Annual Report 2013
Our daily commitment to the energy revolution
50Hertz at a glance
Value
Proportion of total
for Germany
109,360 km²
~ 31 %
9,995 km
~ 29 %
approx. 16 GW
~ 21 %
approx. 98 TWh
~ 20 %
44.3 GW
~ 24 %
– proportion from renewable energy sources
22.9 GW
~ 28 %
– proportion from wind energy
13.5 GW
~ 40 %
Area
Line length*
Maximum load
Electricity consumption based on electricity
delivered to the end consumer under the EEG
Installed capacity
Employees
Sales (gross)
– proportion from the network
Substations and switching stations
* Line length corresponds to the circuit length
821 (according to IFRS)
EUR 8.556 bn (according
to IFRS)
EUR 0.9 bn (according to
IFRS)
66
Denmark
Energinet.dk
Denmark
150
220
220
150
SchleswigHolstein
220
Rostock
Hamburg
Güstrow
Schwerin
Neubrandenburg
Mecklenburg-Western
Pomerania
220
Lower Saxony
Brandenburg
PSE
Poland
SaxonyAnhalt
Berlin
220
Frankfurt (Oder)
Potsdam
TenneT
110
380+220
Magdeburg
Cottbus
Halle
Leipzig
Saxony
110
Dresden
Erfurt
Weimar
Jena
Eisenach
Hesse
Gera
Chemnitz
Thuringia
Zwickau
ČEPS
Czech Republic
Bavaria
TenneT
Line
Switching stations
(most with links to distribution
system operators)
Line planned / under construction 380 kV Line
220 kV Operating voltage in kV
220 kV 380 kV 380 kV planned / under construction 380 / 220 kV Other companies Status as of December 2013
Other companies
HVDC / DC link
Grid connection offshore
System users:
Our customers are regional distribution system
operators as well as power plants, pumped-­
storage plants, wind farms and major industries
connected to the transmission system.
380 kV 380 / 220 kV 400 kV 150 / 220 kV Grid connection offshore
150 / 220 kV planned / under construction
110
Conventional power plant ( lignite-fired,
coal-fired or gas-turbine power plant )
under construction
Pumped-storage plant
Onshore / offshore wind farm
Onshore planned / under construction
Offshore under construction
Offshore wind farms, planned
{
Legend
List of abbreviations
50Hertz ARegV
Amprion BBPlG BNetzA CAO 50Hertz Transmission GmbH, Berlin
“Verordnung über die Anreizregulierung der Energieversorgungsnetze”
(“Anreizregulierungsverordnung”) [Incentive Regulation Ordinance]
Amprion GmbH, Dortmund (formerly RWE Transportnetz Strom GmbH, Dortmund)
“Gesetz über den Bundesbedarfsplan” (Bundesbedarfsplangesetz) [German Federal
Requirements Plan Act]
“Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahn”, Bonn
(Bundesnetzagentur) [Federal Network Agency
CAO Central Allocation Office GmbH, Freising
CEPS
CHP CORESO Ct/kWh DMBilG E.ON edis EEG EEX EGI EHV/HV EIP Elia EMCC EnBW
Energinet.dk
EnLAG ENTSO-E EnWG EPEX Eurogrid Eurogrid International GASC GDP GV GW GWh HGB HRB HVDC Hz IDW IFM IFM Investors IFRS
IG BCE kbit/s
km/h
KraftNAV kV kWh KWKG m
m/s MVA
MW MWh NABEG NEP O-NEP PSE PlVereinhG PV plant ResKV RückAbzinsV StromNEV TCC TenneT TransnetBW TSC TSO
TW TWh CEPS a.s., Republic (Czech transmission system operator)
Combined Heat and Power
Coreso SA, Brussels, Belgium
Cents per kilowatt-hour
“Gesetz über die Eröffnungsbilanz in Deutscher Mark und die Kapitalfestsetzung”
(“D-Markbilanzgesetz”) [German Act on Opening Balance Sheets in German Marks]
E.ON edis AG, Fürstenwalde/Spree
“Gesetz für den Vorrang Erneuerbarer Energien” (“Erneuerbare-Energien-Gesetz”)
[German Renewable Energy Act]
European Energy Exchange AG, Leipzig (electricity exchange)
Elia Group International
Extra-high voltage/high voltage
Energy Infrastructure Package
Elia System Operator SA/NV, Brussels, Belgium
European Market Coupling Company GmbH, Hamburg
Energie Baden-Württemberg AG, Karlsruhe
Energinet.dk, Fredericia/Dänemark
“Gesetz zum Ausbau von Energieleitungen“ (“Energieleitungsausbaugesetz”)
[Energy Line Extension Act]
European Network of Transmission System Operators for Electricity
“Gesetz über die Elektrizitäts- und Gasversorgung” (“Energiewirtschaftsgesetz”)[German Energy Industry Act]
EPEX Spot SE, a subsidiary company of EEX and the French Powernext SA domiciled in Paris (electricity spot market)
Eurogrid GmbH, Berlin
Eurogrid International CVBA/SCRL, Brussels, Belgium
German Accounting Standards Committee
Gross domestic product
Gigavolt
Gigawatt
Gigawatt-hour
“Handelsgesetzbuch” [German Commercial Code]
“Handelsregister Abteilung B” [German Commercial Register Section B]
High-Voltage Direct Current
Hertz
“Institut der Wirtschaftsprüfer in Deutschland e. V.” [Institute of Public Auditors in Germany], Düsseldorf
Industry Funds Management Luxembourg No. 2 S.à.r.l., City of Luxembourg, Luxembourg
IFM Investors (UK) Ltd, London, Great Britain
International Financial Reporting Standard
“Industriegewerkschaft Bergbau, Chemie, Energie”
German Industrial Mining, Chemical and Energy Union], Hannover
Kilobits per second
Kilometres per hour
“Verordnung zur Regelung des Netzanschlusses von Anlagen zur Erzeugung von elektrischer Energie” (“Kraftwerks- Netzanschlussverordnung”) [Ordinance for Regulating Grid Connections]
Kilovolt
Kilowatt-hour
“Gesetz für die Erhaltung, die Modernisierung und den Ausbau der Kraft-Wärme-Kopplung” (“Kraft-Wärme-Kopplungsgesetz”) [German Combined Heat and Power Act]
Metre
Metre per second
Megavolt-ampere
Megawatt
Megawatt-hour
“Netzausbaubeschleunigungsgesetz” [Grid Expansion Acceleration Act]
“Netzentwicklungsplan” [grid development plan]
“Offshore-Netzentwicklungsplan” [offshore grid development plan]
Polskie Sieci Elektroenergetyczne S.A., PSE S.A., Poland (Polish transmission system operator)
“Gesetz zur Verbesserung der Öffentlichkeitsbeteiligung und Vereinheitlichung von Planfeststellungsverfahren”
[German Act for the Improvement of Public Participation and Unification of the Public Works Planning Procedure
Photovoltaic plant
“Verordnung zur Regelung des Verfahrens der Beschaffung einer Netzreserve sowie zur Regelung des Umgangs mit geplanten Stilllegungen vonEnergieerzeugungsanlagen zur Gewährleistung der Sicherheit
und Zuverlässigkeit des Elektrizitätsversorgungssystems” (“Reservekraftwerksverordnung”)
[German Regulation on Reserve Power Plants]
“Verordnung über die Ermittlung und Bekanntgabe der Sätze zur Abzinsung von Rückstellungen”
(“Rückstellungsabzinsungsverordnung”) [German Ordinance on the Discounting of Provisions]
“Stromnetzentgeltverordnung” [Ordinance on Electricity Network-User Charges]
Transmission Control Centre, Neuenhagen
TenneT TSO GmbH, Bayreuth
TransnetBW GmbH
TSO Security Cooperation
Transmission System Operator
Terawatt
Terawatt-hour
Our daily commitment to the energy revolution
Portrait of a company with a future
5
Internal and external expertise: the company organs
7
Interview with Boris Schucht, Chair and Chief Executive Officer
9
Report from the Supervisory Board
13
Commitment to transparency and social awareness
17
Reliable operation for fair competition
25
Infrastructure expansion with ensured environmental protection
33
High level of expertise in matters pertaining to the environment and the future
45
Good deeds across the entire grid area
53
The most important resource: qualified and committed personnel
59
5 • Annual Report 2013 Our daily commitment to the energy revolution
Portrait of a company with a future
50Hertz – Powering a world in progress
As a transmission system operator (TSO) in Central Europe,
we are committed to the secure integration of renewable
energy sources, the development of the European electricity
market and the maintenance of a high standard for security
of supply.
We handle the operation, maintenance, planning and expansion of the transmission system at the 150-, 220- and 380kilovolt (kV) levels in northern and eastern Germany. Our grid
extends over an area of 109,360 square kilometres. It has
a circuit length of around 10,000 kilometres, which corresponds roughly to the distance from Berlin to Rio de Janeiro.
As the TSO responsible for the system, we give priority to
electricity from renewable energy sources when supplying
our grid area, in accordance with the EEG [“ErneuerbareEnergien-Gesetz”: German Renewable Energy Act.] We
already secure the integration of around 40 per cent of all
installed wind-power capacity in Germany. We are pioneers
in this field in Europe. Our grid forms the backbone for the
secure supply of electricity to more than 18 million people –
24 hours a day, seven days a week, 365 days a year.
Our name reflects our program: 50 hertz (50 Hz) is the target
frequency for the electricity grid and thus forms the basis
for a reliable electricity supply. The core task of each TSO
is to permanently ensure the stability of this grid frequency.
We work together with our domestic and foreign partners
to maintain 50 Hz, the pulse of Europe’s electricity supply.
We also promote the development of the electricity market,
integrate all renewable energy sources securely into the grid
and expand our grid as needed to accomplish this.
We operate transparently and without discrimination, fully
within the meaning of the grid independence and neutrality required by the European Union. Since 2012, 50Hertz
has been the only German TSO to be certified as a fully
unbundled grid operator in terms of ownership law by the
Federal Network Agency (BNetzA). We are an independent
transmission-system operator as well as part of the international Elia Group. Our shareholders include Belgian TSO Elia
System Operator SA/NV (Elia), which holds 60 per cent of
the shares, and infrastructure fund Industry Funds Management Luxembourg No. 2 S.à.r.l. (IFM), which holds 40 per
cent.
As a European TSO, we belong to the association known as
the European Network of Transmission System Operators
for Electricity (ENTSO-E).
50Hertz is domiciled in Berlin. The heart of our business
is the Transmission Control Centre (TCC) in Neuenhagen
bei Berlin. This is where our employees monitor the flow of
energy through the grid and implement measures to ensure
the stability of the energy system, so as to guarantee a balance between generation and consumption at all times. We
maintain seven regional centres to ensure optimal maintenance of our transmission system, substations and switching stations in the regions of the federal states of Berlin,
Brandenburg, Hamburg, Mecklenburg-Western Pomerania,
Saxony, Saxony-Anhalt and Thuringia.
Our customers and partners include the regional energy
supply companies’ distribution system operators (DSO)
(that are located in our grid area and that have their systems
directly connected to the transmission system. This includes
the operators of power plants, pumped-storage plants, wind
farms, major industrial consumers, transit- and accountingcircuit customers as well as business partners that are connected to the transmission system in accordance with the
EEG and the KWKG [“Kraft-Wärme-Kopplungsgesetz”:
German Combined Heat and Power Act].
Our vision: we are pioneers in the development of multilateral, sustainable and reliable electrical systems for the energy
revolution, and in the process we connect land and sea
and create new potentials.
Portrait of a company with a future Annual Report 2013
•
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7 • Annual Report 2013 Our daily commitment to the energy revolution
Internal and external expertise:
the company organs
Members of the
Board of Directors
Boris Schucht
Chair and Chief Executive Officer (CEO)
Dr Dirk Biermann
Chief Officer for Markets and
System Operations (CMO)
Hans-Jörg Dorny
Chief Personnel Officer (CPO)
Udo Giegerich
Chief Financial Officer (CFO)
Dr Frank Golletz
Chief Technical Officer (CTO)
INTERNAL AND EXTERNAL EXPERTISE: THE COMPANY ORGANS Annual Report 2013
•
8
50Hertz Transmission GmbH is a wholly owned subsidiary
of Eurogrid GmbH (Eurogrid), domiciled in Berlin. Listed
Belgian electricity transmission system operator (TSO)
Elia System Operator SA/NV (Elia) and infrastructure fund
Industry Funds Management Luxembourg No. 2 S.à.r.l.
(IFM) have indirect holdings in Eurogrid via Eurogrid International CVBA/SCRL (Eurogrid International), domiciled
in Brussels, Belgium.
Supervisory Board
50Hertz is controlled and monitored by Eurogrid and
a codetermined Supervisory Board. The Supervisory
Board of 50Hertz consists of six members and is
composed as follows:
Board of Directors
The company 50Hertz is represented externally by two managing directors jointly or by one managing director together
with an authorized officer. The managing directors are
appointed and recalled by the 50Hertz Supervisory Board.
Members of the Supervisory Board
Daniel DobbeniChair
Chair of the Board of
Eurogrid International,
Braine-l’Alleud (Belgium)
Members of the Board of Directors
The members of the Board of Directors are:
Peter Hausmann*Deputy Chair
Managing Member of the
Executive Board of the German
Industrial Mining, Chemical
and Energy Union (IG BCE),
Hanover (Germany)
Dr Dirk Biermann
Berlin, Chief Officer for Markets and System Operations
Markus Berger Director of Asset Management,
Elia System Operator SA.,
Antwerp (Belgium)
Werner KerschlInvestment Director at
IIFM Investors (UK) Ltd,
London (Great Britain)
Andrea Ludwig* Electrical Engineer,
Berlin (Germany)
Dr Lutz Pscherer*Electrical Engineer,
Berlin (Germany)
* Employee representative
Boris Schucht
Berlin, Chair and Chief Executive Officer
Hans-Jörg Dorny
Neuenhagen bei Berlin, Chief Personnel Officer
(until 11 November 2013 )
Udo Giegerich
Berlin, Chief Financial Officer
Dr Frank Golletz
Dresden, Chief Technical Officer
9 • Annual Report 2013 Our daily commitment to the energy revolution
Interview with Boris Schucht,
Chair and Chief Executive Officer of the Board of Directors
In 2013, 50Hertz again made important contributions
to the success of the energy revolution. Which achievements and successes are especially memorable for
you?
Boris Schucht: I am especially proud of the fact that we
managed to implement and successfully finance an investment of over 400 million euros last year. And everything was
perfectly coordinated with ongoing system operations in
order to minimize grid element downtimes and to guarantee
a high security of supply. That is an extraordinary achievement, a record in the history of 50Hertz. It shows that we
are a capable company that can master the requirements
for modifying the electrical system. Even the construction
work on the second segment of the southwestern interconnector is running at full speed; the public-works planning
procedure has been opened for the third segment. We’re
making good progress on the most urgent grid-expansion
project in Germany.
But that isn’t the only place we’re making progress. With the
Bärwalde–Schmölln link, we installed a new line on an existing route during ongoing partial operation for the first time.
Our new Altentreptow-North substation, installed in record
time, allowed Mecklenburg-Western Pomerania’s highestcapacity wind farm – with hydrogen production and storage – to be connected to the grid in 2013. These are the
types of accomplishments that allow us to create new potentials and to make our contribution to society. Improvements to our purchasing processes and payment processing that were implemented in 2013 are helping us.
We also started the planning process in 2013 for the
South–East Direct-Current Passage, our first onshore
direct-current line, which we would like to install jointly with
Amprion. With this project in particular, our professional,
reliable and prudent action is crucial to its realization. This
important north–south link is of vital importance for transmitting wind energy from the north as well as for securely
supplying Bavaria. It is also the first project of ours that we
are developing according to the new process for crossborder lines. The public discussion on this project shows
how important transparency, open dialogue and promotion
INTERVIEW WITH BORIS SCHUCHT, CHAIR AND CEO Annual Report 2013
are for gaining understanding and acceptance of the grid
expansion.
We involve the public authorities and the public in our planning much sooner than before. That is the right path that
leads to more understanding, better involvement from third
parties and – for us – to a more predictable, better implementation of the project. Even here it is necessary to aim at
rapid and targeted progress in order to show society: “We’re
making progress, we’re working with you and we’re happy
to take suggestions”. Reliable plans, trusting cooperation
and transparent action are essential for our corporate
development.
The new German Federal Government wants tighter
control of the energy revolution and wants to make
significant readjustments to a few points. What does
that mean for 50Hertz?
Boris Schucht: At a time when subjects like the costs of
the energy revolution, the pace of grid expansion or the
secure supply of Germany were really coming into focus as
a result of the German Federal Parliamentary elections, we
were able to state our positions clearly. The coalition agreement of the new German Federal Government contains
many important points. We will continue to make ourselves
available for discussions, so that these rudimentary beginnings now will lead to reliable framework conditions and
well-formulated agreements. The fact is, as a transmission
system operator (TSO), we are also greatly affected by the
transition in the energy industry. We must ease this transition
and take care to prevent any painful breaks.
We want to remain transparent and use all available information to make our case to society in order to ensure that an
efficient and secure supply of energy is possible in the future.
We are doing that not only in the process of the grid development plan (NEP), an essential tool for designing the energy
system of the future; we at 50Hertz also want to build the
grid that is actually needed and nothing more. Of course we
have also noticed that market activity is becoming an ever
more important framework for our activity and especially for
•
10
our core responsibility – maintaining security of supply. Fortunately, the share of renewables continues to rise steadily,
which of course also means that we will soon have to overhaul our market processes from the ground up. We can see
that the dynamic in recent years has made the system more
temperamental, resulting in sometimes large imbalances in
the electrical system. It is not sustainable when large parts
of the conventional generation system, which will continue
to be the urgently needed secure capacity in the system,
are no longer economically profitable. This can quickly lead
to a capacity problem, which absolutely must be prevented.
Here too, we look forward to the upcoming discussions on
market developments in Germany and Europe.
What other challenges do you see for 50Hertz,
and how will you meet them?
Boris Schucht: Our offshore activities in particular are always posing new challenges to us, to our service providers
and to our project partners. We have already learned a lot.
As we complete our work on EnBW Baltic 1 and continue
laying cable for EnBW Baltic 2, we notice that our “maritime
grid area” is becoming more and more reliable and that our
ability to find smart solutions for unplanned developments –
that is to say, our agility – has become a core characteristic
for our progress. The new projects via the Lubmin connection point are now in progress, which will allow us to create
additional, cost-efficient connection systems in order to
achieve the German offshore objectives.
The links to our European neighbours, both offshore and onshore, must be tested thoroughly and strengthened further.
They can be very useful in terms of the national economy.
We have come to an agreement with our Polish colleagues
from Polskie Sieci Elektroenergetyczne to install phase-shifting transformers at the border to Poland in order to enable
better control of load flows. After lengthy negotiations, we
were also fortunately able to come to an agreement in principle with our Czech neighbours CEPS just before the end
of the year.
11 • Annual Report 2013 Our daily commitment to the energy revolution
Left to right: Dr Frank Golletz, Dr Katharina Herrmann (Labour Director), Boris Schucht, Dr Dirk Biermann, Udo Giegerich
It is not always easy to bring our extensive onshore and
offshore investment program together with the daily requirements of grid operations and secure system operations.
Our internal project, “Netzbetrieb morgen und übermorgen”
[Grid operations tomorrow and the next day], which will be
rolled out in 2013 following the design phase, is meant to
equip our regional centres in particular for this enormous
double task. A new regional centre in Hamburg, suitable
INTERVIEW WITH BORIS SCHUCHT, CHAIR AND CEO Annual Report 2013
organizational structures, processes and responsibilities
will create the right framework conditions for their work.
We have also refined the processes, responsibilities and
structures in the Transmission Control Centre (TCC) in
Neuenhagen bei Berlin in order to better meet the growing requirements of system operations. And by the way,
new all-time highs were dealt with in strained grid situations, whether they were deviations of several thousands of
megawatts from the prediction or new wind-power generation peaks of over 11,000 megawatts. Improved processes,
resulting from the introduction of an innovative and highly
automated procurement process, for example, have helped
us to develop our investment plans efficiently on a commercial basis as well.
How is 50Hertz positioning itself internally and in
terms of its cooperative partnerships so as to remain
on track for success?
Boris Schucht: Ten trainees and 84 other colleagues joined
50Hertz this year. They will gain familiarity with everyday grid
situations from and with us in the dynamic environment of
the energy revolution. The team that will enable us to conquer the challenges is essentially on board. Now, every one
of us bears the responsibility for setting the right course and
actively shaping our future. We made some crucial decisions
in 2013 to ensure that we are constantly getting better at
this and are taking up the “common cause” with our Belgian
colleagues more and more.
I am very proud of the great reputation that 50Hertz has
earned as an employer in the labour market and of the degree of enthusiasm and motivation with which the workforce
has made all of the year’s successes possible. For that reason, the entire 50Hertz team deserves my sincerest thanks!
The employee share program at 50Hertz and the development program at the Elia Group level have both started. As
of 1 January 2014, there is a new Group structure which will
serve to further strengthen cooperation within the corporate
Group. As well as information-technology topics, crosscompany innovation and strategy topics, Group communication and European activities will also be organized in this
•
12
new way in the future. A new company is being founded in
spring 2014: with Elia Group International (EGI), we will be
able to unlock international investment opportunities in the
future with even more vigour than in the past and establish
the Elia Group as a global partner in the energy sector.
So, there are big changes coming for 50Hertz –
what does that mean for the “50Hertz identity”?
Boris Schucht: It is precisely in times of great stress that
changes require even more of our energy. When the new
ways become the norm, they make it easier for us to accomplish our tasks. We are absolutely convinced of that.
However, we do not want to implement these changes in
just any way and achieve our objectives arbitrarily. We want
to work with each other and with others in a very specific
way: value oriented, in collegial cooperation and in open
dialogue. That is our maxim; that is the “50Hertz identity”,
which is not only evident when we welcome new colleagues, but which will also more strongly characterize our
daily cooperation and communication with each other and
with external partners. We will achieve this, and it is a matter
of concern for all 50Hertz-ers. If in January 2015 we have
in our hands the final documents and approvals needed for
the new “50Hertz grid headquarters”, then in 2016 our new
company headquarters will express this self image in a similarly inviting, open and transparent working environment.
13 • Annual Report 2013 Our daily commitment to the energy revolution
Report from the Supervisory Board
Dear Reader,
In the preceding business year, the codetermined Supervisory Board of 50Hertz Transmission GmbH performed its
duties with great diligence, as required by the articles of
association and by law, and regularly supervised the Board
of Directors in the control of the company.
The members of the Supervisory Board paid special attention to strategic corporate-development topics and plans
as well as to the essential investment projects in line with
the grid expansion required for the realization of the energy
revolution, wherein they supervised the Board of Directors
in an advisory capacity. This involved the Supervisory Board
informing the Board of Directors in detail, in written reports
and oral presentations, about the business situation, the
statutory and regulatory framework conditions and their
effects on corporate development, dealing with operative
corporate planning including the financial, investment and
personnel planning of the company and its subsidiary companies and discussing possibilities for the strategic alignment of the company.
In particular, the members of the Supervisory Board used
their regular sessions for an intensive exchange of ideas and
for detailed discussions with each other as well as with the
Board of Directors. The employee representatives on the
Supervisory Board prepared all sessions within the context
of special advance meetings with the directors.
All sessions and discussions took place in an open, constructive and trusting atmosphere. Even between sessions,
the Chair of the Supervisory Board and the Deputy Chair of
the Supervisory Board were in regular contact with the Chair
of the Board of Directors, who always informed them appropriately of events that were essential for the assessment
of the position and development and for the control of the
company. Thus, the Supervisory Board was involved at an
early stage in all important business decisions and – insofar
as required by law and by the articles of association – gave
its consent after detailed deliberations.
The Supervisory Board, as a general rule, passed resolutions in its sessions. Individual exceptions to this general
REPORT FROM THE SUPERVISORY BOARD Annual Report 2013
rule included resolutions that were required in the written
procedure in July 2013 regarding seasonal financing.
The Supervisory Board reviewed all matters underlying the
resolution with regard to legality, correctness and economic
viability.
Conflicts of interest were not indicated by the Supervisory
Board, nor did any circumstances become known that
would have suggested the existence of a conflict of interest.
Sessions of the Supervisory Board
The Supervisory Board met on 8 March, 20 September
and 6 December 2013 for regular sessions. The key points
of the deliberations and resolution were the conclusion
of the cooperation agreement with Danish transmission
system operator (TSO) Energinet.dk for the realization of the
Kriegers Flak Combined Grid Solution offshore grid link, the
installation of phase-shifting transformers for the prevention of unwanted load flows across the Czech grid and
across the Polish grid, the strategic and operative company
procedure for the installation of grid connections for offshore
wind farms in the Baltic Sea, the further development of the
corporate financing structure and the conclusion of corresponding financing agreements by and with Eurogrid GmbH
(Eurogrid) including the provision of required securities, the
reorientation of the corporate telecommunications strategy
for the long-term security of important infrastructure and the
specific expertise for its strategic planning and operation,
the acquisition of an interest in the Leipzig-based European
Energy Exchange AG (EEX) and the adoption of the budget
for the planned new construction of the company headquarters at the Heidestrasse site in Berlin.
Moreover, the Supervisory Board dealt continuously and
in detail with the development of the legal and regulatory
framework, especially with the national and international
efficiency comparison of the German TSOs and the review
of the costs subject to regulatory recognition, and supervised the development of the national grid development plan
(NEP) including its anchoring in the BBPlG [“Bundesbedarfsplangesetz”: German Federal Requirements Plan Act].
Finally, the Supervisory Board discussed the 2014 Business Plan in detail and recommended it to the shareholders
•
14
for confirmation. Financial Statements for 2013 Based on
the Auditor’s Report of the chosen auditor, Ernst & Young
Wirtschaftsprüfungsgesellschaft mbH (Ernst & Young), and
on the oral presentation of the Board of Directors, the Supervisory Board, in its session on 7 March 2014, discussed
the Financial Statements for the 2013 business year and
the Company Management Report.
Ernst & Young concluded the audit with an unqualified auditor’s opinion; the itemized audit results were explained in the
Supervisory Board session on 7 March 2014 and discussed
in detail with the members of the Supervisory Board. Based
on the written and oral reports of the auditor and as a result
of intensive internal activity, the Supervisory Board came to
the conclusion that the audit performed by Ernst & Young
was carried out properly and conforms to all statutory requirements. It also determined that there are no objections
to the Financial Statements or to the Company Management
Report or to the statements made by the Board of Directors
in connection with this. In the same session, the Supervisory
Board resolved to entrust Ernst & Young again with the audit
of the Financial Statements (2014).
Director-related and personnel matters
The Supervisory Board resolved the extension of the appointment of Mr Udo Giegerich as Chief Financial Officer until 31 December 2016 and of Dr Frank Golletz as Chief Technical Officer until 31 March 2019, as well as the adjustment
of their respective employment contracts. It also decided to
adjust the employment contract of Mr Boris Schucht, Chair
and Chief Executive Officer, to comply with the fundamental
principles applied to all directors’ service contracts. In connection with the retirement of Mr Hans-Jörg Dorny as Chief
Personnel Officer on 30 September 2013, the Supervisory
Board appointed Dr Katharina Herrmann as the new Labour
Director and decided on all necessary adjustments to the
by-laws of the Board of Directors in connection with this.
Furthermore, it supervised the fulfilment of the personal and
corporate objectives of the directors and settled the agreements on objectives that were concluded for the year 2013
with Mr Boris Schucht, Mr Udo Giegerich, Dr Frank Golletz,
Dr Dirk Biermann and Mr Hans-Jörg Dorny. The members
15 • Annual Report 2013 Our daily commitment to the energy revolution
of the Supervisory Board provided a comprehensive picture
regarding organizational and personnel development in the
company. They discussed in detail the principles governing
the conferral of procuration and conferred it accordingly to
company executives. Furthermore, they also deliberated and
resolved to adjust the principles of compensation for executives and to align them to new standards.
All matters affecting the directors and central personnel topics were first deliberated in the Executive Committee of the
Supervisory Board and then resolved by the entire Supervisory Board.
Final remarks
There were no personnel changes in the composition of
the Supervisory Board during the report period. No legal
transactions were concluded other than those mentioned
above between the company and its associated companies
and directors or their dependants. No contracts were concluded between the company and members of the Supervisory Board and no new credit was granted to members
of the Supervisory Board. The Supervisory Board was also
unaware of any other legal transactions on which it was
appointed to act or which would have required its approval.
The Supervisory Board extends its sincerest thanks and accolades to the Board of Directors, to the Shop Committees
and to all employees for their committed and successful
work in 2013.
Berlin, March 2014
Daniel Dobbeni
(Chair of the Supervisory Board at
50Hertz Transmission GmbH)
REPORT FROM THE SUPERVISORY BOARD Annual Report 2013
•
16
8.12 a.m.
Location:Office at the company headquarters
Coordinates:
52° 29' N, 13° 27' E
Ambient temperature:
20 °C
Humidity:
50 %
Data:
16.000 kbit/s
Illuminance:
500 Lux
Transparency Officer Livia Fuchs has been coordinating and
taking responsibility for the data publications of 50Hertz since
2011. Currency and comprehensibilty, precision and above all
transparency are the criteria for which she has felt particularly
responsible since 2011.
19 • Annual Report 2013 Our daily commitment to the energy revolution
Commitment to transparency
and social awareness
The German energy policy has fundamentally changed in recent years. Renewable energy sources account for an everincreasing share of the energy supply. By 2020, 35 per cent
of Germany’s electricity is supposed to be generated from
renewable energy sources. In 2050, the share of renewables
is supposed to amount to 60 per cent of all energy consumption and 80 per cent of electricity consumption. The
immediate consequence of the growth of renewable energy
sources: electricity generation and electricity consumption are growing steadily farther apart both in space and in
time. An adequate transmission capacity is thus imperative
for the new energy sources. This can be provided in three
ways: optimization of the existing grids, reinforcement of
grids and routes, grid expansion. As transmission system
operator (TSO) for northern and eastern Germany, 50Hertz
is doing its part for the success of the energy revolution.
50Hertz’s grid today already secures the integration of over
40 per cent of all installed wind-power capacity in Germany.
In 2013, more than 35 per cent of the consumption in
50Hertz’s region was already accounted for by electricity
from renewable energy sources. And 50Hertz, by statutory
mandate, continues to invest in the successful reconstruction of the energy landscape. Of course, this can only succeed if all the key players are pulling in the same direction:
industry, science, policy makers, citizens and consumers.
That is why 50Hertz is committed to maximum transparency, early provision of information and open dialogue with
all stakeholders. The objective is to inform the interested
public early, continuously, comprehensively and factually
with regard to what is actually happening and how they can
participate. The participation of all relevant corporate groups
is also naturally in focus for all line-construction plans.
