WG Belgian Grid

June 19th, 2017

David Zenner

Large Infrastructure Projects

Investment Program of the Elia Group

Elia’s investment portfolio composition

3

2017-2021, EUR million, net CAPEX budget numbers

9043

9080

6486

6367

57113

753

Dense Grid CentralDense Grid North 1Dense Grid North 2

Dense Grid SouthDispersed Grid…Dispersed Grid…Dispersed Grid…Dispersed Grid…Dispersed Grid…

Other (incl needs)Total

111

40

24

390

-6

3

561

Stevin

Boucle de l'Est

Noorderkempen DP

MOG

MOG Onshore

Other (incl needs)

Total

Renewables developments Customers & DSO

Regional reliability of supply

4Functional and technological conformity

5

European markets and security of supply

5 59

3 50

5 46

9 654

Total

3 71

880

25

2 31

# of projects# of programs

The portfolio is clusteredinto 5 societal drivers

▪ Driver 1: All big European driven projects

▪ Driver 2: All big renewables driven projects

▪ Driver 3: All customer driven projects and not part of long term studies

▪ Driver 4: Long-term studies linked to regional reinforcements of the network and reliability of supply

▪ Driver 5: Remaining transversal programs that require minor changes transversally across several assets

programs

projects

Million €

239

235 + 1 °

197

153

144

27

995

Nemo

Alegro

Mercator Avelin

Brabo

Interco/Backbone

Other (incl needs)

Total

15

17

36

14

82

Client

DSO

Google

Other (incl needs)

TotalMillion € Million €

Million €34

13

90

138

BOM

Fiber

Other (incl needs)

Total

Million €

Elia’s investment program for the next 5 years

4

All over the countryBuild connections with industrials to support economic growth.

5

5. Boucle de l’EstReinforce the grid to integraterenewable production

1. BraboReinforce the Port of Antwerp & increase cross-border capacity with NL

2. ALEGrOIncrease cross-border capacity with Germany with the first HVDC on land

4. Nemo LinkSubsea HVDC-interconnection with UK

3. StevinIntegrate offshore wind & benefit fromcross-border trading with UK on land

6. MOGConnection of wind farms in North Sea with the onshore grid

UK4

2

136

Interconnections in Belgium: reinforce ordevelop the grid at each border

5

1

23

4

5

(1) HVDC : High Voltage Direct Current(2) HTLS : High Temperature Low Sag – High performance conductors(3) With a temporary solution as from the winter of 2015(3) PST : Phase Shifting Transformer

1 NEMO [2019]: GB-BE HVDC (1)undersea interconnection

2 ALEGrO [2020]: DE-BE HVDC underground interconnection

3 Avelin-Avelgem-Horta [2022]: HTLS conductor (2)

4 Brabo I [ 2016 (3)]: PST(4) in Zandvliet& Doel-Zandvliet 380 kVBrabo II [2020]: Zandvliet-Lillo-Liefkenshoek 380 kVBrabo III [2023]: Liefkenshoek-Mercator 380 kV

5 PST Schiffelange [CREOS-2015]

6

6

6

6

66 In the longer term [under analysis]

2 cables 220 kV BE-LU Additional reinforcements at the borders

of NL and FR 2nd interconnection with DE 2nd interconnection with UK

6

Reinforce the backbone of the internal Belgian grid 380kV

6

12

3

5

(*)HTLS : High Temperature Low Sag – High performance conductors

4

6

6

1 STEVIN [2017]: Corridor Zomergem-Zeebrugge 380 kV

2 Mercator-Horta [2019]: HTLS conductors

3Gramme-Van Eyck[2015] : 2nd circuit 380 kV and substation Van Eyck

4 Lixhe-Herderen [2017] : 2nd circuit 380 kV and substation Lixhe

5 Capacitor bank and reactance shunt [2016]

In the longer term: 2nd circuit Van Eyck-Massenhoven 380

kV HTLS conductors on the corridor

Gramme-Van Eyck 380 kV

6

Capex managed by Elia Belgium will double over 2016-2019

7

400

200

0

600

2016

13

75

2017

13

86

20182010 2011 2012 2013 2014 2015

13

14

77

2019

Elia Belgium CAPEX (M€)

