50Hertz
Annual Report 2012
Denmark
Energinet.dk
Denmark
SchleswigHolstein
Rostock
Güstrow
Hamburg
Schwerin
Neubrandenburg
Mecklenburg-WesternPomerania
Brandenburg
Lower Saxony
PSE
Poland
SaxonyAnhalt
Berlin
220
Frankfurt (Oder)
Potsdam
TenneT
110
380+220
Magdeburg
Cottbus
Halle
Leipzig
110
Saxony
Dresden
Weimar
Erfurt
Jena
Eisenach
Hesse
Gera
Chemnitz
Thuringia
Zwickau
ČEPS
Czech Republic
Bavaria
line
Switching Station (in large part with transition to
distribution system operators)
line planned /
under construction
380 kV
220 kV
line
220 kV
380 kV
Operating voltage ( kV )
380 kV planned / under construction
As at : December 2012
TenneT
Legend
380 / 220 kV
Other companies
Other companies
System users :
380 kV
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.
110
380 / 220 kV
HVDC/DC link
400 kV
Grid connection offshore
150 kV
Grid connection offshore
planned / under construction
150 kV
Conventional power plant
( lignite- or hard-coal fired,
or gas turbine power plant )
under construction
Pump storage plant
Wind power plant onshore / offshore
planned / under construction
Wind power plant offshore application
50Hertz at a glance
Value
Share in Germany
109,360 km²
~ 31 %
Length of lines
9,980 km
~ 28 %
Maximum load
approx. 15 GW
~ 21 %
approx. 98 TWh
~ 20 %
approx. 42,900 MW
~ 26 %
– of which renewable energy
21,410 MW
~ 31 %
– of which wind energy
12,420 MW
~ 40 %
Surface area
Electricity consumption (according to electricity sales to final
consumers as per EEG)
Installed capacity
Employees
Turnover
– of which grid
Substations and switching stations
As at the end of December 2012
757
EUR 8.6 billion (as per IFRS)
EUR 0.8 billion
65
Contents
Shaping the energy transition
6
On track with energy
Our profile
Company’s executive bodies
Interview
Report of the Supervisory Board
Milestones in 2012
Staying poised
Crossing borders
Transparency and dialogue
Cooperation with science and research
Planning for the grid of the future
New technologies
Grid extension onshore
Catching wind at sea
Corridors of ecological value
Commitment out of conviction
Our employees – well equipped
8
9
10
12
16
18
22
23
24
27
30
32
34
38
40
42
44
Report on the fiscal year 2012
of 50Hertz Transmission GmbH
48
Business and general background conditions 50
Fiscal year
64
Statement of financial position 64
Income statement
66
Cash flow statement 67
Statement of changes in fixed assets 68
Notes to the financial statements
70
Company boards 84
Audit opinion
85
Report on the fiscal year 2012
of 50Hertz Offshore GmbH
Business and general background conditions
Fiscal year
Statement of financial position Income statement
Cash flow statement Statement of changes in fixed assets Notes to the financial statements
Audit opinion
86
88
94
94
96
97
98
100
107
01
Shaping the energy transition
On track with energy
8
Our profile
9
Company’s executive bodies
10
Interview
12
Report of the Supervisory Board
16
Milestones in 2012
18
Staying poised
22
Crossing borders
23
Transparency and dialogue
24
Cooperation with science and research
27
Planning for the grid of the future
30
New technologies
32
Grid extension onshore
34
Catching wind at sea
38
Corridors of ecological value 40
Commitment out of conviction
42
Our employees – well equipped 44
On track
with energy
As Europe’s champion in the integration of renewable
energy sources, we set the standard for putting the energy
transition into effect. The foundation for accelerated energy
transition was laid in 2011. In putting the 13th Act to amend
the Atomic Energy Act (Atomgesetz – AtG) into effect,
Germany’s policymakers have resolved to completely phase
out nuclear power by 2022 and together with the amendment to the Energy Act (Energiewirtschaftsgesetz – EnWG)
and Grid Extension Acceleration Act (Netzausbaubeschleunigungsgesetz – NABEG), established the legislative base
for the energy transition. Comprehensive reorganisation of
energy infrastructure is necessary for the energy supply of
tomorrow. Modernization and appropriate extension of the
electricity grid are important steps towards the success of
the energy transition.
This can only succeed if the different dimensions – security
of supply, economic success and ecological compatibility –
are harmonised with social acceptance. It is with this goal
in mind that we are putting the energy transition on track.
Shaping the energy transition Annual Report 2012 • 9
Our profile
50Hertz – energy for a world
in motion
As a transmission system operator in the heart of Europe,
we are committed to the secure integration of renewable
energy sources, development of the European electricity
market and maintaining high security of supply standards.
We take care of the operation, maintenance, planning and
extension of the transmission system – with voltage levels
of 150, 220, 380 and 400-kilovolt – in northern and eastern
Germany. At a length of some 9,750 kilometres, our grid
covers an area of 109,360 square kilometres. This is similar
to the distance from Berlin to Rio de Janeiro.
We are pioneers in the development of
versatile, sustainable and reliable electrical
systems for the energy transition; in the
process, we link onshore and offshore
assets and create new opportunities.
We ensure the grid integration of more than 20 gigawatt
wind turbine and photovoltaic systems, including over 40
per cent of the wind power capacity installed in Germany,
by feeding the electricity into our grid and forwarding it to
the centres of consumption. We are Europe’s pioneer in this
area. 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 says it all! ‘50 Hertz’ is the set-point frequency in
the electricity grid and forms the basis for the secure supply
of electricity. The core mission of every transmission system
operator is to maintain the stability of this system frequency
at all times. Together with our national and international part­
ners, we keep the pulse of European electricity supply at a
steady ‘50 Hertz’. Moreover, we drive forward development
of the electricity market by reliably integrating the various
renewable energy sources into the grid and extending our
grid in line with demand.
Entirely in the spirit of the European Union’s requirement for
independence and neutrality of grids, we work transparently
and without discrimination.
We are a self-contained transmission system operator
and at the same time part of the international Elia Group.
Our shareholders include the Belgian transmission system
operator Elia System Operator NV/SA (Elia), which holds 60
per cent of the shares, and the Australian infrastructure fund
Industry Funds Management (IFM), which holds 40 per cent.
As a European transmission system operator, we are a
member of the ‘European Network of Transmission System
Operators for Electricity’ (ENTSO-E).
50Hertz has its headquarters in Berlin. At the heart of our
company is the transmission control centre in Neuenhagen
bei Berlin. This is where the flow of energy through the grids is
monitored and action to ensure a stable energy system taken
so as to guarantee the balance between generation and consumption at all times. The maintenance of our transmission
system in the areas of the federal states of Berlin, Brandenburg, Hamburg, Mecklenburg-Western Pomerania, Saxony,
Saxony-Anhalt and Thuringia as well as the substations and
switching stations is organised in six regional centres.
Our customers and partners include the distribution system
operators of the regional utility companies situated in our
control area whose installations are directly connected to
the transmission system, operators of the power plants
connected to the transmission system, pumped storage
stations, wind farms, large industrial consumers, transit
customers, control area customers as well as partners pursuant to the Renewable Energy Sources Act (ErneuerbareEnergien-Gesetz – EEG) and the Law on the Conservation,
Modernization and Development of Combined Heat and
Power (Gesetz für die Erhaltung, die Modernisierung und
den Ausbau der Kraft-Wärme-Kopplung – KWKG).
10 • Annual Report 2012 Shaping the energy transition
Company’s executive bodies
50Hertz Transmission GmbH is a wholly owned subsidiary
of Eurogrid GmbH (Eurogrid) and has its headquarters in
Berlin. The listed Belgian electricity transmission system operator Elia System Operator NV/SA (Elia) and the Australian
infrastructure fund Industry Funds Management (IFM) have
an indirect interest in Eurogrid GmbH via Eurogrid International CVBA, which has its headquarters in Belgium.
