50Hertz Transmission GmbH holds a natural monopoly over the transmission of electricity in the north and east of Germany. The company is the exclusive operator of the extra-high-voltage grid in this area, as the competitive operation of such a grid is not economically sensible. 50Hertz is therefore subject to regulatory supervision by the national regulatory authority: the Federal Network Agency (Bundesnetzagentur or BNetzA). The German regulatory system shapes 50Hertz’s business model and sets its revenue cap when its grid fees are calculated. As part of Elia Group, 50Hertz believes that interconnectors, especially hybrid interconnectors which are also linked to offshore wind farms, are necessary to achieve the goals of the European Green Deal. Given the enormous amount of electricity that will be needed in order to decarbonise society, Europe must harness all potential renewable energy sources, including those which are located far away from the coasts of its member states. 50Hertz operates the Kriegers Flak Combined Grid Solution (KF - CGS), the world’s first hybrid offshore interconnector, with its Danish counterpart, Energinet. KF - CGS connects Germany and Denmark to each other via an interconnector which is also linked to several wind farms in the Baltic Sea. As a result, the interconnector can transmit offshore wind power to either country and can also be used for cross-border electricity trading. In addition to our activities as a transmission system operator, we offer various consulting services for international customers through our subsidiary Elia Grid International (EGI) as part of the Elia Group, including improvement of the increasing integration of renewables in countries outside of Belgium and Germany.