203

114

525

138113 137

344

115 71

130

373

150

36084

254

509

132

205

518

110

178

29

202137

RedeployHistoricalNon-elec. Infra.EU IntegrationNemo

Maintain

170

Avg. CAPEX 2016-2019

Avg. CAPEX 2010-2014

478

+181%

2010-2016 Elia Belgium Capex Evolution

Source: Elia Infrastructure Organisation presentation 11/2015, Elia projects database, Elia business plan 2016-2020, BCG analysis

Capex Committed to the regulatorfor 2016-2019 Period

Alegro

MARKUS BERGER | 16/06/20169

ALEGrO

➔ First HVDC-interconnection between BE (Elia) and GE (Amprion)

➔ European priority project

➔ 100 km underground cable between Lixhe(BE) and Oberzier (GE)

➔ Transmission capacity of approx. 1000 MW

➔ Operational 2019

ALEGrO : main characteristics of the project

10

Timing Scope

Budget

➔ 94 km underground cable link between Lixhe (BE) and Oberzier (GE) (49 km BE / 45 km GE)

➔ Transmission capacity of approx. 1000 MW

➔ Applied DC voltage: +- 320 kV

➔ Applied convertor technology: VSC multilevel symmetricmonopole

➔ Applied cable technology: HVDC XLPE cable

➔ Reinforcement works in Lixhe ( extra bays GIS + TFO )

ALEGrO: main focus areas in 2017

11

• Start detailed engineering converter and cable in order to start the production on time (Valves,

TFO, cable, …) and to finalize the CW design (building, tunnel, …)

• Type tests cable (started on 22/02/2017, end expected by July 2017)

• Start cable production (foreseen Q3/2017)

• First delivery of cable (FAT) (foreseen Q4/2017)

• Start of application procedure according to PCI-regulations (started on 20/02/2017)

• Permits Belgium:

o Introduction of the permit file (20/02/2017)

o Public consultation (May-June 2017)

o Obtaining the global decision on the permits (December 2017)

MOG: the Modular Offshore Grid

The strategic importance of the MOG in a further offshore griddevelopment

13

The MOG will create valuable advantages for Belgium’s positionin the future offshore development:

• Readiness for more offshore production in Belgian waters: Additional wind mills on existing concessions, additional concessions, other power sources.

• An electric node in place for a link to 380kV grid via another route than Stevin (e.g. cable to Doel)

• A forward base for future interconnections:Connection to Dutch offshore grid, new interconnector with the UK, first Belgian building block of the future offshore supergrid.

• MOG can be built for a similar cost as the sum of individual connections that would be needed

• Greater robustness than individual connections:MOG’s 3 cable redundancy will convey more energy to shore

= yearly the equivalent of 10.000 additional households consumption.• Modular build-up:

synchronization with OWP’s planning : limits risk of stranded assets.• Smaller impact on the environment:

shorter total cable length: +/- 160 km vs 200 km

These future advantages will be achieved without an additional cost for the community.

The technical concept ofthe MOG and perimeterfor Elia

14

Perimeter of MOG Infrastructure

Perimeter offshore windfarms

Northwester 2

Mermaid

Seastar

OSY

Rentel

Stevin

?

Project schedule

15

Stevin

Stevin

17

Stevin

18

➔ Grid reinforcement project (150 kV to 380 kV) in Belgium’s coastal region

➔ Essential for further economic development and for integration and transportation of offshore wind energy

➔ 37 km lines & 10 km cables

➔ Operational 2017

Stevin

19

17km new 380kV OHL parallel to existing 150kV OHL which will be brought undergroundClassic conductors, Insulating cross-arms

12km upgrade existing 380kV OHLHTLS-conductors

8km partial upgrade of existing 150kV OHL, partial new 380kV OHL Classic conductors, Insulating cross-arms

Gezelle

Van Maerlant

Stevin

10km new underground cable 380kV 4 circuits 2500mmCuEm

Demolition existing 150kV OHL

Horta

1,5km underground connection with local grid 150kV

Program timeline

20

Nemo Link

Nemo Link

MARKUS BERGER | 16/06/201622

First• interconnector with the UK• subsea interconnector• HVDC XLPE cable J-Power Systems• converter station with SIEMENS HVDC Plus

technology at 400kV• common regulatory framework

Project description

23

• National Grid and Elia are developing an electrical interconnector (1000 MW HVDC) between the UK (Richborough) and Belgium (Zeebrugge‐Herdersbrug).