50Hertz is controlled and overseen by Eurogrid GmbH and a
codetermined supervisory board consisting of six members.
Members of the Supervisory Board
The Supervisory Board of 50Hertz is composed of the
following members:
Daniel Dobbeni
Chairman of the Board of Directors of Eurogrid International CVBA,
Braine-I’ Alleud/Belgium
– Chairman –
Ulrich Freese*
Vice Chairman of the Mining, Chemical and Energy Industries Union, Spremberg
– Vice Chairman – (until 18 December 2012)
Peter Hausmann*
Member of the Central Board of Executive Directors of the Mining,
Chemical and Energy Industries Union, Hanover
– Vice Chairman – (since 18 December 2012)
Markus Berger
Chief Officer Asset Management at Elia System Operator NV/SA,
Rhode-Saint-Genèse/Belgium
(since 22 August 2012)
Florian Guddat*
Master craftsman for electrical power systems,
Großschwabhausen
(until 22 August 2012)
Werner Kerschl
Investment Director at Industry Funds Management (UK) Ltd,
London/United Kingdom
Andrea Ludwig*
Electrical engineering technician,
Berlin
(since 22 August 2012)
Dr. Lutz Pscherer*
Electrical engineer,
Berlin
Jacques Vandermeiren
Chairman of the Executive Committee of Elia System Operator NV/SA,
Antwerp, Belgium
(until 22 August 2012)
* Employee representative
Shaping the energy transition Annual Report 2012 • 11
Board of Directors
50Hertz is represented outwardly by either two chief officers
or one chief officer and one authorised signatory. The chief
officers are appointed or removed by 50Hertz’s Supervisory
Board.
Members of the Board of Directors
Boris Schucht, Berlin, Chairman
Dr. Dirk Biermann, Berlin, Markets and System Operation
(since 1 April 2012)
Hans-Jörg Dorny, Neuenhagen bei Berlin,
Human Resources
Udo Giegerich, Berlin, Finances
Dr. Frank Golletz, Dresden, Technology
From left to right: Hans-Jörg Dorny, Udo Giegerich, Boris Schucht, Dr. Dirk Biermann, Dr. Frank Golletz
12 • Annual Report 2012 Shaping the energy transition
Interview
with Boris Schucht, Chairman
of the Board of Directors
We saw the energy transition gain momentum in 2012.
What did you find especially gratifying and what have
been the biggest challenges so far?
Boris Schucht: I am pleased about the improved investment framework for extending the energy grids. Deficits
have been remedied and the large-scale investment programme on the capital markets is now financially feasible.
The Federal Government has adopted a change in policy
in relation to regulatory recognition of the capital costs for
extending the grid. This is based on an agreement between
the Federal Network Agency and us system operators and
takes into account our call for fair and reliable conditions.
Moreover, 50Hertz has put into effect two key projects
for extending and reinforcing the grid. These are the commissioning of the Northern Line between Schwerin and
Hamburg, which, to quote the German Chancellor at the
official opening, is a milestone for the future of electricity
supply, and the innovative installation of high-temperature
conductors on the heavily used line from Remptendorf in
Thuringia to Redwitz in Bavaria. There has also been significant progress in the approval procedures for a number of
transmission line construction projects. Construction of the
second section of the important Southwest Interconnector
between Erfurt and Altenfeld has been approved and started
and the grid connection for the offshore wind farm Baltic 2
in the Baltic Sea is now in the construction phase, too.
The first German Grid Development Plan has been drawn
up and represents the basis for our future investments. This
was a truly Herculean task and one of major importance to
50Hertz. With that said, the other legal adjustments for system security and improving the offshore investment frame-
Shaping the energy transition Annual Report 2012 • 13
work are also positive developments in terms of successful
implementation of the energy transition.
is something that will continue to have the highest priority
within the company.
The substantial liquidity requirement for EEG management
in 2012 was secured thanks to successful interim financing.
In calculating the EEG surcharge, a liquidity buffer of ten
per cent was applied for the coming year for the first time,
meaning the impact of EEG management on the company
will be improved in the future.
What course has 50Hertz set within the company
for coping with the challenges posed by the energy
transition?
That the energy transition continues to advance at a rapid
pace is also demonstrated by the fact that electricity generated from renewable energy sources now accounts for 35
per cent of consumption in the control area of 50Hertz. This
means that the Federal Republic’s climate policy objectives
for 2020 were attained in the areas of the new federal states
and the city states of Hamburg and Berlin as early as 2012.
Never before was 50Hertz so much in the public eye.
Has the role of the grids now been accepted?
Boris Schucht: The growing number of visits, requests and
also appointments at EU, national and regional level shows
how much interest there is in our competence as a neutral
expert, especially with regard to the system integration of
renewable energy sources. 50Hertz is the only company to
have been certified an ownership unbundled transmission
system operator in Germany at the first attempt. This reinforces our credibility and position in Germany and Europe
as an independent and transparent system operator.
We have also significantly expanded our platform for information and dialogue further. Also in this respect, our transparency initiative involving publication of our load flow data
on the Internet also represents a benchmark in the industry.
We are breaking new ground in terms of supporting the approval procedures as well. Early information for and comprehensive dialogue with the people in the regions affected
by extension of the grid are of central importance to us and
have become an integral part of all our grid development
activities. We were the first transmission system operator
to promptly introduce the compensation payments for communities now possible under law. We plan to continue down
this new path with resolve.
2012 also presented a number of difficult situations that
caused headaches. We were able to manage the electrical
system reliably at all times. However, on occasion we were
faced with adversity, such as the tornado at Pulgar, which
thanks only to the impressive dedication and commitment
shown could be remedied quickly. And we also learned a
lot while successfully warding off the first cyber-attack on
50Hertz, which crippled our Web portals for days. Security
Boris Schucht: The changes in the internal organisational
structures with which we are preparing for major investments are essentially implemented and the new processes
are improving all the time. We have taken more than 60 new
employees on board. Cooperation within the Elia Group
continues to develop positively and this year has seen us
establishing joint development programmes, not least in the
area of human resources. The first joint purchasing projects
were implemented and a group function was introduced for
common benefit in the form of IT. The important ‘Purchase
to Pay’ workflow improvement project for the procurement
process has taken shape. Our efficiency programme, ‘Mehrtz’,
has gained momentum and already yielded measurable success in 2012.
However, the energy transition is not a 50Hertz project; only
the cooperation of many players will make it a success. In
addition to the intense contact with politicians, government
agencies, environmental organisations and other social
stake­holders, cooperation with distribution system operators
and market participants has been intensified further at natio­
nal level. At international level we have concluded agreements
with our Polish colleagues to improve the unplanned loop
flow situation. In 2012, we significantly advanced preparations for the European lighthouse project ‘Combined Grid
Solution’, which together with the Danish transmission sys­tem operator Energinet.dk will see us establishing a new
cross-border connection for the first time in Europe by linking two offshore wind farms. Under the auspices of the ‘Renewables Grid Initiative’ (RGI), which we launched together
with European environmental organisations three years ago,
we have developed best practises for more transparency, acceptance and citizen participation in the extension of the grid.
What will be the biggest challenges of shaping the
energy transition successfully in the future, too?
Boris Schucht: Unfortunately, extension of the grid is still
not keeping pace with the rapid expansion of renew­able energy sources. Once again, 2012 saw 50Hertz being forced
to intervene frequently to maintain system stability in the grid
and thus in the market. The result of that are high grid costs.
Consequently, there is an urgent need for change – for
economic reasons alone. Given the high grid utilisation and
continually increasing renewable energy sources, the grid
urgently needs to be developed further by 50Hertz.
