2. 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
3. Agenda
3
1. Elia Group: A European Transmission System
Operator active in Belgium and in Germany
3. Major projects 2013
2. Renewables: a game changer
4. 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
4Source : Company website
5. 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
6. 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
Holdco1Free float contains 5.41% held by Belfius Insurance
7. 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
7Source : Company website, www: atlanticwindconnection.com
8. 8
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
Source : Company website
TenneT
GmbH
9. 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
Source : Company website
10. Agenda
10
1. Elia Group: A European Transmission System
Operator active in Belgium and in Germany
3. Major projects 2013
2. Renewables: a game changer
11. • 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
15. 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
16. Agenda
16
1. Elia Group: A European Transmission System
Operator active in Belgium and in Germany
3. Major projects 2013
2. Renewables: a game changer
17. Elia-TSO : €200m
Main drivers
• Replacements
• Internal demand
• First offshore investments in the North
Sea
17
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
18. Elia TSO – Investments 2013 – 2022
18
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
Source: Company forecasts
19. 19
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
Source: Company forecasts