50Hertz Powering a world in progress

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1 50Hertz Powering a world in progress

2 2 50Hertz Powering a world in progress

3 50Hertz Powering a world in progress 3 Hertz ( Hz ) is the unit of frequency, named after the German physicist Heinrich Hertz ( ). One hertz is one cycle per second. 50 hertz is the frequency in European power transmission systems. The core task of 50Hertz is to balance load and power station output in cooperation with our partners in order to maintain stable transmissions at this frequency.

4 4 50Hertz Powering a world in progress 50Hertz is a reliable and efficient transmission system operator at the heart of Europe. We act in a socially responsible manner to promote a smoothly functioning electricity market and sustainable climate protection.

5 50Hertz Powering a world in progress 5 A transmission system operator at the service of society Our name is our vision The network frequency we have adopted as our brand name stands for security and trustworthiness, as well as for innovation and internationality. 50Hertz ensures reliable and efficient electricity transport using state-of-the-art equipment. As transmission system operator and member of the Elia Group, our remit is to maintain a constant 50 hertz frequency throughout Europe in cooperation with our partners at home and abroad. We are committed to driving the development of the electricity market, integrating all renewable sources of energy safely and securely into the system, and developing our grid such as to meet all related needs. Since 2010, the Belgium transmission system operator Elia and the Australian infrastructure fund IFM have been shareholders of 50Hertz Transmission GmbH. Elia ( 60 %) IFM ( 40 %) 50Hertz Our business Some 650 dedicated expert personnel work at 50Hertz, continuously ensuring secure and reliable electricity supply. Our grid is among the most modern electricity systems in Europe, extending over a length of nearly 10,000 km. At eight business locations, our teams ensure electricity is always available to over 18 million people in the German Federal states of Berlin, Brandenburg, Hamburg, Mecklenburg- Western Pomerania, Saxony, Saxony-Anhalt, and Thuringia 24 hours a day, and 365 days a year. Our»electricity highways«take electricity to the consumption hotspots, take up all power generated from renewable sources, and cross national borders in the interest of an effective European electricity market. We are at the heart of the continent, forming an interface with Northern, Eastern and Central Europe, and are the largest export region worldwide for power generated from renewable sources. Our subsidiary 50Hertz Offshore is responsible for installing and operating power lines connecting offshore wind farms in the Baltic Sea to the onshore electricity grid. 50Hertz ensures transparent and non-discriminatory operation of the electricity system in the spirit of independence and neutrality of power grids as called for by the European Union. As a natural monopoly, we are like gas and telecommunication networks subject to strict regulation by the German Federal Network Agency.

6 6 50Hertz Powering a world in progress

7 50Hertz Powering a world in progress 7 A guarantor of our prosperity Electricity is a common good of modern civilisation and is essential for our well-being. Our transmission system forms the basis for reliable, safe, secure and efficient electricity supply. 50Hertz Connecting our society All partners in the electricity market are brought together via our grid. We assume a bridging function, forming a link between generators and consumers safe and secure as well as non-discriminatory. In addition, 50Hertz is a dependable partner in cross-border cooperation with our European neighbours. German and European citizens benefit doubly, because international coordination of the transmission systems makes electricity supply more secure, and makes the European electricity market more efficient. Minimal fault rates imply the highest possible qual ity we meet this aspiration of society. Dependable supplies are therefore the focus of our activities. Assuming responsibility for a stable electricity grid, we ensure secure service around the clock. At each moment, we manage the balance between generation and consumption and have reserves to balance variations at any given time. Acting as a catalyst for the electricity market, we take on central tasks to ensure smooth interaction between the market players, provide all partners with transparent information, and thereby strengthen Germany as a business location. As an interface for renewables, we give priority to taking up all green power produced, marketing it and transporting it to the centres of consumption. 50Hertz fulfils four central tasks : As operator of the transmission system, we make sure the grid functions smoothly. We connect generators to the system, transport electricity to the consumption hotspots, develop the network in line with demand, and are our regional management teams are on site when needed.

