Berlin – Today, 50Hertz, the transmission system operator responsible for Northern and Eastern Germany, presented its business figures for the first half of 2017. Especially the continued investments of the system operator have increased the turnover (+ 4.1 %) and together with the simultaneously reduced costs lead to an increased result of 86.7 million EUR (+ 16.8 %).
The costs for congestion management are slightly below those of the previous year, despite the further constant development of renewable energy in the 50Hertz control area. This is more proof of the success of grid development: with the commissioning of the first system of the South-West Interconnector about 18 months ago, an important transmission link was put into operation. Since then, fewer interventions were required on the generation side, which led to a decrease in costs. The second system of this important line will be completed this autumn and will increase the transport capacities to the south of Germany even before next winter.
Rating agency Moody’s confirmed the rating in the investment grade (Baa1) with a stable outlook. However, the company will need to make large efforts in the medium term to maintain this level. In the autumn of 2016, a company-wide efficiency project was started up with the objective to mitigate the increasing process costs and to render our growth even more efficient. At the same time, the Bundesnetzagentur (BNetzA) started its cost audit according to base year 2016. The result of this audit determines the adequacy of the revenue level as of 2019. For the further success of grid development, it is important that the result of the cost audit expected in 2018 supports the stability of the rating and the further ability of the company to make investments.
The current financial structure is good and the available liquidity and stable cash flows enable further investments in grid development. Since the beginning of the year, 97.1 million EUR was invested in grid development and for the entire year, investments of about half a billion EUR are targeted. Part of these investments concern the first construction activities on the Kriegers Flak Combined Grid Solution project, the first offshore interconnector in the Baltic Sea between a German and Danish wind farm. 50Hertz and Danish system operator energinet.dk are realising this important project together. Its completion is planned in the next two years.
In addition to the current ESG sustainability rating by Vigeo-Eiris, another ESG rating was granted by Sustainalytics with a good score of 67 (out of 100): proof that 50Hertz is on the right path to a sustainably acting company, along which it intends to continue in the years to come.
One example of these activities regarding acceptance for grid development measures is the starting shot for the CompactLine pilot project in Saxony-Anhalt, which consists of the introduction of a new pylon and line design that is less visible thanks to its lower height.
The 50Hertz control area exported 23.8 TWh (approx. + 20 %) to neighbouring grid areas in the first half of the year. This makes 50Hertz the power export region of Germany and as such it makes a considerable and noteworthy contribution to the security of supply of Germany as well as Europe. The joint efforts with the distribution system operators to establish a fair and equitable sharing of grid development costs across Germany will gradually become a reality by 2019 now that the grid fee modernisation act (NEMoG) was adopted in early July.
With about 1,000 collaborators, 50Hertz takes care of the operation and the expansion of the transmission grid. Furthermore, the company is responsible for the management of the overall electrical system throughout the German Länder of Berlin, Brandenburg, Hamburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt and Thuringia. As transmission system operator active in the Central European market, 50Hertz is responsible for the secure integration of renewable energy, the development of the European electricity market and for maintaining a high level of security of supply. Since 2010, Belgian grid operator Elia and Australian infrastructure fund IFM Investors are shareholders of 50Hertz, holding stakes of 60% and 40%. As a European transmission system operator, 50Hertz is part of the Elia Group and a member of ENTSO-E, the European Network of Transmission System Operators for Electricity.
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For further information, please contact:
50Hertz Transmission GmbH
phone +49 20-51503417
fax +49 30-5150-2199