Presentation Jacques Vandermeiren at Trends Lunch

Trends Lunch

18-04-2013

Elia Group:

Powering a World in Progress

Agenda

2

1. Elia Group: A European Transmission System

Operator active in Belgium and in Germany

3. Major projects 2013

2. Renewables: a game changer

Agenda

3





International exports

Electricity generation

International imports

Small industry & domestic clients

Large & medium clients

380-220kV

(50Hertz + Elia)

150/110/70/30kV

(Elia)

<30kV

Elia operates, maintains and develops a network consisting of lines, underground cables, transformers and substations linking producers and consumers of electricity

Elia’s central role as a de facto

monopoly

4 Source : Company website

5

Overview of Activities

System

Operation

• Capacity allocation

• Network operation

• Balancing generation and demand

Infrastructure

Management

Related

Activities

• Ownership

• Maintenance

• Development

• Market facilitator

• Services & technical expertise

• Telecom services

• HGRT / Powernext / Belpex

• EU Integration (CASC-CWE, Coreso)

• Activities for third parties (consulting)

Elia at a Glance

EUR million 2012

Revenues 1,306.6

EBITDA 455.5

EBIT 305.4

Net Income 155.0

Equity 2,108.5

Net financial debt 2,910.8

Regulated Asset Base 5,300

2012 key financials

Source : Company website

Corporate structure and

shareholder’s structure

Elia & 50Hertz Transmission

6

Free float1

52.26% Publipart 2.52%

Publi-T 45.22%

Elia System Operator SA

Elia Asset SA 99.99%

Elia Engineering

100%

Elia Re 100%

CASC 8.33%

HGRT 24.50%

Coreso 22.49%

APX 29.02%

Eurogrid International SCRL

60.00%

Eurogrid GmbH 100%

Gridlab GmbH 100%

E offshore A LLC

100%

50Hertz Transmission

100%

Coreso 10.00%

EMCC 20.00%

50Hertz Offshore 100%

CAO 12.50%

Atlantic Grid Investment A Inc. - 100%

Atlantic Grid A Interm. Holdco 10.00%

Atlantic Grid A Operational

Holdco 1Free float contains 5.41% held by Belfius Insurance

First HVDC offshore-grid in the

world

• Up to 6000 MW wind production

• 2000 MW interconnector for 4 states

• Participation: Eurogrid International (10%)

• Partners: Google, Marubeni, Bregal Energy

and Atlantic Grid Developers

• Investment: € 2,7m till PJM ISO approval

+

Consultancy contract for Elia Group

Building on Elia & 50Hertz strengths

7 Source : Company website, www: atlanticwindconnection.com

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Ownership

Elia • 100% of 380-150kV network

• 94% of high voltage network (70-30kV)

50Hertz • 100% of 380-220kV network

34% of the German 380kV network

19% owner of the German 220kV network

Age of networks

Elia • Less than 15 years for 50% of underground cables

• Less than 25 years for 50% of lines & substations

50Hertz • Around 10 years for 90% of the network (refurbished

after German reunification in 1989)

Elia Group: reliable and resilient

networks


TenneT

GmbH

Elia-TSO : € 150.0 m

• Main drivers are replacements and internal

consumption

• Reliability: 99.999%

Elia Group: Investments 2012

9

50Hertz : € 253.4 m (of which 60% for Elia)

• Onshore : € 143.5 m

• Offshore : € 109.9 m

• Mainly for RES integration

• Reliability: 1.2 incidents per 100km

47%

28%

Renewables & new plants

9%

Non electrical

16%

Replacements

Internal

consumption

4%

2%

90% 4% Non electrical

Replacements

Internal

consumption

Renewables

& new plants


Agenda

10





• Fast increasing share of Renewable Energy Sources

• Need to achieve (quickly)

• Investments in flexible Generation and Demand

• Adequate Transmission capacity

• Highly liquid day-ahead and Intraday markets

• Facing the power system reality…

Key Challenges

RES : the Game Changer

.. RES = Flexibility

0

5.000

10.000

15.000

20.000

25.000

04.02.2011,

00:00

05.02.2011,

00:00

06.02.2011,

00:00

07.02.2011,

00:00

08.02.2011,

00:00

09.02.2011,

00:00

10.02.2011,

00:00

MW Actual production Forecasted production

Wind generation

… should Germany be an E-island …

Let us assume:

