the next sprint - 30 years young 01 The Nest Manager builds your and implement the necessary development Oz Ural, - lives and works in Germany Opportunity & prioritisation idea team and works closely steps in a highly targeted manner to reach Manager of - started at 50Hertz in 2020 - basketball fan, loves reading with HR to ensure everyone is on maximum value in minimum time.” the Nest about technology/innovation boarded for the kick off. & sailing the Mediterranean You have a great idea and want Present your idea to the Nest Thijs Vral, Deputy Manager to dedicate some time to trying it Panel, who then evaluates it of the Nest out? Discuss it with your based on defined qualification “As a product owner, I particularly enjoy work- manager, complete the form and and prioritisation criteria. - 28 years young ing with a great team on creative solutions in submit it to the Nest Panel. - lives and works in a highly focused and fast manner. To make 06 Belgium this possible, it was critically important to Idea transition - at Elia since 2017 reorganise my regular daily work together - always asking himself: with my manager and my colleagues in “Can it be improved?” advance. We prioritised my tasks and distrib- uted some of them across several shoulders in After 12 weeks, your idea passes the team to free up three days a week for my through exit qualification criteria. work in the Nest during the 12 week-cycle.” 05 Your idea is either: 04 Idea testing 1. transferred to the business for Dominik Gross, - 39 years young Prototyping Product Owner - started at 50hertz in 2014 scaling Algo-Trading, - really keen on data and AI You experience new ways of 2. pivoted to another cycle in the the Nest - when my laptop is closed, You are now the product owner working. Together with the busi- I love to ride my road bike Nest and will work 3 days per week in ness teams and idea teams, you the Nest. Your team, composed ensure the prototype is relevant 3. discontinued of developers and business and make it evolve. experts, is constantly supported by the Nest Agile & Design Thinking coaches. “Not yet knowing what we will end up work- ing on is part of the Nest’s DNA. I quickly rec- ognised the potential of this new approach, even if it initially it was a bit uncomfortable. One thing that was particularly enriching for me was the enormous flexibility of the agile methodology and the use of a wide variety of technologies and skills. When something 07 did not work out as planned, we simply and almost playfully changed direction and ulti- Reintegration mately ended up with an even better result.”
Eva Schramm, - 32 years young At the end of the project, you Technology - lives and works in Germany reintegrate smoothly into your Innovation Manager - started at 50Hertz 2014 department. You share your Nest at the Nest - fresh air fanatic and die hard inbox zero freak experience by showing team members new ways of working. 64 The Nest Elia Group Activity Report 2020 65
Did you know? Strengthening our culture The purpose of Elia Group’s holistic - Increase efficiency of infrastructure innovation approach serves three main development of innovation missions: - Increase capacity of the infrastructure 1. Innovation as a lab and eye-opener - Make our core business sustainable paving the way for the future of the - Increase flexibility and efficiency of our business corporate functions 2. Innovation as a service supporting the The Elia Group Innovation Team accel- Open Innovation full company in its innovative journey erates the use of transversal technology 3. Innovation as a driver accelerating the like AI, Blockchain, IoT and VR through Challenge cultural change partnerships and explores technologies In its first mission, Elia Group innovation such as 3D Printing or very new ones With its annual Open Innovation Challenge, is leading and supporting many projects like quantum computing, which are not Elia Group expands its external ecosystem around our value chain: yet mainstream. With all these tools and to gain access to additional knowledge and technologies at hand, Elia Group has now expertise for faster development. Start-ups - Enable decentralised flexibility man- put a framework around it: The Nest – an from all over the world are invited to pitch “It was very exciting to agement incubator that provides employees with their innovative ideas. The winner is given participate in the Elia Group - Predict, support decisions and auto- guidance on using the right methodol- Open Innovation Challenge the opportunity to implement a pilot project and we are very much look- mate system operations ogy, easy access to all those technologies together with Elia Group. ing forward to implement- - Automate and make remote inspec- and dedicated time to work on ing our solution within the tions discovering innovation projects in a The 2020 Open Innovation Challenge finale business. We’ve developed highly focused way. With this framework, was broadcast live from studios in Brussels. a software package that Elia Group can ensure much faster devel- The 2020 competition focused on the devel- processes and analyses opment of digital solutions promoting more images from multiple opment cycles. cameras and then sends secure grid and data management. Of the out real-time warnings, 82 entrants, five finalists were shortlisted. The thereby enhancing data finale was broadcasted live from Brussels. security and the safety of “The goal is clear: we need to accelerate the Elia Group’s grid.” adoption of innovation both in terms of tech- Due to the COVID-19 crisis, only a limited nology and methodology. As innovation is number of attendees were allowed. Ricardo Santos, not a team but a mindset, we can achieve real CEO of Heptasense and impact by scaling up adoption. That is why winner of the 2020 Open “The Nest” completes our holistic approach to Innovation Challenge innovation and encourages ideas and creative approaches from all employees much more than before!”
