Falling energy prices were responsible for a decrease in earnings and revenue at TenneT during 2024.
During 2024, underlying revenue in the year decreased by €792m to €8.4bn compared with €9.2bn in 2023.
Underlying earnings before interest and tax (EBIT) decreased by €72m to €1.7bn.
In 2024, the overall costs for ancillary services such as redispatch, grid losses, reserve power plants and control power decreased, resulting in lower underlying revenue.
Furthermore, revenue decreased due to lower regulatory rates for return on equity in Germany.
This decrease is partly offset by an increase of revenue due to increasing ongoing investments, resulting in a growing regulatory asset base and higher onshore and offshore revenue.
TenneT’s annual investments to expand, strengthen and modernise onshore and offshore electricity infrastructure exceeded €10bn in 2024, compared with €7.7bn in 2023.
Arina Freitag (pictured), CFO TenneT Holding, said: “Whilst we are working with the Dutch state on structural financing solutions for TenneT Germany, the shareholder loan facility provided in 2024 demonstrates the continuous support of TenneT’s shareholder for an investment program set to deliver a more efficient energy system.”
The described development in revenue regarding lower regulatory rates resulted, in combination with the decreased results of TenneT’s non-regulated joint venture BritNed due to lower auction receipts, in decreased EBIT.
This is partly offset by an increase of revenue due to the earlier mentioned increasing ongoing investments, together with reassessed useful lives of tangible fixed assets resulting in decreased depreciation expenses.
EBIT for the TSO Netherlands segment and the TSO Germany segment amounted to respectively €625m (2023 €548m) and €1bn (2023 €1.1bn) during this period.
TenneT achieved key milestones in 2024, onshore and offshore, in the Netherlands and Germany.
These included work starting on the offshore grid connection project BorWin6 and commissioning the Wahle-Mecklar project designed to ensure the transmission of wind energy on the north-south axis in Lower Saxony and Northern Hesse.
In November, construction started in Singapore of the IJmuiden Ver Beta platform, one of the first Dutch 2GW grid connection projects.
In the same month, the go-ahead was given for the construction of the onshore converter station for the 2GW IJmuiden Ver Alpha offshore connection.
Manon van Beek, CEO TenneT Holding, said: “Our investment portfolio is about building a reliable and cost-effective electricity grid that supports the transition to an electricity system delivering on energy-security and energy-independence.
“In the short term, TenneT remains resolutely focused on delivering grid capacity for our customers and facilitating the electrification of industry, businesses, homes, institutions, and public transport with additional high-voltage infrastructure.”