14 • Annual Report 2012 Shaping the energy transition
For that reason, 50Hertz plans to invest some four billion
euro specifically in the further integration of renewable energy sources to maintain a high level of supply security and
develop Europe’s internal electricity market in the coming
decade.
However, it is reducing the planning and approval procedures, which can take ten years at present, substantially
without compromising the right the citizen has to partici­
pation that presents the real challenge. Investment in re­organising the energy supply system thus requires a politi­cal framework that guarantees more planning and investment certainty. NABEG represents a good basis for that
and adoption of the Federal Requirement Plan Act (Bundesbedarfsplangesetz – BBPIG) in the coming year will be
another crucial milestone for accelerated extension and
reorganisation of the grid in Germany. That being said, we
also see that a fundamental amendment to the Renewable
Energy Sources Act is now needed and that the issue of fair
dis­tribution of grid charges is becoming increasingly virulent.
The expenses incurred year after year, every year more than
EUR 100 million is incurred because the carrying capacity
from northeast to southwest Germany is insufficiently developed, are ultimately included in the grid charges of 50Hertz
and thus the price of electricity. One of the main bottlenecks
is the transportation of wind-generated electricity from
northeast Germany to Bavaria via Thuringia. Here, the new
‘Thuringian Electricity Bridge’ is urgently needed. It will cost
EUR 250 to 300 million. This 40-year investment will pay for
itself within just a few years because it will eliminate most of
today’s bottleneck-related expenses. There is no doubt that
extending the grid costs money; however, not extending can
sometimes be considerably more expensive.
Shaping the energy transition Annual Report 2012 • 15
Will the costs become the Achilles heel of the energy
transition?
Boris Schucht: The biggest risk to the energy transition
is waning acceptance among the general public. This basic
acceptance can only be maintained if we are able to con­
tinue providing maximum security of supply at affordable
energy prices. Even if it is clear to all that the energy transition will not come for free, the cost for households and the
economy must not run out of control. It will be important
to reform the EEG to make it economically efficient and to
develop integration of renewable energy sources with the
system and market further. We will be pleased to involve
ourselves as a source of information and point of contact
in the associated dialogue.
And finally, despite all the new challenges we must not jeopardise the maintenance of high levels of supply security. We
are accustomed to high standards in Germany and at 50Hertz
do everything to ensure it remains so. This is a Herculean task
because the very rapid and fundamental system reorganisation increases the risk of systemic and human errors. Ultimately, the complex overall system must not be overstretched
if we want to complete the energy transition and at the same
time ensure a high level of supply security. Our entire model
of prosperity is reliant on a functioning power supply system –
in Germany and in Europe. However, the reorganisation is
manageable if we all pull in the same direction.
16 • Annual Report 2012 Shaping the energy transition
Report of the
Supervisory Board
Meetings of the Supervisory Board
The Supervisory Board convened for its ordinary meetings
on 8 March, 20 September and 18 December 2012. It also
convened on 22 August for an extraordinary and constitutive
meeting.
Dear Sir or Madam,
Consultations and resolutions of the Supervisory Board
centred on the following: the future development of the
company’s financing structure in view of the requirements
associated with the considerable growth in the volume of
electricity produced using renewable energy sources and
the conclusion of appropriate agreements with financial
institutions via Eurogrid GmbH, including provision of the
required collateral; the termination of an agreement with
Mitteldeutsche Netzgesellschaft Strom mbH on the structure of separate transmission charges; the introduction and
transparent organisation of compensation payments to
cities and municipalities in connection with the construction of new overhead lines pursuant to the Grid Extension
Acceleration Act (Netzausbaubeschleunigungsgesetz; the
planning and construction of a new headquarters against
the backdrop of the growth in the company and associa­
ted human resources, and acquisition of the required plot.
Furthermore, the Supervisory Board has considered the
progress of the legislative and regulatory framework on an
ongoing basis and extensively monitored the progress of
the first German Grid Development Plan at length. Members
of the Supervi­sory Board have obtained a comprehensive
overview of organisational and personnel development within the company and consulted specifically on the structure
of staff secondments between the company and shareholders and the protection of high training standards by acquiring a grid simulation system. Finally, the Supervisory Board
has consulted at length on the business plan for 2013 and
recommended its approval.
In the previous financial year, the Supervisory Board of 50Hertz
Transmission GmbH, which is formed optionally and by way
of codetermination, performed the duties incumbent on it
pursuant to the company’s articles and law with the greatest
diligence. It frequently supervised and advised the Board
of Directors in the management of the company and while
doing so supported the strategic development of the company as well as its material transactions.
The Supervisory Board familiarised itself in detail with the
business outlook, the basic legislative and, in particular,
re­gulatory conditions and resulting impact on business
develop­ment, the strategic direction and operational planning, including financial, investment, and personnel planning,
of the company and its subsidiary by means of written reports
and oral presentations by the Board of Directors at its meetings. Members were presented with ample opportunity for
discussion and deliberation, including with the Board of
Directors, during meetings. Meetings and specific discussions were always carried out in an open, constructive
at­mos­phere and in the spirit of trust. Workforce represen­
tatives who sat on the Supervisory Board prepared for each
meeting in part by means of separate preliminary discussions with the chief officers.
The chairman and vice chairman of the Supervisory Board
also consulted with the chairman of the Board of Directors
regularly between meetings and were adequately informed
about events relevant to managing the company and
assessing its outlook and development.
The Supervisory Board was thus involved in all material business decisions early on and after detailed deliberation and
consultation granted its approval where necessary pursuant
to the company’s articles and law. Resolutions of the Supervisory Board were normally passed during its meetings. In
addition, three resolutions were passed by way of a written
procedure for reasons of urgency. The Supervisory Board
scrutinised any matter for which a resolution was necessary
with regard to legality, regularity and profitability. Conflicts of
interest were not disclosed by members of the Supervisory
Board, nor did circumstances that would suggest the existence of a conflict of interest become known.
Annual Financial Statements for 2012
Using the report by elected auditors Ernst & Young as a
basis, the Supervisory Board discussed the annual financial
statements for the 2012 financial year and the management
report at its meeting on 8 March 2013. As a result of the
audit of the annual financial statements and management
report, Ernst & Young issued an unqualified audit opinion.
The head auditor gave a point-by-point explanation of the
findings of the audit during the meeting on 8 March 2013
and answered any associated questions raised by the Supervisory Board. As a result of the written and oral report of
the auditor and its own detailed investigations and deliberations, the Supervisory Board concludes that the audit by
Ernst & Young was carried out properly and is consistent
with statutory requirements. Furthermore, it notes that no
Shaping the energy transition Annual Report 2012 • 17
Mr Dobbeni as chairman and Mr Freese as vice chairman.
Moreover, the members of the Supervisory Board elected
Mr Dobbeni, Mr Freese and Mr Kerschl as members of the
Executive Committee and assigned its competence and
powers.
objections have been raised with respect to the annual
financial statements and management report of the company or any statements made by the Board of Directors in
this regard.
Matters concerning chief officers
The Supervisory Board has passed a resolution to prolong
the appointment of Mr Boris Schucht as Chairman of the
Board of Directors up until January 2018 and adapt his con­tract of employment. Moreover, it has considered the retirement of Mr Hans-Jörg Dorny from the Board of Directors,
whose appointment as Chief Human Resources Officer ends
on 30 September 2013, and consulted on how this position
will be filled in the future. The Supervisory Board has in this
context also passed a resolution to reach an agreement with
Mr Dorny, on the basis of which he will support the company
in an advisory capacity for six months from the date of his
retirement. Furthermore, the Supervisory Board has monitored personal and corporate objectives of the chief officers
and accounted for the corresponding agreements made for
2011 with Mr Boris Schucht, Mr Hans-Jörg Dorny, Mr Udo
Giegerich and Dr. Frank Golletz. Any matters concerning
chief officers were first consulted on by the Executive Committee of the Supervisory Board and then decided by the
entire Supervisory Board.