- 33 years young Innovation Loïc Tilman, - lives and works from his Belgian Head of Elia Group home-office since 1 year Week Innovation - started at Elia in 2018 - brings fun while making the energy transition happen With its annual Innovation Week for all employees, Elia Group aims to arouse people’s deep-seated interest in and curiosity about working on innovative projects – and to make doing so an attractive propo- Our colleague Rachel tells you more about Elia Group’s ap- sition. During this event, Elia Group showcases its full proach to innovation and the innovative power and potential while at the same time use or artificial intelligence. facilitating and fostering sharing and dialogue on and around innovation. - 34 years young Rachel Berrymen, - lives and works in Germany Due to the COVID-19 safety measures, this year’s Inno- Data Scientist - AI - born in the United States of To watch the video click on this link vation Week had to be hosted virtually. The turnout or simply scan the QR code with Center of Excellence America was better than hoped for, with over 500 colleagues at 50Hertz - started at 50Hertz in 2020 the camera your smartphone to start - enjoys learning German the video. from Elia and 50Hertz attending the online event. and traveling ▶ http://bit.ly/Innovation-EliaGroup-AR2020 66 Elia Group launches re.alto Elia Group Activity Report 2020 67
# Elia Group The first EU marketplace launches re.alto for the digital exchange of energy data and services
re.alto is the first European digital marketplace for energy data and services. The aim of the re.alto marketplace is to make energy data easy to access and integrate, enabling the industry to take a giant digital stride towards more widespread adoption of Energy-as-a-Service business models and ultimately drive a low carbon energy future.
re.alto was set up by Elia Group to create Understanding how APIs drive the the first European marketplace for the digital transformation of energy exchange of energy data and digital To shine a light on how the exchange products and services via APIs (software of energy data can accelerate digital interfaces that allow two applications to transformation and decarbonisation, talk to each other). re.alto has published a white paper titled In September 2020, Elia Group announced The launch of re.alto’s API platform has Realising the energy transition in times the official launch of its very own start-up: attracted interest from energy players of change: the role of the API market- place in driving down data acquisition re.alto. This digital marketplace brings looking to increase market visibility and generate new revenue streams through costs and establishing new service-led together data from suppliers and con- the monetisation of data and digital business models. sumers and exchanges it via standard- products. The white paper explores the barriers ised energy APIs. This makes energy data The re.alto team brings together a to digital change faced by the energy accessible and more quickly integratable, unique combination of industry expe- industry, focusing in particular on the exchange of energy data, a crucial cor- enabling the energy industry to take a rience and knowledge from across the energy and technology sectors. For nerstone of digitalisation. It looks at the huge digital leap forward towards cus- opportunities for innovation presented organisations with data and digital by the dual crises of COVID-19 and cli- tomer-centric business models that offer products to offer, the platform provides mate change, highlighting the valuable energy services. a new sales channel to monetise their role that an API marketplace can play in APIs to new markets, generating new enabling operational streamlining and revenue stream opportunities. For busi- the creation of entirely new revenue nesses that want to buy and integrate streams. third-party data, the marketplace offers To download the white simple access to a range of digital tools paper, visit the re.alto to streamline the API exchange process library: and bring down the cost of data acqui- ▶ https://realto.io/re-alto-library/ sition, which previously may have been prohibitively expensive. 68 Elia Group launches re.alto Elia Group Activity Report 2020 69
Data and services to transform your business