Online information on grid operations
50Hertz was the first German TSO to publish its load-flow
data on the Internet and has been doing so since April
2012. In this way, 50Hertz satisfies the public’s need to
Milestones
2013
better understand the relationship between grid load and
the need for grid expansion. People who are interested
can view the current situation in the grid by means of an
animated map, view a time period as a video or download
the data as a file.
Constructive dialogue with citizens
Line-construction projects are protracted and complex.
Because of complicated review and approval processes in
particular, the planning and realization periods are currently
between five and ten years. 50Hertz is thus always striving to explain the current status of the process as well as
the opportunities for participation that exist at this point in
time. This is true for the activities of 50Hertz with regard to
the operation of the electrical system and also with regard
to the development of the necessary grid infrastructure. All
the essentials relating to this can be found on the website at
www.50hertz.com. People who are interested can find answers to questions about local activities, organized by project, under “Grid Extension”. If desired, they can also sign
up for a periodical project newsletter. 50Hertz also produces
a series of brochures and leaflets geared mostly towards a
general audience. They explain important underlying technical and planning concepts. 50Hertz addresses the public
and especially the affected cities and communities as well as
the citizens as early as possible and actively invites them to
an informal dialogue. By means of appropriate communication measures, 50Hertz guides and supports the interested
citizens and institutions through the process. In coordination
with federal and state approval authorities, 50Hertz provides
access to documents and maps from the approval process
on its project web pages. 50Hertz answers open questions
as quickly and candidly as possible. Citizens can contact
50Hertz directly via a community helpline. 50Hertz takes
part in many forums to improve the tools for this dialogue,
to share its own experiences and to learn from the best. Accordingly, 50Hertz is always working to improve itself – with
the objective of maximizing the effectiveness of the required
4 January 2013
Maximum grid input
On 4 January 2013, 50Hertz records the maximum grid input into the
transmission system: 15,961 megawatts (MW) (minute instantaneous value).
COMMITMENT TO TRANSPARENCY AND SOCIAL AWARENESS Annual Report 2013
21 January 2013
50Hertz employees as “Energy Ambassadors” of the Government
Engineers Katja Horenk and Sven Riedel of 50Hertz are “Energy Ambassadors”
for the German Federal Government. The campaign of the same name shows
people who are working successfully for the energy revolution every day.
•
20
21 • Annual Report 2013 Our daily commitment to the energy revolution
social dialogue on the modification of the extra-high-voltage
grid. The essential elements for this are the legally required
public-participation process, consistently accompanied by
a series of informational forums, dialogue forums and participation forums. Thus, for line-construction projects 50Hertz
uses info markets, “World Cafés”, citizen workshops or
Did you know:
The increasing demand for the transmission of electricity from renewable energy
sources is making it necessary to reinforce and expand the electricity grid. The
13th Amendment to the German Atomic
Energy Act defines Germany’s policy as
the complete phase-out of nuclear power
by 2022. It has anchored the energy revolution principles in law in conjunction
with the amendment to the EnWG [“Energiewirtschaftsgesetz”: German Energy
Industry Act] and the NABEG [“Netzausbaubeschleunigungsgesetz”: Grid Expansion Acceleration Act.
mobile citizen offices, among other things, to present itself
directly at locations in the line-construction regions. In addition, the internet portal for the ] (NEP) of the four German
TSOs (www.netzentwicklungsplan.de) provides information
on how the grid expansion will be coordinated in Germany
as well as consultation forums for the development of annual NEPs.
With the new NABEG [“Netzausbaubeschleunigungsgesetz”:
Grid Expansion Acceleration Act], cross-border approval
processes in 2013 will for the first time also be started
under the responsibility of the Federal Network Agency
(BNetzA). These also place new requirements on transparency. A corresponding packet of measures is intended to
reduce the duration of the planning and approval process by
means of early involvement of the interested public and to
result in greater acceptance of the line construction among
the people. Measures of this type were first used in the first
NABEG project, the South–East Direct-Current Passage.
This is one of the most important electric routes planned
jointly by 50Hertz and TSO Amprion GmbH (Amprion)
between northern and southern Germany for the implementation of the energy revolution. Thus, 50Hertz informed
the public in Thuringia and Saxony-Anhalt, for example, in
Weimar on 26 November 2013 and in Landsberg (Halle) on
28 November 2013 about the planned line construction.
The events formed the kick-off to a comprehensive dialogue
process that accompanied the planning and expansion of
the South–East Direct-Current Passage. 50Hertz provides
the documentation on its project web pages for download
by any interested person.
Mobile info on renewable energy sources:
the EEG app from 50Hertz
50Hertz presented the first version of the “EEG-Mobil” app
in 2012. It provides mobile access to important information
and current facts and figures having to do with the subject
of renewable energy sources. 50Hertz optimized the app in
24 January 2013
Informational event on the planned 380-kilovolt (kV) overhead line between
Eisenhüttenstadt in Germany and Plewiska in Poland
50Hertz plans to reinforce the European electricity-transmission system between Germany and Poland.
An informational event was held to inform citizens and officials about the necessary construction of an
overhead line between the substations in Eisenhüttenstadt, Germany, and Plewiska, Poland.
COMMITMENT TO TRANSPARENCY AND SOCIAL AWARENESS Annual Report 2013
2013 and expanded it to include additional real-time data
from the 50Hertz grid area. The app can display import and
export data as well as input data and predictions of windpower and solar-electricity input, maximum input values and
reductions pursuant to Sec. 13.2 and Sec. 13.2 EnWG [“Energiewirtschaftsgesetz”: German Energy Industry Act]. The
app is available for the following operating systems: iOS,
Android and Windows Phone. (www.50hertz.com/eeg-app).
A close connection to policy
50Hertz also contributes to a better understanding among
policy makers with regard to real-world operations and
the development of the electrical system. For this reason,
50Hertz accompanies legislative processes – by means
of its early inclusion of suggestions, for instance, and the
publication of data and information. Moreover, 50Hertz
addresses public authorities and politicians on a regular
basis with regard to important points concerning regulatory
frameworks, approval processes and security of supply,
the development of renewable energy sources and market
developments, and it organizes the relevant workshops at
regional, national and European levels. The Public Relations
department also maintains a regular dialogue with customers, partners and associations.
For example, 50Hertz is a founding member of the Renewables Grid Initiative (RGI). 50Hertz works together with other
TSOs and non-governmental organizations as part of this
dialogue platform, to date the only one in Europe, to develop approaches for better mediation of the need for grid expansion in Europe. The objective of everyone involved is to
bring about greater understanding and acceptance for the
ecologically compatible and socially acceptable expansion
of electricity-transmission systems, no matter how important this is for the integration of renewable energy sources.
On 1 June 2013, German Federal Environment Minister Peter Altmaier inaugurated the “Renewables Club” with environment ministers from 9 leading states from Europe, Asia and
•
22
Africa. The initiators want to use the Club to promote the
development of renewable energy sources worldwide and
to support the work of the International Renewable Energy
Agency (IRENA). Boris Schucht, Chair and Chief Executive
Officer of 50Hertz, was invited to this exclusive club as an
expert. There, he reported on practical experiences and the
central role of grid operators, as well as on the effects of
the energy revolution on system operations, market activity,
costs and the need for expansion. Delegations from China
and India were especially grateful to Boris Schucht for
the opportunity to visit the 50Hertz Transmission Control
Centre (TCC). There, they were able to see for themselves
the challenges that come along with the integration of
renewables.
50Hertz is also in demand at the national level, such as
when there is a need for a social consensus regarding objectives and formats for a dialogue with citizens concerning
infrastructure projects. Relevant milestones in this regard are
the collaboration with Plan N 2.0 of the Netzintegration Forum [grid integration forum] presented by German environmental group Deutsche Umwelthilfe, the agreement with the
State of Brandenburg regarding information and participation, and participation in workshops held by Germanwatch
e. V. concerning the implementation of NABEG. Even more
important is the dialogue with the Association of German
Engineers (VDI) regarding the new VDI 7000 guideline on
early public participation in industrial and infrastructure
projects.
Cities, communities and counties are important partners for
50Hertz with respect to the organization of the dialogue with
citizens. 50Hertz and the other TSOs are thus consolidating
their cooperation with intermunicipal associations. An initial
meeting for that purpose took place in Berlin in July 2013.
There, it was agreed that intermunicipal associations and
TSOs would adopt a joint position paper on grid expansion.
The municipalities and the grids also need to attain a more
27 January 2013
50Hertz and PSE use virtual phase shifters for the first time to improve control of cross-border electricity flows
In January 2013, 50Hertz and Polskie Sieci Elektroenergetyczne S.A. (PSE) successfully carried out the first short-term use of virtual phase shifters, agreed in December 2013,
to ensure system security. 3 March 2013 – Start of public consultation on the grid development plan (NEP) and offshore grid development plan (O-NEP) for 2013. The four
German transmission system operators (TSO) publish the respective first drafts of the onshore NEP and the O-NEP 2013 on 2 March 2013. The public consultation begins.
23 • Annual Report 2013 Our daily commitment to the energy revolution
definitive understanding of their roles. There was a special
need for discussion with the county association, the association of cities and the association of cities and municipalities
with regard to compensation payments to the municipalities.
What makes us especially proud: 50Hertz employees
acted as “Energy Ambassadors” for the German Federal
Government as part of the campaign of the same name.
The campaign highlights people who are already successfully working for the energy revolution day by day.
Citizen participation with dividends
50Hertz sees the financial participation of citizens in grid
expansion as a potential instrument for promoting grid expansion and for garnering more acceptance. On 5 July 2013,
the managing directors of the four TSOs together with German Federal Minister for Economic Affairs Philipp Rösler and
German Federal Environment Minister Peter Altmaier presented a joint key issues paper “on the financial participation
of citizens in grid expansion at the transmission-system
level”. A pilot project by TenneT TSO GmbH (TenneT) on the
West Coast Line has shown, however, that it can be difficult
to organize in compliance with regulations and financial
market rules and that there also appears to be little demand
from citizens. 50Hertz thus has no plans to introduce a
participation product of its own in the short term.
19 March 2013
Tower foundation work to stabilise 50Hertz extra-high-voltage line
50Hertz starts maintenance and repair work on extra-high-voltage towers between the communities of Bruchmühle
and Eggersdorf. This tower-stability maintenance measure is part of a comprehensive project for the maintenance
of tower foundations along the 380-kilovolt (kV) extra-high-voltage line from Preilack to Neuenhagen.
COMMITMENT TO TRANSPARENCY AND SOCIAL AWARENESS Annual Report 2013
A wide array of specialist events
50Herz has also established itself as a constant in the
industry with a wide variety of different events. Close to
300 participants came to Berlin for the EEG Conference
on 24 October 2013. They discussed current trends and
challenges within the context of the political debate on the
energy revolution and a reform of the EEG [“ErneuerbareEnergien-Gesetz”: German Renewable Energy Act]. With
this annual conference, 50Hertz is contributing to the industry’s commitment to current developments and promoting
the social discourse surrounding the EEG. The conference
focused on topics pertaining to market integration of renewable energy sources, the levy for EEG implementation, input
management and the German System Stability Ordinance.
Another important topic was the implementation of Section
19 Paragraph 2 of the German Ordinance on Electricity
Network User Charges, which deals with exemptions from
grid-user charges. Among the participants welcomed to
this conference by 50Hertz were representatives of the
transmission- and distribution system operators (DSO) as
well as the BNetzA, electricity traders, electricity sellers
and stock market experts, plant operators, IT experts,
lawyers and auditors.
24
ter of Economic Affairs Philipp Rösler visited the 380-kilovolt
(kV) “city diagonal” in the Friedrichshain neighbourhood of
Berlin on 28 August. Boris Schucht and Dr Frank Golletz
informed the minister about the backbone of the national
capital’s electricity supply.
Did you know:
The German electricity grid consists of four
voltage levels. The highest-level transregional transmission systems, known as
electricity highways, form the backbone
50Hertz’s 6th System Security Conference was held on
27 and 28 August. More than 140 representatives from the
fields of electricity generation, transmission and distribution, as well as representatives of universities, associations,
public authorities and consulting firms gathered there to discuss the present and future security of the electricity supply.
The two-day conference covered topics such as sheddable
loads, manual load shedding and critical grid situations.
Participants also held real-time discussions of laws, ordinances and above all cooperation between DSOs and
TSOs.
•
of the energy infrastructure. They transmit
large amounts of electricity at the highest
voltage level of 220 or 380 kilovolts (kV)
with low losses over long distances to regional distribution grids. Furthermore, the
transmission systems connect the German electricity grid to those of neighbouring countries via interconnectors, thus
enabling cross-border energy exchange
in Europe.
50Hertz regularly receives domestic and foreign delegations
at its technical facilities: for example, German Federal Minis-
20 April 2013
First submarine cable segment is laid for the second German offshore wind farm
The first length of submarine cable is pulled into the offshore platform of the EnBW Baltic 1 wind farm for the
connection to the extra-high-voltage grid in Bentwisch near Rostock being set up by 50Hertz. In the future,
electricity from the EnBW Baltic 2 offshore wind farm will also be brought onshore via this platform.
10.25 a.m.
Location:
Coordinates:
Ambient temperature:
Grid frequency:
Wind speed:
Stock market growth:
Front Office
52° 29' N, 13° 27' E
21 °C
50 Hz
13 km/h
30 %
Catherine Schwarz has been the portfolio manager for 50Hertz
since February 2010. Working in shifts, she and her colleagues ensure the acquisition and marketing of electricity
on the stock exchange 24 hours a day, 365 days a year. Maximum concentration, flexibility and a good ability to react are
indispensable for this job.
27 • Annual Report 2013 Our daily commitment to the energy revolution
Reliable operation for fair competition
As the transmission system operator (TSO) responsible for
the system, 50Hertz is mandated to “operate, maintain and,
as needed, optimise, reinforce and expand a secure, reliable
and efficient energy-supply grid without discrimination.” This
is how the concept is anchored in Section 11 of the EnWG
[“Energiewirtschaftsgesetz”: German Energy Industry Act]. In
accordance with the EEG [“Erneuerbare-Energien-Gesetz”:
German Renewable Energy Act], 50Hertz gives priority to all
electricity from renewable energy sources when supplying its
grid area. 50Hertz faces great challenges in successfully implementing the energy revolution: Even during dynamic market developments and increasing EEG electricity quantities,
50Hertz must ensure the secure and requirement-compliant
operation of the electrical system around the clock.
The top priority is to maintain a permanently stable grid frequency of 50 Hz. Renewable energy sources are dependent on the wind and sun and thus provide a very unsteady
input. That dramatically increases the complexity of maintaining the balance between generation and consumption
in the 50Hertz grid area. This balance is controlled jointly by
50Hertz and the other German TSOs within the framework
of grid-control cooperation. To that end, the German TSOs
secure the necessary reserves which serve to balance out
differences between generation and consumption at all
times. In addition to ensuring the frequency, 50Hertz also
ensures requirement-compliant control of the voltage as another parameter for the security and reliability of the electricity supply system. 50Hertz’s intensive preparations for winter
2012/2013 have borne fruit. At the beginning of the year,
50Hertz was able to ensure the secure operation of its grid
without drastic measures. The 380-kilovolts (kV) North Line
from Schwerin to Hamburg, which has been available since
December 2012, has had a very positive effect on voltage
stability in the greater-Hamburg area and on the outward
transmission of wind energy. Under high wind-energy input conditions, this also served to relieve the other network
lines to the west and south. Another important contribu-
tion to the secure operation of the system came when the
innovative high-temperature cable line from Remptendorf
(Thuringia) to Redwitz (Bavaria) proved itself by achieving
an increase in transmission capability.
The effects of Hurricane Xaver were a special challenge for
the system management of 50Hertz on 5 and 6 Decem-
Did you know:
The expansion of renewable energy sources constantly brings new challenges. Nils
Dietrich has to meet these challenges
on a daily basis. As a secondary engineer, he supervises and coordinates current projects at 50Hertz and is responsible for the implementation and maintenance of systems as well as for complex
functional tests. No two days are alike:
equipped with a laptop, testing and measuring equipment and his car, he is always ready to trace and rectify faults.
This is how Nils Dietrich keeps the electricity flowing reliably.
3 May 2013
The Bavarian and Thuringian Ministers of Economic Affairs
are informed of the progress on the southwestern interconnector
Martin Zeil and Matthias Machnig, the Ministers of Economic Affairs for the Free States of Bavaria and Thuringia, see
for themselves the construction progress on the southwestern interconnector in Altenfeld, Thuringia. The important
line-expansion project from north-eastern to southern Germany is also supported politically by both state governments.
RELIABLE OPERATION FOR FAIR COMPETITION Annual Report 2013
15 May 2013
EU Energy Infrastructure Package enters into force
The Energy Infrastructure Package (EIP) was published in the
Official Journal of the European Union on 25 April and thereby
entered into force on 15 May. European Union Member States
are to implement the EIP as of 1 June.
•
24 May 2013
Fire brigades carry out firefighting exercises at the Freiberg-North substation
More than 60 firefighters train for emergencies at the Freiberg-North (Saxony) substation
using a simulated transformer fire. The substation team works in close cooperation with
the volunteer fire brigades from Bräunsdorf, Wegefahrt and Langhennersdorf.
28
29 • Annual Report 2013 Our daily commitment to the energy revolution
ber 2013. Maintaining control of the grid situation required
the preparation and implementation of increased security requirements in a targeted manner in the transmission system
as well as redispatch measures with conventional power
plants. To a lesser degree, reductions in the input from wind
farms also contributed. Xaver caused 53 weather-related
trips in lines and other 50Hertz grid elements, but there was
only a single case of a brief supply interruption.
In 2013, it was necessary to take action on a total of 220
days for the prevention of outage-related overloading of grid
elements in the 50Hertz transmission system under Section
13 EnWG. On 142 days, there was a reduction in renewably generated capacity. The end result was a redispatch
quantity of 2.1 terawatt-hours (TWh) and a depressed EEG
energy supply of 138 gigawatt-hours (GWh).
The system security of the German transmission systems
was ensured at all times in 2013.
Electricity exchange without borders
50Hertz is taking a key role in the European electricity exchange. The 50Hertz grid area, due to its central location,
connects the grids of Denmark, Poland and the Czech Republic with Germany. This is one of the reasons why 50Hertz
is campaigning for transparent and non-discriminatory grid
access as well as for the development of coordinated and
harmonized Europe-wide market mechanisms. This would
allow all stakeholders in society to benefit from free competition in the European electricity market. Close interaction between all national and European system partners is always
of central importance in this regard.
Intensive cooperation makes it easier for 50Hertz to exercise
its responsibility for the system. Thus, 50Hertz cooperates
closely with the other German and European TSOs in the
grid association of the Regional Group Continental Europe
and the System Operation Committee of the European
Network of Transmission System Operators for Electricity
(ENTSO-E). The distribution system operators (DSO) and
generators in the 50Hertz grid area are equally important
partners. 50Hertz is also active in the TSO Security Cooperation (TSC) and Coreso security initiatives, the independent
Did you know:
“Redispatch” and “countertrading” are
among the preventative and curative
measures within the context of system
responsibility. There are also internal balancing zone security interventions for the
adjustment of electricity inputs. Redispatch is a process that provides for intensified intervention in the operating modes
of generation plants. This permits the prevention or rectification of sudden bottlenecks in the grid without changing the
overall input power. This is done by lowering the input capacity of one or more power plants while simultaneously raising the
input capacity of one or more power plants
in a different region.
1 June 2013
50Hertz attends the founding of the “Renewables Club” by German Federal Environment Minister Altmaier
German Federal Environment Minister Peter Altmaier joins with the environment ministers of nine leading renewable-energy
countries from Europe, Asia and Africa to inaugurate the “Renewables Club” in order to promote the development of renewable
energy sources worldwide. Chair and Chief Executive Officer Boris Schucht is invited to this exclusive club as an expert.
RELIABLE OPERATION FOR FAIR COMPETITION Annual Report 2013
•
30
security centre in central and western Europe, and is an active member in the committees of ENTSO-E. Together with
the Technical University of Cottbus, 50Hertz has been the
driving force for the GridLab European training and research
centre.
of the phase-shifting transformers on both international lines
between Poland and Germany was already moving forward.
The line between Mikulowa (Poland) and Hagenwerder
(Germany) is to be equipped by PSE and the line between
Krajnik (Poland) and Vierraden (Germany) by 50Hertz.
With GridLab, 50Hertz is making an important contribution
to the strengthening of the ability of system operators’ and
generators’ operational personnel to act, as well as to the
standardization and certification of system- and grid-management processes.
Unplanned electricity flows toward the Czech Republic
also reached a significant magnitude. 50Hertz and Czech
TSO CEPS a.s. (CEPS) agreed to the use of phase-shifting
transformers on the line from Hradec (Czech Republic) to
Röhrsdorf (Germany).
More security for cross-border electricity exchange
Unplanned cross-border electricity flows resulting from modified electricity generation structures in Germany and Europe, along with the resultant electricity trade, have a strong
influence on secure system management. For this reason,
50Hertz and neighbouring Polish system operator Polskie
Sieci Elektroenergetyczne S.A. (PSE) agreed contractually
on the use of “virtual phase shifters” and the subsequent
construction of physical phase-shifting transformers back
in December 2012. These permit better coordination during
unplanned electricity flows at the border. The agreed measures are intended to ensure system security, to promote the
integration of renewable energy sources and to strengthen
the European Single Market – thanks to additional tradeable
transmission capacities between Poland and Germany.
The future operation of the phase-shifting transformers will
be optimized across the border and supplemented with
internationally agreed grid expansion. To that end, 50Hertz
is planning a third interconnector to Poland. A new overhead
line is to be built between the Eisenhüttenstadt substation
on the German side and the Plewiska substation on the
Polish side. The first step: In mid-January 2013, the regional
planning procedure began with the public display of documents. In connection with this, the municipal government of
Eisenhüttenstadt, the competent regional planning agency
of the State of Brandenburg and 50Hertz informed citizens
and officials about the project in an informational event.
In January 2013, 50Hertz successfully practised this joint
procedure for the first time: electricity flows from Germany
had exceeded a defined limit and constituted a potential
danger to grid stability in Poland. A coordinated intervention
in the operating modes of power plants on both sides of the
border made it possible to emulate the mitigating effects of
a phase-shifting transformer. The pilot phase, which lasted
until the end of April 2013, provided valuable information for
further refinement of the procedure coordinated between
PSE and 50Hertz. In the meantime, the agreed construction
5 June 2013
Maximum input from PV plants
On this day, the maximum simultaneous input from photovoltaic plants (PV plants) is reached at 5,346 megawatts (MW),
a new record in the 50Hertz grid area.
7 June 2013
System operators and earlier public participation
The German PIVereinhG [“Gesetz zur Verbesserung der Öffentlichkeitsbeteiligung und
Vereinheitlichung von Planfeststellungsverfahren”: Act for the Improvement of Public
Participation and Unification of the Public Works Planning Procedure] enters into force.
It stipulates that project promoters give the affected stakeholders the opportunity to
make a statement before the application is filed and to discuss the project accordingly.
12.05 p.m.
Location:Offshore platform
EnBW Baltic 1 wind farm
Coordinates:
54° 37' N, 12° 38' E
Air temperature:
4 °C
Wind speed:
5 – 8 m/s
Wave height:
0,5 – 0,7 m
Water temperature:
2 – 3 °C
Marian Mügel has been on board at 50Hertz since April 2010.
Every work day presents him with new challenges. His work
as a special technician for offshore cable technology is truly pioneering at times, as is that of his colleagues. Essential offshore equipment: survival suit, life vest, crew finder,
helmet with emergency light, rescue climbing harness, thermal
underwear and coldprotection gloves.
33 • Annual Report 2013 Our daily commitment to the energy revolution
Infrastructure expansion with
ensured environmental protection
The implementation of the energy revolution requires progress in the optimization of the existing grids as well as in
the reinforcement and expansion of the grid. This is always
the result of a process that is planned carefully over the
long term and coordinated with many stakeholders.
The grid development plan (NEP) –
basis for the grid of the future
In its 2013 onshore NEP, 50Hertz recommended a total of
20 line measures, grid reinforcements and new construction
projects for “Scenario B2023”. The measures to be re-evaluated with a view to further development of renewable energy
sources were classified as “to be observed”; all others were
classified as urgent. All measures classified as urgent by
50Hertz were confirmed by the Federal Network Agency
(BNetzA) on 8 January 2014. 50Hertz will initiate further
planning and approval steps for these measures in 2014.
The first German NEP for the extra-high-voltage grid made
its onshore début in 2012. In 2013 the focus was on the first
O-NEP. The O-NEP lists all measures for an incremental,
needs-based and economical expansion of the offshore grid
over the next ten or twenty years. The transmission system
operators (TSO) produced a criteria catalogue with the aim of
providing a temporal staggering of the necessary grid-connection systems. The O-NEP enables better coordination of
expansion plans for offshore wind farms and grid-connection
systems in the Baltic Sea (50Hertz) and in the North Sea
(TenneT). Citizens, federal states, associations and companies took advantage of the opportunity to comment on both
NEPs. 50Hertz then submitted the reviewed reports to the
BNetzA in summer 2013 for confirmation.
In “Scenario B2023”, the 2013 O-NEP provided for the addition of four grid-connection systems for the Baltic Sea for
the transmission of offshore-generated wind energy to the
Lubmin grid-connection point. All connection systems were
confirmed by the Federal Network Agency. The Agency
11 June 2013
50Hertz signs German–Norwegian declaration
50Hertz joins 20 companies and environmental associations in signing the
German–Norwegian declaration for long-term cooperation in the integration of
renewable energy sources and in climate protection. One of the objectives is
closer cooperation between both countries with regard to electricity trading.
was also largely in favour of the process recommended for
the first time by the TSOs for the temporal staggering of
measures.
In “Scenario B2023”, the 2013 O-NEP provided for four gridconnection systems for the Baltic Sea for the transmission
of offshore-generated wind energy. All were confirmed by
the Federal Network Agency. The Agency was also largely
in favour of the process recommended for the first time by
the TSOs for the temporal staggering of the measures.
In July 2013, a new tool for coordinating the expansion of the
grid entered into force: the BBPlG [“Bundesbedarfsplangesetz”: German Federal Requirements Plan Act]. This statute
authoritatively establishes the energy-economic necessity and
urgent need for the projects contained therein. The statute
also newly regulates the approval process for the specification of transmission corridors in projects that cross state
borders. In the future, this will be in the hands of the Federal
Network Agency. The processes are not only supposed to
be simplified, they are also supposed to guarantee early and
comprehensive provision of information for the public and
participation of the public in order to accelerate the expansion
of the grid.
50Hertz publishes the NEPs jointly with the other TSOs on
the “www.netzentwicklungsplan.de” platform. The website
also provides information on public information and dialogue
events, shows consultation results and gives an overview
of all projects.
Particularly in north-eastern Germany, the integration of renewable energy from volatile sources has advanced further
than anywhere else in the world. All predictions are made on
the assumption that there will be a further strong increase in
installed capacity from wind and solar by 2024. Generation
and consumption, in the meantime, are moving farther and
farther apart geographically than has so far been the case
12 June 2013
German Regulation on Reserve Power Plants adopted
The German Federal Cabinet adopts the ResKV [“Reservekraftwerksverordnung”: German Regulation on Reserve Power Plants]. The ResKV enters into
force on 6 July. 50Hertz benefits from the so-called “Winter Ordinance” mainly
through the use of reserve power plants for redispatch.
INFRASTRUCTURE EXPANSION with ensured ENVIRONMENTAL PROTECTION Annual Report 2013
19 June 2013
First phase of construction completed at the Wolmirstedt substation
The first phase of construction at the Wolmirstedt substation construction site is completed,
and so the 380/110-kilovolt (kV) transformer number 412 is released for permanent operation.
The trial operation for the transformer and the associated 110-kV line to the Glindenberger
Weg substation of regional supplier E.ON commenced the day before.
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34
35 • Annual Report 2013 Our daily commitment to the energy revolution
with existing coal and nuclear power plants. This increasing distance makes it necessary to build new, long-distance
transmission lines across Germany.
tricity generators to the consumers. 50Hertz is planning
investments of around 250 million euros for the almost 200kilometre-long southwestern interconnector in Thuringia.
A good connection for the energy revolution –
the southwestern interconnector
Another link in the energy revolution chain is well on the
way: The southwestern interconnector through Thuringia
will supply Bavaria with additional electricity via transregional
transmission of energy from renewable and conventional
sources during the phase-out of nuclear power.
The first segment of the southwestern interconnector has
been in operation since 18 December 2008 between the
Lauchstädt and Vieselbach substations. Construction rights
for the second segment of the 380-kV overhead line from
the Vieselbach substation to the substation in Altenfeld have
been obtained since then. On 3 May 2013, the Ministers of
Economic Affairs for the Free States of Bavaria and Thuringia, Martin Zeil and Matthias Machnig, saw for themselves
the construction progress in Altenfeld, Thuringia. The substation in Altenfeld forms the link from the second line segment (Erfurt-Vieselbach to Altenfeld), which is under construction, to the third segment (Altenfeld to Redwitz). Both
ministers, while on site, made reference to the objective of
putting the southwestern interconnector into operation as
soon as 2015, so that the Grafenrheinfeld nuclear power
plant in Bavaria can be removed from the grid as planned
without endangering the level of security of supply. The third
segment extends from Altenfeld to Redwitz. 50Hertz had
submitted the public-works planning documents on time
to the Thuringian State Administration Office in Weimar for
the sub-segment from Altenfeld to the Thuringia–Bavaria
state border. On 19 September 2013, the Thuringian State
Administration Office in Weimar officially initiated the publicworks planning procedure for the third segment of the
southwestern interconnector.
Resolutions by the European Union in 2006 as well as by the
Bundestag (German Federal Parliament) and Bundesrat (German Federal Council) in 2009 (the EnLAG [“Energieleitungsausbaugesetz”: Energy Line Extension Act] have given the
southwestern interconnector the force of law. The line, also
known as the “Thüringer Strombrücke” [Thuringian electricity bridge], enjoys top priority as a European priority project.
EnLAG declares an urgent need for 24 grid projects with
380-kilovolts (kV) capacity. As an EnLAG project, the southwestern interconnector is also part of the so-called starter
network in the NEP, which forms the basis for the BBPlG.
In line with the German phase-out of atomic energy, the nuclear power plant in Grafenrheinfeld is due to leave the grid in
2015. The BNetzA highlighted the importance of grid expansion in its “Report on the status of grid-bound energy supply in
winter 2012/13”. The report explicitly stresses that the completion of the southwestern interconnector is indispensable for the
secure shutdown of the Grafenrheinfeld nuclear power plant in
December 2015.