Composition of the Supervisory Board
During the reporting period, the tenure of members of the
Supervisory Board ended according to the company’s artic­les with the discharge resolution of the shareholders for the
fourth financial year after the start of the tenure. As a result
of the elections, which were conducted in accordance with
the company’s articles, Mr Daniel Dobbeni, Mr Markus Ber­­ger, Mr Werner Kerschl, and – at the proposal of IG BCE –
Mr Ulrich Freese were appointed members of the Super­
visory Board by shareholders. The employees elected
Dr. Lutz Pscherer and Ms Andrea Ludwig as their Supervisory Board representatives. The new Supervisory Board’s
constitutive meeting was on 22 August 2012 and it elected
Mr Ulrich Freese resigned from the Supervisory Board of the
company with effect from 30 November 2012 in view, but
not in legal recognition, of the demands of the Federal Network Agency in connection with certification of the company
as a fully unbundled transmission system operator. Following that, Mr Peter Hausmann was elected as member of the
Supervisory Board by the shareholders at the proposal of IG
BCE. His election as vice chairman and member of the Executive Committee was carried out by the members of the
Supervisory Board at the meeting on 18 December 2012.
The members of the Supervisory Board thank Mr Freese for
his long, dedicated and accomplished participation for the
benefit of company.
In December 2012, the shareholders, 50Hertz Transmission,
the Central Works Council and IG BCE concluded an agreement on the continuation of codetermination at 50Hertz,
which has proven to be an effective and the right model for
cooperation between employers and employees in the interest of the company.
Other business
No transactions took place between the company and its
affiliates and chief officers or their dependents other than
those mentioned above. No contracts were concluded between the company and members of the Supervisory Board.
No loans were made to members of the Supervisory Board.
Moreover, transactions that would require the input or approval of the Supervisory Board did not come to its notice
by other means.
The Supervisory Board expresses its thanks to the company’s Management, the Works Council members and all
employees for their commitment and professional accomplishments during 2012.
Berlin, March 2013
For the Supervisory Board
Daniel Dobbeni
(Chairman)
18 • Annual Report 2012 Shaping the energy transition
Milestones in 2012
5 January 2012 – Wind power record in the control
area of 50Hertz
50Hertz registers a new record at the beginning of the year.
More than 10,000 megawatts of wind-generated electricity is fed into the control area of 50Hertz simultaneously for
the first time. Grid stability has not been compromised and
System Management is coping with the situation confidently.
3 February 2012 – Planning approval decision for the
second section of the Southwest Interconnector
The Thuringia State Administration Office concludes the
plan­ning approval procedure for the second line section
of the Southwest Interconnector between Vieselbach and
Alten­feld. Conclusion is another important step towards
transporting the renewable electricity produced in the north­
east of Germany to the centres of consumption in the southwest of Germany.
30 January 2012 – Briefings on the first Grid Development Plan
50Hertz and the other German transmission system operators report on the path towards the first Grid Development
Plan during two briefings in Berlin. More than 160 represen­
tatives of citizens’ groups and the political, business and
scientific communities assemble in Berlin. Furthermore,
distribution system operators are also informed about the
process on 1 February. 2012 sees grid development
plan­ning being conducted jointly for the first time with the
involvement of the public and numerous events throughout
Germany from the outset.
3 February 2012 – Foundations adopted for the
marketing and accounting of EEG electricity by
means of the market premium model
50Hertz and the other German transmission system operators set the stage for the accounting of directly marketed
EEG electricity by means of the newly introduced market
premium model (www.eeg-kwk.net).
24 February 2012 – Agreement on the approval of
investment budgets
50Hertz and the other German transmission system operators welcome the out-of-court settlement with the Federal
Network Agency in respect of the approval of investment
budgets. Settlement of the pending proceedings guarantees
greater legal certainty and defines an appropriate regulatory
framework for much-needed investment in the extension of
the grid.
13 March 2012 – Information campaign for the
Uckermark Line
50Hertz sets up a hotline for the Uckermark Line and other
projects. Interested citizens can ask questions about the
progress of the procedure, technical background and grid
extension via a free telephone number.
20 April 2012 – Publication of load flow data
50Hertz publishes the load flow data for its grid on the Internet at www.50hertz.com/lastflussdaten. This means that
any interested party can trace the load condition on single or
multiple lines for the previous day or earlier.
27 April 2012 – The first 50Hertz supplier briefing
200 national and international guests learn about the strategic direction of procurement at 50Hertz, the challenges of
offshore grid connections, the new approaches for overhead
lines and the 50Hertz order to payment process. This event
constitutes the starting signal for direct, transparent and
cooperative dialogue with suppliers.
Shaping the energy transition Annual Report 2012 • 19
30 May 2012 – The first Grid Development Plan for
electricity is published and consultation has begun
The first Grid Development Plan for electricity is introduced
by chief officers from the transmission system operators in a
press conference after it was presented to President of the
Federal Network Agency Jochen Homann in the presence
of German Chancellor Dr. Angela Merkel, Federal Minister of
Economics and Technology Dr. Philipp Rösler and Federal
Environment Minister Peter Altmaier. This consultation pro­
vides the general public with an opportunity to engage in and
comment on the Grid Development Plan (electricity) 2012.
6 June 2012 – 50Hertz illustrates the latest grid development activities to the political, business and environmental decision makers of East Brandenburg.
50Hertz illustrates the company’s grid development activities for the north of Berlin and the Uckermark at a briefing
organised by the East Brandenburg Chamber of Industry
and Commerce together with the environmental organisation Deutsche Umwelthilfe and the regional planning group
Oderland Spree based on the slogan ‘Networks for the
Energy Transition’.
Bahnhof opposite the main railway station in the ‘Europacity’
development area. It is being sold by CA Immo and covers
a total area of 8,145 square metres. The total investment
amounts to EUR 13.2 million.
11 July 2012 – Discussion on the Southwest Inter­
connector on Thuringian local television
50Hertz and Martin Gude, head of Energy Policy at the Thu­ringian Ministry for Economic Affairs, discuss the planned
power line with District Administrator Petra Enders and
spokes­woman of the citizens’ group ‘Schalkau’, Margit Heinz,
during ‘Sonneberg konkret’, a talk show on Thuringian local
television. The discussion was chaired by two editors from
the local newspaper ‘Freies Wort’ and the parties involved
all considered the dialogue with the Ministry for Economic
Affairs and the spokespeople on the ground to be a step in
the right direction.
30 August 2012 – 50Hertz’s fifth security conference
marked by the energy transition
Representatives from the areas of electricity generation, trans­mission and distribution as well as universities, associations,
government agencies and consulting firms speak with each
other about the current and future security of electricity supply against the backdrop of the energy transition at the fifth
security conference hosted by 50Hertz in Hamburg.
3 September 2012 – 50Hertz continues construction of
the second section of the Southwest Interconnector
50Hertz continues its construction activities for the second
section of the 380-kilovolt Southwest Interconnector from
Vieselbach to Altenfeld. That was preceded by the Court’s
decision on an expedited procedure in favour of 50Hertz
that was filed in conjunction with the suit opposing the planning approval decision.
27 June 2012 – Brandenburg’s Minister for Economic
Affairs Ralf Christoffers visits 50Hertz’s 380-kilovolt
cable tunnel
Brandenburg’s Minister for Economic Affairs Ralf Christoffers visits 50Hertz’s 380-kilovolt transverse connection in
Berlin as part of his ‘Energy Tour’ to obtain detailed information about 380-kilovolt cable technology. 50Hertz is one of
the few transmission system operators in Europe to have
gained experience in the operation of AC underground cable
systems at extra high voltage level.