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9 50Hertz Powering a world in progress 9 We ensure a fully-functional network and a dependable power supply. Responsible for stable power supplies Ownership has its responsibilities. This is why 50Hertz Transmission will be investing EUR 3.3 billion over the next decade in the extension and maintenance of the extra highvoltage network to ensure that power supplies remains secure into the future. 50Hertz already has the most advanced extrahigh voltage transmission system in Europe. Responsibility around the clock The transmission systems form the backbone of power supplies in Germany and Europe. A transmission system operator is responsible for reliable, affordable, consumerfriendly, efficient and environmentally compatible operations in its control area. The key criterion here is maintaining the system balance as a contribution to security of supplies. Our experts therefore use state-of-the-art technology to maintain a balance between generation and consumption. Responsibility and cooperation We adopt a holistic view of system security. We are co-founders of the TSO Security Cooperation ( TSC ), where we have joined forces with other transmission system operators in Germany, the Netherlands, Austria, Poland, Switzerland, the Czech Republic and Hungary to promote optimisation of real-time cooperation between control centres. We thereby strengthen regional and European system security. Together with the Brandenburg Technical University ( BTU ), 50Hertz has established a training and research centre in Cottbus which is the first of its kind in Europe. All services relating to the system safety training located there will be operated and marketed by Gridlab GmbH, which was founded in Under realistic conditions, analogous to a flight simulator, personnel of 50Hertz and other network operators are trained in controlling networks and responding to critical situations.

10 10 50Hertz Powering a world in progress A strong network for a strong market A single European electricity market would be impossible without a high-performance transmission system. The extra-high and high-voltage transmission systems form the basis for a functioning market. Key role for the electricity market and industry Germany is Europe s largest energy market. Transmission system operators play a pivotal role for the liberalised electricity market. Their electricity highways provide the physical infrastructure enabling market transactions. They are the marketplace where electricity producers and customers meet. A reliable electricity supply is a crucial factor for Germany as a business location for industries. 50Hertz is active as a transmission system operator at the EPEX power exchange, giving a substantial boost to the electricity market s liquidity. At the same time, 50Hertz is at the forefront of operationalising the energy management responsibilities mandated by the legislator, in particular in terms of integration, transport and marketing of electricity fed into the system from renewable sources under the German Act on Energy from Renewable Sources Act ( EEG ). A hub in the EU single market Due to the central position of its grid, 50Hertz assumes a key role for European electricity exchanges. 50Hertz links the networks of Denmark, Poland and the Czech Republic with Germany. As a member of the ENTSO-E ( European Network of Transmission System Operators for Electricity ), we are engaged in developing the European market with the help of harmonised methods which simplify cross-border trading. As member of the Elia Group, we are promoting a functioning power market in Europe. 50Hertz is playing a decisive role in the development of the market regions Central Western Europe ( CWE ), Northern Europe ( NE ), and Central East Europe ( CEE ) in close cooperation with Transmission System Operators from other countries, exchanges, and regulatory bodies. Linking the markets In the Central and Eastern Europe region (CEE), 50Hertz and seven other system operators have developed a process for awarding limited transmission capacity by means of coordinated explicit auctions. In the Northern Europe region ( NE ), the European Market Coupling Company ( EMCC ) based in Hamburg brings together the German and Scandinavian markets. The partners of the CWE and NE have introduced CWE price linking and the Interim Tight Volume Coupling ( ITVC ) for the CWE-Nordic region. As a result, European consumers benefit from the efficient use of the power network.

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12 12 50Hertz Powering a world in progress Linking Europe Situated at the heart of the continent, 50Hertz is linked with its European neighbours in numerous ways secure electricity supplies are only possible as part of a European partnership. Our transmission lines cross the German-Polish border The European electricity market is growing together. Thanks to its central position, 50Hertz assumes the role of initiator in strengthening the interconnected European grid. We meet our international responsibility by actively cooperating in the European Association of Transmission System Operators, ENTSO-E. The high share of power generated from renewable sources in our service territory makes it one of the largest electricity-exporting regions in Europe. A Europe of the regions The single European electricity market starts at regional level. 50Hertz has launched numerous cross-border initiatives in the past few years : More security in Central Europe : TSO Security Cooperation ( TSC ) promotes system security in the European inter-connected grid. By harmonising processes and improving data exchange, 50Hertz and 13 European partners have taken up new challenges like integration of renewables, and increasing power trading. An independent security centre Coreso is the independent centre which ensures security of supply and network stability in central and western Europe ( CWE ) and also promotes the development of renewables both topics which are of key importance for 50Hertz. This is the reason why we have a 10 % holding in Coreso.