50Hertz is building the southwestern interconnector between
Bad Lauchstädt (Saxony-Anhalt) and the border with Thuringia in three construction segments. When completed,
the 380-kV overhead line will serve as a transregional electricity-transmission line from north to south – from the elec-
Large-scale projects of the German transmission
system operators: direct-current (HVDC) links
Four high-capacity direct-current links (high-voltage directcurrent links – HVDC links) are planned in Germany as part
of the expansion of sustainable grids. These large-scale
projects are enormously important to the energy revolution.
50Hertz and the three other German transmission-system
operators, Amprion GmbH (Amprion), TenneT TSO GmbH
20 June 2013
Transmission system operators and offshore wind-farm operators strengthen cooperation for
the expansion of wind energy in the North Sea and in the Baltic Sea
50Hertz enters into closer cooperation with TenneT TSO GmbH (TenneT) and corporate operators to stabilise
the expansion of offshore wind energy efficiently and to use the existing connection capacities effectively.
INFRASTRUCTURE EXPANSION with ensured ENVIRONMENTAL PROTECTION Annual Report 2013
(TenneT) and TransnetBW GmbH (TransnetBW), are responsible for their implementation. The HVDC links will transmit
energy from northern and central Germany to the south. The
necessity of the project is described in the 2012 NEP. The
German Bundestag, within the context of the BBPlG, has
legally declared the necessity of three of the four HVDC corridors. Each of these HVDC links is being planned jointly by
two TSOs, i.e., those responsible for the respective starting
points and end points of the existing transmission system:
– Emden-Borssum–Osterath: TenneT/Amprion
– Osterath–Philippsburg: Amprion/TransnetBW
– Wilster–Grafenrheinfeld: TenneT/TransnetBW
– Brunsbüttel–Großgartach: TenneT/TransnetBW
– Bad Lauchstädt–Meitingen: 50Hertz/Amprion
Transmission corridors are first specified concretely by the
Federal Network Agency in the Federal Planning. Starting
points are generally located in regions with surplus generation. Endpoints are, for example, regions with high consumption or with nuclear power-plant locations that have
to be shut down by 2022.
The direct-current technology permits low-loss transmission of large amounts of energy. Another advantage: it
stabilises the existing alternating-current grid. The energy
can also be delivered in a targeted manner to where it is
consumed. Direct current is especially useful over long
distances and for large transmission capacities. As a
result, the new electricity highways will contribute greatly
to the security of the energy supply. The massive expansion of renewable energy sources in northern and eastern
Germany is already causing bottlenecks in the transmission
of electricity to southern Germany. Building a high-capacity
interconnector to the south will allow input restrictions for
wind farms to be reduced and electricity flows to be better
controlled. A directional load flow along the length of the
planned, long north-south links would otherwise only be
24 June 2013
50Hertz shareholder IFM Investors opens office in Berlin
IFM Investors (UK) Ltd (IFM Investors), a 50Hertz shareholder and
one of the world’s largest infrastructure investment companies, opens its new
office in Berlin. This gives the Australian company an additional presence
in Europe outside of London.
•
36
attainable using multiple parallel 3-phase alternating-current lines, and would create a high demand for new routes.
Well on the way:
the South–East Direct-Current Passage
The South–East Direct-Current Passage is one of the important new electricity routes between northern and southern
Germany for the implementation of the energy revolution.
The roughly 450-kilometre-long high-voltage direct-current
(HVDC) link between Saxony-Anhalt and Bavaria is due to
go into operation in 2022. This electricity line is described
as Corridor D in the 2012 NEP. In May 2013, the German
Bundestag resolved to anchor it in the BBPlG as Project No.
5 (Lauchstädt–Meitingen high-voltage line). With that, it was
declared an energy policy necessity by the German Federal
Government and the German Bundestag. It will be built
between the two grid-connection points – the Lauchstädt
substation near Halle (Saxony-Anhalt) and the Meitingen
substation near Augsburg (Bavaria) – as a 500-kV directcurrent overhead line.
The South–East Direct-Current Passage is a joint project
of 50Hertz and TSO Amprion: 50Hertz is the contact partner for the Federal States of Saxony, Saxony-Anhalt and
Thuringia, and Amprion is the contact partner for Bavaria.
50Hertz and Amprion have formed a joint project team for
this. The initial planning steps have already begun in both
companies. The investment costs are over a billion euros.
In 2013, 50Hertz informed the public in Weimar and Halle
about the planning status of the South–East Direct-Current
Passage. The application for Federal Planning is planned for
the beginning of 2014. With that, the first step for onshore
HVDC links in Germany is taken.
The South–East Direct-Current Passage also makes an
essential contribution to the security of supply in neighbouring countries to the east of Germany. Electricity flows from
north-eastern Germany through Poland and the Czech
26 June 2013
Large-scale energy-transition project commences:
South–East Direct-Current Passage will link the Halle and Augsburg regions
50Hertz and transmission system operator (TSO) Amprion GmbH (Amprion), jointly plan
a high-capacity, high-voltage direct-current (HVDC) electricity line from Saxony-Anhalt to
Bavaria. The necessity of the link from the Halle area to the area surrounding Augsburg
has been legally anchored in the German Federal Requirements Plan.
37 • Annual Report 2013 Our daily commitment to the energy revolution
Republic to southern German will be more controllable in the
future. This will also provide some relief for the transmission
systems. Converters at the end points of the line convert
the energy from alternating current to direct current and
vice versa. The exact locations of the converters have not
yet been decided. They will be discussed publicly with the
affected municipalities and citizens before the start of the
approval process.
A contribution to grid stability between Bärwalde
and Schmölln
The increasing input from renewable energy sources into the
grid as well as the new 675-megawatt power-plant block in
Boxberg necessitate the reconstruction of the 380-kV line
from the Boxberg power plant to the Schmölln substation.
The line dates back to the days of East Germany and no
longer meets the requirements. The new line will have a substantially higher current-carrying capacity than the existing
line. This will allow it to fulfil all requirements for grid stability.
The public-works planning decision was issued in February
2013 for the construction of the 380-kV Bärwalde–Schmölln
overhead line. The first segment of the new Bärwalde–
Schmölln expansion has been in operation since 25 October
2013. 50Hertz built it parallel to the existing line using 70
towers. The existing line and the new line were first linked
in one system, a construction method that places high demands above all on occupational safety and logistics. As
soon as the new system is in operation, 50Hertz will completely dismantle the old line. The 380-kV line is scheduled
for completion in October 2014. During the construction
phase, the substations in Schmölln and Bärwalde will also
be upgraded.
Progress with approvals and with line construction
in the wider 50Hertz area
The public-works planning decision for the western segment of the 380-kV Berlin North Ring Line was issued in the
third quarter of 2013. Over the course of the year, 50Hertz
increased the transmission capacity of the line segment
between Vierraden and Krajnik. The public-works planning
decision for the Vierraden Loop-In was issued in May 2013.
50Hertz completed and put into operation the first segment
of the new 380-kV system at the Wolmirstedt substation.
50Hertz completely disconnected the existing 220/110-kV
transformer when it placed the two 380/110-kV transformers in operation in June 2013. The Förderstedt site will also
be converted to a 380/110-kV transformer in the future.
Construction and installation work began once the necessary approvals were issued in 2013. In addition, the Altentreptow/North substation for the connection of the Werder–
Kessin onshore wind farm was brought on line on 30 August
2013. Line connections at the Perleberg substation were
modified in the course of adding two 380/110-kV transformers at the site. In addition, the first of the two transformers
went into operation in November 2013.
More and more land in sight for Baltic-Sea electricity
50Hertz is bringing and will continue to bring German electricity onshore from the Baltic Sea. Offshore wind power
is an important component of the German energy revolution. As such, it is also necessary to make investments in
the offshore wind-farm connections, so that the electricity
can be efficiently connected to the onshore grid. In 2013,
50Hertz took another important step for the use of offshore
wind energy at the Baltic Sea coast. On 16 December 2013,
applications were submitted to the Ministry of Energy of
the State of Mecklenburg-Western Pomerania and to the
German Federal Maritime and Hydrographic Agency for approval of six submarine cable systems for the connection of
the planned Westlich Adlergrund and Arkona See wind-farm
cluster, northeast of the island of Rügen, to the grid. The cable routes arrive onshore at the 50Hertz Lubmin substation,
and each extends 90 kilometres at sea and three kilometres
on land. Engineers, geologists and town and country planners worked for a year and a half on the task. The Baltic
27 June 2013
50Hertz attends the EU Policy Conference on energy policy objectives
and environmentally compatible, socially acceptable grid expansion
At the EU Policy Conference in Brussels, Energy Commissioner Günther H. Oettinger discusses with association delegates and with the Renewables Grid Initiative Chair and 50Hertz Communications Chief Olivier Feix how things stand
with the implementation of the European energy objectives and what motivation the EU should provide for the future.
INFRASTRUCTURE EXPANSION with ensured ENVIRONMENTAL PROTECTION Annual Report 2013
Sea floor was investigated extensively and at great cost.
Furthermore, experts prepared numerous assessments regarding environmental compatibility and technical feasibility.
Good progress was also made in 2013 on work to connect
17 July 2013
Transmission system operators and intermunicipal associations
want to increase cooperation with regard to grid expansion
At a meeting in Berlin, 50Hertz and the three other German transmission system
operators agree to consolidate their cooperation with intermunicipal associations.
•
38
the EnBW Baltic 2 wind farm, off the coast of the island of
Rügen, to the grid. Thus, in the past year it was possible to
pull all necessary submarine cables for the connection of
Baltic 2 into the offshore platform for EnBW Baltic 1, through
27 July 2013
German Federal Requirements Plan enters into force
The Bundesrat passed the BBPlG [“Bundesbedarfsplangesetz”:
German Federal Requirements Plan Act] on 7 June 2013. On 27 July,
the BBPlG entered into force with a series of important grid-development
measures from the 2012 grid development plan (NEP).
39 • Annual Report 2013 Our daily commitment to the energy revolution
which the Baltic 2 electricity is also due to flow in the future.
Starting from the Baltic 1 platform, the two submarine
cables running between the platforms for EnBW Baltic 1
and EnBW Baltic 2 were already largely jetted into the Baltic
22 August 2013
50Hertz and TU Ilmenau agree to a close cooperation
under the banner of the energy revolution
50Hertz and the Ilmenau University of Technology (TU Ilmenau) sign a
framework agreement for energy-related research and development services. The agreement expands the existing, almost ten-year cooperation.
Sea floor by special ship MV Aura. These segments can be
completed with the availability of the Baltic 2 platform. A second submarine cable, for the connection of EnBW Baltic 2,
will be laid from the Baltic 1 platform to the landing point in
23 August 2013
50Hertz – Partner of the German Environment and Media Award
The annual presentation of the GreenTec Awards, Europe’s biggest
environmental and business awards, takes place at a gala in Berlin.
The award in the “Energy” category is presented by Boris Schucht, Chair
and Chief Executive Officer of 50Hertz, together with chef Sarah Wiener.
INFRASTRUCTURE EXPANSION with ensured ENVIRONMENTAL PROTECTION Annual Report 2013
Markgrafenheide, Rostock. From there, the onshore
cable route leads to the Bentwisch substation. According
to the plan, EnBW Baltic 2 is due to comprise eighty systems and an installed capacity of 288 megawatts (MW).
The construction of the wind farm and the grid connection
Did you know:
The public-works planning procedure is
an administrative procedure. It is used
to create the legal basis for approval for
the construction of a project that is important to the region. In contrast to other
plans (e.g. state development plans, landscape program, development plans), the
public-works planning procedure relates
to a specific project. The essential difference as opposed to a typical administrative procedure: the public-works planning procedure stipulates extensive participation of citizens and public authorities
whose areas of responsibility are affected by the project.
•
40
once again place significantly higher demands on engineers
and technicians than the first wind farm, EnBW Baltic 1,
which was connected in May 2011 with its 48 MW. The
reasons for this are the substantially greater offshore
distance, water depths of over thirty metres and a very
heterogeneous construction surface.
Energetic German–Danish cooperation:
Kriegers Flak Combined Grid Solution
The “Kriegers Flak Combined Grid Solution” (CGS) is a pilot
project for an offshore transmission system in the Baltic
Sea. The EnBW Baltic 2 wind farm under construction 35
kilometres off the coast of Rügen plays an essential part
in the project. From there, a link to Denmark is due to be
established via the Danish Kriegers Flak wind farm. This link
would then allow electricity to be transmitted to Denmark
as well as to Germany. 50Hertz has already taken the first
step towards the realization of the project: on 15 November,
50Hertz submitted the appropriate application documents
to the mining authority responsible for the exclusive economic zone and to the German Federal Maritime and Hydrographic Agency. These documents relate to the approval
of the eight-kilometre-long link in German waters between
the transformer platforms for EnBW Baltic 2 and Kriegers
Flak. The other eight kilometres of the link are in Danish
territorial waters and will be planned by project partner Energinet.dk. Two 150-kV cables are due to link the platforms
in the future. 50Hertz and Danish TSO Energinet.dk want
to realise them cooperatively. The “Kriegers Flak Combined
Grid Solution” project is funded by the European Union.
It is the first project to combine national grid connections
of offshore wind farms with a cross-border interconnector
in the Baltic Sea. This combination facilitates the use of
renewable energy sources as well as international electricity
trading and the strengthening of system security.
27 – 28 August 2013
50Hertz – Security Conference: system operations under the banner of the energy revolution
Representatives from the fields of electricity generation, transmission and distribution as well as representatives of universities, associations, public authorities and consulting firms take part in 50Hertz’s sixth
Security Conference in Berlin. They gather to discuss the present and future security of the electricity
supply within the context of the energy revolution.
41 • Annual Report 2013 Our daily commitment to the energy revolution
Grid-expansion projects gain momentum
Grid-expansion projects since 2009
Project
Project status
1
Vierraden – Krajnik (section)
Operational
3 km
2
Northern line Hamburg – Schwerin
Operational
65 km
3
South-western interconnector 1 Lauchstädt – Vieselbach
Operational
76 km
4
Remptendorf – Redwitz high-temperature cable (Thuringia/Bavaria border)
Operational
18 km
5
EnBW Baltic 1 offshore wind farm
Operational
75 km
6
Altentreptow North substation grid connection
Operational
1 km
7
Perleberg substation capacity expansion
Operational
2 km
8
Migration from 220 kV to 380 kV, Ragow – Thyrow and Ragow – Wustermark
Operational
3 km
9
Reconstruction of Eula – Großdalzig for Schlehnhain surface mine
Operational
6 km
10
Stendal / West substation grid connection
Operational
1 km
11
South-west interconnector 2, Vieselbach – Altenfeld
Under construction
57 km
12
Förderstedt substation 380 kV grid connection
Under construction
12 km
13
Bärwalde – Schmölln 380 kV overhead line
Under construction
46 km
14
Wolmirstedt 380 kV upgrade
Under construction
6 km
15
EnBW Baltic 2 offshore wind farm
Under construction
~ 120 km
16
SW interconnector 3 Altenfeld – Redwitz (to Thuringia / Bavaria border)
In planning-approval process
~ 26 km
17
3rd interconnector to Poland
In regional-planning process
~ 10 km
18
380 kV Berlin Northern Ring
Prior to planning-approval process
~ 80 km
19
Uckermark line Neuenhagen – Vierraden – Bertikow
In planning-approval process
~ 120 km
20
Bertikow – Pasewalk
Prior to federal planning stage
~ 45 km
21
Wolmirstedt – Perleberg
Prior to planning-approval process
22
Offshore connection in the Baltic Sea
In approval process
~ 70 – 90 km
23
Combined Grid Solution
In approval process
~ 15 km
24
Bad Lauchstädt – Meitingen
Prior to federal planning stage
Operational: Under construction: In the approval process: Line length
~ 100 km
~ 450 km
250 km
240 km
~ 450 km
23
Denmark
Energinet.dk
Denmark
15
150
220
22
220
150
5
SchleswigHolstein
220
Rostock
6
Güstrow
Hamburg
Schwerin
Neubrandenburg
Mecklenburg-Western
Pomerania
20
2
1
220
Lower Saxony
Brandenburg
7
18
SaxonyAnhalt
10
Berlin
21
220
14
TenneT
PSE
Poland
19
Frankfurt (Oder)
Potsdam
110
380+220
17
8
Magdeburg
12
Cottbus
Halle
Leipzig
Saxony
3
Erfurt
Jena
Eisenach
Hesse
Dresden
9
Weimar
Gera
11
Chemnitz
Thuringia
Zwickau
4
ČEPS
Czech Republic
16
TenneT
Legend
24
Existing grid
Planning stage
Approval stage
Under construction
Status as of December 2013
Bavaria
13
110
Completed Other companies
HVDC / DC connection
Conventional power plant
( lignite-fired, coal-fired or
gas-turbine power plant ),
pumped-storage plant,
onshore / offshore wind farm
Under construction / planned
Switching stations
Switching stations planned / under construction
Other companies
1.32 p.m.
Location:Transmission tower no. 108
Coordinates: 51° 24' N, 11° 53' E
Temperature:
4 °C
Wind speed:
2 – 5 m/s
Height:
73 m
Weight:
90 – 100 tonnes
Carsten Gräfe has been a head fitter for 50Hertz since 1985.
He is also helping to complete the southwestern interconnector
as a site supervisor. The tallest transmission tower that he has
climbed was 95 m high. And he has also completed repairs at
great heights in icy temperatures of -15°C.
45 • Annual Report 2013 Our daily commitment to the energy revolution
High level of expertise in matters pertaining
to the environment and the future
The conversion of the grid infrastructure also always means
that the relevant region is affected. For 50Hertz, a key focus
is to optimise the line in consideration of all protected natural
resources and to minimise the impact on humans and nature. 50Hertz particularly focuses on technical coordination
with the responsible nature conservation and forest authorities during planning – as well as the involvement of the
affected communities. 50Hertz avoids densely populated
wherever possible. And landscape conservation is also a
high priority during so-called corridor planning. Depending
on the position of the cable routes, 50Hertz takes existing
overhead line routes or other infrastructure (railway routes,
motorways) into account. To ensure that the landscape is
not unnecessarily impaired, 50Hertz also adapts the routes
to the landscape conditions.
Bundling principle
The bundling principle in the search for appropriate routes
protects connected natural areas. As a result, in the third
section of the southwestern interconnector through the Thuringian Forest the line route follows the existing infrastructure where possible as well as the new ICE Ebensfeld–Erfurt
route that is currently under construction. The same applies
for the new overhead-line route in the north–south direction.
50Hertz is bundling this with other linear infrastructure measures (such as rail tracks or existing overhead lines). The new
route is also well away from settlements in order to minimise
the impact on humans.
The Thuringian Forest landscape is a particular focus for
the 50Hertz planners. As a result, 50Hertz is striving to
ensure that the route is kept level without any noticeable
offsets in the transmission-tower heights. The transmissiontower locations are also generally kept below the terrain
peaks. In addition, long spans ensure that valley sites are
virtually unaffected by overhead lines. Especially in the third
section, most of which runs through the Thuringian Forest,
50Hertz is taking a number of measures to protect the for-
28 August 2013
Federal Economics Minister Rösler visits a 50Hertz culvert in Berlin
Federal Economics Minister Dr. Rösler visits the culvert for the 50Hertz
380-kilovolts (kV) diagonal connection, which is the backbone of the Berlin
electricity supply. The tunnel, which is over eleven kilometres in length, is
unique in Germany.
est. For example, in planning 50Hertz is already using the
existing forest aisles as transmission-tower locations. New
aisles are only created to the extent absolutely necessary.
Ecological management of overhead lines
To operate the overhead lines, 50Hertz is applying an
ecological aisle management concept for the southwestern
interconnector, for which the forest can develop up to a
maximum height below the overhead lines. All of this is integrated into the planning for the transmission-tower locations
and minimizes the impact on the forested area.
In 2010, supported by the European Community and in cooperation with other partners, 50Hertz published the comprehensive “Ecological management of overhead lines”
study. The study contains an interdisciplinary approach for
the ecological management of high-voltage overhead lines,
which can also be applied in various European regions.
The concept does not just aim to reduce the impact on the
landscape. It also highlights the various aspects of impact
prevention, impact minimization and ecological compatibility
in connection with the introduction of aisles and their maintenance. The reason for the study was the planned construction of the southwestern interconnector.
Protection of birds
50Hertz takes various measures to support better protection
for birds. For example, the large insulation distance for the
planned 380-kilovolt (kV) lines prevents birds from receiving
electric shocks. 50Hertz also uses multiple conductors that
consist of several conductor cables. They are more easily
detected by birds compared to individual cables. 50Hertz
takes even greater precautions at particularly sensitive locations, such as at waterway crossings or river valleys. In
these places, 50Hertz attaches markings to the earthing
cables, which considerably improves their visibility. Transmission towers also provide birds with additional nesting options, a welcome side effect of the towers. In north-eastern
HIGH LEVEL OF EXPERTISE IN MATTERS PERTAINING TO THE ENVIRONMENT AND THE FUTURE Annual Report 2013
6 September 2013
50Hertz interactive exhibition is awarded by the German UNESCO
Commission for Education for sustainable development
The German UNESCO Commission distinguished the 50Hertz interactive “Energie
gemeinsam wenden” (revolutionize energy together) exhibition, jointly developed
with the Independent Institute for Environmental Issues (UfU), as a model project
as part of the UN “Education for sustainable development” decade.
14 September 2013
Sport and fitness day in a family atmosphere
50Hertz organized the 3rd sport and fitness day for their employees and
families as well as colleagues from Belgium. At a sports ground in Strausberg, near Berlin, the program included activities such as football, bowling,
volleyball and the fun-sport Olympics, all in the name of health.
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47 • Annual Report 2013 Our daily commitment to the energy revolution
Germany, ospreys now prefer nesting on transmission
towers rather than on trees. Falcons and ravens also tend
to use these towers. For many years, 50Hertz has been
actively supporting the protection of these birds, which just
a few decades ago were threatened with extinction. The
commitment ranges from the construction of nesting aids
through to the ringing of young birds.
Operational environmental protection
50Hertz ensures that water-polluting substances and technical gases are handled with the utmost care, as well as the
correct disposal of waste. 50Hertz also places particular
emphasis on emission control and nature conservation at
technical installations. All of this places great demands on
the planning, construction and operation of the installations.
50Hertz regularly controls and upgrades the environmental
facilities at substations. Noise protection measures have
also been implemented. Based on its efficient emergency
planning and disaster concept, 50Hertz is able to rapidly
contain and rectify environmental events. The high level of
environmental protection is ensured by active environmental
management as well as through constant training as well
as raising awareness amongst employees.
Compensation and substitution measures
As part of the line construction projects, the new 50Hertz
lines cross nature and landscape areas and have an unavoidable impact on plants, animals and the landscape. As a
result, 50Hertz plans, implements and maintains numerous
nature conservation compensation and substitution measures. This generally leads to the revaluation of nature and the
landscape at the same or at another location. Approx. 200
of these measures were supported in 2013. Numerous tree
plantings, the renaturation of water bodies as well as restoration and maintenance measures were performed in close cooperation with local stakeholders. Preventive measures were
implemented in cooperation with the competent authorities
in order to protect endangered species. For example, coastal
nesting places were provided for bats and birds and rock
piles were provided for sand lizards. Eyries are secured and
relocated to appropriate places, ants nests are shifted and
small mammals are protected.
Example of pure spruce stands: In connection with the
unavoidable forest aisle removal in the Thuringian Forest,
species-rich mixed forests are promoted instead of monotonous pure spruce stands. Tree species such as common
beech, silver fir and harewood are used for this.
Example of mountain pastures: The existence of many
pastures is threatened. The clearance of shrubs and longterm maintenance allows these characteristic pastures,
which are the habitat for numerous threatened plant species
(e.g. orchids), to be preserved.
Example of old buildings: The dismantling of tumbledown
buildings clears recreation landscapes.
The restoration of historic gardens: As an example of
an outstanding project among the 133 compensation measures for the second section of the southwestern interconnector between Vieselbach and Altenfeld, the garden at
Kannawurf Castle, which was first established in 1595, will
soon be given a new lease of life. The area will first be carefully examined by archaeologists. Possible discoveries will
be documented or even salvaged.
Reforestation: The 380-kV north line, which became operational at the end of 2012, also had an impact on forests. To
compensate for this impact, 50Hertz reforested an approx.
225 hectare forest in Schleswig-Holstein. 50Hertz was able
to welcome the Schleswig-Holstein Chamber of Agriculture
as a partner many years ago in the search for appropriate
reforestation areas. A compensation area covering about
53 hectares is located near Kellinghusen. Horses were once
bred on the imperial stud farm located there. The forest
19 September 2013
Altentreptow North substation: grid connection for 140-megawatt (MW) wind farm with hydrogen power storage
The new Altentreptow North substation was officially commissioned and brought the powerful Mecklenburg-Western Pomerania
wind farm onto the grid. The 140-MW system with 7.5-MW wind turbines and internal hydrogen power storage was commissioned by the Mecklenburg-Western Pomerania Premier Erwin Sellering.
HIGH LEVEL OF EXPERTISE IN MATTERS PERTAINING TO THE ENVIRONMENT AND THE FUTURE Annual Report 2013
belongs to the state of Schleswig-Holstein and is looked
after by the state forestry authority. Well protected against
deer and wild boar, plants are thriving in an area that was
used for military training until 2004. Ten percent of the area
is populated by trees with a target of twelve percent.
50Hertz compensation measures set an example
Students from the Velten secondary school are gaining firsthand experience of the expansion of the electricity-transmission grid in Germany. Teacher Helmut Quade read in a
newspaper about the upcoming compensation and substitution measures as part of the line-expansion project. He
immediately asked the secondary school to talk to 50Hertz.
The Velten 1st secondary school maintains a nature trail
along the route of the 380-kV Berlin Northern Ring. In the
spring, they asked 50Hertz whether they could participate
in the compensation and substitution measures planned in
the western construction section. On 6 December 2013,
50Hertz signed a corresponding cooperation agreement
with Velten’s Mayor, Ines Hübner, and Principal Herbert Gorr.
The Velten school and 50Hertz intend to participate in four
fields of work in order to utilise the 380-kV Berlin Northern
Ring as a learning field. The students will support 50Hertz in
their species-conservation measures, among other things.
For example, the installation of, in part, self-constructed
nesting boxes for breeding birds and bats. Students will
also establish alternative homes for squirrels. In addition
to technical support, 50Hertz will provide students with a
whole range of tools and materials for the project work.
When he arrived to sign the agreement, Project Manager
Sven Riedel didn’t just bring his work clothes, boots, gloves
and rain jacket. He also surprised the students with material
that they need to create information signs and to document
the activities.
Voluntary measures for even less electrosmog
50Hertz naturally complies with the limit values for electri-
20 September 2013
Offshore cable storage
The topping-out ceremony showed that the construction work for the new
warehouse is on track. The 50Hertz 50-by-25-metre hall will house the
replacement cable lengths for the offshore wind farms in the Baltic Sea.
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48
cal and magnetic fields specified by the 26th BImSchV
[“Bundes-Immissionsschutzverordnung”: German Federal
Emission Protection Ordinance] for all its lines. But 50Hertz
takes it a step further: Taking a precautionary approach,
50Hertz also takes measures to reduce electrical and magnetic fields. For example, for the southwestern interconnector, these include:
– Laying out the subconductors for each line bundle in the
form of a square
– The optimization of the arrangement of the phase assignment of the two overhead-line systems for the 380-kV
southwestern interconnector for the “Donau” transmission-tower types
– Ensuring a minimum clearance of the overhead lines to
the ground of 9.50 meters
– The entrainment of an earthed fibre-optic overhead cable
at the height of the lower transmission lines
– The installation of the overhead line as far away from
settlements as possible (but generally within the survey
corridor defined in the regional planning decision)
Innovation management
50Hertz is committed to research and development to address future-related issues that affect the company’s various
fields of activity. As part of the grid expansion, 50Hertz is
promoting technologies to make better use of routes, to
improve public acceptance of overhead-line projects and
to support system security. For example, in 2013, 50Hertz
started a project to develop space-optimized overhead
lines, which is being funded by the Federal Ministry for the
Economy and Technology over a period of five years. The
challenge: the optimization and expansion of electricity grids
is extremely important for the integration of renewable energy
sources. However, the required routing and establishment
of new overhead lines is increasingly faced with acceptance
problems by the affected citizens. Key reasons include the
expected impact on the landscape and nature conserva-
27 September 2013
Customer meetings: “In Spreewald the water does not separate, it connects”
50Hertz hosted the annual workshop in the Spreewald with executive boards and
managing directors of major customers it its grid area. 50Hertz used this to create a
platform for the intensive and constant exchange of ideas on current topics in order
to work together to better deal with the challenges of the energy revolution.
49 • Annual Report 2013 Our daily commitment to the energy revolution
tion. The increasing number of citizen campaigns against
overhead-line projects adds to the long and difficult approval
process for 50Hertz. The solution approach: the aim of the
projects is to develop innovative space-optimized overhead
lines that are characterised by their low spatial impact (low
height and route width). The project involves the required
fundamental research and the relevant implementation and
evaluation of mechanical and electrical trials. A test facility
will be established to analyse the lines with respect to their
technical feasibility.
the “landscape occupancy” as low as possible and to increase public acceptance of overhead-line projects. This
project intends to research the basic principles for spaceoptimized overhead lines and establish a test facility that will
be used to examine the technical feasibility. The new overhead-line system will consist of innovative chain designs and
cable systems with low cable sag and be constructed using
more compact transmission towers. Following the successful implementation and evaluation of the tests, we then plan
to demonstrate the technical feasibility in a test facility.
The compactLINE project stands for the innovative, compact construction of 380-kV overhead lines in order to keep
Eight transmission system operators, various manufacturers
and research facilities as well as other partners are working
on five demonstration projects in the BEST PATHS project.
These help to remove grid-side barriers for the secure integration of power from renewable energy sources into the
European transmission system. The focus for 50Hertz is the
“iRock.eu” demonstration project. The solution approach:
The objective is to increase the transmission capacity of existing AC lines. For example, 50Hertz is planning to systematically examine and evaluate high-temperature conductor
technologies (HT/HTLS) together with project partners. The
starting point is comprehensive market research, which will
identify appropriate technologies, their characteristics and
manufacturers. Based on these results, six to eight preferred
technologies will be selected and subjected to a mechanical and electrical investigation and evaluation. This is then
expected to be followed by the installation and analysis of
a test facility in order to draw conclusions for further use.
Did you know:
The connection of a transport path or a
line between two locations is called a
route. For so-called precise routing, the
detailed technical route planning takes
place vertically and horizontally. Besides, the transmission-tower locations,
the height, width and shape also play a
rolein order to ensure the protection of
the landscape and the public interest.
