TenneT Transmission System Operator Mel Kroon CEO TenneT - PowerPoint PPT Presentation

TenneT Transmission System Operator Mel Kroon CEO TenneT 01-12-2014 1

Key tasks of a TSO Our three key tasks Transmission services 1 Constructing and maintaining a robust and effcient high-voltage grid. System services 2 Maintaining the balance between electricity supply and demand 24/7. 3 Market facilitation Facilitating a smooth functioning, liquid and stable electricity market. 2

Organisation 3

Organisation Ownership structure TenneT - Transmission System Operator 01-12-2014 4

Board of management A Dutch-German team TenneT - Transmission System Operator 01-12-2014 18-11-2014 5

Supervisory board dr. ir. A.W. (Aad) Veenman dr. J.L.M. (Hans) Fischer ir. R.G.M. (Rien) Zwitserloot dr. P.M. (Pieter) Verboom drs. S. (Stephanie) Hottenhuis Chairman Supervisory Board Member Supervisory Board Member Supervisory Board Vice-chairman Supervisory Member Supervisory Board Member Remuneration and Member Strategic Member Strategic Board Chairman Remuneration and Appointment Committee Investments Committee Investments Committee Chairman Audit Committee Appointments Committee Member Strategic Investments Committee Member Audit Committee Year of birth: 1947 Year of birth:1956 Year of birth: 1949 Year of birth: 1950 Year of birth: 1965 Nationality: Dutch Nationality: German Nationality: Dutch Nationality: Dutch Nationality: Dutch Initial appointment: 2005 Initial appointment: 2014 Initial appointment : 2010 Initial appointment: 2012 Initial appointment: 2013 Principal position Principal position Principal position Principal position Principal position Former President N.V. Chief Technical Officer, Tata Former Chairman Former Executive Vice- Member of Executive Board Nederlandse Spoorwegen Steel Europe Management Board President and CFO Schiphol Arcadis N.V. Wintershall AG Group 01-12-2014 TenneT - Transmission System Operator 6

Vision Our society has committed to the large-scale introduction of renewable energy. Generation of renewable energy is changing the dynamics of supply. At the same time, dependence on electricity continues to increase. This demands continuous reliability . To cope with these developments, the European electricity market must be integrated further. Sound market design , technical and operational innovation, storage solutions and adequate grid capacity are all required to continue to match supply and demand across borders. 7

Renewable energy • Production not driven by price • Marginal costs almost zero • On other locations then conventional production • Connections & Storage: “Spread and Store” • Flexibility of demand • Back-up capacity 8

Mission To provide security of electricity supply in the markets we serve, and to pursue, as a leading Transmission System Operator, the development of an integrated and sustainable North West European electricity market. 9

Energy policy Three pillars Energy policy Sustainable Reliable Affordable Green energy High standard Efficiency 01-12-2014 TenneT - Transmission System Operator 10

TenneT grid 01-12-2014 TenneT - Transmission System Operator 11

Key figures 50Hz 99.9999% SF6<1.000 kg 0,4 μ T 200x 75% 6  1 (customers) 82% 14% p/y (employees) LTIF 4.5 12 bn IRR: 20 bn 10.9% 400 m 01-12-2014 TenneT - Transmission System Operator 12

Grid integration and interconnection 2008 2008-heden 2009 2010 2014 2014 2016 2018 NorNed Market coupling Integration BritNed Decision Decision Doetinchem- Expansion High Voltage Cobra-cable NordLink Wesel ready Meeden- (700 MW) (1000 MW) networks ready: 2019 ready: 2018 Diele ready (1500 MW) + (700 MW) (1400 MW) (+500 MW) Integration NL-DE The interconnection capacity consists of more than 20% of the total operational electricity production capacity . This makes the Netherlands the best connected country of the world. The EU dictates at the moment an interconnection capacity of 10%. 18-11- 13 2014

Challenges • Safety • Public acceptance • Introduction of innovations • Regulatory regime the Netherlands • Timely implementation of projects • Further cooperation / integration TSO’s 14

Onshore 15

Onshore grid expansion NL EUR 4-5 billion investment over the next ten years • Large projects (380 kV): • Randstad 380 kV North Ring • North-West 380 kV • South-West 380 kV • Doetinchem-Wesel • Increase capacity connection Zwolle- Diemen-Geertruidenberg-Maasbracht (2 x 380 km) • NoordOostPolder (NOP) 110 kV 16 01-12-2014 TenneT - Transmission System Operator