13 50Hertz Powering a world in progress 13»Market Coupling«with Denmark : Since 2009, the German and Nordic electricity markets have been closely linked by coupling their power exchanges. The benefits are that the grid use is optimised, and it has become easier to balance price differences. More lively competition benefits all consumers. Capacity auctions in Central and Eastern Europe : 50Hertz and seven partners have established a joint auction vehicle, the Central Allocation Office, making it possible for the first time to award cross-border transmission capacity so that physical power flows are taken into best possible account. German-Polish connections : 50Hertz and the Polish transmission network operator PSE Operator are involved in the third interconnector project to link up their transmission networks. A grid of pan-european significance The European Union has recognised the necessity of crossborder cooperation and promotes promising projects. 50Hertz is the only German transmission system operator to have received grant funds under a European investment programme for a new overhead line ( Halle-Schweinfurt ) and a new Baltic interconnector between Germany, Denmark, and ultimately Sweden.

14 14 50Hertz Powering a world in progress Climate protection as a key challenge Wind power and other renewables require new transmission lines. 50Hertz is committed to pursuing network extensions for the benefit of future generations and a livable environment.

15 50Hertz Powering a world in progress 15 In the air, on land and at sea: 50Hertz personnel at work to expand the transmission network. Transmission systems play a central role for achievement of Germany s and Europe s climate protection goals. The share of renewables in German electricity supply has become substantial and is rising steadily. By 2020, renewables are to account for 30 % of the energy supply. To achieve these ambitious goals and transport the produced carbon-free power to where it is needed, the existing electricity transport systems must be developed on the basis of societal consensus. Onshore and offshore network extensions We are investing substantially to create the foundations needed for the development of power from renewable sources. Scientists, policy-makers and non-governmental organisations agree that the transmission system urgently needs extension. The projects of 50Hertz focus on building new lines on- and offshore: Three 380 kv overhead lines from Schwerin to Hamburg ( the so-called»wind bus bar«), from Halle to the Schweinfurt area ( the»thuringian electricity bridge«) and from the Prenzlau area to Neuenhagen close to Berlin ( the»uckermark powerline«), which add up to a total length of 400 km. The transmission network connecting the planned German offshore wind farms in the Baltic Sea, beginning with Baltic 1, which went into operation in Commitment to sustainable climate policies Development of the European power transmission systems is among the most urgent energy management challenges of our time. It is a prerequisite to achieving the climate-policy goals of Germany and Europe. We are aware of the concerns among the population, and take these seriously. We regard it as our task to find solutions that assist achievement of the overriding objectives of climate protection and service security while finding answers to local concerns. Our commitment to climate protection is reflected in our involvement in the Renewables Grid Initiative ( RGI ) that promotes the extension of transport grids to allow for full integration of power from renewable sources. For the first time, major non-governmental organisations and transmission system operators have committed to a common concern. RGI thereby also contributes to enhancing the society s acceptance of new transmission systems.

16 16 50Hertz Powering a world in progress Legal framework The German»Act on the Priority of Energy from Renewable Sources«( EEG ) is meant to boost the expansion of renewable sources of power. It mainly serves climate protection and is part of a legislative package aimed at reducing dependence on fossil fuels and imported energy. The basic concepts such as feed-in tariffs have already been adopted in more 47 countries all over the world. The legislation ensures priority integration of electricity generated from renewable sources and its distribution across the whole area of the Federal Republic of Germany. A large proportion of wind turbines have been erected in eastern German laender. The service area of 50Hertz Transmission is an electricityexporting region. Some 41 % of Germany s wind power is generated in our region, and much of this has to be distributed without delay to other parts of the country.