In order to ensure that submarine cables for the grid connection of offshore wind farms in the Baltic Sea are adequately protected against damage caused by anchors or
trawl nets, for example, these have to be installed in various
sea floors. In the past, submarine cables have first been
laid on the sea floor before being jetted in using a so-called
“light jet”. For hard subsurfaces, additional trenches were
constructed using conventional excavators prior to installing
6 October 2013
The European Commission adopts a list of central energy-infrastructure projects with five 50Hertz projects
The European Commission adopts the first list of central energy-infrastructure projects, the “Projects of Common Interest” (PCI)
These projects will receive accelerated approval processes. Particular focuses for 50Hertz are the south–east direct-current
passage and the Combined Grid Solution to Denmark.
HIGH LEVEL OF EXPERTISE IN MATTERS PERTAINING TO THE ENVIRONMENT AND THE FUTURE Annual Report 2013
the cable. This was extremely time and cost intensive, did
not always ensure success and had a high impact on the
marine environment. The solution approach: The current
project to connect the grid to the EnBW Baltic 2 offshore
wind farm uses a newly developed submarine tracked vehicle. This SeaRex is a multi-functional unit that installs cables
and flushes them in, with a flushing power of 1,200 kW, in
one operation. SeaRex weighs about 60 tonnes and moves
over the sea floor independently. It is controlled from the
cable-laying ship. For hard ground, it can also be equipped
with a stone crusher and construct a trench into which the
cable is then laid. This saves time and leads to better results
than for customary procedures.
The SDL-Batt project deals with the development of electrical energy storage for balancing power plants and to
provide grid-stabilization services. This involves the testing of various ancillary services and the comparison of their
efficiency and performance. The challenge: the high share
of wind and photovoltaic power in the grid is already leading
to localized grid overcapacity. As a result, 50Hertz is seeing
demand for local ancillary services (AS) that were previously covered by conventional power plants. In addition, the
increasing volatility of electricity generation is expected to
lead to a rise in the demand for balancing capacity, which
will need to be covered by additional providers. The solution
approach: Electrochemical battery stores have very good
characteristics for the provision of AS as well as a very high
controllability. The project shows the development of a
highly efficient battery store as a balancing power plant and
for the provision of grid-stabilization services. Various AS
will be tested and their efficiency will be compared. The
provision of AS and testing are being considered based on
a 10 megawatt (MW) battery system, which is expected to
be constructed in 2014.
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50
age technology. The challenge: the increasing share of power from renewable energy sources and the fall in conventional power-plant capacities is increasing the requirements
for flexibility on the market and grid. In particular, 50Hertz is
seeing that, in the short-term, there is an increasing need
for bottleneck management as well as short-term fluctuation
compensation. The solution approach: besides the grid expansion, central mass-storage technologies are an option to
overcome these challenges. Adiabatic compressed-air storage is one of these technologies, which offers a high potential for providing the large-scale storage capacities required
in the future and which are on roughly the same magnitude
as pumped storage. The collaborative R&D project aims to
take the necessary steps to prepare for the construction of
the first demonstration facility. 50Hertz’s objectives are to
establish the framework conditions for the market and grid
integration of adiabatic compressed-air storage.
ADELE-ING is an engineering project which will establish the
first demonstration facility for adiabatic compressed-air stor-
6 October 2013
50Hertz at the 23rd Rennsteig autumn run in the Thuringian Forest
50Hertz continues its regional commitment in Thuringia as a partner in the
Rennsteig autumn run. In drizzle and visibility below 50 metres, the 450
motivated runners, including a 50Hertz team, headed to the start of the
half-marathon track which has a rich tradition.
7 October 2013
50Hertz provides offshore rescue helicopter for the Baltic Sea
50Hertz, together with “DRF Luftrettung” provided a specially equipped rescue helicopter
for use on the sea. The helicopter is stationed in Güttin on the isle of Rügen and strengthens the rescue chain for those involved in the development of offshore wind energy.
3.20 p.m.
Location: School in Mecklenburg-Western Pomerania
Interactive exhibition
“Revolutionize energy together”
Coordinates: 53° 38' N, 11° 25' E
Exhibition area:
35 m2
Participants:
Years 5 and 6
Key element:Energy revolution rug
Learning stations:
8
Heike Müller has been working as a Project Manager for the
Independent Institute for Environmental Issues since 2009. She
is supervising the interactive exhibition “Revolutionize energy
together” on behalf of 50Hertz. The exciting exhibition, particularly suitable for children, makes a valuable contribution to
shaping the future in terms of sustainability.
53 • Annual Report 2013 Our daily commitment to the energy revolution
Good deeds across the entire grid area
Taking social responsibility for a high quality of life today and
a safe tomorrow is part of the mission statement of 50Hertz.
50Hertz introduces important stimuli for development in
each region.
Wide-ranging commitment to the region
An example: 50Hertz invested around 250 million euros in
the southwestern interconnector. 10 to 15 percent of the
investment amount is related to earthworks and foundation
works, forestrywork and projects in agriculture and civil and
hydraulic engineering. Thuringian companies are the main
beneficiaries. Measures are implemented to compensate for
any impact on natural areas. These measures are also generally executed by regional companies. 50Hertz also maintains a range of partnerships with universities and research
institutes in Thuringia in order to support young scientists.
This is ideal for developing creative ideas relating to the grid
expansion and putting these into action. The ecological
management of overhead lines is only one example of this.
In addition to the statutory measures, 50Hertz also supports
various outstanding and unique projects. These benefit the
diversity of the cultural landscape as well as the protection
of nature or social concerns. 50Hertz is particularly committed to supporting children and young people with their
forward-looking ideas and projects.
Wind forces you can touch
Inspiring young people to become involved in natural science topics is important for 50Hertz. 50Hertz was the main
sponsor of the special “Windstärken” [Wind Speeds] exhibition at the German Museum of Technology in Berlin. The
exhibition made the topic of wind and its energy a tangible
experience for children and young people. 50Hertz places
great emphasis on new solutions for a climate-friendly, secure as well as efficient energy supply. 50Hertz is also a
gold partner of the German Environment and Media Award
“GreenTec Awards 2013”. In this capacity, 50Hertz has
15 October 2013
EEG levy for 2014 amounts to 6.240 cents per kilowatt-hour (ct/kWh)
The four German transmission system operators published the forecasts of the
expected input from renewable power-generation plants for 2014 in accordance
with the EEG [“Erneuerbare-Energien-Gesetz”: German Renewable Energy Act]
as well as the resulting EEG levy for 2014.
contributed to promoting the use of sustainable environmental technologies and establishing a platform for the
exchange of ideas. At the awards ceremony in Berlin,
Boris Schucht, Chairman of the Board of Directors, presented the award for the “Energy” category together with
celebrity chef Sarah Wiener. Peter Altmaier, Federal Minister for the Environment, Nature Conservation and Nuclear
Safety, is the new patron for the GreenTec Awards.
The energy revolution as an interactive exhibition
The United Nations proclaimed the years between 2005 and
2014 the global decade of “Education for sustainable development”. In this context, 50Hertz, together with the Inde-
Did you know:
50Hertz supplies electricity to over 18 million people. Furthermore, 50Hertz has a
committment to society that goes well
beyond the mandatory statutory requirements. Besides its commitment to the environment and social concerns, 50Hertz
is also focussed on responsible political
communication and transparent public
relations.
23 October 2013
Brandenburg Premier a guest at the Transmission Control Centre (TCC)
Brandenburg Premier Dr. Dietmar Woidke visited the 50Hertz control centre.
After a guide through the TCC and insights into the system operation, he discussed the energy policy challenges faced by the new government together
with the 50Hertz Board of Directors Boris Schucht and Dr. Dirk Biermann.
GOOD DEEDS ACROSS THE ENTIRE GRID AREA Annual Report 2013
25 October 2013
Fifth EEG Conference held by 50Hertz for political discussions on the EEG
50Hertz hosted the 5th EEG Conference. The approx. 300 participants discussed the current trends
and challenges, especially the secure and cost-efficient integration of renewables, in light of the political
debates on the energy revolution and the planned reform of the EEG [“Erneuerbare-Energien-Gesetz”:
German Renewable Energy Act] in 2014.
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55 • Annual Report 2013 Our daily commitment to the energy revolution
pendent Institute for Environmental Issues (UfU), developed
the interactive exhibition “Energie gemeinsam wenden”
[“Revolutionize energy together”]. And with great success:
it was distinguished by the German UNESCO Commission
as the project of the UN “Education for sustainable development” decade. This recognised the interactive exhibition
as a contribution to the “Sustainable learning” alliance. The
interactive exhibition displays the challenges of the “energy
revolution” to years 5 and 6. It explains what it means to
increasingly convert a country’s electricity supply to more
and more renewable energy sources, the role played by
grids and that this is a process with many stakeholders. The
“Energy revolution rug” allowed the students to symbolically
change the energy supply landscape during the exhibition.
The “Wendepunkt” [Turning point] exhibition area used text
and images to present various aspects of the energy revolution and led through eight learning stations. It gave students
the opportunity to participate in actions, games and experiments on different topics related to the energy revolution.
Music by talented international musicians at the
Berlin Concert Hall
50Hertz supports the “Artist in Residence” program series
at the Berlin Concert Hall. The Concert Hall and its orchestra are one of the best places for classical music in Berlin,
which uses innovative formats to make classical music
more accessible to a wider public, including children and
young people. Outstanding conductors and soloists as well
as renowned ensembles from around the world provide
the impetus for the performance calendar. The “Artist in
Residence” program series is particularly important in this
respect. Each season, it focuses on an artist who is then
presented to the public in a range of concerts and extraordinary projects. The best part: These musicians also have
the opportunity to design unusual and innovative concert
formats. The “Artist in Residence” for the 2012/2013 season
was the young star violinist Julia Fischer. In the 2013/2014
season, the violin virtuoso Nikolaj Znaider is the “Artist in
Residence” for the Berlin Concert Hall orchestra and is presenting his diversity as a soloist, conductor and chamber
musician.
A real crowd puller in the region:
the Mecklenburg-Western Pomerania festival
During the summer months, numerous events are held in
the state of Mecklenburg-Western Pomerania as part of the
Mecklenburg-Western Pomerania festival. 50Hertz continued to support the festival season in 2013 as a concert
sponsor. 50Hertz is dedicated to supporting art in the region
as well as promoting young up-and-coming artists and
contributes to the enrichment of cultural life and to Mecklenburg-Western Pomerania’s touristic pulling power.
50Hertz – Ready, set, go!
50Hertz is supporting the Rennsteig autumn run for the third
year in a row. This cross-country run on the first section of
the Rennsteig marathon route leads through 20.5 kilometres
of beautiful nature from Neuhaus to Masserberg. Numerous
running enthusiasts at 50Hertz also headed to the start
line. In Thuringia, 50Hertz also supports the VB Suhl e. V.
women’s volleyball juniors, and young biathletes at the
Schorfheide sports club in the southern Uckermark region
of Brandenburg also benefit from an ongoing partnership
with 50Hertz. 50Hertz helps the young “biathinos” learn
the Nordic winter sport on their way to the top.
15 November 2013
Transmission system operators publish medium-term EEG forecast and forecast for the EEG levy rates in 2015
In the publication for the input from renewable-electricity-generating plants in accordance with the EEG [“Erneuerbare-EnergienGesetz”: German Renewable Energy Act], the four German transmission system operators (TSO) provided their forecasts for the
trend over the next five years.
GOOD DEEDS ACROSS THE ENTIRE GRID AREA Annual Report 2013
21 November 2013
50Hertz IT awarded 4th place in the “CIO of the Year” award
50Hertz’s Head of IT, Dominik Spannheimer, was ranked fourth in the “CIO of the Year” 2013 award
in the medium-sized enterprise category. “Computerwoche” and “CIO-Magazin” honoured the best
Chief Information Officer (CIO) in Germany in various categories in Munich for the eleventh time.
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6.42 p.m.
Location:
Coordinates:
Ambient temperature:
Heartbeats per minute:
Speed:
Distance to the goal:
Sports field
52° 30' N, 13° 26' E
-10 °C
140
7 km/h
100 m
Secretary Martina Zobel, trainee Christian Schulz (middle runner) and consultant in the Accounting/Asset Accounting, Benjamin Zimmermann don’t just distinguish themselves with strong
performances at work, this also continues during their leisure
time. At the Rennsteig autumn run 2013, Martina Zobel ranked
first in her age category (time 02:09:09) and Christian Schulz in
the 50Hertz running team placed second overall (time 01:37:10).
59 • Annual Report 2013 Our daily commitment to the energy revolution
The most important resource:
qualified and committed personnel
With over 820 employees, 50Hertz has not only established
the foundation for the implementation of its investment program, but increasingly demanding challenges must continue
to be overcome at the highest level, such as the EEG implementation, customer management and system operation.
One focus is on establishing an attractive working environment for highly qualified and committed individuals. In 2013,
50Hertz also made active preparations for the demographic
shift.
To strengthen the competencies in project management
for the investment program, 50Hertz has developed a new
organizational structure for the regional centres. A new regional centre in Hamburg, suitable organisational structures,
processes and responsibilities will create the right framework
conditions. For example, new teams at each of the seven
locations bundle management and project coordination.
Searching for the best
In 2013 50Hertz updated its recruiting and selection processes and created so-called tandem positions as part of its
succession planning measures in order to secure knowledge
at critical points for the future. Considerably more apprentices and trainees started in 2013 in order to be able to replace experienced employees in the future. For the first time
2 KIA students (training and diploma as an engineer in five
years) started at the company, where all trainees spend
time in foreign posts (Belgium and Denmark). 50Hertz also
started an employee participation scheme for the first time
in 2013. The aim is to strengthen the identification with the
Elia Group as well as recognizing very good work results
in the challenging year of 2013.
“Fair Company” for fair career opportunities
50Hertz is a member of the “Fair Company” initiative. This
initiative was introduced in 2004 by the Handelsblatt Publishing Group’s job and business magazine “Karriere”. 50Hertz
is committed to providing fair working conditions for trainees.
27 November 2013
Union and SPD agree on a coalition agreement
CDU/CSU and SPD representatives agreed to a coalition agreement with a range of key
energy-policy projects: The EEG [“Erneuerbare-Energien-Gesetz”: German Renewable
Energy Act] is due to be reformed by the summer of 2014, followed by the development
of a system of grid-user charges as well as the introduction of a capacity mechanism.
50Hertz has revised its annual employee review meeting
in order to identify strengths and areas of development
at an early stage. It is now more heavily focussed on the
specific “on and off the job” development steps, is aligned
to the competence model introduced in 2012 and has
been anchored in a company agreement for all employees.
Furthermore, in 2013, three new international development
programs were introduced at the Elia Group level (IDEG –
for “International Development @ Elia Group”). Each of
these provide customized development modules and projects from everyday business for a specific target group.
Worker participation
50Hertz fosters a trusting and constructive cooperation
with all employee-participation committees. At 50Hertz, the
Works Council is responsible for internal worker participation. The Director of Labour Relations and the Supervisory
Board, with equal representation, represent the company’s
employees. Throughout the company, the trade union represents the interests of employees in the industry – such as for
collective bargaining. The German Industrial Mining, Chemical and Energy Union (IG BCE) trade union takes over these
activities for 50Hertz.
Preventing and fighting corruption
50Hertz is committed to fighting and preventing corruption.
50Hertz has appointed an external ombudsman as an independent contact partner for all individuals who wish to express
their concerns regarding suspected corruption or any other
similar legal violation. The ombudsman is an independent lawyer, subject to the duty of non-disclosure, who only forwards
information to the company with the approval of the informant.
The ombudsman is a contact partner for employees, contractors or third parties.
Sustainable cooperation with research and science
50Hertz is committed to continuing its close cooperation
with colleges and universities in the future. This is of critical
THE MOST IMPORTANT RESOURCE: QUALIFIED AND COMMITTED PERSONNEL Annual Report 2013
6 December 2013
Wind input record in the 50Hertz area
On this day, a maximum simultaneous input from
wind-power plants of 11,064 megawatts (MW)
was achieved.
6 December 2013
50Hertz and the Velten 1st secondary school
conclude a cooperation agreement
Velten’s Mayor, Ines Hübner, and Principal Herbert Gorr sign a cooperation
agreement with 50Hertz. The school maintains a nature path along the
380-kV Berlin North Ring route and would like to be involved in the compensation and substitution measures for the western construction section.
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61 • Annual Report 2013 Our daily commitment to the energy revolution
importance for managing the dynamic challenges involved
in transmission-system activities in light of the energy revolution. 50Hertz has maintained a scientific network for several
years in order to promote the exchange of knowledge and
draw attention to research and development topics. 50Hertz
also provides traineeship positions, supports the preparation
of theses and offers positions to students. Partners include
the University of Rostock, the Dresden University of Technology, the Ilmenau University of Technology, the Otto-von-Guericke University Magdeburg, the Brandenburg University of
Technology Cottbus-Senftenberg and the Friedrich-Schiller
University Jena. 50Hertz has arranged a scientific advisory
body for energy infrastructures for several years. Its mem-
Did you know:
50Hertz is the industry winner in the medium-sized enterprise group in the FOCUS
employer ranking 2014. In a study, the magazine, together with Xing, asked almost
20,000 employees how satisfied they were
with their employer. In total, 2,000 companies with at least 500 employees were
assessed for the ranking.
bers are professors who have distinguished themselves with
their outstanding knowledge in their field. Their expertise
benefits the electricity grids, high-voltage technology and
energy and regulation law.
50Hertz and the Ilmenau University of Technology signed a
comprehensive framework agreement for research and development services in the energy sector on 22 August 2013.
This contract allows both partners to extend their existing
cooperation which has already lasted almost ten years. A
cooperation agreement previously only existed between
the Institute for Electrical Energy and Control Technology at
the Ilmenau University of Technology and 50Hertz. The new
contract will allow future cooperation to be expanded to the
entire Ilmenau University of Technology as well as companies that are affiliated with 50Hertz. At the same time, the
cooperation is turning its focus to a new project: Joint activities by 50Hertz and the Ilmenau University of Technology
on the technical requirements of the planned high-voltage
direct-current connection from the Halle/Saale region
to Meitingen in the Augsburg region (“south-east directcurrent passage”).
50Hertz worked on five studies as part of university cooperations with the objective of analysing and evaluating the
topics relevant for managing electrical systems such as
voltage quality in high-voltage grids, the determination of
measures for critical conditions in the 50Hertz grid as well as
system management 2030. 50Hertz also hosted an Innovation Forum for its employees in order to provide information
on the topics of innovation management.
Occupational health and safety in the best
possible hands
Occupational health and safety are an important component
of the corporate culture at 50Hertz. They help to establish
adequate conditions for the promotion of physical and mental health. Every employee receives regular instruction on
17 December 2013
50Hertz applies for offshore grid connections
50Hertz submits an application to the Ministry for Energy for the state of MecklenburgWestern Pomerania as well as to the Federal Maritime and Hydrographic Agency for the
construction and operation of six submarine cable systems to connect the planned Westlich
Adlergrund and Arkona See wind-farm clusters northeast of the isle of Rügen to the grid.
THE MOST IMPORTANT RESOURCE: QUALIFIED AND COMMITTED PERSONNEL Annual Report 2013
occupational health and safety. In 2013 50Hertz’s occupational health and safety management system was successfully certified in accordance with the OHSAS 18001:
2007 (Occupational Health and Safety Assessment Series,
international standard for the certification of occupational
health and safety in companies). 50Hertz also provides
driver-safety training in cooperation with ADAC [German
Automobile Association]. 50Hertz has concluded new
contracts with the Maritime Rescue Coordination Centre
(MRCC) in Bremen (emergency control centre for the North
and Baltic Sea) and DRF Luftrettung (air rescue service).
50Hertz, together with the DRF Luftrettung, has provided
a specially equipped rescue helicopter for use out at sea
since 1 October. On board are two helicopter pilots, one
winch operator and one emergency physician. A team is on
standby for emergency call-outs around the clock, 365 days
a year. This significantly improves safety for employees in
the German Baltic Sea. The helicopter is stationed in Güttin
on the isle of Rügen. This improves the rescue chain for the
individuals involved in developing offshore wind energy. The
helicopter was officially commissioned on 7 October 2013 –
in the presence of State Secretary Ina-Maria Ulbrich from the
Ministry for Energy, Infrastructure and Regional Development
for Mecklenburg-Western Pomerania. This enabled 50Hertz
to optimise the rescue concept for the offshore area.
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race for asthma and mucoviscidosis on the Col du Galibier
under the motto “Climbing for Life”. This is the third year in
a row that Elia has supported this event. 50Hertz athletes
also participated in the sixth edition of the Berlin road cycling
race “Velothon” in June. In addition, a 50Hertz running team
braved the drizzle and visibility of below 50 metres to participate in the Rennsteig autumn run half marathon which has
a rich tradition. 50Hertz supported the Rennsteig autumn
run in the Thuringian Forest as a partner for the third time.
Every year, 50Hertz also hosts a sport and fitness day for its
employees and their families. Our colleagues from Belgium
once again participated in the event in 2013. At a sports
ground in Strausberg, near Berlin, the program included
activities such as football, bowling, volleyball and the funsport Olympics.
Sport and fitness
Joint sports activities have a long tradition at 50Hertz. The
50Hertz company sports club (BSV VEAG) currently has
176 members divided across the nine sports of badminton, bowls, football, gymnastics, bowling, running, cycling,
mountain biking and volleyball. 50Hertz congratulated the
club on its 20th anniversary in 2013. The club was founded
on 14 May 1993 as a company sports club of the Vereinigten
Energiewerke AG (VEAG) with its head office in Berlin. Other
sports groups exist in the regional centres. The 50Hertz
cyclists travelled to the French Alps for the second time
at the invitation of Elia in order to participate in the benefit
May, December 2013
50Hertz purchases shares in the electricity exchange
At the start of May 2013, 50Hertz acquired 1.75 percent of the shares in the
European Energy Exchange AG (EEX) in Leipzig, with a further 0.5 percent
in December 2013, with a total share in the EEX on 31 December 2013 of
2.25 percent and a share value of 5.4 million euros.
Management report and financial statements of
50Hertz Transmission GmbH
Management report
65
Financial statements
83
Statement of financial position
83
Income statement
85
Cash flow statement
86
Statement of changes in fixed assets
87
Notes to the financial statements
89
Company boards
105
Auditor’s report
106
65 • Annual Report 2013 Our daily commitment to the energy revolution
Management report
Purpose of the Company
50Hertz is the term used jointly for 50Hertz Transmission
GmbH (50Hertz Transmission) and 50Hertz Offshore GmbH
(50Hertz Offshore); both companies are affiliates of Eurogrid
GmbH (Eurogrid), Berlin. Transmission system operator Elia
System Operator SA/NV (Elia), Brussels, Belgium, and infrastructure fund Industry Funds Management Luxembourg
No. 2 S.à.r.l., Luxembourg, Luxembourg, indirectly hold a
shareholding in Eurogrid via Eurogrid International CVBA/
SCRL, Brussels, Belgium.
50Hertz is one of four operators of transmission systems
for electrical energy operating in Germany with responsibility
for the extra-high-voltage grid.
As transmission system operator, 50Hertz operates an
extra-high-voltage grid that spans northern and eastern
German at voltage levels of 150 kilovolts (kV), 220 kV and
380 kV with a network grid length of around 10,000 km.
50Hertz’s customers and partners are distribution grid oper-
ators based in the balancing zone whose plants are directly
connected to the transmission grid, operators of power stations connected to the transmission grid, pumped storage
plants, wind farms, major industrial consumers, transit and
balancing group customers as well as business partners
governed by the laws EEG [“Erneuerbare-Energien-Gesetz”:
German Renewable Energy Act] and KWKG [“Kraft-WärmeKopplungsgesetz”: German Combined Heat and Power Act].
As transmission system operator responsible for the balancing zone, 50Hertz is responsible for its secure, reliable, efficient and environmentally friendly operation, maintenance
and need-based expansion as well as for maintaining the
balance of generation and consumption within the balancing zone’s whole electricity-generation system. Since 2012,
50Hertz is the only German transmission system operator
to have been certified as a fully unbundled grid operator in
terms of ownership law by the Federal Network Agency.
Overall economic
and industry-related conditions
Economic and political environment
The downward trend in general economic development in
Germany was halted over the course of 2013 as the overall
economic situation stabilized. Following a period of stagnation of the gross domestic product (GDP) at the beginning of
the year – caused also by the cold weather – the economy
picked up moderately. Positive growth rates in the second
and third quarter of 2013 led to a price-adjusted increase
in GDP on the prior year of 0.4%, or 0.5% adjusted for seasonal effects. This was primarily attributable to increased
consumer spending by both public bodies and private
households, while capital expenditures – adjusted for price
effects – were down. Net exports had a negative impact
on GDP. This was caused by a slowdown in exports while
imports increased at a greater rate by comparison.
The economic outlook for 2014 is viewed optimistically,
which is why the federal government in its fall outlook
forecast a price-adjusted increase in GDP of 1.7% in
comparison to the figures forecast for 2013.
Electricity consumption in 2013 decreased by 1.8% on the
prior year, while the Arbeitsgemeinschaft Energiebilanzen e. V.
(working group on energy balances) had predicted a yearon-year increase in total energy consumption in Germany of
2.6% for 2013. The most important cause for this is deemed
to be the increased demand for heat energy as a result of
the long winter and cool spring. In terms of electricity generation, renewable energies again increased by just under
6% on the prior year. While hydropower and wind power
across Germany recorded a decrease of 2.5% and 2% in
Management Report OF 50HERTZ TRANSMISSION GMBH annual report 2013
2013, respectively, photovoltaic and biomass increased their
share of electricity generation by 7% and 11%, respectively.
The development of the economy as a whole as well as
electricity consumption did not have any significant influence on 50Hertz’s earnings.
The political environment of the transmission system operators in the 2013 fiscal year was primarily shaped by the general elections in September. Part of the election campaign
concerned the costs of the new energy concept in Germany
and in particular the costs of promoting renewable energies.
Negotiations between federal and state governments failed
to reach an agreement before the election on an electricity price freeze as suggested by the federal government.
After the election, the new governing coalition agreed in its
coalition agreement on a prompt reform of the EEG, the
introduction in the medium term of a cost-efficient capacity
mechanism that is competitive and open to all technologies
at a European level, a reliable expansion plan for renewable energies onshore and offshore, measures to ensure
system security, further development of the network user
charge system and measures to increase energy efficiency.
The further expansion in renewable energies is to be better
synchronized with grid expansion.
Regulatory framework for the energy industry
European law
On a European level, several legal measures came into force
in 2013 or are still at the implementation stage, which are
expected to aid the creation of a uniform single market by
increasing market transparency and further expanding the
infrastructure.
To implement the European Union (EU) Regulation No. 648/
2012 on OTC (over-the-counter) derivatives, central counterparties and trade repositories, also known as EMIR (European Market Infrastructure Regulation), several implementing
acts as well as national implementation acts were issued.
In 2013, the European Commission initiated proceedings in
the energy sector against the Federal Republic of Germany.
Firstly, a formal government aid investigation was opened
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in March regarding the exemption of electricity-intensive
industries from network user charges. However, these
proceedings were superseded by legislative and judicial
developments in Germany; a decision has therefore not yet
been made.
Secondly, the European Commission began reviewing the
compatibility of relief granted to energy-intensive industry
companies in the EEG with the single market as part of a
formal EU government aid investigation in December 2013.
By a ruling of the European Court of Justice, the German
Environment Information Law was rejected as not compatible with higher-ranking law. Although the law does not apply
until it has been amended accordingly, the rights to information of environmental protection and nature conservation
associations were reinforced as a result of this amendment
having to be made.
National law
In 2013, national law as well as established case law continued to be shaped by the implementation of the new energy
concept in Germany which has picked up pace since its
launch in 2011. In addition to legislative activities, several
court rulings have also brought about significant changes to
the legal framework in the field of the energy industry.
The EnWG amended at the end of 2012 regulated liability for
any delays and interruptions when establishing offshore grid
connections. In such cases, the offshore wind farm affected
receives compensation from the transmission system operator, which can then pass on the costs incurred to the grid
users via a newly introduced offshore liability cost allocation,
provided the transmission system operator has not acted
with willful intent. While the amount of the first offshore liability cost allocation for 2013 was still prescribed by law, the
amount of this cost allocation for 2014 was determined by
the transmission system operators for the first time based
on forecast compensation payments. The cost allocation
for 2014 was disclosed as of 15 October 2013 and set at
a maximum value of 0.25 cents per kilowatt-hour (ct/kWh)
for the largest end-consumer group.
67 • Annual Report 2013 Our daily commitment to the energy revolution
There were changes to the regulatory framework as a result
of amendments made to the StromNEV [“Stromnetzentgeltverordnung”: Ordinance on Electricity Network User Charges] stemming from earlier court rulings. Firstly, the index series to be used to determine the current value are stipulated
for the first time. Secondly, it sets the interest rate at which
the share of equity is charged exceeding the regulatory
equity ratio of 40% (equity II).
The legal framework for the utilization of interruptible loads
by transmission system operators was further defined as of
1 January 2013 after the implementation of the regulation
on agreements on interruptible loads.
The ResKV [“Reservekraftwerksverordnung”: German Regulation on Reserve Power Plants], which came into force in
July 2013, also further specifies the provisions on supply
reliability created by amending the EnWG.
Two rulings of the Düsseldorf higher regional court proved
significant in the indirect economic effects they had for
50Hertz. In March 2013, the court declared the network
user charge exemptions under Sec. 19 (2) StromNEV as well
as the cost allocation to distribute losses in income among
the grid operators to be unlawful. However, these decisions
made by the Düsseldorf higher regional court have not become final and absolute as operators including 50Hertz have
filed an application for judicial review with the Federal Court
of Justice. Moreover, the regulatory authority reacted by
amending the StromNEV to no longer allow exemption from
network user charges but instead to only allow for reduced
network user charges upon fulfilling certain requirements.
In July 2013, the first Federal Requirements Plan Act was
announced based on the first German grid development
plan prepared in 2012. This completed the new legal framework for the planning and approval of large line-construction
projects in place since the end of 2012, which contains 36
specific projects in the extra-high-voltage grid setting out the
necessity and priority needs for the energy sector. However,
constitutional complaints were lodged at the Federal Constitutional Court against the Federal Requirements Plan Act;
a decision has yet to be made.
To the benefit of 50Hertz, the Federal Court of Justice rejected the administrative practice of the Federal Network
Agency as well as the corresponding legal precedents of
the Düsseldorf higher regional court on the grounds that
measures to retrofit secondary technology may not from the
outset be permissible as investment measures in accordance with Sec. 23 ARegV [“Anreizregulierungsverordnung”:
Incentive Regulation Ordinance]. The Federal Network Agency as well the Düsseldorf higher regional court had always
maintained that this only concerned replacement measures
and not restructuring measures. The reasons for the Federal
Court of Justice’s decision, which are still outstanding, will
affect further pending cases of 50Hertz as well as the approval of future investment measures.
