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Sustainability Report/Sustainability 2018/Principles + Strategy/Business model

Business model

GRI 102-1, GRI 102-2, GRI 102-3, GRI 102-4, GRI 102-6, GRI 102-7, GRI 102-9, SDG9

50Hertz operates one of Europe’s most modern electricity transmission grids in northern and eastern Germany, thereby ensuring 18 million people are supplied with electricity –24 hours a day, 365 days a year. In eleven locations, 50Hertz acts as an interface between energy producers on the one hand, and both distribution grid operators and major consumers on the other, with 1,045 employees to supply electricity around the clock. 50Hertz operates 10,390 kilometres of lines and coordinates the electricity market players in the grid area, manages and coordinates balancing groups and puts electricity from renewable energies that is not directly sold onto the electricity exchange. In order to help successfully shape the energy transition, 50Hertz is developing innovative solutions to aid the system and market integration of intermittent renewable energies. 50Hertz has a “natural monopoly” with its transmission grid inits grid area, i.e., in northern and eastern Germany the Company is the only operator of the extra-high-voltage grid and is therefore subject to regulatory oversight by the national regulatory authority, the Federal Network Agency. The regulatory system has a substantial impact on the business model. The Federal Network Agency also sets the annual revenue cap, upon whichthe network user charges for 50Hertz are based.

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Objectives and Visions of 50Hertz

 

Grid ownership – We prepare to deliver the infrastructure of the future.

We develop, build and maintain our transmission grid according to long term needs. We heavily invest in the integration of renewable energy, the development of an offshore high-voltage grid and the construction of interconnectors to facilitate the integration of the European energy market. By doing so, Elia Group drives the transition to tomorrow’s energy system.

 

System control – we maintain the balance.

Operating the electricity system is an increasingly complex task due to the sharp rise in renewable generation sources, the continuous arrival of new players and technologies and the development of supranational coordination. To ensure a reliable supply and effi cient operational management of our grids, Elia Group monitors the electricity system in real time. This requires specialist knowledge as well as sophisticated tools and processes.

 

Market facilitation – We are part of the European integrated market.

50Hertz makes its infrastructure available to all market players in a transparent, non-discriminatory way. Digitalisation and the latest technologies offer market players new opportunities to optimise their electricity management by selling their surplus energy or temporarily reducing consumption. We develop services and mechanisms allowing the market to trade on different platforms, which promotes economic competitiveness and the wellbeing of society.

 

Trusteeship – We transparently integrate renewable energies into the market.

The German legislator has transferred the responsibility for coordinating and processing legal levy systems to promote environmentally friendly technologies to the transmission system operators. 50Hertz collects these levies as a trustee, administrates these and coordinates their distribution to the recipients. If the electricity from renewables is not marketed directly, we sell this electricity on the power exchange.

 

Grid

Total lenght of lines

G4-EUS-EU4

Total length of lines201620172018
Thereof overhead lines 380 kV7,225 km7,245 km7,250 km
Thereof overhead lines 220 kV2,647 km2,612 km2,607 km
Thereof sea cable 220 kV–-190 km
Thereof underground cables - various73 km73 km73 km
Circuit length in total10,215 km10,200 km10,390 km

Substation and switching stations

Total length of lines201620172018
Substations636565
Switching stations678
Business locations

50Hertz regional centres reorganised

In 2018, 50Hertz prepared a new location concept that came into force at the beginning of 2019. The new concept was needed because of the further integration of offshore wind farms, the use of the new HVDC cable SuedOstLink and furtherEEG-related grid expansion measures, which are expected to result in a 25percent asset growth.

Jochen Müller, Leiter Netzbetrieb

„With the presence of our regional centres, we can guarantee a rapid response in the support of our technical assets and at the same time give 50Hertz a face in our grid area. With our additional sites, we already have the right structure today for the expansion of substations, switching and cable systems and overhead lines in the context of the energy transition.“

Jochen Müller – Head of Grid Operation at 50Hertz

 

Business locations 50Hertz

Facilitating Offshore Energy


Offshore energy is set to grow exponentially. In Germany, 50Hertz achieved the cable connections (representing 190 km) for two offshore wind farms in the Baltic Sea.

Efficient use of the grid and control of the system