2009 characterised by growth for TenneT

Takeovers strengthen TenneT’s position
2009 marks start of large‑scale expansion in the Netherlands
Revenue exceeds EUR 0.5 billion; profit realised in 2009 amounts to EUR 72 million

02-06-2010 2009 was a year marked by growth and expansion for TenneT, the electricity transmission operator of the Netherlands. Besides acquiring the regional 110/150 kV high‑voltage grids, the company also announced that it would take over part of the German high‑voltage grid. Net revenue rose by 18.7% in the year under review to reach EUR 546.6 million. Profit levels also increased from EUR 50.7 million in 2008 to EUR 72.1 million in 2009. These are some of the main points in TenneT’s Annual Report for 2009, which was published today.

Acquisition of transpower
Having previously acquired the regional high‑voltage grids in the Netherlands, TenneT announced in November 2009 that it would take over the German grid operator transpower stromübertragungs GmbH from E.ON. The move marked a milestone in TenneT’s development, and is in line with the ‘Strengthen and Build’ strategy which TenneT adopted several years ago. As Europe’s first cross‑border electricity transmission operator, TenneT/transpower wants to play an active role in strengthening the European electricity market. The ultimate goal is to establish a single market area in north‑western Europe in which TSOs will resolve congestion and market parties will not face transmission restrictions.

Investments require changes in legislation
“The new electricity connections and our purchase of transpower will enhance the security of supply, offer new opportunities to market parties, and facilitate the integration of sustainable energy”, said TenneT CEO Mel Kroon. “However, these new investments demand a suitable regulatory framework. The regulatory system in the Netherlands must enable TenneT to recoup its investments and actually realise a reasonable return over the coming years. Only then can we work effectively on achieving the wider aims of society. TenneT’s tariffs continue to rank among the lowest in Europe.”

Major projects kick off
In order to achieve its aims, TenneT/transpower is making considerable investments both within the Netherlands and across the border. In 2009, initial memorandums were published for three major projects in the Netherlands: North‑West 380 kV in the north of the country, South‑West 380 kV in the south, and Doetinchem‑Wesel 380 kV in the east. Over the next five to seven years, TenneT/transpower is investing up to EUR 6 billion in these and other new projects in the Netherlands and Germay together. At the start of 2010, TenneT raised money on the public capital market in order to be able to finance these investments. EUR 1 billion in European bonds was placed with institutional investors. A further EUR 500 million was issued in subordinated (hybrid) bonds.

Two hundred new employees
In order to implement its ‘Strengthen and Build’ strategy, TenneT also expanded its workforce in the year under review. More than 200 new employees were hired, raising the total workforce to 934 at year‑end 2009. TenneT’s successful recruitment campaign begun in 2008 (www.werkenbijtennet.nl) was continued in order to hire these new staff members.

Corporate Social Responsibility
TenneT’s first CSR Annual Report will be published simultaneously with the company’s regular Annual Report. In the CSR Report, TenneT expresses its ambition to take a leading role in the field of Corporate Social Responsibility. The company aims to do so by making an important contribution to improving the sustainability of the energy supply, for example by realising an offshore electricity grid.

Downloads

Annual Report 2009 (pdf 5,81 Mb)