The court ruling of Berlin regional court from August 2013
meant a decision was made for the first time on the liability
of a transmission system operator when connecting offshore
wind farms. The court rejected the action against 50Hertz
and ruled that the offshore wind farm operator EnBW Baltic
1 had no claim to damages for default. In 2013, the Federal
Administrative Court (BVerwG) also made a decision on the
second southwest connecting line and rejected all actions
against the planning approval decision.
Further development in regulatory legislation was largely
shaped by court rulings in 2013. The Düsseldorf higher regional court, for instance, ruled in April 2013 that the formula
used by the regulatory authorities to calculate the equity
interest rate before taxes was flawed. Adjusting the formula
increased the equity interest rates for new and existing
plants. The Düsseldorf higher regional court also declared
the Federal Network Agency calculating capital and operating costs resulting from approved investment measures to
be unlawful in some respects. However, an application for
judicial review has been filed, meaning that the existing administrative practice will for the time being be continued for
the second regulatory period. By contrast, the Federal Court
of Justice confirmed the practice of regulatory authorities
in that trade tax pursuant to StromNEV is not an operating
tax in line with the list of permanently uncontrollable costs
and therefore the revenue caps are not to be adjusted upon
changes in trade tax.
Management Report OF 50HERTZ TRANSMISSION GMBH annual report 2013
Grid development plans
A core component of the grid development plan 2012,
which initially only comprised the onshore grid development
requirement, was transferred to the federal requirements
planning. In 2013, 50Hertz and the other German transmission system operators also revised their planning activities
and prepared the second national grid development plan of
2013 (NEP 2013), as well as the first national offshore grid
development plan of 2013 (O-NEP 2013) based on input
parameters for 2023 (looking towards 2033) broadly consulted and then determined by the Federal Network Agency.
The package of measures developed by the transmission
system operators in the grid development plan 2013 was
submitted following consultation for confirmation to the Federal Network Agency as a concept for a stable and bottleneck-free electricity supply in 2023 (looking towards 2033).
The transmission system operators categorized the identified grid expansion measures into priority and observed grid
measures. The grid development plan 2013 was confirmed
at the beginning of January 2014. During its review, the Federal Network Agency went beyond the planning approach
taken by the transmission system operators and, as in the
grid development plan 2012, applied far-reaching criteria to
assess the necessity and robustness of the measures so as
to afford flexibility in expanding the grid in light of a changing
energy industry and policy environment. Of the 90 line
measures in the grid development plan 2013 submitted
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by the transmission system operators across Germany, 20
relate to 50Hertz’s balancing zone. Two of these measures
have already successfully completed the public-works planning procedure or are under construction and do not require
any further confirmation, while seven measures were not
confirmed.
With the system change introduced by the amendment of
the EnWG, demand for connection capacities is stipulated
in the offshore grid development plan. The offshore grid
development plan is therefore the key tool for improved offshore conditions. The scenario framework confirmed by the
Federal Network Agency provides for a maximum expansion
capacity of 1.3 gigawatts (GW) in “Scenario B 2023” for the
Baltic Sea, whereas the forecasts and project applications
at 50Hertz expected an expansion capacity of 2.1 GW in
this time frame. The offshore grid development plan takes
the connections of the Baltic 1 and 2 offshore wind farms in
the offshore starter grid into account and also provides for
the connection of another cluster with four grid connection
systems in “Scenario B 2023”. In parallel to the offshore grid
development plan, 50Hertz took part in the preparation of
the Federal Maritime and Hydrographic Agency’s offshore
federal plan, which handles regional planning for offshore
wind farms in the exclusive economic zone.
Business development
Grid usage and grid connection
50Hertz is currently processing seven applications in accordance with the KraftNAV [“Kraftwerks-Netzanschlussverordnung”: Ordinance for Regulating Grid Connections] for
connecting conventional power stations and storage facilities
to the transmission grid as well as a planned compressed air
storage plant at Förderstedt (outside the scope of KraftNAV).
The projects together have a gross nominal output of around
6,600 megawatts (MW), of which 50Hertz has granted grid
connection permits for approximately 5,000 MW.
Over the course of 2013, the grid connection application
to 50Hertz for the gas and steam turbine and biomass
combined heat and power (CHP) plant project with approximately 330 MW at a location in Berlin was withdrawn;
the project for this grid connection is now being exclusively
pursued for the 110 kV distribution grid. Application filed
for an increase in output of around 40 MW was confirmed
by 50Hertz for a gas and steam turbine CHP project in the
state of Brandenburg. In addition, a grid connection application for a pumped storage power plant in Thuringia with ap-
69 • Annual Report 2013 Our daily commitment to the energy revolution
proximately 400 MW was submitted at year-end. As a result,
the gross nominal output of conventional power plants and
storage facilities for a network connection applied for from
50Hertz only changed marginally in 2013 compared to the
prior year. Apart from the Moorburg hard coal power station
in Hamburg that is about to start operations, construction work is currently not scheduled to begin at any of the
planned power stations and storage facilities.
With regard to the grid connection applications that fall
under the EEG, there are still 21 applications for offshore
wind farms, which now total approximately 6,400 MW as a
result of an increase in output announced in 2013 (including
competing applications). There are a total of six applications
for onshore wind farms of up to 2,100 MW, bringing the
output for applications to connect to 50Hertz’s grid to approximately 8,500 MW for offshore and onshore wind farms.
On top of this, there are three applications for solar farms
with a total output of around 300 MW and an application
filed jointly with an onshore wind farm totaling 370 MW
from photovoltaic and biomass power.
The preliminary network user charges 2014 published on
15 October 2013 showed a steady development compared
to the 2013 prices. Among other things, new pooling provisions were observed during pricing from the beginning
of 2014. The final prices for 2014 correspond roughly to
the preliminary network user charges. 50Hertz’s grid customers were informed about this in December 2013.
Regulatory issues
The revenue caps for 2013 were set with effect as of 1 January 2013 in accordance with the provisions of the ARegV.
They were increased by around 26% on the prior year and
form the basis of the price list valid since 1 January 2013.
The increase is primarily attributable to catchup effects for
cost increases in prior years as well as an increase in the
expected redispatch costs as part of the voluntary commitment for system services. The increase in onshore and offshore investments also contributed greatly to this increase.
The revenue caps in effect from 1 January 2014 were also
determined in accordance with the provisions of the ARegV.
These revenue caps decreased slightly by 4% compared
to the prior year, in particular due to lower energy costs.
By 31 December 2013, of the 99 active applications
filed since 2008 for the approval of investment measures,
50Hertz had received a total of 69 approvals. Based on
the total application volume of EUR 9.9b, an investment
volume of EUR 3.6b had been approved by the Federal
Network Authority by the aforementioned date.
Grid provision and expansion
The provision and maintenance of 50Hertz’s 66 own substations and switching systems with its 153 transformers in
operation, amounting to a total capacity of 44,030 megavolt-ampere (MVA), comprises inspection, servicing and
maintenance. The total capacity of transformers therefore
increased by 880 MVA or 2% compared to 2012. While servicing and maintenance is largely performed by external personnel, inspection and monitoring of the quality and safety
of the services performed is secured by the Company’s own
staff. Transformer capacity reserves are being increasingly
determined by the input volume from the distribution grid
level into the transmission grid, which is attributable to the
growth in renewable energies.
The focus in fiscal year 2013 was again on carrying out construction activities and preparatory measures for strengthening and expanding the grid. For the European priority project
relating to the southwest interconnection line from Halle
(Saxony-Anhalt) to Schweinfurt (Bavaria), the lawsuits of one
municipality and several private individuals were pending
in the main action for the second construction phase from
Vieselbach to Altenfeld. The Federal Administrative Court rejected these lawsuits in July 2013 and ruled that the planning
approval decision by the Free State of Thuringia is lawful.
The construction work started in 2012 was continued as
planned in 2013. The second construction phase is expected to go into operation at the end of 2014. The public works
planning procedure for the third construction phase of the
southwest interconnection line from Altenfeld to Redwitz (in
TenneT TSO’s area), which will also continue to Schweinfurt,
was opened in September 2013 for the phase that is under
50Hertz’s responsibility up to the Thuringian/Bavarian border.
Management Report OF 50HERTZ TRANSMISSION GMBH Annual Report 2013
The planning approval decision on the construction of the
new 380 kV overhead line from Bärwalde to Schmölln along
the existing route was issued in February 2013. The construction work was started immediately during operations.
The first circuit of the new higher-performing double circuit
line went into operation on 25 October 2013. Together with
the circuit of the current double circuit line, this resulted in
improved conditions for the feed-in of power stations in
Lusatia in winter 2013/2014 until construction and assembly
work continues in the coming year. The new line’s second
circuit is expected to go into operation before the winter of
2014/2015.
The planning approval decision for the western section of
the “Nordring Berlin” [Berlin Northern Ring] (380-kV line)
was issued in the third quarter of 2013.
In the Baltic Sea, plans are also underway to link the grid
connection of the Kriegers Flak offshore wind farm with
a cross-border line between Germany and Denmark.
Preparatory work on the project has commenced.
In the Wolmirstedt transformer substation, the first construction phase of the new 380 kV plant was completed and
put into operation. The existing 220/110 kV transformation
was replaced in full by the commissioning of two 380/110
kV transformers in June 2013. The construction and assembly work for the Förderstedt location, which will also be
switched to 380/110 kV transformation in the future, started
in 2013 after the necessary approvals were granted. Furthermore, the newly constructed 380 kV Altentreptow/Nord
transformer substation for the connection of the Werder/
Kessin onshore wind farm went into operation on 30 August
2013. In the Perleberg transformer substation, line connections were converted and the first of two additional 380/110
kV transformers went into operation in November 2013 as
part of the location’s expansion.
Environmental protection is an extremely important factor in
the use of technical plants. The safe interaction with waterpolluting substances and technical gases, proper disposal
of waste as well as nature conservation and pollution control
place high demands on the planning, construction and
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operation of plants. For this reason, such work included
regularly controlling and modernizing the environmental
equipment, implementing noise protection measures as well
as compensatory and replacement measures to compensate for the invasion of nature and landscape. In 2013 for
example, a large transformer was dismantled on site, properly disposed of and decontamination performed as part
of the 380 kV expansion in the Schmölln transformer substation. In the Hamburg plants, additional security systems
such as large separators and oil lines were inspected, retrofitted and modernized. Using high-performance contingency
and damage concepts, the impact of events relating to the
environment can be contained and eliminated as quickly
as possible.
The high level of environmental protection is ensured on
the one hand by active environment management and on
the other hand by the constant training and sensitization of
the Company’s employees. In this context, regular environmental consulting was available for employees in 2013 and
the further education of environmental officers through e.g.,
external training. Employees in regional centers were trained
on topics such as waste disposal and transport of dangerous goods by means of activity-based instruction.
System management
As of 31 December 2013, 50Hertz’s balancing zone contained onshore wind turbines with a total installed output
of 13,430 MW. This corresponds to approximately 40% of
Germany’s installed capacity and an increase of just under
9% compared to 31 December 2012. The installed output
of offshore wind turbines in the Baltic Sea continues to
stand at around 50 MW. The photovoltaic output installed
within the balancing zone increased by approximately 5% in
comparison to the end of 2012 and now stands at around
7,600 MW.
The maximum simultaneous feed-in from wind turbines
of 11,064 MW and from photovoltaic plants (PV plants) of
5,346 MW was achieved on 6 December 2013 and 5 June
2013, respectively. The maximum amount fed into 50Hertz’s
transmission grid – registered on 4 January 2013 – came
to 15,961 MW (instantaneous one-minute value).
71 • Annual Report 2013 Our daily commitment to the energy revolution
To avoid the failure-related overloading of grid elements
within the transmission grid, it was necessary at the beginning of 2013 to take measures on 220 days in accordance
with Sec. 13 EnWG (thereof on 142 days with a reduction
in output generated by renewable energies). This resulted
in a redispatch amount of 2,051 gigawatt-hours (GWh) and
a reduced EEG energy offering of 138 GWh. The situation
in 50Hertz’s balancing zone continued to be marked by
increased load flows from north to south and east to west
in 2013.
One particular challenge for system management was posed
by the effects of Hurricane Xaver on 5 and 6 December
2013. To take control of the situation, it was necessary to
implement extensive redispatch measures with conventional
power plants and, to a lesser degree, reduce the output of
wind turbines. More than 50 cases of electricity lines and
additional grid elements tripping on account of the weather
were recorded, although these were quickly powered on
again.
Following evaluation of the winter 2012/2013, 50Hertz together with the other German transmission system operators prepared for winter 2013/2014 by carrying out extensive investigations mainly as part of the implementation
of the ResKV [“Reservekraftwerksverordnung”: German
Regulation on Reserve Power Plants]. In this context, the
necessity was identified to maintain reserve power plant
output of around 2,500 MW to cover redispatch measures
in southern Germany taking into account (n–1) outages in
the transmission grid for winter 2013/2014. This output was
fixed contractually by the transmission system operators.
Energy management
Balancing group management
50Hertz invoices all balancing groups in its balancing zone
on a monthly basis, including its own balancing groups. As
of the end of 2013, there were 1,367 balancing groups for
495 of the traders, electricity distributors and grid operators
operating in the balancing zone.
EEG settlement
In the fiscal year 2013, the supply of EEG electricity within
50Hertz’s balancing zone increased by approximately 7%
in comparison to the prior year. In 2013, the share of direct
marketing increased again on 2012, reporting growth of
around 30%. Overall, only around 32% of EEG electricity
output in 50Hertz’s balancing zone was sold by the transmission system operator. As of year-end 2013, around 85%
of onshore wind turbines and the entire offshore wind generation was sold directly using the market premium model,
also causing electricity volumes exchanged between the
transmission system operators in the horizontal equalization
of burdens to fall further.
The average price on the electricity exchange, which continued to fall sharply and which could not be taken into account in the calculation for the EEG cost allocation, was
one of the main reasons why the EEG cost allocation was
again not sufficient in 2013 to fully cover the costs of feedin compensation and the market premium payments to
plant operators. Taking into account the maximum liquidity reserve as permitted by law when calculating the cost
allocation for 2013 proved to be justified. However, it was
unable to prevent a deficit in the EEG cost allocation in 2013
peaking at EUR 2.3b, of which EUR 460m was attributable
to 50Hertz. Overall, 2013 was shaped by cash inflows due
to the EEG cost allocation in such a way that avoided a
continuous deficit over a protracted period.
The calculation for 2014 again used the maximum liquidity
reserve as permitted by law. Considering the account deficit
on 30 September 2013, an EEG cost allocation of 6.24 ct/
kWh was calculated and published.
Other cost allocations in the energy industry
In addition to the KWKG cost allocation and the cost allocation pursuant to Sec. 19 (2) StromNEV, the offshore liability
cost allocation was levied for the first time in 2013 via the
grid operators.
Grid losses, voltage control and operating
consumption
50Hertz covers the energy it needs to cover grid losses in
the long term as part of a risk-averse procurement strategy.
In 2013, the long-term need for 2014 of 2.1 terawatt-hours
Management Report OF 50HERTZ TRANSMISSION GMBH Annual Report 2013
(TWh) was procured. The procurement of long-term components for 2015 and 2016 was also largely concluded.
In 2013, a total of 2.1 TWh and 2.2 TWh was secured for
2015 and 2016, respectively.
In 2013, the realignment of the contractual provisions with
power plants connected to the 50Hertz grid was concluded
as a way of providing reactive power. Voltage control agreements have now been concluded with all power plant operators. These are in line with market criteria and ensure
a reliable provision of reactive power by the power plants.
As part of an operating efficiency program, work began in
2013 to combine and optimize the partly individual procurement of operating consumption for the substations and
locations of 50Hertz by implementing uniform regulations.
Measures introduced in this regard will be concluded in
the course of 2014. As part of this process, in 2013 it was
decided to introduce an energy management system and
work was begun.
International and national cooperation with the transmission system operators
Operations of the Internal Grid Control Cooperation (IGCC)
were performed incident-free and made a significant contribution towards the integration and increased efficiency of
the balancing energy markets in Europe by avoiding any opposing requests for balancing energy in the balancing zone
between Belgium, Denmark, the Netherlands, Switzerland,
the Czech Republic and Germany. The IGCC was officially
recognized as the cross-border pilot project on electricity
balancing of the European Network of Transmission System Operators – Electricity and a grid bottleneck module
was added allowing available transmission capacities to
be used better.
The cooperation with TenneT TSO, which has been in place
for several years now, was also successfully continued in
2013. In addition to providing market entry, additional cooperation opportunities were also examined: one example
is TenneT TSO and 50Hertz attempting together to include
direct marketers of EEG plants in the redispatch processes.
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Cross-border load flows and regional initiatives
Continuing the activities introduced by 50Hertz in 2012 to
tackle the increasing volume of unplanned load flows across
transnational borders and their influence on ensuring secure
system management, 50Hertz and the Polish transmission
system operator Polskie Sieci Elektroenergetyczne S.A.
(PSE) piloted a “virtual phase shifter” between January and
April 2013. This involved applying a response mechanism
into how power plants are run under defined conditions
and coordinated across borders in order to avoid overloading lines and threatening system operations. Although the
effectiveness of this procedure was proven, it confirmed
the necessity of erecting physical phase shifters. As of yearend 2013, negotiations on an agreement with PSE concerning the coordinated erection and operation of such phase
shifters on the German-Polish border as well as
the use of a virtual phase shifter in the meantime were in
the final stages.
Furthermore, with regard to the cross-border line to the
Czech transmission system operator CEPS a.s., a technical solution was agreed for erecting phase shifters on both
sides of the border. This is to be supplemented by regulations on the coordinated use of the equipment.
In 2013, a portion of transmission capacities were auctioned
off for the first time as annual capacity for 2014 on the
cross-border direct-current connection to eastern Denmark
(high-voltage direct-current transmission KONTEK) at the
request of market participators and regulators. The majority
of capacities continue to be available for daily auctions as
well as monthly auctions.
50Hertz is involved in the development of electricity markets in various European regions. In northwestern Europe,
further progress was made in 2013 on preparations for the
introduction of load flow-based market coupling procedures,
especially for awarding bottlenecks capacities the day ahead.
They are expected to be implemented in 2014. In the region
of central eastern Europe, work on a load flow-based market coupling procedure was recommenced. This work will
be continued in 2014 under close cooperation with the
region’s electricity exchanges. In 2013, 50Hertz assumed
73 • Annual Report 2013 Our daily commitment to the energy revolution
the role of coordinator between the eight transmission
system operators affected.
Employees
The number of employees at 50Hertz Transmission increased
from 720 to 779 as of 31 December 2012, a rise of 8% compared to the prior year. New jobs were mostly created in the
technical areas and support the high investment program.
At the same time, the number of temporary workers hired
was further reduced through targeted insourcing measures.
To prepare for the large number of employees expected to
enter retirement in the coming years, the number of trainees
was increased and totaled 24 at year-end.
50Hertz offered its employees the chance to participate in
the successes of the fiscal year 2012 in the form of a stock
program and so provided each employee with ten Elia
shares free of charge in 2013. This offer was exercised by
92% of the eligible employees.
Health and industrial safety
The primary aim is to shape conditions at the workplace
or in the working environment in such a way that they fulfill the employees’ health and safety requirements at all
times. 50Hertz’s health and industrial safety management
system was successfully certified according to the “Occupational Health and Safety Assessment Series 18001:
2007” in 2013. The rescue concept for offshore activities
was improved by entering into agreements with the “Maritime Rescue Coordination Centre” in Bremen for the North
Sea and the Baltic Sea and the German air rescue service
DRF Rettungsflug.
In 2013, there were six reportable work-related accidents,
three accidents while traveling on business and ten commuting accidents. None of these accidents resulted in
serious injury.
IT security
There were no IT-related security incidents with a material
influence on 50Hertz’s business processes in 2013. The
creation of a comprehensive IT security structure that
began in the past year was systematically continued in
2013. An IT security program to set up an IT security
management system for 50Hertz was prepared and its
implementation kicked off.
Research and development
In the course of the grid expansion, 50Hertz reviews and
develops technologies to make better use of routes, to improve public acceptance of overhead-line projects as well
as to support system reliability. For example, a project to
develop space-optimized overhead lines was launched in
2013 and is being subsidized by the German Federal
Ministry of Economics and Technology for a term of five
years. Overall, around EUR 1m was spent on research
and development projects in 2013.
Management Report OF 50HERTZ TRANSMISSION GMBH Annual Report 2013
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74
Economic situation of 50Hertz Transmission
The Company operates exclusively in the field of electricity
transmission as defined by Sec. 6b (3) EnWG. For this reason, the separate activity-based financial statements to be
prepared correspond to the Company’s financial statements.
Results of operations
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
7,191.6
7,457.2
– 265.6
469.3
253.1
216.2
7,660.9
7,710.3
–49.4
936.4
894.8
41.6
66.0
58.7
7.3
Expenses for the grid business
– 543.8
– 537.2
– 6.6
Other expenses
– 197.4
– 186.1
– 11.3
11.4
1.3
10.1
272.6
231.5
41.1
Income statement
Cost-matching income
Other cost-matching income
Non-profit issues
Revenue from the grid business
Other income
Investment result/financial result
Result from ordinary activities
50Hertz Transmission’s absolute income and expenses are
largely characterized by the settlement not through profit
or loss of the EEG and additional cost allocations. The
transmission system operators sell the renewable electricity
fed in by upstream grid operators and directly connected
producers to an electricity exchange. In addition to this sales
revenue, the transmission system operators levy a charge
for all trading and distribution companies operating in the
balancing zone to cover the difference between the costs for
the reimbursement of electricity generated from renewable
sources and the revenue from selling the electricity generated from renewable sources. The settlement of the EEG
and the KWKG generated revenue of EUR 6,284.1m
(prior year: EUR 6,343.8m).
Under other income, EUR 88.5m was attributable to the
settlement of the KWKG (prior year: EUR 76.2m). Income
of EUR 225.4m (prior year: EUR 176.9m) related to the
allocation mechanism for reductions in charges granted to
grid customers in accordance with Sec. 19 (2) StromNEV.
Income of EUR 155.4m was generated for the first time in
the fiscal year as a result of introducing a new nationwide
allocation mechanism for delays and interruptions when
establishing the grid connections as part of the reform of
the EnWG. The amount of the cost allocation for 2013
was prescribed by law. Part of the cost allocation was
paid out for compensation in the fiscal year; the rest is
transferred to general liquidity and will be deducted from
future cost allocations with a time delay of two years.
Under revenue and cost of materials, the settlement volume
of services rendered to third parties amounts to a share
of EUR 907.5m in each case (prior year: EUR 1,113.4m).
Overall, income and expenses from the individual allocation mechanisms are recognized directly in equity
for 50Hertz.
75 • Annual Report 2013 Our daily commitment to the energy revolution
In the fiscal year, a total business volume of EUR 7,660.9m
(prior year: EUR 7,710.3m) relates to the settlement of nonprofit isses.
Revenue from the grid business primarily related to increased network user charges (EUR 988.9m; prior year:
EUR 713.7m), balancing group management (EUR 52.8m;
prior year: EUR 79.8m) as well as system services (EUR
31.4m; prior year: EUR 50.3m). In addition, EUR –140.4m
(prior year: EUR 44.6m) relates to effects from the compensation for network user charges in different periods,
which are realized with a time delay as a result of the
current regulatory framework.
Expenses for the grid business mainly contain expenses for
the procurement of electricity of EUR 235.7m (prior year:
EUR 303.4m) and for system services of EUR 251.1m
(prior year: EUR 177.6m).
Other expenses include personnel expenses of EUR 68.9m
(prior year: EUR 62.8m). This increase compared to 2012
is due to a collectively bargained wage and salary adjustment from 2013 and also represents the constant growth
in the number of employees. At EUR 64.5m (prior year:
EUR 65.1m), amortization, depreciation and write-downs
remained largely stable year-on-year.
The negative interest result as part of the financial result
amounts to EUR 6.7m (prior year: EUR 15.3m). Under investment result, 50Hertz Transmission generated income
from the profit transfer from 50Hertz Offshore of EUR 18.1m
(prior year: EUR 16.9m). The interest result was influenced
significantly less by negative one-off effects in the fiscal year
2013 than in the comparative period, which led overall to
an improvement in the interest result.
The result from ordinary activities amounts to EUR 272.6m
(prior year: EUR 231.5m). As in the prior year, this positive
trend in earnings is mainly due to effects now occurring
from the regulatory framework; this primarily relates to
catch-up effects for prior years as well as the compensation for the further increase in investment activity. The
positive effects were included in current income. As the
positive effects are primarily due to the elimination of the
two-year delay compensating for incurred costs, the relatively lower results in past fiscal years also have to be considered when interpreting the results. In addition, positive
contributions to earnings resulted from the adjusted measurement of individual provisions as well as from efficiency
improvements in operating expenses.
The latest estimate for tax risks for assessment periods
before the consolidated tax group was formed with Eurogrid resulted in a positive result from income taxes of EUR
4.5m (prior year: EUR –4.6m). The expense of other taxes
amounts to EUR 1.1m (prior year: EUR 0.5m).
The Company closed the fiscal year 2013 with a profit for
the period (before profit transfer) of EUR 276.0m (prior year:
EUR 226.4m), which will be transferred to Eurogrid.
Net assets and financial position
In addition to intangible assets of EUR 39.0m (prior year:
EUR 38.0m), fixed assets primarily comprise 50Hertz Transmission’s technical grid systems of EUR 1,135.4m (prior
year: EUR 1,084.2m), prepayments and assets under construction of EUR 262.5m (prior year: EUR 149.4m) as well
as financial assets of EUR 478.1m (prior year: EUR 322.9m).
The latter primarily relates to the investment in (EUR 201.0m)
as well as a loan (EUR 271.3m) issued to 50Hertz Offshore.
In addition, securities classified as fixed assets of EUR 5.4m
from the acquisition of shares in European Energy Exchange
AG (EEX) were recognized for the first time. For fiscal year
2013, additions to investments in property, plant and equipment amount to EUR 244.6m (prior year: EUR 139.1m).
These mainly relate to the construction of a new transformer
substation in Altentreptow/Nord, capacity increases of
transformer substations in Wolmirstedt and Perleberg as
well as the expansion of additional locations. Furthermore,
a plot of land near Berlin main station was purchased for
50Hertz’s future headquarters.
Under current assets, EUR 642.5m (prior year: EUR 446.0m)
relates to trade receivables. This reflects the high billing volumes attributable to the largely non-profit grid business also
when considering the results of operations. The fall in other
Management Report OF 50HERTZ TRANSMISSION GMBH annual report 2013
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76
31 Dec 2013
EUR m
31 Dec 2012
EUR m
Change
EUR m
2,030.0
1,691.2
338.8
883.3
1,056.0
–172.7
2,913.3
2,747.2
166.1
Equity
855.8
855.8
0.0
Non-current liabilities
780.9
554.9
226.0
1,276.6
1,336.5
– 59.9
2,913.3
2,747.2
166.1
Statement of financial position
Assets
Fixed assets
Current assets (including prepaid expenses)
Equity and liabilities
Medium and current liabilities
assets to EUR 98.2m (prior year: EUR 595.4m) is mainly
attributable to the decline in compensation claims stemming
from the EEG settlement process as well as to the application of the reverse-charge process on the supply of electricity in Germany and the associated drop in deductible input
tax from the purchase of electricity fed in from EEG plants.
As of the reporting date, the inclusion in Eurogrid’s
cash pool system resulted in a receivable to affiliates of
EUR 122.3m (prior year: liability of EUR 258.0m).
At EUR 855.8m, equity was unchanged on the prior year;
it is made up of capital stock (EUR 200m) and capital reserves (EUR 655.8m).
Non-current liabilities include the shareholder loan granted
by Eurogrid of EUR 500.0m (prior year: EUR 300.0m).
This item also mainly contains various provisions of EUR
85.8m (prior year: EUR 85.6m) and deferred income of
EUR 147.4m (prior year: EUR 122.3m), with longer terms.
Medium and current liabilities mainly contain the remaining
provisions of EUR 862.2m (prior year: EUR 556.8m), which
in turn mainly result from the EEG and additional cost allocation processes (EUR 662.8m; prior year: EUR 397.8m).
Trade payables amounted to EUR 179.8m (prior year:
EUR 173.3m).
Cash flow statement
The development in cash flow from operating activities reflects the extent to which the Company’s liquidity situation
fluctuates mainly due to the settlement of the non-profit
business. Despite what were occasionally high deficits in
the EEG account over the course of the year, the EEG cost
allocation with the liquidity buffer contained therein at yearend had an extremely positive effect on the liquidity situation
as of the reporting date. In addition, the income from the
offshore liability cost allocation, combined with the currently
low payments for compensation, resulted in an improved
liquidity situation. Favorable weather conditions, lower
energy costs and higher network user income also had
an overall positive impact on liquidity.
As well as payments for additions to property, plant and
equipment (EUR 244.6m), the cash flow from investing activities also includes the issue of a loan of EUR 95.0m as
well as an allocation of EUR 55.0m to the capital reserves
at 50Hertz Offshore. Cash flow from financing activities
comprises the net cash flow from the profit transfer for
the fiscal year 2013 (EUR 276.0m). A short-term loan
from Eurogrid of EUR 200m was repaid; at the same time,
the existing non-current loan from the shareholder was
increased by EUR 200m.
77 • Annual Report 2013 Our daily commitment to the energy revolution
The financing of 50Hertz was secured throughout the entire
fiscal year 2013. The cash pool with Eurogrid was in place
throughout the entire fiscal year.
Consolidated statement of cash flows (condensed)
In fiscal year 2013, there was a consolidated tax group for
income tax in place with Eurogrid. Furthermore, 50Hertz
Transmission acts as the interposed parent towards 50Hertz
Offshore in terms of income tax and VAT.
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
Cash flow from operating activities
1,064.0
– 241.5
1.305.5
Cash flow from investing activities
– 401.3
– 217.7
– 183.6
Cash flow from financing activities
– 276.0
– 27.8
– 248.2
Change in cash and cash equivalents
386.7
– 487.0
873.7
Cash and cash equivalents at the end of the period
130.3
– 256.4
386.7
Overall picture of the economic situation
In the fiscal year 2013, the result from ordinary activities
was also mainly characterized by nonrecurring effects from
changes to the regulatory framework (introduction of the t
minus 0 mechanism for investment measures in place of the
t minus 2 time delay), which must be interpreted in connection with past fiscal years. In addition, the change in profit for
the year is also a direct result of lower energy costs and the
revenue from increasing investments taking effect in 2013.