“With re.alto, we want to accelerate the digitalisation of the energy world by simplifying access to data and services for all players involved. Data is the lubricant for new business mod- els. With our marketplace for digital interfaces (APIs) and our service for accessing meter readings, we are cre- Spot market pricing ating the basis for innovative business models in the market. As a start-up, Access spot market pricing data we are at the forefront and can directly for the wholesale electricity incorporate our experience from the market into our product innovations.” market from a wide range of Energy monitoring 2.0 energy price APIs on the re.alto “As the energy transition Sebastian Scholz, - 44 years young marketplace. towards a more sustainable Product Lead - lives and works in Germany Enrich your monitoring platform - bicycling enthusiast and Wind SCADA data - Energy traders system accelerates, cooper- at re.alto experience by adding more traveller - Energy trading platform ation between decentralised Wind turbine SCADA data has services for your customer. - Analytics and forecasting and numerous stakeholders a range of operational benefits, Reduce the cost of integrating is becoming key. We believe with the data source of your digitalisation of scalable busi- “As the world electrifies, we need to enabling cost-effective ness models is a big part of this make it easier for all the new kids on preventative maintenance and choice by buying the right transition, and our marketplace the block to interact with the electric- accurate forecasting based on access yourself instead of via re.alto aims to provide the tools ity market. There are historical and actual output. your IT provider. for these digital products to technical reasons for today’s complex reach the many easily.” system, but we now need to change - Grid operator - Energy monitoring provider
it from within to allow the rest of - Energy trader and wind - Industrial consumers and Alexandre Torreele, the world to join that huge machine forecaster facility managers CEO of re.alto without breaking it. Digitalisation is the answer to that challenge. There - Digital O&M and analytics - Home owner are so many bright start-ups and new services - 37 years young Weather forecasting - lives and works in Germany business ideas out there that can make it happen, with re.alto facilitat- - Surrounded by women, a lovely Get access to a broad range of wife and 2 fantastic daughters ing their collaboration and entry into the market.” standardised weather forecast packages – from temperature Dieter Jong, and humidity to wind speed and - 38 years young Sales Lead irradiation data – all tailor-made - lives and works in Belgium at re.alto to the energy sector. - loves traveling & fine dining Smart charging e-mobility - Energy Trader or Grid Operator “re.alto’s value proposition is - Power generator (renewables) so unique, so forward-thinking Don’t get left behind in a rapidly - Analytics, modelling and for energy, that our offering “It has been particularly exciting to changing e-mobility sector. have the rare opportunity to work on forecasting attracted a phenomenal level Reach new markets, drive new of industry interest right from a product from its inception. We have revenue streams, scale at speed the start. As a new company, the chance to create something great Smart meter access and we’re definitely having some fun across Europe with the smartest that was an undexpected, but Access metering data securely an incredibly useful springboard doing it – the team here is fantastic! charging strategy. from which to build brand rec- The energy industry is rapidly follow- over with an API to enable great- ognition even before officially ing in the footsteps of other industries er customer insights, streamline - Utilities and embracing the digital transforma- launching the product. As such, your data acquisition, or fuel - CPOs tion. Our marketplace is enabling that from a marketing standpoint, innovative digital applications. - Charge pole manufacturer/CPO our main focus in 2020 was on change; it provides energy businesses with the digital means for greater SaaS provider brand development and brand - Innovators collaboration and smarter information growth as part of the overall - Energy monitoring and sales activation strategy.” flow from one end of the value chain to the other.” management Visit the website
Poppy Blautzik, - Suppliers and utilities ▶ https://realto.io/use-cases/ - 42 years young - 37 years young Marketing Lead Marcel Felder, to learn more about - Lives and works in Germany - lives and works in Germany at re.alto CTO at re.alto - Active mum of four - loves music, tech, travel, each use case. and friends 70 Brabo II enters service Elia Group Activity Report 2020 71
# Brabo II Vital for a secure, sustainable electricity supply
enters service On 27 November 2020, Elia commissioned the upgraded high-voltage line along the A12 between Zandvliet and Lillo. The project involved upgrading an existing overhead line from 150 kV to 380 kV, replacing 46 pylons and laying new conductors over 16 kilometres. The upgraded high-voltage line means Elia can transmit electricity more efficiently.