Onshore grid expansion NL EUR 4-5 billion investment over the next ten years • 300 other projects a.i.: • Five interconnections to Belgium and Germany; sixth interconnectors under construction (Doetinchem-Wesel, to be completed in 2016) • Approx. 400 km of new connections 17 01-12-2014 TenneT - Transmission System Operator

Onshore grid expansion GER EUR 7-8 billion over the next ten years • Over 500 kilometers of new connections planned: fifteen large onshore projects plus hundreds of smaller projects • Transporting wind energy from northern Germany to consumers and industry in southern Germany • Connecting new power plants to the grid • SuedLink: will be the longest DC grid connection with the highest transport capacity (2GW) in Germany and will transport wind energy from northern Germany to industrial regions in the south of the country 18 01-12-2014 TenneT - Transmission System Operator

Offshore 19

Offshore developments Project “Wind op Zee”, Offshore NL A cost reduction of 35 to 40% and achieving the 2023 targets is only feasible with a structured approach, careful planning and standardisation. Expected investment of EUR 2-3 billion. • Lower financing costs for TSO Station also functions as hub • Double connection = redundant = higher efficiency • Fewer dune crossings: environmental benefits and cost reductions Centralized maintenance: • Standardization, learning effects cost reduction Wind farm and purchasing advantages: cost directly reduction connected to station • Prepared for use of 380 kV cable in the near future *Locations are fictional. 01-12-2014 TenneT - Transmission System Operator 20

Offshore grid expansion Projects (NL) Capacity (MW) Operational Projects Capacity (MW) Operational (planned) (planned) Offshore Wind NL 3,450 (AC) 2023 Project put out to tender BorWin4 900 (DC) 2019 Projects (DE) Capacity (MW) Operational (planned) Projects Capacity (MW) Operational (planned) Operational Under construction/awarded alpha ventus 60 (AC) 2009 BorWin2 800 (DC) 2015 BorWin1 400 (DC) 2010 DolWin1 800 (DC) 2014 Riffgat 108 (AC) 2014 DolWin2 900 (DC) 2015 Total 568 DolWin3 900 (DC) 2017 HelWin1 576 (DC) 2014 Projects Capacity (MW) Operational HelWin2 690 (DC) 2015 (planned) SylWin1 864 (DC) 2015 Interconnections Nordergründe 111 (AC) 2016 2008 NorNed 700 (DC) BorWin3 900 (DC) 2018 BritNed 1,000 (DC) 2011 Total installed 7,109 2019 NordLink 1,400 (DC) 2018 and under Cobra 700 (DC) 2019 construction 01-12-2014 TenneT - Transmission System Operator 21

DolWin beta 22

Safety at TenneT Ben Voorhorst COO TenneT 23

Why this Safety Vision? • A fatal incident • A lot of ‘near miss incidents and high risk incidents’ • Increasing risk of operations, expansion of offshore activities • Different level Safety performance contractors • Oil & Gas and Petrochemical industry: it is possible! 01-12-2014 TenneT - Transmission System Operator 24

Safety goals 2018 • LTIF < 1, TenneT employees and contractor employees • Be a leading Safety company • Safety performance is a reflection of operational excellence • From the perspective to strive for zero harm and zero incidents 01-12-2014 TenneT - Transmission System Operator 25

How? Focus on: • One TenneT • Safety Leadership • Contractor Management • Safety Roadmap 01-12-2014 TenneT - Transmission System Operator 26

Roadmap activities Focus on dialogue • Board level meeting on Safety • Joined Incident Review Board • Execution of Safety Walks by contractor • Active discussions on Safety with contractor Focus on processes and indicators • Aligning procurement procedures with Safety ambitions • Implementation of Life Saving Rules • Safety performance reviews with contractor 01-12-2014 TenneT - Transmission System Operator 27

Impact Contractor Management: • Best performers will be rewarded • Continue to work with strong safety performers • Challenge contractors to improve their performance • Challenge contractors to improve TenneT performance • Say goodbye to underperformers 01-12-2014 TenneT - Transmission System Operator 28

Safety Performance Working together on Safety Improve Safety performance by: • Challenging not only our main contractor, but also sub contractors. • Making a shift from compliance driven to a risk based approach. • Having a pro active and open relationship with our contractors. You are our “Partners in Safety”. Let’s make it work (safely)! 01-12-2014 TenneT - Transmission System Operator 29