17 50Hertz Powering a world in progress 17 Committed to the future Challenges are the motor of technological development. The great challenges for us at 50Hertz reside in renewables, climate and environmental protection, and the European electricity market. Challenges potential for growth What implications does the increased use of renewables have for the power system? Wind is erratic and difficult to predict. Controlling the system has therefore become more complicat ed. More than 41 % of Germany s wind power is generated in the area served by 50Hertz, but it only accounts for 19 % of national power consumption. Large amounts of electricity therefore have to be transported to the centres of consumption in south and southwest Germany.»Gridlab«-simulator for system operation : Together with the Brandenburg Technical University ( BTU ), 50Hertz has established a training and research centre in Cottbus which is the first of its kind in Europe. Under realistic conditions, analagous to a flight simulator, personnel of 50Hertz and other network and power-plant operators are trained in controlling networks and responding to critical situations.»smart energy network«: Can a region be fully supplied with power from renewable sources? This is a question to be answered by establishment of a showcase region, the so-called Harz Regenerative Model Region ( a mountainous region in central Germany ). Smart networking based on state-of-the-art information and communications technology is used to bring together renewable power generators, energy storage facilities, and consumers. The project is supported by the German Federal Ministry of the Environment. Cooperation with environmental associations : 50Hertz has joined forces with environmental associations like WWF and Germanwatch to establish the European Renewables Grid Initiative (RGI). It aims to promote renewables and the requisite grid extensions. RGI and its partners have acknowledged that development of the grid is an indispensable prerequisite to further expansion of the use of renewables in the interest of climate protection. A front runner in climate protection We at 50Hertz are facing up to the challenges of the future. We are committed to the integration of renewables, making an active contribution to climate protection with our network extension projects.

18 18 50Hertz Powering a world in progress Active involvement 50Hertz is conscious of its responsibilities towards future generations. We have based our activities on the ethical maxim that only sustainable corporate governance will create lasting value for our customers, employees, and the society at large.

19 50Hertz Powering a world in progress 19 Left: In northern Germany, more ospreys are now nesting on transmission masts than in trees. Right: Presentation at the Gridlab in Cottbus In accordance with our corporate philosophy, we actively promote landscape diversity, nature conservation, and support youth projects and social concerns. Environmental protection as a priority Environmentally responsible action is our guideline for planning, operating and developing the grid. Rather than pursuing only engineering goals, we also promote biodiversity, e. g. by installing nesting aids on our overhead lines. We have been successful in reintroducing the osprey, an endangered species, in northern Germany. Today, 300 pairs of osprey are back nesting in our region. On an international scale, we have been setting standards in the field of environmental protection, e. g. by implementing an EU-funded project for ecological management of power-line corridors through forests. This way, we take care to preserve the landscape and conserve nature when building overhead lines. Future means education 50Hertz promotes sustainability in the interest of coming generations. We are running a wide spectrum of cooperation ventures with universities in technical, business and legal fields. We support school projects and organise guided tours of our facilities. We train large numbers of apprentices, offer interns a chance to gain professional experience in our operations, and supervise student diploma theses and dissertations. 50Hertz provides its staff with training and education opportunities. This includes vocational and advanced training courses as well as tailored programmes for trainees. Health and safety as a quality standard Occupational health and safety is a top priority at 50Hertz, forming the basis for responsible action, and a central pillar of our corporate culture. We offer our workforce flexible working hours, promote company sports and make sure the latest ergonomic findings are implemented at work. Employees exposed to stressful jobs deserve special protection and enjoy additional support programmes. Personnel at the regional centres take regular driving safety courses.

20 20 50Hertz Powering a world in progress Our personnel on duty for society 50Hertz unites experts of varied disciplines to achieve the corporate goals and fulfil its important task safe and secure electricity supply for the business community and society.

21 50Hertz Powering a world in progress 21 50Hertz is the centre of excellence for the extra-high voltage system. A team of 650 experienced, expert staff set standards in terms of reliability, system integration of renewables and matters concerning the market. A wide range of experience Our business affords exciting and diverse challenges at home and abroad. Highly qualified and motivated staff ensure smooth operations. They include An exciting mix of topics of the future Top-level technical know-how is the basis for maintenance, operation and extension of our grid. We investigate innovative technologies and novel solutions, e. g. in the construction of offshore systems leading to the wind turbines on the high sea. The topics we are dealing with are high on the public agenda. Besides being central elements of our core business, the electricity market, service security and climate protection are of outstanding relevance for policy-makers and our society. The operating environment and business of a transmission system operator are characterised by change and strong dynamism. The growing challenges are managed through consistent vocational and advanced training of our staff in cooperation with higher education institutions. Experienced operations specialists keeping a cool head when system faults occur, and finding solutions promptly; High-voltage specialists who maintain and extend our system in the entire service territory based on the latest technical findings; Energy management experts steering the interactions in the electricity market and running efficient energy procurement transactions for system operation; Financial experts securing the financial stability of our company; Regulatory, planning, environmental and legal experts making our business model sustain able.