7 September 2012 – 50Hertz fosters commitment
to the environment
The German ‘Clean Tech Media Award 2012’, which as a
gold partner 50Hertz sponsors, is presented in Berlin. CEO
of 50Hertz Boris Schucht sits on the jury panel and makes
the presentation for the ‘Energy’ category. The winning entry
is a micro-hydro power plant developed by the company
Hydro Power Smart for regions without electricity. The microhydro power plant replaces the diesel generator, which is
not environmentally friendly and more expensive.
11 July 2012 – 50Hertz has its new headquarters in the
centre of Berlin
50Hertz has contractually secured a plot for its new headquarters. The grounds are located on Heidestrasse next
to the Museum of Contemporary Art in the Hamburger
28 September 2012 – The first ‘Political & Regulatory
Affairs Day’ hosted by 50Hertz
50Hertz discusses political and regulatory issues associated
with the energy transition with its customers. Participants
and host agree that important issues should be communi-
20 • Annual Report 2012 Shaping the energy transition
cated to the policymakers point by point. 50Hertz and its
customers will cooperate even more closely in the future in
order to share and consult on their respective position.
28 September 2012 – Dresden University of Technology and 50Hertz intensify their partnership against the
backdrop of the energy transition
50Hertz and the Dresden University of Technology sign an
outline agreement on intensifying cooperation in research
and development projects implemented due to the energy
transition.
4 October 2012 – Tornado damages transmission
towers at Pulgar
Transmission towers belonging to the 380-kilovolt line bet­ween Pulgar and Vieselbach are heavily damaged by a
tornado in the local area. Experts from 50Hertz bring the
situation under control immediately, thus preventing any
bottlenecks in supply.
7 October 2012 – Rennsteig Autumn Run
50Hertz continues its regional commitment in Thuringia as a
main sponsor of the Rennsteig Autumn Run. More than 400
participants start the historic half-marathon route. Running
enthusiasts from 50Hertz also mastered this section of the
Rennsteig Marathon.
18 October 2012 – The fourth EEG conference hosted
by 50Hertz marked by the political debate on the EEG
Attended by some 250 people, 50Hertz hosts the fourth
conference to discuss the latest trends and challenges
against the background of the political debate on the legislative changes in the EEG support scheme. The conference
in Berlin is attended by system operators, electricity traders
and distributors, stock market experts, installation operators, IT experts and auditors from Germany, Austria and
Switzerland as well as the Federal Network Agency.
19 October 2012 – The 2012 customer meeting
50Hertz holds the yearly meeting with board members
and chief officers of major customers in its control area in
Potsdam. This is the format with which 50Hertz maintains
personal contact with its customers and creates a platform
for continuous dialogue on current topics.
9 November 2012 – Certification as Germany’s first
ownership unbundled transmission system operator
50Hertz is the only operator in Germany to have been certified an ownership unbundled transmission system operator
by the Federal Network Agency. This certification confirms
that 50Hertz complies with the unbundling requirements.
Moreover, the company receives confirmation that 50Hertz
has the financial, material, human, and technical resources
to perform its mission as a transmission system operator.
Shaping the energy transition Annual Report 2012 • 21
20 November 2012 – Cyber-attack on internet
platforms belonging to 50Hertz
50Hertz is exposed to a cyber-attack by a so-called botnet –
a group of networked computers – for the first time. As a
result, the internet platforms operated by 50Hertz are shut
down temporarily and protection/countermeasures initiated
promptly and successfully. There is no impact on security of
supply at any time.
26 November 2012 – Federal Environment Minister
and Brandenburg’s Prime Minister visit 50Hertz’s
transmission control centre
Federal Environment Minister Peter Altmaier and Brandenburg’s Prime Minister Matthias Platzeck learn about the
challenges of operating the transmission system during
the winter at 50Hertz’s transmission control centre (TCC).
Minister of Economics and Technology Dr. Philipp Rösler
and in so doing increases the capacity of this key northeastsouthwest connection by an initial 300-megawatt.
5 December 2012 – European declaration on transparency, acceptance and citizen participation in the
extension of the grid
Under the auspices of the ‘Renewables Grid Initiative’ (RGI),
50Hertz, together with European transmission system ope­
rators and non-governmental organisations, signs ‘European
Grid Declaration II’ in the presence of EU commissioners
Günther H. Oettinger and Janez Potočnik. The Declaration
deals with the issues of acceptance, transparency and public
participation in relation to grid extension based on the integration of renewable energy sources.
27 November 2012 – Approval of Grid Development
Plan 2012 by the Federal Network Agency
50Hertz and other German transmission system operators
welcome approval of the first German Grid Development
Plan by the Federal Network Agency. The Federal Network
Agency praised the transmission system operators for the
submission of a coherent approach to stable electricity supply in 2022 and acknowledged that the use of HVDC lines is
pioneering and appropriate. The Authority’s decision brings
about planning certainty for the lines confirmed.
28 November 2012 – Parliamentary evening on
offshore wind energy
50Hertz and the State of Mecklenburg-Western Pomerania
jointly organise a parliamentary evening dedicated to the development of offshore energy generation and opportu­nities
for the region, which was attended by some 140 guests.
Investors and project planners present their plans for the
Baltic Sea. Federal Environment Minister Peter Altmaier and
Mecklenburg-Western Pomerania’s Prime Minister Erwin
Sellering underline the importance of sound offshore development in the Baltic Sea to the success of the energy
transition.
4 December 2012 – Reinforcement of the electricity
grid at the line bottleneck in Thuringia by means of
a high-temperature conductor
50Hertz puts the first aluminium conductor steel support
(ACSS) high-temperature conductor into live operation in
Germany’s extra high voltage grid in the presence of Federal
18 December 2012 – Commissioning of the 380-kilovolt Northern Line attended by German Chancellor
Dr. Angela Merkel and Prime Minister Erwin Sellering
50Hertz formally commissions the new ‘Wind Busbar’ bet­
ween Schwerin and Hamburg in the presence of German
Chancellor Dr. Angela Merkel and Mecklenburg-Western
Pomerania’s Prime Minister Erwin Sellering. This new extra
high voltage line increases the security of supply in the
greater Hamburg area and leads to improved balancing
of the wind-generated electricity in northern Germany.
22 December 2012 – Deployment of phase shifters
to improve control of cross-border electricity flows
50Hertz and the Polish system operator PSE Operator have
agreed to improve coordination of unplanned electricity
flows on the German-Polish border. Entirely in the spirit of
the single European electricity market, this will strengthen
system security and produce additional trading capacity at
the border.
22 • Annual Report 2012 Shaping the energy transition
Staying poised
By cooperating nationally and internationally in the deployment and operation of our transmission system, we contribute to a secure and reliable electricity supply system.
Moreover, in the interest of secure energy supply, we take
responsibility for the system by implementing any measures necessary to avert risks to or failures in the security
and reliability of the electricity supply system.