The Brabo project will shore up Belgium’s electricity grid at local, national and international level:
- Growth of the Port of Antwerp: the last major investments in the high- voltage grid in and around the Port of Antwerp were made in the 1970s.
- Increased grid capacity: will enable it to respond to growing electricity consumption that has resulted from the Elia’s Brabo project will increase the grid’s port’s growth. supply capacity, enabling it to cope with - A stronger Belgian high-voltage grid growing electricity consumption in the with a higher import capacity: once Port of Antwerp. Nationally and interna- the Brabo project is complete, Elia will be able to import more electricity tionally, the project will upgrade Belgium’s from the Netherlands to the Belgian north-south axis and bolster Europe’s high-voltage grid. Under ideal condi- network of international interconnec- tions, it will be possible to import up to tions. This will improve international trade 20% more electricity than at present. opportunities and reduce reliance on Bel- The Brabo project consists of three sub- projects. Brabo I is already operational. gian generating facilities. Work on Brabo II is completed. Brabo Stage 1 III – which is due to be commissioned by Operational the end of 2024 – will enhance electricity since end 2016 Stage 2 transmission within Belgium and make Operational since end 2020 it easier to trade power with the Nether- lands.
Stage 3 Should be operational by end 2024 72 Brabo II enters service Elia Group Activity Report 2020 73
“When Brabo II entered service, I could only think back on this project with pride and joy. I had the good fortune to be part of the con- struction of the largest pylons in the Benelux, Key facts which, just to make things more challenging, had their foundations in the river Scheldt. We had to lay foundations that took into account “This year has been particularly challenging all possible preconditions we could think for the Brabo project. We were in the most of (Port of Antwerp, gas pipelines, Seveso complex phase of construction when the companies, canals, lack of space, breeding COVID-19 epidemic broke out. The work had seasons, stakeholders and more). Perhaps the to be halted while new work procedures were nicest part of the project was the excellent implemented to ensure compliance with cooperation within our amazing project team.” health measures. Finally, after a few weeks’ stoppage, work resumed and we were able to catch up and commission the two new 380- Katrien Moeys, - 32 years young kV Doel-Lillo-Mercator and Lillo-Zandvliet Leader for Civil - lives and works in Belgium lines in 2020, as initially planned. This would works at Elia - started at Elia in 2013 m - plays Gaelic football 192 The last major investments in not have been possible without magnifi- high cent teamwork. I would like to thank all Elia the high-voltage grid at the Port employees and our external partners for this Standing 192 metres high, these of Antwerp date back to the magnificent success.” pylons will be the tallest 1970s. “What will stay with me personally from Cédric Jacqmin, Brabo II is how the team dealt with setbacks. structures on the Antwerp Brabo Project Leader It was remarkable to see how with every The pylons that cross the river skyline. problem that arose, they immediately pivoted Scheldt are the highest in and looked for solutions. Never, ever was any - 35 years young Benelux. - lives and works in Belgium time wasted looking for culprits. Designer, - started at Elia in 2008 project leader, project assistant, quality man- - enjoys playing sports with ager, expert, project conductor, tester, com- friends munity relations officer, negotiator, contract manager ... everyone thought up solutions to reach the goal.”
% 200-metre-high crane was need- Valérie Daloze, 20 ed to erect the two high-voltage Manager of - 47 years young - lives and works in Belgium more imported Infrastructure pylons over the river Scheldt. Only - started at Elia in 1999 electricity 11 such machines can be found in Projects at Elia - Busy mum of four This project is the only one of its the whole of Europe. Thanks to this project, it is kind in Europe. now possible to import 20% more electricity under ideal conditions.
“With the commissioning of the Brabo II project, we are concluding a long and intense period with our team. It is a period that I look m back on with great pride and gratitude. For 911 me personally, the successful completion The conductors crossing of the new Scheldt crossing at an extremely the Scheldt cover a distance complex location was literally and figuratively a highlight. In addition to the technical chal- of around 911 metres. lenges we faced on this project, my collabo- ration with countless external stakeholders in the port of Antwerp was very enriching. This project would not have been possible without the preparatory work done by many internal and external employees. I would therefore like to take this opportunity to thank everyone who contributed to its success.”