The financial obligations due in fiscal year 2013 were covered at all times by the available liquidity and the shareholder
loan.
Equity investments
50Hertz Transmission has a 100% shareholding in 50Hertz
Offshore. 50Hertz Transmission assigned the task of constructing and operating the grid connections of offshore
wind farms in the Baltic Sea to 50Hertz Offshore.
50Hertz Transmission has a 12.5% shareholding in Central
Allocation Office GmbH (CAO) based in Freising and 20% of
the shares in European Market Coupling Company GmbH
(EMCC) based in Hamburg. The two companies have the
purpose of providing bottleneck management services for
transmission grids. The introduction of new load flow-based
procedures involving coupling the market in northwestern
Europe means a key portion of EMCC’s tasks will not be
needed in future, which is why a resolution on the future
dissolution of the company was passed in fiscal year 2012.
50Hertz Transmission has a 10.1% shareholding in CORESO SA (CORESO) based in Brussels, Belgium. CORESO
is the coordination and service center for load flows in the
central western European region.
At the beginning of May 2013, 50Hertz Transmission acquired 1.75% and then a further 0.5% in December 2013 of
the EEX in Leipzig, resulting in its share in the EEX amounting to 2.25% on 31 December 2013 with a share value of
EUR 5.4m. 50Hertz intends to acquire a total share of up
to 4.31% in the EEX by making additional purchases in the
first half of 2014.
Management Report OF 50HERTZ TRANSMISSION GMBH Annual Report 2013
Forecast report
50Hertz will continue to invest in the development of its
network, in order to securely and efficiently establish the
increasing share of renewable energies and to be able to
transport these in the direction of consumption centers.
50Hertz’s largest onshore projects at the moment are the
construction of the southwest connecting line, increasing the
electrical load-carrying capacity of the Bärwalde-Schmölln
line and the expansion, retrofit and modernization of the
Hamburg grid area. In the offshore area, the focus is on
the connection of the Baltic 2 offshore wind farm. Investing
activities will pick up further in the coming year and will
probably remain at a high level for several years.
As a result of the increasing investment activities and the
volumes from the EEG to be prefinanced, the financing
volume will increase. The liquidity situation for the EEG
business may remain tense due to the influence of market
premiums if the positive effect from increasing the liquidity buffer via the EEG cost allocation is not sufficient. This
requires the development of 50 Hertz’s financial instruments and continued active cash management. Financing
will be secured via the parent company Eurogrid for which
Moody’s confirmed a Baa1 rating in June 2013.
Cost development for actual grid operations, i.e., maintenance, personnel, administration and operations, will be
shaped by grid expansion as well as the energy policy. The
amount needed to cover these costs will be determined in
a cost review and the Europe-wide efficiency benchmark.
50Hertz makes continuous efforts to ensure a high degree
of efficiency in its processes and cost structures in order to
minimize the increased costs that are necessary for the new
energy concept in Germany. The costs for system services,
redispatch measures as well as grid losses are primarily
influenced by the development of electricity prices, weather
conditions and grid topology.
50Hertz Transmission’s result from ordinary activities for
2014 will most likely fall significantly short of the 2013
result from ordinary activities (EUR 272.6m). This forecast
is mainly based on the following premises:
– Normal business development of the transmission
system operator without any extraordinary weather
conditions, such as storms, and without any major
technical disruptions
– Smaller impact of one-off/catch-up effects from
changes in the regulatory environment
– Continued moderate development in energy costs
– Ongoing high degree of cost discipline in business
processes
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79 • Annual Report 2013 Our daily commitment to the energy revolution
Risk management system
The aims of the risk management system are to avoid any
risks jeopardizing 50Hertz’s ability to continue as a going
concern, to reduce existing risk items and to optimize the
risk/opportunity profile. Risks are recognized, recorded,
evaluated and monitored in a standardized manner applying
the risk guidelines. The assessment of potential losses and
the likelihood of their occurrence is based on scenarios.
This ensures that the risk situation is continually monitored,
especially to ensure the early recognition of risks to the
Group’s ability to continue as a going concern, and sup-
ports the selection and implementation of measures to
overcome such risks. Enhancement of the risk management system entails the systematic development and central
pursuit of plans of action for combating key corporate risks.
Relevant individual risks and the overall risk situation are
reported regularly to management, the supervisory board
and the shareholders. The respective decision makers are
informed ad hoc in the event of any significant changes.
The functionality and effectiveness of the risk management
system is regularly subject to review.
Opportunities and risks
Opportunities
While maintaining efficiency and ensuring that it invests in
the transmission and grid connections as and when it is
needed, 50Hertz has the opportunity to improve its regulated asset base and to achieve organic growth. Further
opportunities involve achieving a solid position as an independent transmission system operator, actively implementing the changes and new regulations relating to the new
energy concept in Germany as well as being a reliable and
high-performing partner for the customers being supplied
in the balancing zone.
Risks from political, regulatory and legislative matters
50Hertz’s network user charges are subject to regulations
issued by the Federal Network Authority. Any decisions
made by the Federal Network Authority in the current
regulatory framework could have a significant impact on
50Hertz, be it positive or negative.
Furthermore, the regulatory framework is subject to intense
discussion on a European, national and regional level.
50Hertz monitors and follows European and national legislative proceedings. European guidelines and regulations
due to be transposed soon into national law (e.g., provisions contained in the third energy liberalization package)
can also lead to new burdens or risks for the Company.
Laws and guidelines on renewable energies also have a
strong influence on 50Hertz’s risk situation and liquidity.
Changes to such legislation or the interpretation of this
legislation by the Federal Network Authority, can either
significantly improve or worsen the Company’s risk or
liquidity situation.
Uncertainty regarding approval of an adequate level of
income to cover the costs of the operating phase and
the conditional ex-post review of investing activities by
the regulatory authorities in terms of appropriateness,
scope and extent pose a risk for 50Hertz. This is confronted by constantly monitoring the costs and weighing
up the costs and benefits. Investments that are not
approved by the Federal Network Agency also lead to
lower imputed costs and therefore to a decrease in
network user charges.
The authorization to operate the grid in Germany cannot
expire, but can be revoked if 50Hertz (for example)
does not possess the staffing, technical and economic
capability and reliability to ensure that grid operations
are constantly in compliance with legal requirements.
Furthermore, negative consequences for the company
value as a result of losing this permit cannot be ruled out.
Management Report OF 50HERTZ TRANSMISSION GMBH Annual Report 2013
Technology/infrastructure
50Hertz’s non-current assets are geographically widespread
and can be the potential target for theft, acts of terrorism
and sabotage.
As an infrastructure operator for a secure and reliable electricity supply to more than 18 million people, 50Hertz makes
every effort to also be as well-equipped as possible for crisis
situations. Crisis tools are therefore constantly refined and
emergency exercises regularly carried out, so as to train
skills and identify any potential for improvement. In 2013,
the transmission control center, a regional center, security
bodies and other external partners were included in conducting a complex emergency exercise.
In the event of voltage fluctuations or interruptions, power
outages or a failure to implement legally prescribed emergency measures, 50Hertz can be held liable for any customer and/or third-party damage. Additional costs that will
not necessarily be recognized by the regulatory authorities
may also be incurred.
The connection of offshore wind farms is a business field
with additional technical and organizational challenges, because the legislature has decided to place wind farms relatively far away from the German coast. Despite careful preparation and analyses, technical problems are often only
discovered in the implementation stage and have to then be
solved immediately. Delays and changes are therefore likely
in the planning and construction stages. Should 50Hertz be
deemed responsible for the delay (normally also the case
if e.g., the fault lies with one of 50Hertz’s contractual partners), the Company must essentially reimburse the wind
farm operator for the financial loss incurred. Any expenses
in connection with such indemnification payments can partly be offset against compensation amounts by means of
recourse to the suppliers. The amendment to EnWG also
introduced an offshore liability cost allocation, which limits
the risks for transmission system operators when connecting offshore wind farms. This amendment replaces the previous method of satisfying the criteria of offshore wind farms
by approving structured grid expansion based on planning
submitted by the transmission system operators; moreover,
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80
the transmission system operator now only has to pay a
portion of the compensation payment itself in the event
of culpable delay or damage to the connection. However,
despite this new regulation, significant risks still remain at
the transmission system operator making the connection.
The construction of lines constantly meets with opposition
from locals, leading to long-winded administrative proceedings. Line-construction delays are therefore still likely despite
the intense efforts of 50Hertz’s approval and communication
experts. This can lead to an increase in critical situations
for grid operations as the new lines are urgently needed in
high-consumption areas, mainly for transporting the evergrowing volatile feed-in volume of renewable energies in
50Hertz’s balancing zone and also because the planned
shutdown of nuclear power plants in southern federal
states is getting closer.
Health and industrial safety
Accidents can occur at 50Hertz’s facilities or in connection
with the use of 50Hertz’s plants that may result in human
injury or death or other serious consequences. This could
result in lawsuits against 50Hertz, which bring with them
considerable financial obligations, reductions in financial
and personnel resources as well as loss of reputation.
Risk analyses have been performed for activities at 50Hertz
and the relevant measures developed and implemented.
Employees in manual jobs are instructed six times a year,
those in engineering and commercial areas once a year.
The know-how of our employees is essential for 50Hertz’s
business activities. Essential knowhow can be lost as a
result of employee turnover and insufficient know-how
transfer. Measures are implemented to reduce this risk,
e.g., positions are occupied in tandem before an employee
leaves the Company.
Markets and finances
50Hertz is required to purchase the energy generated
from renewable energy sources in the balancing zone at
a specified price and to sell it on the exchange. This results in liquidity risks (and opportunities) that have however no impact on earnings.
81 • Annual Report 2013 Our daily commitment to the energy revolution
Extreme fluctuations can also arise in the costs for balancing energy, grid losses and redispatch measures. Earnings
effects are reduced by regulatory models.
In the area of energy procurement, 50Hertz is subject to the
general market risks that are seen on the electricity market.
50Hertz uses electricity products and contracts customary
on the market for the energy it needs to cover system-related grid losses, in order to be able to counter the existing
market price risks in an appropriate manner. Based on a
risk-averse procurement strategy and taking the regulatory
framework conditions to compensate for costs for grid
losses into account, 50Hertz actively manages its market
activities and its related internal risk considerations. When
procuring the energy needed to cover grid losses for its own
portfolios, 50Hertz acts on the electricity market exclusively
with the objective of covering its own needs. Using physical
and financial contracts on the electricity market gives rise
to general cover risks and also credit risks and liquidity risks
in connection with market partners. These are countered
with internal control measures. From the perspective of network user charge regulations, the method used to secure
the energy needed to cover grid losses ensures that prices
are hedged to the extent necessary as required by the Federal Network Agency for the grid customers. This at the
same time prevents the market price risks of the electricity market reaching grid customers while keeping process
costs at a reasonable level.
The procurement of energy needed to cover grid losses is
also rendered as a service for third parties; for 50Hertz these
trading transactions are by nature transit items only due to
direct cross charging and do not therefore result in independent risk positions.
In the past year, a case of fraud concerning transmission
grids which came to light in another balancing zone showed
that balancing group management can also be susceptible
to risk as a result of data reports stretching over a long period of time. 50Hertz examined its own reporting processes
and took suitable measures to minimize this risk.
50Hertz must obtain refinancing on the capital market together with the parent company Eurogrid. This can result
in financing bottlenecks on the money and capital markets
which are limited by means of a line of credit that has been
secured for the long term, but not yet drawn.
Overall risk situation
50Hertz’s ability to continue as a going concern was not
jeopardized by individual risks or its aggregated risk position
in fiscal year 2013. Taking into account the measures taken,
there are no such risks for fiscal year 2014 either.
Management Report OF 50HERTZ TRANSMISSION GMBH annual report 2013
Subsequent events
No events of significant importance occurred from the time
of the reporting date to the issue date of 50Hertz Transmission’s financial statements.
Berlin, 18. February 2014
The management
Boris SchuchtUdo GiegerichDr. Dirk BiermannDr. Frank Golletz
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83 • Annual Report 2013 Our daily commitment to the energy revolution
Financial statements
Statement of financial position
31 Dec 2013
EUR m
31 Dec 2012
EUR m
39.0
38.0
1,512.9
1,330.3
478.1
322.9
2,030.0
1,691.2
3.8
3.4
Trade receivables
642.5
446.0
Receivables from affiliates
122.6
0.1
1.2
1.5
98.2
595.4
864.5
1,043.0
8.0
1.6
876.3
1,048.0
1.9
2.8
Assets
Fixed assets
Note
(1)
Intangible assets
Property, plant and equipment
Financial assets
Current assets
Inventories
(2)
Receivables and other assets
(3)
Receivables from other investees and investors
Other assets
Cash and cash equivalents
(4)
Prepaid expenses
Special loss account from the recognition of provisions
(5)
3.6
4.1
Excess of covering assets over pension and similar obligations
(6)
1.5
1.1
2,913.3
2,747.2
financial statements OF 50HERTZ TRANSMISSION GMBH annual report 2013
•
84
31 Dec 2013
EUR m
31 Dec 2012
EUR m
Issued capital
200.0
200.0
Capital reserves
655.8
655.8
–
0.0
855.8
855.8
7.5
8.0
10.1
9.6
0.4
5.3
937.5
627.5
948.0
642.4
56.3
39.4
Trade payables
179.8
173.3
Liabilities to affiliates
502.3
763.8
92.6
56.4
831.0
1,032.9
271.0
208.1
2,913.3
2,747.2
Equity and Liabilities
Equity
Note
(7)
Other revenue reserves
Special items
(8)
Provisions
(9)
Pensions and similar obligations
Tax provisions
Other provisions
Liabilities
(10)
Prepayments received on account of orders
Other liabilities
Deferred income
(11)
85 • Annual Report 2013 Our daily commitment to the energy revolution
Income statement
Revenue
Note
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
(12)
8,128.0
8,352.0
0.7
– 3.7
Increase in work in process
(prior year: decrease)
Own work capitalized
(13)
17.4
18.6
Other operating income
(14)
517.2
296.9
Cost of materials
(15)
– 7,735.4
– 7,994.4
Personnel expenses
(16)
– 68.9
– 62.8
Amortization, depreciation and write-downs
(17)
– 64.5
– 65.1
Other operating expenses
(18)
– 533.3
– 311.3
Investment result
(19)
18.1
16.6
Interest result
(20)
– 6.7
– 15.3
272.6
231.5
Result from ordinary activities
Income taxes
(21)
4.5
– 4.6
Other taxes
(22)
– 1.1
– 0.5
Expense from profit transfer
(23)
– 276.0
– 227.8
0.0
– 1.4
–
– 1.4
–
1.4
0.0
0.0
Net income for the year (prior year: net loss for the year)
Profit appropriation
Net income for the year (prior year: net lossfor the year)
Withdrawal from other revenue reserves
Retained earnings
(24)
financial statements OF 50HERTZ TRANSMISSION GMBH Annual Report 2013
•
86
Cash flow statement
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
276.0
226.4
64.5
65.4
305.7
– 362.7
– 0.6
– 0.6
0.2
0.8
– 0.4
3.4
Decrease in receivables and other assets (prior year: increase)
301.8
– 147.0
Increase in liabilities and other equity and liabilities (prior year: decrease)
116.8
– 27.2
Cash flow from operating activities
1,064.0
– 241.5
Cash paid for investments in property,
plant and equipment and intangible assets
– 248.7
– 144.4
Cash received from construction cost subsidies
2.2
6.5
Cash received from disposals of fixed assets
0.4
0.2
– 155.4
– 80.0
0.2
0.0
Cash flow from investing activities
– 401.3
– 217.7
Cash received from shareholder loans
200.0
200.0
– 200.0
–
0.0
– 1.4
Cash paid for the profit/loss transfer
– 276.0
– 226.4
Cash flow from financing activities
– 276.0
– 27.8
386.7
– 487.0
Cash and cash equivalents at the beginning of the period
– 256.4
230.6
Cash and cash equivalents at the end of the period
130.3
–256.4
Net income for the year before profit/loss transfer
Write-downs of fixed assets
Increase in provisions (prior year: decrease)
Other non-cash income
Loss from the disposal of fixed assets (prior year: gain)
Increase in inventories (prior year: decrease)
Cash paid for investments in fixed financial assets
Cash received from disposals of fixed financial assets
Cash paid for the repayment of shareholder loans
Cash paid to owners (distribution from the reserves)
Change in cash and cash equivalents
87 • Annual Report 2013 Our daily commitment to the energy revolution
Statement of changes in fixed assets
Cost
1 Jan 2013
EUR m
Additions
EUR m
Reclassifications
EUR m
Disposals
EUR m
31 Dec 2013
EUR m
56.1
4.1
0.8
0.3
60.7
–
–
–
–
–
56.1
4.1
0.8
0.3
60.7
120.7
14.5
1.8
0.1
136.9
2,667.9
33.2
71.9
29.8
2,743.2
65.9
5.2
4.1
4.0
71.2
149.4
191.7
– 78.6
–
262.5
3,003.9
244.6
– 0.8
33.9
3,213.8
Shares in affiliates
146.0
55.0
–
–
201.0
Loans to affiliates
176.3
95.0
–
–
271.3
–
5.4
–
–
5.4
Investments
0.5
–
–
–
0.5
Other loans
0.4
–
–
0.2
0.2
323.2
155.4
–
0.2
478.4
3,383.2
404.1
0.0
34.4
3,752.9
Intangible assets
Purchased software, licenses
and other plant rights
Prepayments
Property, plant and equipment
Land, land rights and buildings including
buildings on third-party land
Technical equipment and machinery
Other equipment, furniture and fixtures
Prepayments and assets under construction
Financial assets
Securities classified as fixed assets
Fixed assets
financial statements OF 50HERTZ TRANSMISSION GMBH Annual Report 2013
Amortization, depreciation and write-downs
Carrying amount
1 Jan 2013
EUR m
Additions
EUR m
Reclassifications
EUR m
Disposals
EUR m
31 Dec 2013
EUR m
31 Dec 2013
EUR m
31 Dec 2012
EUR m
18.1
3.7
–
0.1
21.7
39.0
38.0
–
–
–
–
–
–
–
18.1
3.7
–
0.1
21.7
39.0
38.0
42.2
1.6
–
0.1
43.7
93.2
78.5
1,583.7
53.5
–
29.4
1,607.8
1,135.4
1,084.2
47.7
5.7
–
4.0
49.4
21.8
18.2
–
–
–
–
–
262.5
149.4
1,673.6
60.8
–
33.5
1,700.9
1,512.9
1,330.3
–
–
–
–
–
201.0
146.0
–
–
–
–
–
271.3
176.3
–
–
–
–
–
5.4
–
0.3
–
–
–
0.3
0.2
0.2
–
–
–
–
–
0.2
0.4
0.3
–
–
–
0.3
478.1
322.9
1,692.0
64.5
–
33.6
1,722.9
2,030.0
1,691.2
•
88
89 • Annual Report 2013 Our daily commitment to the energy revolution
Notes to the financial statements
General
50Hertz Transmission GmbH (50Hertz Transmission) is registered in the commercial register of Charlottenburg district
court under HRB no. 84446.
The financial statements of 50Hertz Transmission were prepared in accordance with the provisions of the HGB [“Handelsgesetzbuch”: German Commercial Code] and the supplementary provisions of the GmbHG [“Gesetz betreffend
die Gesellschaften mit beschränkter Haftung”: German
Limited Liability Companies Act] as well as in observation
of the EnWG [“Energiewirtschaftsgesetz”: German Energy
Industry Act]. All amounts are in millions of euros (EUR m).
In the interest of clarity, items have been combined in the
consolidated income statement and in the statement of
financial position and disclosed separately and explained in
the notes. The income statement has been prepared using
the nature of expense method. The presentation of individual items in the statement of financial position and income
statement was adjusted; the prior-year figures were also
structured accordingly to improve comparability.
50Hertz Transmission qualifies as a large corporation in accordance with the size criteria under Sec. 267 (3) Sentence
3 HGB and has prepared the financial statements in line
with the requirements for this legal form.
50Hertz Transmission is included in the consolidated financial statements of Eurogrid GmbH (Eurogrid), with its regis-
tered office in Berlin, and in the consolidated financial statements of Elia System Operator SA/NV, with its registered
office in Brussels, Belgium. The consolidated financial statements of Elia System Operator SA/NV with the largest
group of companies can be obtained from Elia System Operator SA/NV, Boulevard de l´Empereur 20, 1000 Brussels,
Belgium. The consolidated financial statements prepared
by Eurogrid cover the smallest group of companies and can
be obtained from the Bundesanzeiger [German Federal Gazette] (www.bundesanzeiger.de). The Company is registered
in the commercial register of Berlin- Charlottenburg district
court under HRB no. 130427 B. As a result of being included in the consolidated financial statements of Eurogrid,
there is no separate obligation to prepare consolidated
subgroup financial statements comprising 50Hertz Transmission and 50Hertz Offshore GmbH (50Hertz Offshore).
A profit and loss transfer agreement was concluded between
Eurogrid and 50Hertz Transmission effective 1 June 2010.
At the same time, a consolidated tax group for income tax
was formed with Eurogrid as the parent of the tax group.
As a result of the domination and profit and loss transfer
agreement in place between 50Hertz Transmission and
50Hertz Offshore, 50Hertz Transmission acts as the interposed parent towards 50Hertz Offshore. There is a consolidated tax group for income tax and VAT purposes in
place between these two companies.
Accounting and valuation methods
Assets
Fixed assets
Purchased intangible assets are recognized at acquisition
cost and amortized on a straight-line basis over their estimated useful lives.
Property, plant and equipment are stated at cost less depreciation. Production costs for internally produced assets
include appropriate pro rata overheads in addition to the
directly attributable costs. Borrowing costs are not included.
Items of property, plant and equipment acquired or produced
before 1 January 2008 are depreciated using the declining
balance method. A transition to the straight-line method is
used as soon as this results in higher depreciation amounts.
The straight-line method is used for items of property, plant
Notes to the financial statements OF 50HERTZ TRANSMISSION GMBH Annual Report 2013
and equipment acquired or produced as of 1 January 2008.
The useful lives are based on the useful lives accepted by the
Federal Network Agency in order to better take into account
the increasing regulatory accounting needs and to increase
the informative value of the financial statements with regard
to the applicable regulatory framework. The use of accepted
useful lives appropriately reflects the actual depletion of the
fixed assets. Amounts in the statement of financial position
resulting from the opening statement of financial position in
DEM were not included in this valuation change, but instead
rolled forward based on the “1990 revaluation”.
Impairments are only recorded when the asset needs to be
written down to a lower net realizable value.
Financial assets are recorded at the lower of cost or market
and in accordance with the requirement to reinstate original
value. Extraordinary write-downs are not recorded for temporary impairment.
Loans are recognized at their nominal value and, where
appropriate, discounted to the reporting date.
Separately usable moveable fixed assets costing less than
EUR 150 that have a limited life are recognized immediately
in profit or loss. Assets costing between EUR 150 and EUR
1,000 are posted to a collective item pursuant to Sec. 6 (2a)
EStG [“Einkommensteuergesetz”: German Income Tax Act]
in the year of acquisition, also for the statutory accounts.
The collective item is written off in installments of one fifth in
the year in which it is recognized and each of the following
four years.
Current assets
Inventories are measured at acquisition and production
cost using generally accepted simplified valuation methods
and applying the lower of cost or market principle. Inventory risks arising from decreased salability are covered by
adequate allowances.
Receivables, other assets and cash and cash equivalents are
stated at their nominal value or net realizable value, which-
•
90
ever is lower. All recognizable individual risks and the general
credit risk are accounted for by appropriate allowances.
Prepaid expenses
Prepaid expenses refer to expenses of the reporting date,
insofar as they concern future periods.
Special loss account from
the recognition of provisions
A special loss account from the recognition of provisions
pursuant to Sec. 17 (4) DMBilG [“DMBilanzgesetz”: German
Act on Opening Balance Sheets in German Marks] is recognized on the assets side for provisions that had to be recognized in the opening statement of financial position in DEM
in connection with the first-time application of Sec. 249 (1)
Sentence 1 HGB on 1 July 1990. The special loss account
changes according to the utilization and reversal of the
underlying provisions recognized in the opening statement
of financial position in DEM, which only include provisions
for eliminating ecological burdens. This account is continued
up until the complete utilization or reversal of the provisions
recognized in the opening statement of financial position in
DEM in the amount originally recognized at nominal value
as a result of the DMBilG.
Excess of covering assets over pension
and similar obligations
In accordance with Sec. 246 (2) Sentence 2 and Sentence
3 HGB, a positive difference between the fair value of the
covering assets and the Company’s existing pension obligations or comparable long-term obligations existing on the
reporting date is disclosed as an asset. This amount arises
from the complete insolvency protection of the provision for
employee entitlements from working lifetime accounts.
Equity and liabilities
Equity
The issued capital is measured at nominal value.
Special item
Investment subsidies and grants received are recorded
in the special item. The items are released to income in
accordance with depreciation of the subsidized assets.
91 • Annual Report 2013 Our daily commitment to the energy revolution
Provisions
In the calculation of provisions, all recognizable risks and
uncertain liabilities were taken into account as required
according to prudent business judgment and recorded at
the settlement value necessary.
The projected unit credit method was selected for the
measurement of pension obligations and long-service
bonuses. Discounting was calculated using the mean
market interest rate of 4.90% (prior year: 5.06%) for a
remaining term of 15 years in accordance with the RückAbzinsV [“Rückstellungsabzinsungsverordnung”: German
Ordinance on the Discounting of Provisions]. The interest
rate of 4.90% p. a. (prior year: 5.06%) was also used for
the measurement of obligations from working lifetime accounts. The calculations are based on the 2005 G mortality
tables of Prof. Dr. Klaus Heubeck. Future salary increases
were set at 3.0% p. a. (prior year: 3.0% p. a.). Expected
pension increases were taken into account at rates between 1.00 and 3.00% p. a..
Provisions for the company pension plan recorded under
the Company’s congruent pension obligations are covered
to a large extent by employer’s pension liability insurance.
The amount of the provisions corresponds to the amount
of the covering assets. The fair value of the covering assets
corresponds to the cash surrender value on the reporting
date of the employer’s pension liability insurance. Provisions
for employee entitlements from working lifetime accounts
are fully protected against insolvency; as a rule, the provisions for the German phased retirement scheme are only
partially protected against insolvency. In accordance with
Sec. 246 (2) Sentence 2 HGB, the respective covering
assets are netted against the provisions for the company
pension plan, working lifetime accounts and the German
phased retirement scheme; interest expenses from unwinding the discount on provisions are netted against interest
income from topping up the covering assets.
Obligations from phased and early retirement arrangements
(the latter only until 31 December 2011) are recognized under other provisions on the basis of actuarial reports and
using an interest rate of 3.50% (prior year: 3.98%) in accor-
dance with the RückAbzinsV over an average term of two
years. This involved determining and measuring the actuarial
present value of future payment obligations. These calculations are also based on the 2005 G mortality tables of Prof.
Dr. Klaus Heubeck. Future salary increases were set at
2.5% p. a. (prior year: 2.5% p. a.).
Other non-current provisions were discounted pursuant to
the RückAbzinsV.
The interest portion from the increase in personnel-related
provisions is recorded in the interest result.
Liabilities
Liabilities are recognized at the settlement value deemed
necessary.
Payments from customers collected in connection with the
examination and preparation of grid connections (connection authorizations) in accordance with Sec. 4 KraftNAV
[“Kraftwerks- Netzanschlussverordnung”: Ordinance for
Regulating Grid Connections] are disclosed as prepayments.
Customer payments are also recorded in connection with
the installation of jointly used facilities. Subsidies received
are recorded as prepayments for as long as the underlying
project remains unconcluded.
Deferred income
Construction cost subsidies received are recognized as
deferred income and released on a straight-line basis.
Until 31 December 2002, construction cost subsidies
received were released to income over 20 years unless
a shorter term has been agreed. Since 1 January 2003,
construction cost subsidies received have been released
to income in line with the useful life of the asset.
Amounts paid to 50Hertz Transmission in prior years from
cross-border bottleneck management are recorded as deferred income. These are used for investments for maintaining or expanding connection capacities. In return, 50Hertz
Transmission must pay a consideration for the amounts
received, which it recognizes as a subsidized construction
loan under equity and liabilities.
Notes to the finaNcial statements OF 50HERTZ TRANSMISSION GMBH annual report 2013
The deferred horizontal grid income is recognized over
30 years as determined by the Federal Network Agency.
In addition to the income from bottleneck management,
other income generated in connection with additional
voluntary commitments was also recognized as deferred
income. Here too, the deduction is also performed by
taking the network user charges in subsequent years
into account.
Other amounts also primarily relate to deferred income from
long-term contractual relationships which are only recognized in profit or loss in subsequent periods.
Deferred taxes
50Hertz Transmission is included in the consolidated tax
group for income tax purposes of Eurogrid. Deferred taxes
arising due to temporary or quasi-permanent differences
between the carrying amounts of assets, liabilities, prepaid
expenses and deferred income in the statutory accounts
and their tax carrying amounts or due to tax loss carryforwards are determined at the level of the controlling entity.
Grid-based accounting
When preparing the annual financial statements, expenses
and income and the corresponding receivables and liabilities
in the area of grid-based accounting were determined based
on preliminary data provided by third parties and partly
based on forecasts.
This primarily relates to the settlement of the EEG and
KWKG processes, the accounting of the balancing group,
grid utilization as well as the accounting of system services.
For a final statement on the actual expenses and income
incurred, external data of each partner are decisive, in particular the actual electricity volumes, some of which are only
confirmed when the respective certification of the independent auditor has been issued.
As this data is by nature not available in its entirety when the
financial statements are prepared, the corresponding items
in the financial statements were estimated using the data
available and taking into account the information available
at the time of preparing the financial statements.
Foreign currency translation
Foreign currency assets and liabilities are translated using
the average spot rate on the reporting date.
•
92
93 • Annual Report 2013 Our daily commitment to the energy revolution
Notes to the statement of financial position
(1) Fixed assets
The breakdown of the fixed asset items summarized in
the statement of financial position and their development
is shown in the statement of changes in fixed assets.
List of shareholdings
The shareholdings of 50Hertz Transmission break down
as follows:
Securities classified as fixed assets of EUR 5.4m from the
acquisition of shares in EEX were recognized in fixed assets
for the first time in the fiscal year.