Use of 400 MW Flexible CCGT

with fast ramping of ~150 MW

Flexibility = ~ 33 CCGT units

with a usage factor of 2000-3000 h/yr

Who will invest ? Source: EEX, Elia analysis

Solar generation

Max – min generation : 23 GW

Forecast – actual: 5 GW

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

02.09.2011,

00:00

03.09.2011,

00:00

04.09.2011,

00:00

05.09.2011,

00:00

06.09.2011,

00:00

07.09.2011,

00:00

08.09.2011,

00:00

MW

50Hertz Amprion TenneT EnBW Actual production

Forecast – actual : 2 GW

Delta peak in 1

week: 9 GW

2012 peak = 22GW

Reserves needed for Wind forecast : ~ 5 GW

Germany today

.. RES = Grid Capacity within Member States

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

28.03.2012,

00:00

28.03.2012,

08:00

28.03.2012,

16:00

29.03.2012,

00:00

29.03.2012,

08:00

29.03.2012,

16:00

MW

Conventional Wind Solar

Generation mix in Germany

Wind + solar: 40% of peak demand

2012 wind power, redispatch, curtailment (50Hz area) 2009 wind power, redispatch, curtailment (50Hz area)

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

01.01.2009 08.01.2009 16.01.2009 24.01.2009 31.01.2009

MW

Wind power Redispatch Curtailment

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

01.01.2012 08.01.2012 16.01.2012 24.01.2012 31.01.2012

MW

Wind power Redispatch Curtailment

Capacity

[MW] 0 20.000 40.000 60.000 80.000

2020

2015

2010

Consumption

Generation

Consumption

Generation

Consumption

Generation

.. RES = Grid Capacity between Member States

Demand centers

Renewables Current projects

The necessary network expansion is slower than the increase of renewable energies.

Conventional power plants (install.)1

RES (install.)2 Heavy load (estimate)3

Export capacity (estimate)3

≈ 30 GW ≈ 25 GW

1 Application situation according to the German ordinance governing network access for power plants (KraftNAV) of 28/02/2011

2 2010: Actual values according to ISET and EEG-DB; 2015/2020: own EEG forecast 2010

3 Estimate of the maximum load in the control area in 2009 and information on the network expansion planning report 2010

Agenda

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Elia-TSO : €200m

Main drivers

• Replacements

• Internal demand

• First offshore investments in the North

Sea

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50Hertz : €415m (of which 60% for Elia)

• Onshore : €267 m

• Offshore : €148 m

Main drivers

• RES integration

4%

3%

86%

7%

Non electrical

Replacements

Internal

consumption

Renewables &

new generation

41%

33%

Offshore 6%

Renewables & new

generation 8%

Non electrical

12%

Replacements

Internal

consumption

Elia Group: Investments

Outlook 2013

Source: Company forecasts

Elia TSO – Investments 2013 – 2022

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Reinforcement

North border

Additional PST,

second circuit

Gramme-Van

Eyck

Decentralised

production Meer,

Rijkevorsel,

Merksplas

Project Brabo in

port of Antwerp

Reinforcement

Baekeland-

Mercator-Doel

Reinforcement

“East loop”

onshore wind

Reinforcement

South border

Project Stevin for

shore

reinforcement

Onshore: Major projects Offshore

• Investment around € 2.0 billion over the coming 10 years in the onshore grid

• Offshore grid is not yet included in the business plan. Investment amounts potentially up to € 1.0

billion, first investments foreseen in 2013


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50Hertz – Investments 2013 – 2022

Onshore Offshore – Baltic Sea

• Investment around € 4.0 billion in the grid over the coming 10 years, spread over onshore (+/-

55%) and offshore (45%) projects

• Offshore projects are mainly Baltic 2, Wikinger, Arkona-Becken Sudost


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A true challenge for the Elia Group!

Presentation Jacques Vandermeiren at Trends Lunch

Technology

Transcript of Presentation Jacques Vandermeiren at Trends Lunch