Antwerp’s mayor Bart De Wever was rescued from one of the high-voltage Sam Roels, - 30 years young pylons on the banks of the Scheldt Brabo Project - lives and works in Belgium in Antwerp as part of a spectacular Leader week-long evacuation drill organised - started at Elia in 2014 the local fire and emergency services. At 192 metres, the pylons are the tall- est in the Benelux. 74 Brabo II enters service Elia Group Activity Report 2020 75 Did you know?
40 years of operation simulated in just 12 months
All bidders had to prove the quality of their cables in an elaborate pre- qualification test. The test simulated the operational load for the planned total operating life of around 40 years within twelve months.
North-south energy transition line Halfway point reached for Involving the public - SuedOstLink (SOL), the 540 km high-voltage direct-current line that in person and digitally will bring renewable electricity from Saxony-Anhalt to Bavaria. SOL is a key 50Hertz was able to successfully and trans- component in ensuring the supply of parently communicate the plans and sched- electricity in southern Germany, ule for the SuedOstLink, even in a year especially after the phase out of marked by the coronavirus. Working under nuclear energy. special conditions, the team of route planners, environmental planners, property managers After an almost two-year negotiation and public participation representatives hit process, 50Hertz and its project partner the road with DialogMobil, its mobile informa- TenneT awarded the contract for the tion office. Over a period of three weeks, they 540 km DC link to Danish cable man- visited a total of 22 towns and communities in ufacturer NKT (northern part/50Hertz) Saxony-Anhalt, Saxony and Thuringia. In addi- and Prysmian PowerLink (southern part/ tion, 50Hertz regularly organised digital par- TenneT). In total, the two companies will ticipation events, expanded the information manufacture and lay around 1,000 kilo- available on its website and invited people to metres of plastic-insulated underground video conferences. cable that will carry electricity at 525 kV.
“By using digital tools for public participation, we were able to reach residents, owners and inter- ested citizens even during the pandemic, thus continuing the dialogue as transparently as pos- sible under these circumstances.”
Danuta Kneipp, - 43 years young Head of Public - lives and works in Germany- Participation - started at 50Hertz in 2016 50Hertz - loves the transiberian train and traveling in her VW camper 76 Brabo II enters service Elia Group Activity Report 2020 77
Shaping the onshore grid 50Hertz Elia and 50Hertz are further expanding and optimising the onshore grid to respond to demand and accommodate local renewable energy generation. HAMBURG/OST HIGH-VOLTAGE SUBSTATION
50Hertz plans to install four phase-shifting transformers at the Hamburg/Ost high-voltage substation to control flows on the BRABO III grid, prevent overload and cut redispatching costs. A key permit was issued, marking a major step forward, and the project team Elia used a new digital map app when Elia should be able to meet the ambitious rollout deadline. The first presenting the Brabo III project to local phase-shifting transformers will be commissioned in 2022, the residents. Brabo III is the last part of the aim being to ensure that the electricity system remains reliable UCKERMARK LINE VENTILUS large-scale Brabo project, which will despite the sharp increase in volumes of variable wind energy. upgrade the power grid in and around 50Hertz obtained planning permission for the Uck- The integrated planning process to the Port of Antwerp and improve the ermark line, an overhead high-voltage connection develop a regional land use plan (GRUP) connection with the Netherlands. It is between the Bertikow and Vierraden substations for the Ventilus project began in March scheduled for completion by the end of northeast of Berlin. The existing 220 kV line will be 2020 and a special planning team, 2024. replaced by a 380 kV line. Eventually, this will allow including Elia experts, was set up. Venti- five times more electricity to be transmitted. The line lus is a new high-voltage project in West runs through a Natura 2000 area, which is why a great Flanders that will connect the offshore deal of attention is being paid to the fauna and flora and onshore electricity grids. present. Beacons for birds will be installed and the pylons will be 20 metres lower in certain places.