» Our colleagues in the TCC
work under extreme pressure
to integrate renewable energy
sources into the grid such that
stable operation of the system
is ensured 24 hours a day, 365
days a year.«
In particular, the 2011/2012 winter gave rise to a tight situa­
tion on the electricity market. The electricity supply system
was exposed to an extremely high load. Only due to the
mammoth efforts of 50Hertz and other German transmission system operators and resorting to existing international
connections was it possible to guarantee stable system
operation and security of supply. Once again, 2012 saw
50Hertz being forced to intervene frequently in the grid and
thus the market for reasons of system stability – a total of
262 days during the year. Renewable energy installation
operators had to be instructed to temporarily throttle their
production on a total of 77 days (as compared to 45 days in
2011) to prevent overloading the grid. This option for stabilising the system is always applied as a very last resort after
switching-related interventions have already been carried
out and conventional installations reduced. High utilisation
of the grid and a continually increasing share of renewable
energy sources vividly illustrate the need to extend and
develop further the grid of 50Hertz. Accelerated approval
procedures and greater acceptance of these important
Gunter Scheibner, Head of System Security
Wind turbines with an installed capacity of some 12,420
mega­­watts, some 50 megawatts of which from offshore wind
‘50 Hertz’ is the set-point frequency in the electricity grid
and forms the basis for the secure supply of electricity. Our
core mission is to maintain the stability of this system frequency at all times. We control the generation/consumption
ratio and safeguard reserves so as to be able to compensate for variances at all times in close cooperation with our
neighbours.
turbines, are located in the control area of 50Hertz. That cor­responds to about 40.2 per cent of the capacity installed in
Germany and an increase of some seven per cent as compared to 2011.
As compared to the year-end figure for 2011, the capacity of
photovoltaic systems installed in the control area of 50Hertz
increased by about 104 per cent and now stands at about
To put the energy transition into effect, our mission is to
guarantee security of supply and European electricity trading
while integrating renewable energy sources at the same
time. A major task, since the control area of 50Hertz is
marked especially by a high and sharply rising proportion of
renewable energy sources coupled with relatively sustained
low electricity consumption when compared nationally.
After the moratorium on nuclear power entered into force in
March 2011, the control area of 50Hertz was marked by increased north-south and east-west load flows in 2012, too.
50Hertz registered a new record at the beginning of the
new year. More than 10,000 megawatts of wind-generated
electricity was simultaneously fed into the control area for
the first time on 5 January 2012. The stability of the grid was
not compromised. And the 10,000-megawatt mark was exceeded again at 2:45 PM on 12 January. This time it was a
case of carrying 10,186 megawatts of zero-CO2 wind power
to consumers.
7,220 MW.
At 10,208 megawatts, the maximum simultaneous feed-in
from wind turbines in the 50Hertz control area was reached
on 5 October 2012.
At 14,979 megawatts (momentary figure), the maximum feed-in
to the 50Hertz transmission system was seen on 6 November
2012.
and much-needed infrastructure projects are essential for
the successful and rapid extension of the grid. At the same
time, the winter months have shown how important it is to
strengthen cooperation at international level.
Shaping the energy transition Annual Report 2012 • 23
Crossing borders
The location of our grid in the heart of Europe means that
50Hertz plays a key role in European electricity exchange.
We connect the grids in Denmark, Poland and the Czech
Republic with Germany. For all players in society to benefit
from free competition, we are committed to transparent
and non-discriminatory access to the grid, as well as to
the development of coordinated and harmonised market
mechanisms at European level.
Close cooperation between all the national and European
system partners is of key importance. Our system respon­si­bility is accounted for by working closely with other German
and European transmission system operators in the ‘Regio­
nal Group Continental Europe’ and the ‘System Operation
Committee’ of ENTSO-E (‘European Network of Transmission System Operators for Electricity’). Partners of equal
importance include the distribution system operators and
producers in the 50Hertz control area. Above and beyond
that, we participate actively in the security initiatives TSC
(TSO security cooperation) and Coreso, the independent
security centre for Central and Western Europe, and are
an active member of the committees of ENTSO-E.
One example of successful cooperation at international level
is the cross-border expansion of the Grid Control Cooperation. Germany’s Grid Control Cooperation was progressively
expanded to include Denmark, the Netherlands, Switzerland,
the Czech Republic and Belgium between October 2011
and October 2012. Opposing imbalances are – if transmission capacity is available – now no longer balanced out in
these six countries. In each country, it has been possible to
reduce the control energy employed by up to 20 per cent.
This rise in efficiency lowers the cost of the energy transition for consumers and reduces CO2 emissions by avoiding
frequent changes in capacity during the provision of control
energy to conventional power plants. The Grid Control
Cooperation was developed by 50Hertz and the other three
German transmission system operators (Amprion, TenneT
and TransnetBW) and continuously expanded to include
other countries.
Unplanned cross-border electricity flows and their influence
on secure system management have long been the subject
of heated debate between European transmission system
operators, regulators, and the European Commission. To
improve the coordination of these electricity flows, 50Hertz
and the Polish system operator PSE Operator have agreed
on better coordination at the German-Polish border. Virtual
phase shifters will be deployed there at short notice when
electricity flows from Germany exceed a defined limit and
could compromise system stability in Poland. This means
that coordinated intervention in the operation mode of the
power plants will make it possible to simulate the balancing
effect of a phase shifter transformer. To that end, on 18 December 50Hertz and PSE Operator signed an agreement to
use virtual phase shifters in the short term, as well as a letter
of intent for the joint use of physical phase shifter transformers. Improved control of cross-border electricity flows
will strengthen system security, expedite the integration of
renewable energy sources and promote the single European
energy market.
»Coordinated action between
the system operators and all
other national and European
system partners is of central
importance to continuing to
guarantee high levels of system security under the energy transition, in
parti­c ular, with regard to concerted action
vis-à-vis system operation, to joint training
on how to cope with possible critical grid
situations and to the exchange of data in realtime among all the partners in the electrical
system.«
Dr. Dirk Biermann,
CEO Markets & System Operations
24 • Annual Report 2012 Shaping the energy transition
Transparency
and dialogue
Against the backdrop of the energy transition, the grid
and the operation of the electrical system are increasingly
becoming the focus of public attention. The expansion and
hardening of the transmission systems – a vital component
for the success of the energy transition – can only succeed
on the basis of broad social acceptance. All areas of society
– politics, business, science and civil society – are called
upon in equal measure to make a constructive contribution.
50Hertz is committed to maximum transparency, providing
information early on and open dialogue. At the same time,
fast and appropriate information to the public on an ongoing
basis and the participation of all relevant sections of society
in transmission line construction projects are the focus.
In
Urban planner Elke Brennenstuhl has worked at 50Hertz
since March 2006. She has
been involved in the Uckermark
Line project from the outset:
»We are on the right track.
The briefing held in the ‘Blumberger Mühle’
was a success and beneficial to our reputation
even though it did not conclude with the
resolution of every conflict.«
April 2012, 50Hertz was the first German transmission
system operator to start publishing its load flow data on the
Internet. In so doing, we satisfy the public’s need for transparency in relation to the complex business of the system
operator. An animated map provides interested parties with
the opportunity to view the latest situation on the grid, display a period as a film or download the data as a file.
For the ‘Uckermark Line’ transmission line project, 50Hertz
visited the towns and cities along the transmission route in a
travelling information centre. Contact with the local population was the focal point of the information tour with tent,
booth and information booklets. Special supplements in the
local press entitled ‘More knowledge’ complemented the
tour with facts and information about the construction of the
planned 115 kilometre-long Uckermark Line. With expert
support from the University of Duisburg-Essen, measurements on electromagnetic fields were also performed to
allay any fear of adverse effects on health among the local
population.
50Hertz also set up a hotline for the Uckermark Line and, for
example, together with the Minister of Economic Affairs Ralf
Christoffers and the citizens’ group ‘Biosphäre unter Strom’
invited interested parties to a briefing. The guests spoke
about issues related to health, conservation, routing and
economic necessity. Citizens were also able to learn about
the status of the planning approval procedure by means of a
display. For example, an exhibit showed the different routing
options discussed in the course of the procedure, which
now spans six years. Furthermore, background information about the required limits for electric and magnetic fields
were presented, plus a diagram showing the areas where
compensation measures are planned along the transmission
route.
