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  • Sustainability Report
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Sustainability Report/Sustainability 2020/Principles & Strategy/Principles

Principles

Our vision

For a successful energy transition in a sustainable world

The energy transition will not just happen by itself. It is only possible if we actively work towards it. If we maintain a dialogue with all players involved to openly discuss challenges in grid expansion. If we offer a reliable infrastructure that reacts flexibly to fluctuations in supply and demand. And if we consider both customer and stakeholder perspectives in all our decisions.

From 60 to 100 by 2032: new energy for a strong economy

Europe is to be the first climate-neutral continent in 2050. With this, the policy is sending a signal in terms of energy and climate policy, but also in terms of industrial policy: energy-intensive companies need green electricity if they want to produce in a climate-neutral way. These companies will stay or settle in locations where they can cover their electricity needs entirely from renewable energies and thus decarbonise their processes. This means that the faster a region achieves the goal of a power supply based predominantly on sustainable energy sources, the more attractive this area will be as an industrial location. That is why we at 50Hertz have launched our initiative entitled "From 60 to 100 by 2032 - New Energy for a Strong Economy".

Our ambition

By 2032, it should be possible to cover the total electricity consumption within the 50Hertz grid area (i.e. eastern Germany and Hamburg) over the course of a year with 100% renewable energy. In 2020, this share amounted to about 62 percent. The secure integration of these high shares of volatile renewable energy into our grid, the system and the market paves the future: for us and for industrial companies in our grid area.

 

 

62 %

 

Performance of production sources (energy mix)

SDG7, GRI 302-2

Change in the share of renewable energy in electricity consumption

Energy import & export

GRI 102-6, GRI 302-2

Energy consumption

In the 50Hertz grid area, electricity consumption in the year under review was around 100 TWh.

Grid reliability

GRI Sector disclosure EU12

50Hertz is a pioneer in the integration of renewable energies and simultaneously offers a high degree of supply security.

The context of the energy Transition

GRI Demand-Side-Management, Ensuring the availability and reliability of electricity 

As transmission system operators, 50Hertz leads the way in the Energy transition. Our grid have a crucial role to play in the decarbonisation of the energy sector and society in general.

Decarbonisation of the energy sector

The decarbonisation of the energy sector based on increasing shares of renewables will remain the most important driver of change in Europe. This trend is propelled by the political objective to counter climate change and build a sustainable energy future, but is also supported by the rapid development and declining costs of renewable technologies themselves. We expect this trend to accelerate - with direct effects both on the required grid expansion and on system operation. The availability of different types of renewable energy at different locations contributes to the sustainability, resilience and stability of the European electricity system as a whole, and increasingly requires the transport of electricity flows over long distances and the interconnection of European electricity systems. In other words: We must be ready for the transmission of electricity over long distances and at the same time be able to cope with the sometimes extreme fluctuations, especially in electricity production.

Decentralisation

"Prosumer" numbers will rise and they will move to the forefront of the electricity system even more, empowered by technologies that allow them to play a much more active role. New technologies, increasing electrification and sector integration also stimulate the emergence of new players such as service providers targeting end-consumers. For example, balancing service providers are exploring the potential of delivering flexibility to different Players along the value chain.

Supranational coordination

The increasing share of renewables and the trend towards more decentralised generation with a much larger number of players is making the behaviour of the power system more variable and complex. In addition, all over Europe we are seeing grid development lag behind rapidly evolving renewable generation. This is causing congestion problems and considerable redispatching costs in some European countries. Given the already high degree of interconnectedness and integration of the European power system and markets, responding to these challenges often requires a supranational approach.

Digitalisation

The fourth trend, which is being introduced at a rapid pace, will accelerate the speed of the decarbonisation and the decentralisation of production. Elia Group expects to see massive amounts of renewables coming online at all levels of the grid, electrification powering activities such as mobility and heat & cooling, more international cooperation, and millions of people producing and storing their own electricity. To respond to this, the Group believes that a new way of managing the future power system is required in order to maximise the Benefits of the energy transition. This will be possible thanks to the digitalisation of the power system connecting all electrical devices and various players in the system. The emergence of new digital technologies will allow new capabilities for improving the gathering, transfer, processing, and visualisation of data, as well as the automation of decisions and actions in managing the power system. Some of these digital technologies include (but are not limited to) the Internet of Things, cloud computing, big data, artificial intelligence and blockchain.

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