TenneT has reported over €1bn in earnings before interest and tax (EBIT) for 2022, compared with €834m in its 2021 results.
In addition to €1.2bn in EBIT, revenues increased from €6.4bn in 2021 to €9.8bn in 2022.
With a growth of 23%, total asset volume in 2022 reached €40.9bn.
The Dutch-German TSO continued to perform well in 2022 despite geopolitical changes and the resulting turbulent market environment as well as rising energy costs.
This increased the grid stabilisation expenditure and caused the negative impact on IFRS earnings.
According to IFRS accounting standards, TenneT’s regulatory future reimbursement on extraordinary grid stabilisation costs are not recognised, leading to a stated EBIT accounting loss of €976m.
TenneT CEO Manon van Beek (pictured) said: “Despite great pressure on security of electricity and energy supply, unprecedented volatility in energy markets, high gas and electricity prices, we have again delivered on our promise to provide a high grid availability of 99.9996% overall and nearly E4.5bn investments in projects to facilitate the energy transition.”
Over the next 10 years, TenneT’s annual investments are expected to grow to at least €8bn.
From 2011 to 2022, TenneT invested over €30bn in onshore and offshore electricity infrastructure in the Netherlands (€9.4bn) and Germany (€21.1bn).
Arina Freitag, CFO TenneT, said: “Our financial performance is once again solid.
“As a healthy and stable grid operator we are at the heart of the most extensive change to our energy system. For TenneT, this means a sharply increasing investment portfolio and corresponding equity requirements.
“We are in continuous dialogue with the German and Dutch governments to ensure these rising equity needs.”
With the Esbjerg Declaration in May 2022, new targets for North Sea offshore wind were set.
System costs increased significantly in 2022 due to unprecedented high energy prices and increased costs for contracting electricity on wholesale markets to maintain grid balance or to offset grid losses.
This trend of increasing prices already started in September 2021 and continued during 2022 amongst others due to the war in Ukraine and its impact on the grid situation in Europe as well as due to changes in European legislation on cross-border trading and Market Coupling.
In the Netherlands, a rising electricity demand and an unprecedented boom of grid connection requests led to a temporary halt of the issuance of new connections requests.
To solve this and accommodate different stakeholder interests, a national consultation process was initiated in 2022 to look for more flexibility in the electricity demand of industry.
Under the auspices of the Ministry of Economic Affairs and Climate, the National Grid Congestion Action Programme was launched to create more space on the electricity grid in every possible way.
In Germany, the costs for congestion management, balancing power and other system services rose significantly in 2022.