22 22 50Hertz Powering a world in progress At a glance: Facts and figures * The system of 50 Hertz Renewable energy 380-kV overhead lines 6,830 km 220-kV overhead lines 2,862 km 380 /220-kV cables 58 km 400-kV HVDC cables 14 km Number of substations 59 Number of switching stations 6 Number of third-party substations and switching stations 4 Total transformer capacity ~ 41,340 MVA The control area of 50Hertz Area ~ 109,360 km² ( ~ 31 %)** Inhabitants ~ 18.2 Mio. ( ~ 22 %)** Consumption*** ~ 96 TWh ( ~ 20 %)** Generation capacity connected to the 50Hertz grid Total capacity ~ 16,300 MW of which thermal ~ 12,860 MW pump storage and hydropower ~ 2,400 MW Generators using renewable energy with a capacity of around 14,300 MW were installed in the control area of 50Hertz at end Most are installed at the distribution level. By integrating around 41 % of wind power»installed«in Germany, 50Hertz makes an important contribution to achieving the European and national climate protection goals. Renewable energy Capacity 50Hertz share Wind energy*** 50Hertz control area ~ 11,040 MW 100 % Germany ~ 26,670 MW 41 % Europe ~ 86,280 MW 13 % Other renewable energies**** 50Hertz control area ~ 3,260 MW *** Provisional data **** Mostly biomass, photovoltaic and hydropower *** ISET/IWET data, as at 01. February 2011 **** EWEA, News Release, 31.January 2011 Renewables in the 50Hertz area Total capacity of which wind power other renewables*** ~ 14,300 MW 11,040 MW ~ 3,260 MW * As at: March 2011 ** Share of Germany in total *** Provisional data

23 Denmark Energinet.dk Denmark Regional centres: Schleswig- Holstein Rostock Northern Regional Centre Rostocker Chaussee 18, Güstrow, Germany Hamburg Schwerin Güstrow Neubrandenburg Mecklenburg- Western-Pomerania Central Regional Centre Altlandsberger Chaussee, Neuenhagen bei Berlin, Germany Lower Saxony TenneT Saxony- Anhalt 110 Magdeburg Brandenburg Potsdam 220 Berlin Cottbus PSE Operator Poland Frankfurt (Oder) Eastern Regional Centre Sigmund-Bergmann-Strasse 1, Lübbenau / Spreewald, Germany Southern Regional Centre Goetheweg 125, Röhrsdorf, Germany South Western Regional Centre Zentrales Umspannwerk Nummer 8, Goethestadt Bad Lauchstädt, Germany Hesse Erfurt Eisenach Thuringia Bavaria Weimar Gera Jena TenneT Halle Zwickau Leipzig Saxony Chemnitz 110 Dresden ČEPS Czech Republic March 2011 Western Regional Centre Rogätzer Strasse 7 J, Wolmirstedt, Germany System users : Our customers include the regional distribution system operators as well as power plants, pump storage plants, wind farms and big industry connected to the transmission system. Legend : Switching Station (in large part with transition to distribution system operators) 220 kv 380 kv 380 kv planned / under construction 380 / 220 kv Other companies line 380 kv line planned / under construction 380 kv line 220 kv Operating voltage ( kv ) 110 Other companies 380 / 220 kv HVDC/DC link 400 kv Grid connection offshore 150 kv Grid connection offshore 150 kv planned / under construction Conventional power plant ( lignite- or coal-fired, nuclear or gas turbine power plant ) under construction Pump storage plant Wind power plant onshore / offshore planned / under construction

24 Contact 50Hertz Transmission GmbH Eichenstrasse 3 A Berlin, Germany T + 49 (0) F + 49 (0) info@ 50hertz-transmission.net Imprint Published by : 50Hertz Transmission GmbH Photos : Angelika Heim, Jan Pauls, Andreas Teich, 50Hertz Transmission GmbH Concept and design: Oswald + Martin Werbeagentur, Berlin Printing : Kehrberg Druck Service

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