We have also broadened our Web-based offering significantly in relation to our transmission line construction
projects and provide a newsletter subscription that affords
interested citizens and institutions with up-to-date information on the progress of the project. A download area provides additional information about all the issues surrounding
the extension of the grid. In the course of the 380-kilovolt
Northern Line, Southwest Interconnector, Uckermark Line,
380-kilovolt Northern Ring Berlin and 380-kilovolt Line
Bärwalde-Schmölln projects, 50Hertz held a total of 21
briefings for affected citizens and about 30 discussions with
stakeholder groups up until end of 2012. Needless to say,
we will remain in contact with our partners and the local
population in the future.
To contribute to a better understanding of operating realities
and the electricity system among policymakers, we support
the legislative process by making proposals and providing
transparent information early on. In addition, we regularly
approach government agencies and politicians with regard
to important matters such as the regulatory framework,
approval procedures and investment conditions. The Public
Affairs department also maintains regular dialogue with
partners and decision makers. This involves workshops at
regional, national and European levels as well as holding
political discussions with all parties.
The ‘Renewables Grid Initiative’ (RGI), which we helped to
establish in 2010, is a thus far unparalleled European platform for dialogue. Together with other transmission system
operators and non-governmental organisations, we discuss
the challenges of grid extension and try to bring about a better understanding of and more acceptance for the extension
of the electricity transmission systems, which are necessary
for the integration of renewable energy sources. 2012 was
Shaping the energy transition Annual Report 2012 • 25
dominated by best practises for socially compatible and environmentally responsible action in the course of European
transmission line construction projects.
Together with the European transmission system operators
and non-governmental organisations, we drafted ‘European
Grid Declaration II’ under the auspices of the RGI in 2012.
Following ‘Declaration I’ on the compatibility of grid extension and conservation, this now addresses issues such as
transparency, acceptance and public participation in relation
to grid extension based on the integration of renewable
energy sources. The Declaration was formally signed in
December in the presence of EU commissioners Günther
H. Oettinger and Janez Potočnik. The Declaration takes up
the results of a series of workshops on the planning and
approval processes conducted by the RGI in 2012. Some of
the examples dealt with there, which are also reflected in the
final declaration, were developed by 50Hertz, such as the
practise of publishing load flow data, a hotline and a travelling information centre.
We regularly receive delegations in our technical installations. Leading politicians like Federal Environment Minister
Peter Altmaier, Federal Minister of Economics and Technology Dr. Philipp Rösler and Brandenburg’s Prime Minister
Matthias Platzeck have visited our TCC in Neuenhagen bei
Berlin. They learned about the challenges of operating the
transmission system, especially during the winter, in the
TCC. Moreover, the Minister for Economic Affairs of the
Dr. Philipp Rösler, Federal Minister of Economics and Technology, and
Boris Schucht, Chief Executive Officer of the network control unit of
50Hertz
State of Brandenburg Ralf Christoffers visited the 380kVdiagonal in Berlin, for example. Together with the invitation,
50Hertz also made good on a promise to the citizens’ group
in relation to the Uckermark Line and next to these representatives also invited leaders from environmental organisations to a guided tour through the cable tunnel. During his
summer tour of Mecklenburg-Western Pomerania, Prime
Minister Erwin Sellering visited the substation in Bentwisch
to learn about the challenges of offshore business and grid
extension. 50Hertz also gives guided tours of its installations
to various groups from technical colleges and universities as
well as foreign delegations regularly.
Federal Environment Minister Peter Altmaier acquires information in 50Hertz’s TCC. (left: Boris Schucht, Chief Executive Officer; Middle: Gunter Scheibner,
Senior Manager of System Security at 50Hertz)
26 • Annual Report 2012 Shaping the energy transition
With numerous different types of event, 50Hertz has established itself as a major player within the industry. Against the
backdrop of the further proliferation of renewable energy
sources, the main items on the agenda of the security
conference in 2012 were the exchange of thoughts on such
topics as ‘Coordinated System Operation in the National
and European Context’, ‘Grid Extension Planning in Germany and Europe’, ‘Market Mechanisms and System Security’,
and ‘European Cooperation Models for System Security’.
Some 150 representatives from the areas of electricity generation, transmission and distribution as well as representatives of universities, associations, government agencies and
consulting companies gathered in Hamburg for two days to
discuss the issues associated with the above. With presentations by representatives of the TSC security initiative (TSO
Security Cooperation) and the security centre, Coreso, this
is the first time the conference has been conducted in a
European context.
The fourth EEG conference hosted by 50Hertz was dominated by the political debate on Germany’s Renewable
Energy Sources Act. Some 250 people met in October to
discuss the latest trends and challenges
against the background of the political
debate on the legislative changes in the
EEG support scheme. The conference
centred on such topics as market integra­
The direct way to the
50Hertz-EEG-App
tion of renewable energy sources, direct
marketing and the EEG surcharge, as
well as issues relating to the payment of damages in the
event of feed-in management measures and implementation of the regulation on system stability. The purpose of the
event was to inform participants about the latest developments and forthcoming changes, and to discuss the prac­
tical implications for the conclusion of the EEG procedure
for all market players. The conference in Berlin was attended
by representatives of transmission and distribution system
operators, electricity traders and distributors, stock market
experts, installation operators, IT experts, and auditors from
Germany, Austria and Switzerland as well as the Federal
Network Agency. A highlight of the conference was the
release of 50Hertz’s new ‘EEG app’, which provides key
information and the latest facts and figures on electricity
from renewable energy sources
The mobile public office of 50Hertz
Shaping the energy transition Annual Report 2012 • 27
Cooperation with
science and
research
Vibrant cooperation with universities is important to dealing
with the challenges faced in the course of putting the energy
transition into effect. On one hand, 50Hertz urgently needs
well educated young talents, but on the other hand, also
scientific results to solve the issues of the future.
It was with that in mind that we began to establish a scientific network many years ago. Our partners include the
University of Rostock, the Dresden University of Technology,
the Ilmenau University of Technology, the Otto-von-Guericke
University Magdeburg, the Friedrich Schiller University Jena
and the Brandenburg University of Technology (BTU Cottbus). In 2012, 50Hertz worked on nine studies in cooperation with universities. The goal was always to analyse and
evaluate topics relevant to managing the electrical system.
The studies dealt with the voltage quality in extra high voltage grids, the determination of measures for critical conditions in the grid of 50Hertz, as well as the ‘Power to Gas’
project, for example.
We have cooperated closely with the Institute of Electrical
Power Systems and High Voltage Engineering (IEEH) at the
Dresden University of Technology, one of the 11 universities
of excellence in Germany, since 2003. The subject of one
of the research projects is efficient procedures for assessing the voltage quality in extra high voltage grids so as to
guarantee permanent monitoring of the quality of the voltage
and electric power in the grid.
In September 2012, 50Hertz and the Dresden University of
Technology signed an outline agreement on intensifying cooperation on research and development projects. Subjects
include studying the long-term behaviour of high-temperature conductors. Plans for the future include looking closely
at direct current technology, storage solutions and the conversion of electricity to gas. 50Hertz hopes the contract will
result in a more flexible approach to research contracts as
well as the recruitment and retention of future professionals.
We have cooperated successfully with the Chair of Electric
Power Networks and Renewable Energy Sources (LENA) at
the Otto-von-Guericke University Magdeburg for more than
ten years. This partnership has resulted in numerous joint
projects and publications. Education and research at LENA
has centred on sustainable energy systems of tomorrow for
many years. The scientific work at LENA focuses on the security of energy supply, thus making this academic department an appropriate partner of 50Hertz.
Cooperation was initially based on bilateral contacts. It was
placed on a solid footing in 2006 by means of an agreement
to cooperate, which paved the way for long-term cooperation.
Together with former power
plant employee Rüdiger Gudat
of Vattenfall Europe Generation
and Manfred Krüger of the University of Rostock, Johannes
Göbel of System Management
at 50Hertz developed scenarios for the grid
restoration instruction sessions and directed
training.