• The interconnector will allow electricity to flow in either direction between the two countries. • Nemo will be regulated through the ‘cap and floor’ regulatory regime• It will collect congestion revenues through explicit and implicit capacity auctioning mechanisms 

• Commercial operation is scheduled for Q1 2019• Estimated total project budget for construction : € 721 million of which 50% for Elia• Elia System Operator will therefore take a 50% stake in NemoLink; NGIH will take the other 50%

(Elia System Operator ‐ESO)

(National Grid Interconnector Holdings ‐ NGIH)

MARKUS BERGER | 16/06/20162424

Converter station (Herdersbrug site)

Nemo onshore HVDC cable (approx

9km)

HDDOffshore

380kV connection

Gezelle substation

Stevin

Geographical overviewn Belgium

Project timeline

25

Brabo

Phase 1Zandvliet - Doel + Zandvliet 2nd Phase Shifter End 2016

Brabo

27

Phase 2Rechteroever: Zandvliet - Lillo LiefkenshoekEnd 2018 - 2019Phase 1

Zandvliet - Doel + Zandvliet 2nd Phase Shifter End 2016

Brabo

28

Phase 2Rechteroever: Zandvliet - Lillo LiefkenshoekEnd 2018 - 2019

Phase 3Linkeroever: Liefkenshoek - Mercator End 2023

Phase 1Zandvliet - Doel + Zandvliet 2nd Phase Shifter End 2016

Brabo

29

Phase 2Rechteroever: Zandvliet - Lillo LiefkenshoekEnd 2018 - 2019

Phase 3Linkeroever: Liefkenshoek - Mercator End 2023

Phase 1Zandvliet - Doel + Zandvliet 2nd Phase Shifter End 2016

Brabo - Reinforcement interconnexion with the Netherlands

30

➔ Grid reinforcement project in the Port of Antwerp area

➔ Essential for further economic growth &connection of new production plants

➔ Increases cross border exchange possibilities with the Netherlands

Brabo II – Scope

31

Lillo

Noordland/Zandvliet

Oorderen

150 kV cable: • Lillo – Noordland: 2 x 10 km• Lillo – Oorderen: 2 x 5 km• Ketenisse – Doel: 1 x 3.5 km

380 kV line: • Step 1: Lillo – Liefkenshoek: (Schelde-

crossing)• ~3 km• 10 pylons

• Step 2: Lillo – Zandvliet:• ~ 16 km• 48 pylons

Ketenisse

Doel

Liefkens-hoek

Schelde

LegendExisting: 150 kV line (2 circuits)

First part: 150 kV cable

Second part: 380 kV line (2 circuits)

Timing Scope

Budget

➔ Ondergronds brengen van 150kV:

o 2 x Lillo-Noordland

o 2 x Oorderen-Lillo

o 1 x Ketenisse-Doel(18N)

o Postwerken

➔ Nieuwe lijn 380kV:

o Lillo-Zandvliet

o Lillo-Liefkenshoek(koppeling met bestaande lijn Doel-Mercator)

32

06/2018

Target MSIBrabo II

Mark-Up

01/2017

Building permit Cables

Building permit Line

10/2017 31/12/20

Cable fullMSI

Building permit line(380kV line)

Project MER (380kV line)

Building permit 150kV cable Lillo – NoordlandDesign Cable

Lil.– No.

Building permit150kV cable Oord – Lillo

DesignCable Oord

–Lil.

Building permit150 kV cable Ket. – Doel

150kV cable pulling & commissioning Lillo - Noordland

150kV cable pulling & comm. Oord. – Lillo

150kV cable pulling & comm. Ketenisse - DoelDesign Cable

Ket. -Doel

Tower detailed design step 2.2 (380kV line)

Tower detailed design step 1 + 2.1 (380kV line)

Towers specs

GRUP Approval

31/12/19

Target MSIBrabo II

Timely compl.

Tower proc. & production step 2.2.4-5

Remo-val 150 kV line

CW, tower ass.& elec. works step 1 + 2.1

Tower procurement & production step 1 +2.1

Declaration of public utility

Substation works – Lillo – 150KV

Substations Zandvliet – Noordland - connection 150kV

~4m

Replacement Bay Protections in Mercator & Doel

~6m

Tower proc. & production step 2.2.1/2/3

Substation works – Lillo –380KV

2nd cable1

~2m

2nd cable1

Summary: Brabo II

CW step 2.2

Elec. works step 2.2.3/4/5

Tower assembly 2.2.3/4/5