STENDAL WEST - WOLMIRSTEDT
50Hertz commissioned the 380 kV overhead line between Stendal West and Wolmirstedt, HORTA-AVELGEM PROJECT boosting transmission capacity in order to COMPLETED integrate wind energy into its grid. This is the first step in replacing a 220 kV line dating The high-voltage line between back to the 1950s. Five additional sections Zomergem and Avelgem is fully opera- between Stendal West and Güstrow in the tional again. In the past two years, the Rostock area near the Baltic sea will fol- conductors were replaced by a new type low. The upgrade is necessary in order to that can transmit more current, doubling transmit large-scale wind power generation transmission capacity to 6 gigawatts. efficiently from the north of This will enable Elia to exchange more Germany to consumption centres in the electricity with France in the future and south. The timely completion of the planned distribute energy from offshore wind grid infrastructure is required to meet farms further inland. Along the line, European renewables targets and to reduce 97 pylons and foundations were rein- redispatching measures caused by grid forced to support the new conductors. congestion. HAINAUT LOOP PROJECT
After more than two years of preparation, the Hainaut Loop project is now under- way. The application was submitted to the municipal authorities and in Septem- LEIPZIG –ERFURT ber 2020, Elia completed a series of infor- 50Hertz installed high-temperature con- mation sessions. Stretching over approx- ductors (HTLS) on a 27 km section of the imately 84 kilometres, the Hainaut Loop Visit 380 kV line between Saxony and Thuringia. will be one of Elia’s largest infrastructure ▶ https://www.elia.be/nl/in- Visit These are made of a special alloy capable projects in Belgium. The planned 380 kV frastructuur-en-projecten/ ▶ https://www.50hertz.com/en/ of increasing transmission capacity by up infrastructuurprojecten Grid/Griddevelopement line between Avelgem and Courcelles in to 40%, which means that more electricity for an overview of our Hainaut Province is a missing link in the for an overview of our infrastructure projects in infrastructure projects in from renewable sources can be safely inte- Belgian high-voltage grid. Belgium. Germany. grated into the system 78 ALEGrO commissioned Elia Group Activity Report 2020 79 Reporting About parameters this report Registered office Headquarters Elia Group
This report is limited to Elia Transmission Boulevard de l’Empereur 20, Belgium and Elia Asset, which operate B-1000 Bruxelles as a single economic entity under the T +32 2 546 70 11 This report explains who we are, what we names Elia and 50Hertz Transmission. F +32 2 546 70 10 do and the context in which we operate. [email protected] It outlines our strategy and the progress The registered office of Elia Transmission we have made towards achieving our Belgium and Elia Asset is located at Heidestraße 2 goals. The Activity Report concerns regu- Boulevard de l’Empereur 20 10557 Berlin lated information, published on April 16th 1000 Brussels, Belgium T +49 30 5150 0 The 2020 Annual Report consists of three 2021, after trading hours. F +49 30 5150 2199 parts: the Activity Report, the Sustain- The registered office of 50Hertz GmbH [email protected] GRI Standards: Core option is established at ability Report and the Financial Report, Heidestraße 2 where we inform our stakeholders about This report has been prepared in Concept and editorial staff D-10557 Berlin, Germany our company, corporate social responsibil- accordance with the GRI Standards, the first global standards for sustainability The registered office of Eurogrid Elia Group Communication & Reputation ity and financial results. You are currently reporting. The applicable GRI Standards International is located at reading the Activity Report. performance indicators are highlighted Rue Joseph Stevens, 7 Graphic design in the report wherever Elia Group has 1000 Brussels, Belgium www.chriscom.be reported economic, environmental or The registered office of Elia Grid social impacts. Consult the GRI Index on page 63 of the Sustainability Report for a International is located at Editor Rue Joseph Stevens, 7 full overview. 1000 Brussels, Belgium Pascale Fonck Ce document est également disponible Reporting period en français. Dit document is ook beschikbaar in het This annual report covers the period from Nederlands. 1 January 2020 to 31 December 2020.
Contact Please visit ▶ www.eliagroup.eu/publications Group Communications and Reputation to consult parts two and three. Marleen Vanhecke T + 32 486 49 01 09 Boulevard de l’Empereur 20 1000 Brussels [email protected]
We would like to thank everyone who contributed to this annual report.
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