Shareholding
%
Equity
EUR m
Earnings
EUR m
100.0
201.0
– 1)
European Market Coupling Company GmbH, Hamburg
20.0
1.0
1.0 2)
Central Allocation Office GmbH, Freising
12.5
1.7
0.1 2)
CORESO SA., Brussels/ Belgium
10.1
1.6
0.2 3)
2.25
113.7
13.1 4)
31 Dec 2013
EUR m
31 Dec 2012
EUR m
Change
EUR m
Raw materials, consumables and supplie
2.1
2.4
– 0.3
Work in process
1.7
1.0
0.7
3.8
3.4
0.4
1. Affiliates
50Hertz Offshore GmbH, Berlin
2. Investments
3rd Securities classified as non-current assets
EEX AG, Leipzig
Profit and loss transfer agreement
Financial statements as of 31 December 2012
3)
Financial statements as of 31 December 2013
4)
Financial statements 2012; EBT 2012
1)
2)
(2) Inventories
Notes to the finaNcial statements OF 50HERTZ TRANSMISSION GMBH annual report 2013
•
94
(3) Receivables and other assets
31 Dec 2012
EUR m
thereof
due
> one year
EUR m
EUR m
thereof
due
> one year
EUR m
Trade receivables
642.5
–
446.0
–
Receivables from affiliates
122.6
–
0.1
–
thereof from shareholder
122.5
–
0.0
–
Receivables from
other investees and investors
1.2
–
1.5
–
98.2
0.1
595.4
10.1
864.5
0.1
1,043.0
10.1
31 Dec 2013
Other assets
Receivables from affiliates primarily include a receivable
from the shareholder from the cash pool with Eurogrid of
EUR 122.3m (prior year: EUR 0.0m). All other receivables
from affiliates and from other investees and investors relate
to trade receivables.
Other assets contain receivables from the tax office from
deductible input tax of EUR 4.1m (prior year: EUR 94.3m),
for which returns had not been filed on 31 December 2013.
As of the reporting date, compensation claims of EUR 0.3m
remained from the EEG process (prior year: EUR 430.0m).
The other cost allocation processes contain receivables
totaling EUR 47.3m (prior year: EUR 17.5m). Furthermore,
earmarked subsidies with a term of more than one year of
EUR 0.1m (prior year: EUR 10.1m) were disclosed.
(4) Cash and cash equivalents
Cash and cash equivalents comprised cash on hand
as well as bank balances on the reporting date.
This includes a foreign currency balance of DKK 55.3m
(EUR 7.7m), which is counterbalanced by an identical
liability.
(5) Special loss account from the recognition of provisions
The development of the special loss account from the recognition of provisions occurs in line with the development
of the nominal obligation of the provision for ecological bur-
dens. This nominal obligation amounted to EUR 3.6m
(prior year: EUR 4.1m) as of the reporting date.
95 • Annual Report 2013 Our daily commitment to the energy revolution
(6) Excess of covering assets over pension and similar obligations
Offsetting the recognized provision against the asset value
from the insurance cover (covering assets) produces an excess of covering assets over pension and similar obligations
of EUR 1.5m as of the reporting date (prior year:
EUR 1.1m). The item results from netting the provisions
for working lifetime accounts of EUR 3.3m (prior year:
EUR 2.4m) with the respective cash surrender values of
EUR 4.8m (prior year: EUR 3.5m).
(7) Equity
The Company’s issued capital of EUR 200m is fully paid in
and is held in full by Eurogrid. The capital reserves remain
unchanged on the prior year at EUR 655.8m.
The net income for the year of EUR 276.0m was transferred
to Eurogrid.
(8) Special item
The special item for investment subsidies and grants
amounts to EUR 7.5m (prior year: EUR 8.0m).
(9) Provisions
The provisions for pension obligations arise from the settlement amount of the liabilities offset of EUR 22.1m (prior
year: EUR 22.0m) and the fair value of the assets offset
(covering assets) of EUR 12.0m (prior year: EUR 12.4m).
The tax provisions relate to periods not yet covered by the
tax group.
Other provisions break down as follows:
31 Dec 2013
EUR m
31 Dec 2012
EUR m
Change
EUR m
396.0
329.8
66.2
85.7
27.0
58.7
Additional cost allocation processes
181.1
41.0
140.1
Network user charges
156.8
89.2
67.6
Personnel-related provisions
11.4
12.0
– 0.6
Easements for line use rights
71.3
67.9
3.4
9.4
14.7
– 5.3
911.7
581.6
330.1
25.8
45.9
– 20.1
937.5
627.5
310.0
Outstanding EEG invoices
EEG balancing energy
Litigation risks
Sundry other provisions
Notes to the finaNcial statements OF 50HERTZ TRANSMISSION GMBH annual report 2013
•
96
employer’s liability insurance cover (covering assets) of
EUR 2.5m (prior year: EUR 3.2m).
In the personnel-related provisions, provisions for the German phased retirement scheme of EUR 3.0m (prior year:
EUR 4.6m) were offset against the asset values from the
(10) Liabilities
31 Dec 2012
EUR m
31 Dec 2013
EUR m
Total
Due in
< one year
Due in
> five years
Total
Due in
< one year
Due in
> five years
56.3
56.3
–
39.4
39.4
–
Trade payables
179.8
179.8
0.0
173.3
173.2
0.0
Liabilities to affiliates
502.3
2.3
500.0
763.8
463.8
–
501.9
1.9
500.0
763.0
463.8
–
Other liabilities
92.6
79.3
0.0
56.4
56.0
0.4
thereof from taxes
17.1
17.1
–
1.7
1.7
–
thereof relating to social security
0.3
0.3
–
0.4
0.4
–
831.0
317.7
500.0
1,032.9
732.4
0.4
Prepayments received
thereof to the shareholder
At EUR 502.3m (prior year: EUR 763.0m), liabilities to affiliates relate almost exclusively to a loan with the shareholder
of EUR 500.0m (prior year: EUR 300.0m). The remaining
sum relates to trade payables (EUR 2.3m). In the prior
year, liabilities from the cash pooling of EUR 258.0m were
included in liabilities to affiliates.
Other liabilities mainly contain liabilities from cost allocation
processes of EUR 19.4m (prior year: EUR 18.8m) as well
as from the balancing group settlement of EUR 17.8m
(prior year: EUR 13.2m).
(11) Deferred income
Investment-related construction cost subsidies
Income from bottleneck management as well as amounts for future
offsetting from voluntary commitments
Other deferred income
31 Dec 2013
EUR m
31 Dec 2012
EUR m
Change
EUR m
45.8
48.9
– 3.1
206.2
138.8
67.4
19.0
20.4
– 1.4
271.0
208.1
62.9
97 • Annual Report 2013 Our daily commitment to the energy revolution
Notes to the income statement
(12) Revenue
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
6,284.1
6,343.8
– 59.7
907.5
1,113.4
– 205.9
7,191.6
7,457.2
– 265.6
988.9
713.7
275.2
System services
31.4
50.3
– 18.9
Balancing group management
52.8
79.8
– 27.0
– 140.4
44.6
– 185.0
3.7
6.4
– 2.7
936.4
894.8
41.6
8,128.0
8,352.0
– 224.0
EEG income
Services for third parties
Cost-matching income
Network user charges
Compensation for network user charges in different periods
Other revenue
Revenue from grid business
EEG income relates to income from selling renewable energies on the electricity exchange, the agreed EEG cost allocation as well as deliveries to other transmission system
operators to offset the burdens on the transmission system
operators from the implementation of the EEG.
Services for third parties contain the business for selling
EEG electricity as well as the procurement of grid losses
for other grid operators.
(13) Own work capitalized
Own work capitalized includes costs from the fiscal year
included in production costs as part of the Company’s
investment projects.
In addition to network user charges, revenue from the grid
business contains all revenue generated by the Group
directly in connection with grid operations. The income from
balancing group management represents the cross charging of balance energy costs to all balancing group customers operating in the balancing zone. The compensation for
network user charges in different periods includes effects
arising with a time delay as a result of the current regulatory
framework. These relate to network user charges both from
earlier periods and from following periods.
Notes to the finaNcial statements OF 50HERTZ TRANSMISSION GMBH annual report 2013
•
98
(14) Other operating income
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
88.5
76.2
12.3
225.4
176.9
48.5
155.4
–
155.4
23.1
4.6
18.5
Income from the reversal of special items
for investment grants
0.6
0.6
0.0
Income from the reversal of construction cost subsidies
5.4
6.1
– 0.7
Services
7.6
8.2
– 0.6
11.2
24.3
– 13.1
517.2
296.9
220.3
KWKG cost allocation * )
Income pursuant to Sec. 19 (2) StromNEV
* )
Income from the offshore liability cost allocation
* )
Income from the reversal of provisions
Sundry other income
* )
Cost-matching income
Income from the offshore liability cost allocation was recognized for the first time in the fiscal year 2013 as a result
of introducing a new nationwide allocation mechanism
for delays and interruptions when establishing offshore
grid connections. According to the new mechanism, the
transmission system operator receives compensation for
compensation payments made to offshore wind farm
operators via a nationwide cost allocation.
Income from the reversal of provisions stems from the
adjustment to the valuation of external obligations and
the associated reversal of various provisions.
There were no significant effects from other periods recognized under other operating income in fiscal year 2013.
Income from currency translation amounted to EUR 0.0m
(prior year: EUR 0.0m).
(15) Cost of materials
Cost of raw materials, consumables and supplies
and purchased goods
Cost of purchased services
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
– 7,444.8
– 7,776.2
331.4
– 290.6
– 218.2
– 72.4
– 7,735.4
– 7,994.4
259.0
99 • Annual Report 2013 Our daily commitment to the energy revolution
Cost of materials contains a large volume of
non-profit items:
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
EEG electricity procured
– 6,284.1
– 6,343.8
59.7
Services for third parties
– 907.5
– 1,113.4
205.9
– 7,191.6
– 7,457.2
265.6
– 543.8
– 537.2
– 6.6
– 7,735.4
– 7,994.4
259.0
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
– 57.0
– 51.8
– 5.2
– 8.5
– 7.7
– 0.8
Income-matching costs
Expenses for the grid business
(16) Personnel expenses
Wages and salaries
Social security
Expenses
Pension costs
– 3.2
– 3.0
– 0.2
Other benefit costs
– 0.2
– 0.3
0.1
– 68.9
– 62.8
– 6.1
1 Jan to 31 Dec 2013
1 Jan to 31 Dec 2013
Change
Wage earners
170
169
1
Salaried employees
590
533
57
760
702
58
Average headcount for the year
An average of 19 trainees were employed in fiscal year 2013
(prior year: 18 trainees).
Notes to the finaNcial statements OF 50HERTZ TRANSMISSION GMBH annual report 2013
•
100
(17) Amortization, depreciation and write-downs
Amortization, depreciation and write-downs in the fiscal year
correspond to the normal depletion of the fixed assets; there
was no cause for impairment losses.
(18) Other operating expenses
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
– 88.5
– 76.2
– 12.3
Expenses pursuant to Sec. 19 (2) StromNEV * )
– 225.4
– 176.9
– 48.5
Expenses from the offshore liability cost allocation * )
– 155.4
–
– 155.4
Services
– 28.6
– 27.1
– 1.5
Sundry other expenses
– 35.4
– 31.1
– 4.3
– 533.3
– 311.3
– 222.0
KWKG cost allocation * )
* )
Cost-matching income
Sundry other expenses include allocations to sundry other
provisions and to impairment losses.
There were no significant effects from other periods recognized under other operating expenses in fiscal year 2013.
Expenses from currency translation amounted to EUR 0.0m
(prior year: EUR 0.0m).
(19) Investment result
Income from profit transfer agreements
with affiliates
Write-downs on financial assets
Income from the profit transfer from affiliates relates fully
to 50Hertz Offshore.
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
18.1
16.9
1.2
0.0
– 0.3
0.3
18.1
16.6
1.5
101 • Annual Report 2013 Our daily commitment to the energy revolution
(20) Interest result
1 Jan to 31 Dec 2013
EUR m
1 Jan to 31 Dec 2012
EUR m
Change
EUR m
Income from securities and
noncurrent loans
0.1
0.0
0.1
Other interest and similar income
9.4
8.2
1.2
9.4
8.0
1.4
Interest and similar expenses
– 16.2
– 23.5
7.3
– 15.7
– 14.7
– 1.0
– 6.7
– 15.3
8.6
thereof from affiliates
thereof to affiliates
With regard to the discounting of provisions and unwinding
the discount, EUR 5.9m (prior year: EUR 4.5m) relates to
interest expenses and EUR 0.0m (prior year: EUR 0.5m) to
interest income. In accordance with Sec. 246 (2) Sentence
2 HGB, interest expenses are netted against interest income
of EUR 0.5m (prior year: EUR 0.5m).
(21) Income taxes
Income taxes of EUR 4.5m (prior year: EUR –4.6m) relate to
assessment periods before the consolidated tax group was
formed with Eurogrid.
(22) Other taxes
Other taxes of EUR 1.1m (prior year: EUR 0.5m) relate to
property tax, vehicle tax and electricity tax.
(23) Profit transfer
The net profit for fiscal year 2013 of EUR 276,032,297.59
(prior year: EUR 226,398,289.29) was transferred to Euro(24) Profit appropriation
There were no transfers to/withdrawals from other revenue
reserves in the fiscal year. The net income for the year has
been transferred in full to the shareholder.
grid on the basis of the profit and loss transfer agreement
in place.
Notes to the finaNcial statements OF 50HERTZ TRANSMISSION GMBH annual report 2013
•
102
Other notes
Notes to the cash flow statement
Based on the recommendations of GAS 2 as issued by
the German Accounting Standards Committee (GASC),
the cash flow statement shows cash flows from operating,
investing and financing activities.
The cash inflow from operating activities included interest
received of EUR 9.4m (prior year: EUR 7.5m). Interest payments amounted to EUR 19.3m (prior year: EUR 19.1m).
The cash and cash equivalents at the end of the period
(EUR 130.3m) consist of bank balances of EUR 8.0m as
well as the interest-bearing short-term deposits via the cash
pool at Eurogrid of EUR 122.3m. In the prior period, there
were liabilities from the utilization of the cash pool at Eurogrid of EUR 258.0m as well as bank balances of EUR 1.6m.
Income tax-related cash flows amounted to EUR –0.1m
(prior year: EUR 4.3m) in fiscal year 2013.
Other financial obligations
On 31 December 2013, there was a purchase obligation for
investments and maintenance measures of EUR 257.5m
(prior year: EUR 206.2m). The purchase obligation exists
solely to third parties.
As part of cross-border bottleneck management, 50Hertz
Transmission is legally obligated to make investments to
avoid future bottlenecks using income generated up to
2007. Taking account of the underlying distribution system
under tax law for the first-time recognition of this obligation
and assuming an original total obligation of EUR 122.3m
until the reporting date, means that EUR 84.9m has been
repaid and EUR 37.4m remains. The volume of agreed
bottleneck income had already exceeded the actual investment volume realized as of the reporting date for 50Hertz
Transmission’s priority projects, meaning there is no further
obligation for the Company.
Offshore expenses between 50Hertz and TenneT TSO arising
from the horizontal settlement gives rise to financial obligations
for 50Hertz in future periods. The total amount of these future
cumulative amounts comes to EUR 1.3m and will be reflected
in 50Hertz’s network user charge calculations in the next four
years following the corresponding billing by TenneT TSO.
Contingent liabilities
In connection with Eurogrid issuing the bond of EUR 500m
on 22 October 2010, 50Hertz Transmission and 50Hertz
Offshore were named as additional guarantors. The guarantors are irrevocably, unconditionally and jointly liable for the
punctual payment of all amounts Eurogrid is to make in
connection with the bond.
On 14 June 2011, 50Hertz Transmission and 50Hertz
Offshore entered a five-year syndicated loan agreement,
as guarantors, with Royal Bank of Scotland, N.V. as syndicate leader and Commerzbank AG, Luxembourg branch
for a volume of EUR 350m.
On 9 December 2011, 50Hertz Transmission and 50Hertz
Offshore issued a maximum guarantee to BNP Paribas S.A.,
Frankfurt/Main branch, totaling EUR 126m to hedge a shortterm credit line from Eurogrid. The maximum guarantees
were increased to EUR 157.5m by first addendum dated
15 July 2013.
On 17 July 2013, 50Hertz Transmission and 50Hertz Offshore submitted a maximum guarantee of EUR 102.5m to
hedge a loan agreement concluded with ING Bank, a subsidiary of ING DiBa AG, Frankfurt am Main. The agreement
expired on 17 February 2014.
On 19 July 2013, 50Hertz Transmission and 50Hertz Offshore submitted a maximum guarantee of EUR 102.5m to
hedge a loan agreement concluded with Coöperatieve Centrale Raiffeisen- Boerenleenbank b.a. (Rabobank), Utrecht,
Netherlands. The agreement expires on 17 March 2014.
Issuing a guarantee to 50Hertz Offshore resulted in an
obligation of EUR 4.2m which is not currently expected
to be utilized.
103 • Annual Report 2013 Our daily commitment to the energy revolution
On 25 October 2011, 50Hertz Transmission, as shareholder
of EMCC, issued a maximum guarantee on first demand
of EUR 3.7m to Nordea Bank Finland Plc, German branch,
to secure part of a loan granted to EMCC.
50Hertz Transmission is jointly and severally liable with
Stromnetz Berlin GmbH (formerly: Vattenfall Europe Distribution Berlin GmbH and Vattenfall Europe Berlin AG & Co.
KG/their legal successor for the obligations from the franchise agreement with the state of Berlin.
50Hertz Transmission is jointly and severally liable with
Stromnetz Hamburg GmbH (formerly: Vattenfall Europe
Distribution Hamburg GmbH) and Vattenfall Europe Hamburg AG & Co. KG/their legal successor for the obligations
from the franchise agreement with the Free and Hanseatic
City of Hamburg.
As part of the spin-off of Stromnetz Berlin GmbH (formerly:
Vattenfall Europe Distribution Berlin GmbH) and Vattenfall
Europe Berlin AG & Co. KG/their legal successor performed
in 2006, legal entities involved in the spin-off are jointly
and severally liable before the effective date of the spin-off
as a result of the BRG [“Betriebsrentengesetz”: German
Company Pensions Act], the liability period is ten years.
We currently do not expect any risk of claims relating to
the above contingent liabilities to arise.
Audit fees
The total auditor’s fee calculated pursuant to Sec. 285
No. 17 HGB is disclosed in the consolidated financial
statements of Eurogrid GmbH.
Related party transactions
In the reporting period there were no transactions with
related parties which were not conducted at arm’s length.
Substantial transactions in accordance with
Sec. 6b (2) EnWG
In accordance with Sec. 6b (2) EnWG, substantial transactions with affiliates and associates or with companies
which belong to the same shareholders must be presented.
Apart from the financing transactions mentioned in the notes
to the financial statements, 50Hertz did not enter into any
transactions outside of its operating activities.
Activity-based financial statements in accordance
with Sec. 6b (3) EnWG
The activities of 50Hertz Transmission belong exclusively
to the field of electricity transmission. For this reason, the
separate activity-based financial statements to be prepared
in accordance with Sec. 6b (3) EnWG are in line with the
Company’s financial statements.
Disclosures on company boards
The members of the supervisory board and management
are presented in a separate list, included as an attachment
to the notes to the financial statements.
Expenses for management remuneration amounted to
EUR 1,587k in the reporting period (prior year: EUR 1,643k).
It consists of fixed remuneration, performance-related remuneration and other fixed components.
Pension obligations of EUR 3.0m (prior year: EUR 0.4m)
relate to former members of management; a total of
EUR 0.5m of this is covered.
The members of the supervisory board of 50Hertz Transmission received EUR 21k for their activities (prior year:
EUR 21k).
Loans granted to board members
Loans granted to members of the supervisory board
amounted to EUR 3k as of the reporting date (prior year:
EUR 6k). The loans bear interest at 5% p. a. and have
terms of ten years. An amount of EUR 3k was repaid
in the reporting period.
Notes to the finaNcial statements OF 50HERTZ TRANSMISSION GMBH annual report 2013
Berlin, 18 February 2014
The management of 50Hertz Transmission GmbH
Boris SchuchtUdo GiegerichDr. Dirk BiermannDr. Frank Golletz
•
104
105 • Annual Report 2013 Our daily commitment to the energy revolution
Company boards
Members of the supervisory board
Members of management
Daniel Dobbeni
Chairman of the Board of Eurogrid International,
Braine-I’Alleud (Belgium)
– Chairman –
Boris Schucht, Berlin
– Chair and Chief Executive Officer (CEO) –
Peter Hausmann *
Member of the Executive Board of the German Mine,
Chemical and Power Workers’ Union,
Hanover
– Deputy Chairman –
Markus Berger
Director of Asset Management, Elia System Operator SA.,
Antwerp (Belgium)
Werner Kerschl
Investment Director of IFM Investors (UK) Ltd,
London (Great Britain)
Andrea Ludwig *
Electrical engineer,
Berlin
Dr. Lutz Pscherer *
Electrical engineer,
Berlin
*Employee representative
Dr. Dirk Biermann, Berlin
– Markets and system operations division (CMO) –
Hans-Jörg Dorny, Neuenhagen bei Berlin
– HR division (CPO) –
(until 11 November 2013)
Udo Giegerich, Berlin
– Commercial division (CFO) –
Dr. Frank Golletz, Dresden
– Technical division (CTO) –
Notes to the finaNcial statements OF 50HERTZ TRANSMISSION GMBH annual report 2013
•
106
Auditor’s report
We have issued the following audit opinion for the annual
financial statements, the management report and the
accounting in accordance with Sec. 6b (3) EnWG:
“We have audited the annual financial statements, comprising the balance sheet, the profit-and-loss statement, the
cash-flow statement and the notes to the financial statements, together with the bookkeeping system and the
management report for 50Hertz Transmission GmbH, Berlin,
for the financial year from 1 January to 31 December 2013.
Pursuant to Sec. 6b (5) EnWG, our audit of the financial
statements also covered compliance with the accounting duties pursuant to Sec. 6b (3) EnWG, which requires separate
accounts to be kept for activities pursuant to Sec. 6b (3)
EnWG. The maintenance of the books and records and the
preparation of the annual financial statements and management report in accordance with the German commercial
law and compliance with the duties pursuant to Sec. 6b (3)
EnWG are the responsibility of the company’s legal representative. Our task is to express an opinion on the annual
financial statements, together with the bookkeeping system,
the management report and compliance with the accounting
duties pursuant to Sec. 6b (3) EnWG based on our audit.
We conducted our audit of the annual financial statements
in accordance with Sec. 317 HGB and the German generally accepted standards for the audit of financial statements
promulgated by the Institute of Public Auditors in Germany
(IDW). Those standards require that we plan and perform
the audit such that misstatements and violations materially
affecting the presentation of the net assets, financial position
and results of operations in the annual financial statements
in accordance with the principles of proper accounting and
in the management report are detected with reasonable
certainty and such that it can be assessed with reasonable
certainty whether the accounting duties pursuant to Sec.
6b (3) EnWG have been met in all material respects. Knowledge of the business activities and the economic and legal
environment of the company and expectations as to possible
misstatements are taken into account in the determination
of audit procedures. The effectiveness of the accounting-
related internal control system and the evidence supporting the disclosures in the books and records, the annual
financial statements and the management report as well as
for compliance with the accounting duties pursuant to Sec.
6b (3) EnWG are examined primarily on a test basis within
the framework of the audit. The audit includes assessing the
accounting principles used and significant estimates made
by the legal representatives, evaluating the overall presentation of the annual financial statements and the management
report as well as assessing whether the carrying amounts
and classification of accounts pursuant to Sec. 6b (3) EnWG
are reasonable and verifiable and that the consistency principle has been observed. We believe that our audit provides a
sufficiently certain basis for our opinion.
Our audit of the annual financial statements, together with
the bookkeeping system, and the management report has
not led to any reservations.
In our opinion, based on the findings of our audit, the annual
financial statements comply with the legal requirements and
give a true and fair view of the net assets, financial position
and results of operations of the company in accordance with
the principles of proper accounting. The management report
is consistent with the annual financial statements, and as
a whole provides a suitable view of the company’s position
and suitably presents the opportunities and risks of future
development.
Our audit of compliance with the accounting duties pursuant
to Sec. 6b (3) EnWG, which requires separate accounts to
be kept for activities pursuant to Sec. 6b (3) EnWG, has not
lead to any reservations.”
Berlin, 19 February 2014
Ernst & Young GmbH
Auditing company
Glöckner Herlitz
Auditor Auditor
Management report and financial statements of
50Hertz Offshore GmbH
Management report109
Financial statements
115
Statement of finacial position
115
Income statement
117
Cash flow statement
118
Statement of changes in fixed assets
119
Notes to the financial statements
121
129
Auditor`s report
109 • Annual Report 2013 Our daily commitment to the energy revolution
Management report
Purpose of the Company
50Hertz Offshore GmbH (50Hertz Offshore) is a subsidiary of
50Hertz Transmission GmbH (50Hertz Transmission), which
has a 100% shareholding in 50Hertz Offshore. Both companies have their registered offices in Berlin.
The business activities of 50Hertz Offshore comprise the
planning, approval, construction, acquisition, maintenance
and operational management of electricity lines as well as
the associated plants and facilities for connecting offshore
wind turbines/farms erected in the Baltic Sea – within
the 12-mile zone/German Exclusive Economic Zone – to
the grid. In accordance with Sec. 17d (1) EnWG [“Energiewirtschaftsgesetz”: German Energy Industry Act], the
obligation for connecting offshore wind farms to the grid
primarily rests with the transmission system operator
50Hertz Transmission.
Economic report
Overall economic and industry-related conditions
The downward trend in general economic development in
Germany was halted over the course of 2013 as the overall
economic situation stabilized. Following a period of stagnation of the gross domestic product (GDP) at the beginning of
the year – caused also by the cold weather – the economy
picked up moderately. Positive growth rates in the second
and third quarter of 2013 led to a price-adjusted increase
in GDP on the prior year of 0.4%, or 0.5% adjusted for seasonal effects. This was primarily attributable to increased
consumer spending by both public bodies and private
households, while capital expenditures – adjusted for price
effects – were down. Net exports had a negative impact
on GDP. This was caused by a slowdown in exports while
imports increased at a greater rate by comparison.
The economic outlook for 2014 is viewed optimistically,
which is why the federal government in its fall outlook
forecast a price-adjusted increase in GDP of 1.7% in
comparison to the figures forecast for 2013.
Electricity consumption in 2013 decreased by 1.8% on the
prior year, while the Arbeitsgemeinschaft Energiebilanzen
e. V. (working group on energy balances) had predicted a
year-on-year increase in total energy consumption in Germany of 2.6% for 2013. The most important cause for this
is deemed to be the increased demand for heat energy as a
result of the long winter and cool spring. The use of renew-
able energies again increased by just under 6% on the prior
year. While hydropower and wind power across Germany
recorded a decrease of 2.5% and 2% in 2013, respectively,
photovoltaic and biomass increased their share of electricity
generation by 7% and 11%, respectively. The development
of the economy as a whole as well as electricity consumption did not have any significant influence on 50Hertz
Offshore’s earnings.
The Third Act Revising the Legislation Governing the Energy
Sector entered into force on 28 December 2012. The new
statutory regulations provide for a change from the previous
system of connecting to the grid based on the offshore wind
farm meeting the criteria towards structured grid expansion.
In addition, the transmission system operators prepared an
offshore grid development plan for the first time and submitted a draft dated 2 March 2013 to the Federal Network
Agency responsible for approving the plan.
The offshore grid development plan will be confirmed by the
Federal Network Agency at the beginning of January 2014.
The offshore grid development plan considers connections
in the starter network that have already been established
(Baltic 1 offshore wind farm) and those that are being established (Baltic 2 offshore wind farm). In addition, the decisive 10-year lead scenario for the Baltic Sea to establish
two direct-current connection lines each for the Westlich
Adlergrund cluster in 2017 and 2018. While the approved
Management report of 50Hertz Offshore GmbH Annual Report 2013
offshore grid development plan forms the basis for the construction of cluster connection lines, the decision as to
which wind farm is to be connected to each cluster is part
of a downstream process for which the Federal Network
Agency is responsible. This process should in each case be
carried out directly after the connecting line is approved.
In order to ensure the planned connection lines are both
geographically and technically feasible, the Federal Maritime
and Hydrographic Agency [“Bundesamt für Seeschifffahrt
und Hydrografie”] also drafted a first-time offshore federal
plan for the Baltic Sea. In addition to standardized technical
provisions, it also provides for space for cable routes and
platform locations. The final first offshore federal plan for
the Baltic Sea is expected for the first half of 2014.
•
110
ment on the joint use of the Baltic 2 transformer platform.
The commissioning of the grid connection is planned for
2014, depending on when production of the Baltic 2 offshore wind farm begins.
There are further grid connection projects currently in preparation. In particular, applications for the required approvals
for a total of six 220 kV cable systems were filed to connect
the offshore wind farm north east of Rügen island to the
Lubmin transformer substation. Investments in fiscal year
2013 amounted to some EUR 154m, down approximately
EUR 109m on the prior-year figure. They primarily relate to
connecting Baltic 2 to the grid.
Business development
After production work began on the undersea and land cables for the 150 kilovolt (kV) grid connection of the offshore
wind farm Baltic 2 in the prior year, important sections of
the three undersea cables in total – two cables between the
Baltic 1 and Baltic 2 transformer platforms as well as one
cable between the Baltic 1 platform and the landing point –
as well as the land cable route to the Bentwisch transformer
substation. Furthermore, a further milestone for connecting
Baltic 2 to the grid was reached in concluding the agree-
Net assets, financial position and results of operations
The Company operates exclusively in the field of electricity
transmission as defined by Sec. 6b (3) EnWG. For this reason, the separate activity-based financial statements to be
prepared correspond to the Company’s financial statements.
Inflows and income as well as outflows and expenses in
connection with the settlement of the offshore liability cost
allocation are recognized in 50Hertz Transmission’s annual
financial statements.
Results of operations
In the past fiscal year, the Company generated almost all
of its revenue from the remuneration received from granting rights of use of its assets (completed assets and assets
under construction) to 50Hertz Transmission amounting
to a total of EUR 25,155.5k (prior year: EUR 23,856.2k).
The increase in revenue is primarily attributable to the rise in
the Company’s fixed assets as a consequence of expanding investing activities. In addition to revenue, the Company generated other operating income of EUR 15,143.8k
(prior year: EUR 13,500.1k); this is primarily from allocating
expense-matching costs to the shareholder.
111 • Annual Report 2013 Our daily commitment to the energy revolution
Income statement
2013
EUR k
2012
EUR k
Change
EUR k
40,361.1
37,419,4
2,941.7
– 12,915.2
– 12,856.8
– 58.4
Interest result
– 9,343.8
– 7,671.1
– 1,672.7
Result from ordinary activ
18,102.1
16,891.5
1,120.6
– 18,102.1
– 16,891.5
– 1,210.6
Revenue and income
Operating expenses
Profit transfer to the shareholder
Operating expenses amount to EUR 12,915.2k (prior year:
EUR 12,856.8k). In addition to amortization and depreciation
incurred on non-current assets (EUR 7,053.4k), significant
items also include costs for insurance (EUR 2,183.9k)
as well as for inspection and maintenance services
(EUR 1,945.0k).
