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.