Under the regulatory framework, a portion of operating expenses and the interest result represent expense-matching
costs, initially allocated to the shareholder which in turn then
allocates a portion of these to the other transmission system
operators. The allocated expense-matching costs represent
other operating income for the Company.
Financing requirements increased in line with investing
activities, which in turn led to increased interest expenses,
thereby increasing the overall negative interest result.
The year-on-year increase in the result from ordinary activities is primarily attributable to the EUR 2,941.7k increase
in revenue and income. This was counterbalanced by a
much lower increase in operating expenses; by contrast,
the substantial drop in the interest result only reduced the
increase in other operating income by around 50%.
The profit generated for the year was transferred in full to
the shareholder on account of the domination and profit
and loss transfer agreement in place.
Net assets and financial position
The Company’s assets comprise completed assets, assets
under construction and prepayments on assets under construction. The sharp increase in fixed assets on the prior
year is primarily attributable to the progress made in the
grid connection projects (underwater and land cable) for
the offshore wind farm Baltic 2. With regard to the ongoing
planning and realization of grid connections, the share
of total assets accounted for by fixed assets was around
99%. The equity to fixed assets ratio came to 40% (prior
year: 41%).
Management report of 50Hertz Offshore GmbH annual report 2013
•
112
31 Dec 2013
EUR k
31 Dec 2012
EUR k
Change
EUR k
498,916.6
352,286.9
146,629.7
3,606.5
3,534.1
72.4
502,523.1
355,821.0
146,702.1
Equity
201,020.1
146,020.1
55,000.0
Long-term liabilities
271,342.9
176,342.9
95,000.0
30,160.1
33,458.0
– 3,297.9
502,523.1
355,821.0
146,702.1
Statement of financial position
Assets
Fixed assets
Current assets (including prepaid expenses)
Equity and liabilities
Medium and short-term liabilities
Financing and investment activities were primarily performed through equity and a shareholder loan. A further
EUR 55,000k was added to the capital reserves by the
shareholder.
Statement of cash flows (condensed)
The cash pool agreement in place with Eurogrid GmbH
(sole shareholder of 50Hertz Transmission, hereinafter
referred to as Eurogrid) was used for short-term bridge
financing. The Company was secured at all times due
to its inclusion in the cash pool.
2013
EUR k
2012
EUR k
Change
EUR k
Cash flow from operating activities
27,624.4
32,686.6
– 5,062.2
Cash flow from investing activities
– 153,683.1
– 109,242.3
– 44,440.8
Cash flow from financing activities
131,897.2
63,108.5
68,789.4
Change in cash and cash equivalents
5,839.2
– 13,447.2
19,286.4
Cash and cash equivalents at the end of the period
2,848.7
– 2,990.5
5,839.2
Cash and cash equivalents at the end of the period amounted to EUR 2,848.7k (prior year: EUR –2,990.5k), relating
entirely to the receivables due to Eurogrid under the cash
poolarrangement (prior year: liability due from Eurogrid).
The Company’s financing was secured throughout the
entire fiscal year 2013. 50Hertz Transmission issued noncurrent shareholder loans of EUR 271,342.9k (prior year:
EUR 176,342.9k) to 50Hertz Offshore. The cash pool with
Eurogrid also continued throughout the entire fiscal year.
There is a tax group with 50Hertz Transmission for income
tax and VAT purposes.
113 • Annual Report 2013 Our daily commitment to the energy revolution
Overall picture of the economic situation
The year-on-year rise in the result from operating activities in
fiscal year 2013 is primarily due to the increase in capital expenditures on property, plant and equipment. Furthermore,
other operating income rose as a result of the increased
allocation of expense-matching costs to the shareholder.
The financial obligations due in fiscal year 2013 were
covered at all times by the available liquidity and the
shareholder loan.
Forecast, opportunity and risk report
Forecast report
Further business development will primarily be determined
by the progress made in preparing for the offshore wind
farm projects. The commissioning of the grid connection for
the Baltic 2 offshore wind farm is planned for the fiscal year
2014. Investing activities will also continue to be high as a
result of additional grid connection projects. This is also
linked to an increase in recognized assets, the financing
of which will be secured by agreements already in place.
Operational management, such as maintenance and repair
services, will be driven forward and developed further in
the coming years.
50Hertz Offshore’s result from ordinary activities for 2014
will most likely be significantly higher than the 2013 result
from ordinary activities (EUR 18.1m). This forecast is mainly
based on the following premises:
– Increased investment volume, resulting in growth
in revenue
– Connecting the offshore wind farms to the grid
in both a timely and compliant manner
– Ongoing high cost discipline in business processes
Opportunities and risks
50Hertz Offshore is included in the risk management process of 50Hertz Transmission. This is characterized by central monitoring of all the Company’s main risks. The risks
stemming from the construction of the grid connection are
determined, recorded in a standardized manner, evaluated
and monitored using the shareholder’s risk guideline. The
assessment of potential losses and the likelihood of their
occurrence is based on scenarios.
Opportunities for the Company lie in the growing investment
activities for connecting offshore wind parks to the grid and
the associated opportunity to generate adequate returns.
Planning, construction and operation of the grid connections
of offshore wind farms is a business area with uncertainties
and technical challenges. For example, in the course of the
Baltic 1 project, it became clear how dependent it was on
weather and offshore ground conditions. In addition to laying
the cables, manufacturing them too also has considerable
influence on whether the grid correction is made in both a
timely and high-quality manner. There is only a small number of potential suppliers for key components needed to
connect the farms to the grid and they do not have many
years of experience yet.
Although the amendment to the EnWG limits liability of the
transmission system operator, barriers have been added to
the law to prevent transmission system operators causing
economic damage. For example, the transmission system
operator pays a deductible in certain cases and only a portion can be transferred to the suppliers. This caused the
requirements providing for strict and effective cost management with sufficient and legally watertight documentation
to increase substantially.
Uncertainty regarding approval of an adequate level of income to cover the costs of the operating phase and the conditional ex-post review of investing activities by the regulatory
authorities in terms of appropriateness, scope and extent
pose a risk for the Company. This is confronted by constantly
monitoring the costs and weighing up the costs and benefits.
Management report of 50Hertz Offshore GmbH annual report 2013
Overall, there was no threat to the Company’s continuing
existence in fiscal year 2013 either from individual risks or
an accumulation of individual risks. Furthermore, there are
no risks to the Company’s continued existence as a going
concern for the subsequent year 2014 taking into account
the measures taken as well as the insurance cover in place.
Subsequent events
No events of significant importance occurred from the time
of the reporting date to the issue date of 50Hertz Offshore’s
financial statements.
Berlin, 18 February 2014
The management
Udo GiegerichDr. Frank Golletz
•
114
115 • Annual Report 2013 Our daily commitment to the energy revolution
Financial statements
Statement of financial position
ASSETS
Non-current assets
Note
498,916.6
352,286.9
498,916.6
352,286.9
393.6
345.8
3,017.9
509.0
120.0
2,666.1
3,531.5
3,520.9
75.0
13.2
502,523.1
355,821.0
(2)
Trade receivables
Receivables from affiliates
Other assets
Prepaid expenses
31 Dec 2012
EUR k
(1)
Property, plant and equipment
Current assets
31 Dec 2013
EUR k
(3)
FINANCIAL STATEMENTS of 50Hertz Offshore GmbH Annual Report 2013
EQUITY AND LIABILITIES
Equity
Note
Capital reserves
Other revenue reserves
Trade payables
Liabilities to affiliates
Other liabilities
31 Dec 2013
EUR k
31 Dec 2012
EUR k
1,000.0
1,000.0
200,000.0
145,000.0
20.1
20.1
201,020.1
146,020.1
14,067.0
3,374.5
14,067.0
3,374.5
16,066.8
27,075.0
271,369.2
179,333.4
0.0
18.0
287,436.0
206,426.4
502,523.1
355,821.0
(5)
Other provisions
Liabilities
116
(4)
Issued capital
Provisions
•
(6)
117 • Annual Report 2013 Our daily commitment to the energy revolution
Income statement
Note
1 Jan to 31 Dec 2013
EUR k
1 Jan to 31 Dec 2012
EUR k
Revenue
(7)
25,217.3
23,919.3
Other operating income
(8)
15,143.8
13,500.1
Cost of materials
(9)
– 2,199.0
– 1,744.9
Amortization, depreciation and impairment
(10)
– 7,053.4
– 6,985.9
Other operating expenses
(11)
– 3,662.8
– 4,126.0
Interest result
(12)
– 9,343.8
– 7,671.1
Result from ordinary activities
18,102.1
16,891.5
Expenses from profit/loss transfer
– 18,102.1
– 16,891.5
–
–
Net profit for the year
FINANCIAL STATEMENTS of 50Hertz Offshore GmbH Annual Report 2013
•
118
Cash flow statement
1 Jan to 31 Dec 2013
EUR k
1 Jan to 31 Dec 2012
EUR k
Change
EUR k
18,102.1
16,891.5
1,210.6
7,053.4
6,985.9
67.5
10,692.5
– 1,573.1
12,265.6
2,776.3
– 2,853.4
5,629.7
– 10,999.9
13,235.7
– 24,235.6
27,624.4
32,686.6
– 5,062.2
Cash paid for investments in property, plant and equipment
– 153,683.1
– 109,242.3
– 44,440.8
Cash flow from investing activities
– 153,683.1
– 109,242.3
– 44,440.8
Cash received from equity contributions
55,000.0
37,000.0
18,000.0
Cash received from shareholder loans
95,000.0
43,000.0
52,000.0
Cash paid for the profit/loss transfer
– 18,102.1
– 16,891.5
– 1,210.6
Cash flow from financing activities
131,897.9
63,108.5
68,789.4
5,839.2
– 13,447.2
19,286.4
– 2,990.5
10,456.7
– 13,447.2
2,848.7
– 2,990.5
5,839.2
Net income for the year prior to profit/loss transfer
Write-downs of non-current assets
Increase in provisions (prior year: decrease)
Decrease in receivables and other assets (prior year: increase)
Decrease in liabilities and other equity and liabilities
(prior year: increase)
Cash flow from operating activities
Change in cash and cash equivalents
Cash and cash equivalents at the beginning the period
Cash and cash equivalents at the end of the period
119 • Annual Report 2013 Our daily commitment to the energy revolution
Statement of changes in fixed assets
Cost
1 Jan 2013
EUR k
Additions
EUR k
Reclassifications
EUR k
Disposals
EUR k
31 Dec 2013
EUR k
28.0
2,152.2
307.4
–
2,487.6
140,774.6
342.3
909.9
–
142,026.8
633.1
–
25.0
–
658.1
220,487.8
151,188.6
– 1,242.3
–
370,434.1
361,923.5
153,683.1
–
–
515,606.6
361,923.5
153,683.1
–
–
515,606.6
Property, plant and equipment
Land, land rights and buildings including
buildings on third-party land
Technical equipment and machinery
Other equipment, furniture
and fixtures
Prepayments and assets under construction
Non-current assets
FINANCIAL STATEMENTS of 50Hertz Offshore GmbH Annual Report 2013
Amortization, depreciation and impairment
Carrying amount
1 Jan 2013
EUR k
Additions
EUR k
Reclassifications
EUR k
Disposals
EUR k
31 Dec 2013
EUR k
31 Dec 2013
EUR k
31 Dec 2012
EUR k
0.3
5.0
–
–
5.3
2,482.3
27.7
9,504.5
6,967.6
–
–
16,472.1
125,554.7
131,270.1
131.8
80.8
–
–
212.6
445.5
501.3
–
–
–
–
–
370,434.1
220,487.8
9,636.6
7,053.4
–
–
16,690.0
498,916.6
352,286.9
9,636.6
7,053.4
–
–
16,690.0
498,916.6
352,286.9
•
120
121 • Annual Report 2013 Our daily commitment to the energy revolution
Notes to the financial statements
General
The Company is registered in the commercial register of
Charlottenburg district court under HRB no. 108780. The
purpose of the Company is the construction, acquisition,
maintenance, operational management and operation of
electricity lines as well as the associated plants and facilities
for connecting offshore wind turbines/farms erected in
the Baltic Sea to an electricity transmission or distribution
grid. The Company primarily commissions the services
of its shareholder 50Hertz Transmission GmbH (50Hertz
Transmission).
A domination and profit and loss transfer agreement is in
place between 50Hertz Offshore and 50Hertz Transmission. In fiscal year 2013, there was a tax group with 50Hertz
Transmission for income tax and VAT purposes.
The financial statements of 50Hertz Offshore were prepared
in accordance with the provisions of the HGB [“Handelsgesetzbuch”: German Commercial Code] and the supplementary provisions of the GmbHG [“Gesetz betreffend die
Gesellschaften mit beschränkter Haftung”: German Limited
Liability Companies Act] as well as in observation of the
EnWG [“Energiewirtschaftsgesetz”: German Energy Industry
Act]. The fiscal year is the calendar year. All amounts are in
thousands of euros (EUR k). In the interest of clarity, items
have been combined in the consolidated income statement
and in the statement of financial position and disclosed
separately and explained in the notes. The income statement has been prepared using the nature of expense
method.
The Company is a medium-sized corporation in accordance
with Sec. 267 HGB.
50Hertz Offshore is included in the consolidated financial
statements of Eurogrid GmbH (Eurogrid), with its registered
office in Berlin, and in the consolidated financial statements
of Elia System Operator SA/NV, with its registered office in
Brussels, Belgium. The consolidated financial statements
of Elia System Operator SA/NV with the largest group of
companies can be obtained from Elia System Operator
SA/NV, Boulevard de l´Empereur 20, 1000 Brussels,
Belgium. The consolidated financial statements prepared
by Eurogrid cover the smallest group of companies and
can be obtained from the Bundesanzeiger [German Federal Gazette] (www.bundesanzeiger.de). The Company is
registered in the commercial register of Charlottenburg
district court under HRB no. 130427 B.
Notes to the financial statements of 50Hertz Offshore GmbH annual report 2013
•
122
Accounting and valuation methods
ASSETS
Fixed assets
Property, plant and equipment are stated at cost less
depreciation. Borrowing costs are not included.
Amortization is recognized on a straight-line basis. The
useful lives are based on expected life cycles determined
for each asset with regard to technical equipment and in
particular offshore facilities (20 years).
Impairments are only recorded when the asset needs to
be written down to a lower net realizable value.
Separately usable moveable fixed assets costing less than
EUR 150 that have a limited life are recognized immediately
in profit or loss. Assets costing between EUR 150 and EUR
1,000 are posted to a collective item pursuant to Sec. 6 (2a)
EStG [“Einkommensteuergesetz”: German Income Tax Act]
in the year of acquisition, also for the statutory accounts.
The collective item is written off in installments of one fifth in
the year in which it is recognized and each of the following
four years.
EQUITY AND LIABILITIES
Equity
The issued capital is measured at nominal value.
Provisions
In the calculation of provisions, all recognizable risks and
uncertain liabilities were taken into account as required
according to prudent business judgment and recorded
at the settlement value necessary. Provisions with a term
of more than one year are discounted at the average market interest rate prevailing over the past seven fiscal years
for instruments of similar terms that is issued and published by Deutsche Bundesbank in accordance with
Sec. 253 Sentence 2 HGB.
Liabilities
Liabilities are recognized at the settlement value deemed
necessary.
Current assets
Receivables and other assets are stated at their nominal
value or net realizable value, whichever is lower. All recognizable individual risks and the general credit risk are accounted for by appropriate allowances.
Deferred taxes
50Hertz Offshore is included in the consolidated tax group
for income tax purposes of 50Hertz Transmission. Deferred
taxes arising due to temporary or quasi-permanent differences between the carrying amounts of assets, liabilities,
prepaid expenses and deferred income in the statutory
accounts and their tax carrying amounts or due to tax loss
carryforwards are determined at the level of the controlling
entity.
Prepaid expenses
Prepaid expenses refer to expenses of the reporting date,
insofar as they concern future periods.
INCOME STATEMENT
The Company does not employ any personnel of its own:
no personnel expenses are therefore recognized.
123 • Annual Report 2013 Our daily commitment to the energy revolution
Notes to the statement of financial position
(1) Fixed assets
The statement of changes in fixed assets provides an
overview of amortization, depreciation and impairment.
Property, plant and equipment was characterized, among
other things, by the construction of a new warehouse at
the port of Rostock to store offshore spare parts in the fiscal
year. The continued sharp increase in prepayments and
assets under construction on the prior year mainly reflects
the progress made in the grid connection projects for the
offshore wind farm Baltic 2 as well as for additional offshore
projects.
(2) Current assets
Trade receivables
Receivables from affiliates
thereof from shareholder
Other assets
31 Dec 2013
thereof due
> one year
31 Dec 2012
thereof due
> one year
EUR k
EUR k
EUR k
EUR k
393.6
–
345.8
–
3,017.9
–
509.0
–
169.2
–
509.0
–
120.0
–
2,666.1
–
3,531.5
–
3,520.9
–
Receivables from affiliates mainly comprised receivables
from the cash pool of EUR 2,848.7k (prior year: EUR 0.0k)
with Eurogrid in the fiscal year.
As of 31 December 2013, trade receivables and payables
with the shareholder as well as with an affiliate totaling EUR
5.0k (prior year: EUR 0.0k) were offset against each other.
Other assets primarily contain a payment made to a supplier.
(3) Prepaid expenses
This item mainly contains prepaid insurance contributions.
(4) Equity
The Company’s issued capital of EUR 1,000k is fully paid in
and is held in full by 50Hertz Transmission. The shareholder
passed a resolution on 17 December 2013 to make a contribution of EUR 55,000k to the capital reserves in accord-
ance with Sec. 272 (2) No. 4 HGB which was performed
before the end of the fiscal year 2013. As of year-end,
the capital reserve amounted to EUR 200,000k.
Notes to the financial statements of 50Hertz Offshore GmbH Annual report 2013
•
124
(5) Provisions
Other provisions
31 Dec 2013
EUR k
31 Dec 2012
EUR k
Change
14,067.0
3,374.5
10,692.5
12,881.1
2,195.4
10,685.7
926.0
911.0
15.0
34.3
133.0
– 98.7
185.6
102.8
82.8
40.0
32.3
7.7
14,067.0
3,374.5
10,692.5
Thereof:
Outstanding invoices
Dues, fees, contributions
Litigation risks
Restoration provisions
Sundry other provisions
The sharp increase of the provisions for outstanding invoices
is primarily due to the progress made in the grid connection
projects for the offshore wind farm Baltic 2 as well as for
additional offshore projects.
(6) Liabilities
31 Dec 2013
EUR k
31 Dec 2012
EUR k
Total
Due in
< one year
Due in
> 5 years
Total
Due in
< one year
Due in
> 5 years
16,066.8
16,066.8
–
27,075.0
27,075.0
–
Liabilities to affiliates
271,369.2
26.3
271,342.9
179,333.4
2,990.5
176,342.9
271,342.9
–
271,342.9
176,342.9
–
176,342.9
0.0
0.0
–
18.0
–
–
–
–
–
18.0
–
–
287,436.0
16,093.1
271,342.9
206,426.4
30,065.5
176,342.9
Trade payables
thereof to shareholder
Other liabilities
thereof from taxes
Liabilities to affiliates relate almost exclusively to a long-term
loan taken out by the Company of EUR 271,342.9k (prior
year: EUR 176,342.9k).
There were no liabilities from the cash pool as of 31 December 2013 (prior year: EUR 2,990.5k).
As of 31 December 2013, trade receivables and payables
with the shareholder as well as with an affiliate totaling
EUR 5.0k (prior year: EUR 0.0k) were offset against each
other.
125 • Annual Report 2013 Our daily commitment to the energy revolution
Notes to the income statement
(7) Revenue
Revenue includes the return on investment, amortization,
depreciation and impairment and trade tax. Revenue from
the shareholder was generated entirely from granting rights
of use of network facilities for connecting offshore wind
farms to the grid.
(8) Other operating income
The allocation of non-capitalizable offshore costs to the
shareholder is recorded as a key component under other
operating income.
Allocating expense-matching costs to the shareholder
Sundry other operating income
1 Jan to 31 Dec 2013
EUR k
1 Jan to 31 Dec 2012
EUR k
Change
14,931.3
12,802.5
2,128.8
212.5
697.6
– 485.1
15,143.8
13,500.1
1,643.7
1 Jan to 31 Dec 2013
EUR k
1 Jan to 31 Dec 2012
EUR k
Change
– 254.0
– 332.8
78.8
– 1,945.0
– 1,412.1
– 532.9
– 2,199.0
– 1,744.9
– 454.1
Sundry other operating income primarily contains income
from the reversal of provisions of EUR 118.8k (prior year:
EUR 621.4k).
(9) Cost of materials
Expenses for raw materials, consumables and
supplies and purchased goods
Expenses for purchased services
Expenses for raw materials, consumables and supplies
primarily contain expenses for the procurement of electricity.
Expenses for purchased services mainly include expenses
for third-party services.
Notes to the financial statements of 50Hertz Offshore GmbH annual report 2013
•
126
(10) Amortization, depreciation and write-downs
Depreciation of property, plant and equipment came to EUR
7,053.4k in the fiscal year (prior year: EUR 6,985.9k); this
mainly relates to the grid connection of the Baltic 1 offshore
wind farm.
(11) Other operating expenses
1 Jan to 31 Dec 2013
EUR k
1 Jan to 31 Dec 2012
EUR k
Change
Services
– 881.5
– 924.8
43.3
Legal and consulting fees
– 161.3
– 54.8
– 106.5
– 2,183.9
– 2,072.3
– 111.6
Rent and leases
– 109.2
– 683.3
574.1
Sundry other expenses
– 326.9
– 390.8
63.9
– 3,662.8
– 4,126.0
463.2
1 Jan to 31 Dec 2013
EUR k
1 Jan to 31 Dec 2012
EUR k
Change
Other interest and similar income
11.4
8.3
3.1
11.4
8.3
3.1
Interest and similar expenses
– 9,355.2
– 7,679.4
– 1,675.8
– 9,345.8
– 7,676.0
– 1,669.8
– 9,343.8
– 7,671.1
– 1,672.7
Insurance contributions
(12) Interest result
thereof from affiliates
thereof to affiliates
Interest income from and interest expenses to affiliates
arise from the utilization of the cash pooling system and the
granting of a long-term loan from the shareholder.
The remaining interest expenses of EUR 9.4k (prior year:
EUR 3.4k) relate to unwinding the discount on the long-term
provisions.
127 • Annual Report 2013 Our daily commitment to the energy revolution
Other notes
Notes to the statement of cash flows
Based on the recommendations of GAS 2 as issued by
the German Accounting Standards Committee (GASC),
the cash flow statement shows cash flows from operating,
investing and financing activities.
The cash inflow from operating activities included interest
received of EUR 11.4k (prior year: EUR 8.3k). Cash paid
for interest amounted to EUR 9,345.8k (prior year:
EUR 7,676.0k).
Cash and cash equivalents at the end of the period amounted to EUR 2,848.7k (prior year: EUR –2,990.5k), relating
entirely to the receivable (prior year: liability) due to Eurogrid
under the cash pool arrangement.
There were no income tax-related cash flows as a result of
the tax group with 50Hertz Transmission.
Frankfurt/Main branch, totaling EUR 126m to hedge a shortterm credit line of Eurogrid. The maximum guarantees were
increased to EUR 157m by first addendum dated 15 July
2013.
On 17 July 2013, 50Hertz Offshore and 50Hertz Transmission submitted a maximum guarantee of EUR 102.5m to
secure a loan agreement concluded with ING Bank, a subsidiary of ING DiBa AG, Frankfurt am Main. The agreement
expires on 17 February 2014.
On 19 July 2013, 50Hertz Offshore and 50Hertz Transmission submitted a maximum guarantee of EUR 102.5m to
secure a loan agreement concluded with Coöperatieve Centrale Raiffeisen- Boerenleenbankb.a. (Rabobank), Utrecht,
Netherlands. The agreement expires on 17 March 2014.
We currently do not expect any risk of claims relating to
the above contingent liabilities.
Other financial obligations
On 31 December 2013, there was a purchase obligation for
investments and maintenance measures towards third parties of EUR 332,340k (prior year: EUR 329,571k). There was
no purchase obligation towards affiliates.
Audit fees
The disclosures for the total auditor’s fee calculated pursuant to Sec. 285 No. 17 HGB are made in the consolidated
financial statements of Eurogrid.
Contingent liabilities
In connection with Eurogrid issuing the bond of EUR 500m
on 22 October 2010, 50Hertz Offshore and 50Hertz Transmission were named as additional guarantors. The guarantors are irrevocably, unconditionally and jointly liable for the
punctual payment of all amounts Eurogrid is to make as part
of the bond.
Substantial transactions in accordance with
Sec. 6b (2) EnWG
In accordance with Sec. 6b (2) EnWG, substantial transactions with affiliates and associates or with companies which
belong to the same shareholders must be presented. In the
reporting year, the Company did not enter into any transactions outside of its operating activities.
On 14 June 2011, 50Hertz Offshore and 50Hertz Transmission entered a five-year syndicated loan agreement, as guarantors, with The Royal Bank of Scotland, N.V. as syndicate
leader and Commerzbank AG, Luxembourg branch for a
volume of EUR 350m.
The volume of services utilized by 50Hertz Transmission in
fiscal year 2013 (service and general contractor agreement)
amounted to EUR 9,051.1k (prior year: EUR 7,603.2k).
On 9 December 2011, 50Hertz Offshore and 50Hertz Transmission issued a maximum guarantee to BNP Paribas S.A.,
Activity-based financial statements in accordance
with Sec. 6b (3) EnWG
The activities of 50Hertz Offshore belong exclusively to the
field of electricity transmission. For this reason, the sepa-
Notes to the financial statements of 50Hertz Offshore GmbH annual report 2013
rate activity-based financial statements to be prepared
in accordance with Sec. 6b (3) EnWG are in line with the
Company’s financial statements. Disclosures on company boards
Members of management
Udo Giegerich, Berlin, commercial division
Dr. Frank Golletz, Dresden, technical division
The general managers did not receive any remuneration
from the Company.
Berlin, 18 February 2014
50Hertz Offshore GmbH
Udo GiegerichDr. Frank Golletz
•
128
129 • Annual Report 2013 Our daily commitment to the energy revolution
Auditor’s report
We have issued the following audit opinion for the annual financial statements, the management report and the accounting in accordance with Sec. 6b (3) EnWG:
“We have audited the annual financial statements, comprising
the balance sheet, the profit-and-loss statement, the cashflow statement and the notes to the financial statements,
together with the bookkeeping system and the management
report for 50Hertz Offshore GmbH, Berlin, for the financial year
from 1 January to 31 December 2013. Pursuant to Sec. 6b
(5) EnWG, our audit of the financial statements also covered
compliance with the accounting duties pursuant to Sec. 6b
(3) EnWG, which requires separate accounts to be kept for
activities pursuant to Sec. 6b (3) EnWG. The maintenance
of the books and records and the preparation of the annual
financial statements and management report in accordance
with the German commercial law and compliance with the
duties pursuant to Sec. 6b (3) EnWG are the responsibility of
the company’s legal representative. Our task is to express an
opinion on the annual financial statements, together with the
bookkeeping system, the management report and compliance
with the accounting duties pursuant to Sec. 6b (3) EnWG
based on our audit.
We conducted our audit of the annual financial statements in
accordance with Sec. 317 HGB and the German generally
accepted standards for the audit of financial statements promulgated by the Institute of Public Auditors in Germany (IDW).
Those standards require that we plan and perform the audit
such that misstatements and violations materially affecting the
presentation of the net assets, financial position and results of
operations in the annual financial statements in accordance
with the principles of proper accounting and in the management report are detected with reasonable certainty and such
that it can be assessed with reasonable certainty whether the
accounting duties pursuant to Sec. 6b (3) EnWG have been
met in all material respects. Knowledge of the business activities and the economic and legal environment of the company
and expectations as to possible misstatements are taken
into account in the determination of audit procedures. The
effectiveness of the accounting-related internal control system
and the evidence supporting the disclosures in the books and
records, the annual financial statements and the management
report as well as for compliance with the accounting duties
pursuant to Sec. 6b (3) EnWG are examined primarily on a
test basis within the framework of the audit. The audit includes
assessing the accounting principles used and significant
estimates made by the legal representatives, evaluating the
overall presentation of the annual financial statements and the
management report as well as assessing whether the carrying
amounts and classification of accounts pursuant to Sec. 6b
(3) EnWG are reasonable and verifiable and that the consistency principle has been observed. We believe that our audit
provides a sufficiently certain basis for our opinion.
Our audit of the annual financial statements, together with the
bookkeeping system, and the management report has not led
to any reservations.
In our opinion, based on the findings of our audit, the annual
financial statements comply with the legal requirements and
give a true and fair view of the net assets, financial position
and results of operations of the company in accordance with
the principles of proper accounting. The management report
is consistent with the annual financial statements, and as a
whole provides a suitable view of the company’s position and
suitably presents the opportunities and risks of future development.
Our audit of compliance with the accounting duties pursuant
to Sec. 6b (3) EnWG, which requires separate accounts to be
kept for activities pursuant to Sec. 6b (3) EnWG, has not lead
to any reservations.”
Berlin, 19 February 2014
Ernst & Young GmbH
Auditing company
Glöckner Herlitz
Auditor Auditor
Imprint
Publisher
50Hertz Transmission GmbH
Eichenstrasse 3 A · 12435 Berlin
T + 49 ( 0 ) 30 5150-0
F + 49 ( 0 ) 30 5150-4477
info@ 50 hertz.com
Board of Directors
Boris Schucht
– Chair and Chief Executive Officer (CEO) –
Dr. Dirk Biermann
– Chief Officer for Markets and System Operations (CMO) –
Udo Giegerich
– Chief Financial Officer (CFO) –
Dr. Frank Golletz
– Chief Technical Officer (CTO) –
Concept and design
Heimrich & Hannot GmbH
Stralauer Allee 2 · D -10245 Berlin
Telephone +49 30 308780-40
Fax +49 30 308780-66
Photography
Andreas Teich
50Hertz archive
Frank Wölffing
Jan Pauls (including titles and chapter separators)
Editorial office
Olivier Feix (responsible individual)
Bianca Berger
Silja Bilz
Printing
DBM Druckhaus Berlin-Mitte GmbH
Wilhelm-Kabus-Strasse 21– 35 · D -10829 Berlin
www.50hertz.com
An Elia Group company
50 Hertz Transmission GmbH
Eichenstrasse 3 A · 12435 Berlin
T + 49 ( 0 ) 30 5150-0
F + 49 ( 0 ) 30 5150-4477
info@ 50 hertz.com
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