» There ha s b een a b l a ckout i n t he 50Her tz
cont rol a rea f or one hour f ol l owi ng a major
f a i l ure. N ot hi ng works. The shi f t sup er v isor a nd hi s col l ea gues i n t he TC C ha v e 60
mi nut es t o a na l yse t he si t ua t i on a nd decide
on t he sol ut i on t hey wi l l use t o sup p l y 18
mi l l i on p eop l e wi t h el ect ri ci t y a ga i n – and
d o so a s q ui ckl y a s p ossi b l e. They now need
t o a ct swi f t l y, p rud ent l y, a nd i n coordination
wi t h t he ot her p a rt ners a t t he sa me t i m e. In
a l most l i ve cond i t i ons, every shi f t work er at
t he 50H ert z TC C rehea rses rest ora t i on of
t he gri d i n such scena ri os regul a rl y.«
28 • Annual Report 2012 Shaping the energy transition
For example, recommendations on a policy for reviewing
harmonic benchmarks when connecting wind turbines to
the extra high voltage grid were prepared in one project.
Simulation-based studies on the utilisation of high voltage
lines in the control area, also with regard to the introduction
of load flow-based capacity allocation for cross-border congestion management, were carried out within the scope of
another project. The findings of the projects help 50Hertz to
make improvements in practical implementation and enable
the academic staff of the chair to gain insight into the daily
tasks and internal procedures in the handling of projects
within the company.
Next to the direct projects, 50Hertz also cooperates closely
with universities in a number of publicly funded projects
within the scope of consortia.
50Hertz is a member of the ‘Harz, a Model Region for
Renewable Energy’ (RegModHarz) project consortium, in
which public utilities, distribution and transmission system
operators, ICT and component manufacturers, research
institutes, universities, engineering offices and renewable
energy suppliers have joined forces. RegModHarz is one of
six pilot projects funded under the ‘E-Energy – ICT-based
Energy System of the Future’ initiative of the Federal Ministry of Economics and Technology in partnership with the
Federal Ministry for the Environment, Nature Conservation
and Nuclear Safety. By coordinating generation, storage
and consumption, the region aims to demonstrate that a
consumer-oriented, stable and reliable supply of electrical
energy is possible with the highest possible proportion of
renewable energy sources.
50Hertz regularly invites students to the company to introduce itself as a potential employer. For example, about 30
students of the master programme for industrial engineering
(focusing on energy management) visited the TCC in Neuenhagen bei Berlin. In various lectures 50Hertz introduced itself
Representatives of colleges and universities at the distribution station Bentwisch, close to Rostock
Shaping the energy transition Annual Report 2012 • 29
as a company with its manifold tasks and fields of activity.
Moreover, it familiarised the students with the work it carries
out in relation to system responsibility during a visit. The
series of events was initiated by 50Hertz in cooperation with
Professor Christian von Hirschhausen from the Workgroup
for Economic and Infrastructure Policy at the Berlin Institute
of Technology.
To reinforce our contact with universities, we also maintain a
scientific advisory board for energy infrastructure, which we
established several years ago. The members are professors
distinguished by their exceptional knowledge in such areas
as electricity grids, high voltage engineering, as well as
energy and regulatory law.
Established by 50Hertz and the BTU Cottbus, the European
training and research centre GridLab enables us to make an
important contribution to strengthening the capacity of the
operational staff of producers and system operators, and
to the standardisation and certification of system and grid
management processes. Together with system and power
plant operators, 50Hertz trains on how the supply of electricity would be re-established after a major failure, such as
a blackout, at GridLab. In this respect, cooperation with the
other system and power plant operators in the control area
is crucial. All nine major power plants and all eight distribution system operators from the control area of 50Hertz attended at least one training session in 2012. In September,
there were participants from Vattenfall Europe Wärme AG,
too. The group of participants will be expanded in the future.
Colleagues from the Czech transmission system operator
ČEPS have already made enquiries about training on site.
As part of the international Elia Group, 50Hertz is a member
of the ‘European Network of Transmission System Operators for Electricity’ (ENTSO-E) and together with other
ENTSO-E members, as well as within the ‘European Electricity Grid Initiative’, engaged in various research and development projects. These areas are coordinated by means
of an Elia Group function; for in this respect the use of new
findings throughout the Group and adoption of a European
perspective are of particular importance.
Prof. Dr. Zbigniew A. Styczynski (left) from the Otto-von-Guericke-University
Magdeburg and Prof. Dr.-Ing. Peter Schegner (right) from the Dresden
University of Technology at an academic meeting of the Advisory Board of
Energy Infrastructures
30 • Annual Report 2012 Shaping the energy transition
Planning for the grid
of the future
integration of the rapidly growing renewable energy sources
and maintenance of the high standards of supply and thus
constitutes an integral component in terms of the success of
the energy transition.
Departure from nuclear energy coupled with the rapidly
growing proportion of renewable energy sources necessitates modernization of the energy infrastructure and places
entirely new demands on the electricity grid. The development of this is a process spanning several decades.
A resolution passed by the German Bundestag in August
2011 urges transmission system operators to formulate
a yearly plan for the extension of transmission systems to
account for the changing conditions in energy management.
Germany’s amended Energy Act provides the legal foundation for that. As a result of this work, the Grid Development
Plan has been established. The Grid Development Plan sets
out the action necessary onshore to ensure secure and
reliable operation over the next ten years with extension and
reorganisation of Germany’s extra high voltage grid in line
with demand. This action makes a significant contribution to
scenario framework
The Grid Development Plan is drawn up by 50Hertz and
the other three German transmission system operators
jointly. Preparation of a grid development plan involves the
implementation of a multi-tier process so as to ensure that
in addition to the transmission system operators, the general
public and the competent regulatory authority (Federal
Network Agency) are actively involved in the formulation
of each grid development plan. After consultations, each
process starts with a scenario framework laid down by the
Federal Network Agency. Based on that, the first draft of the
Grid Development Plan is prepared with the following steps:
market simulation, grid planning, deduction of action. The
process involves a number of consultations via which the
public is included in the preparation. The process concludes
with the federal requirement plan. This covers the legally
enshrined need for extension in the extra high voltage grid.
Enactment of the law lays down the energy management
requirement and prioritises the action to be taken.
grid development
plan
gdp
PROcess phases
Compilation
of scenario
framework
TSO
consulted
interested
parties
BNetzA
(Federal Network Agency)
Consultation
and revision
of 1st draft
Compilation of
1st draft*
Consultation
and revision
of 1st draft
TSOs
Public &
network operators
20.07.2012
Compilation of
1st draft
Consultation re
2nd draft, com­pilation of envi­
ronmental report,
confirmation
of GDP
Checking
of 2nd
draft
Consultation
re scenario
framework
O-gdp
process
responsibility
Consultation
Expert reviewer
30.11.2012
Dec. 2012 – Feb. 2013
* Taking into account the Federal offshore plan compiled by
the BSH, BNetzA, BfN and the coastal regions
Consultation re
2nd draft, com­pilation of environmental report,
confirmation of
O-GDP
Checking
of 2nd
draft
BNetzA
Public,
Transmission System
Operators &
BNetzA
TSOs
Public &
network
operators
03.03.2013
July 2013
Publication of 1st
GDP and O-GDP
draft and start
of consultation
Publication of 2nd GDP
and O-GDP draft by the
TSOs and handover to
the BNetzA
GDP
2013
O-GDP
2013
Shaping the energy transition Annual Report 2012 • 31
»We have communicated the
entire preparation process
trans­p arently and actively
via consultations and other
means. In the course of numerous briefings and discussions
with representatives from politics, business,
science and civil society, we have exchanged
knowledge, opinions and viewpoints on grid
planning. The general public is informed con-
public show the significant level of interest there is in actively
engaging in the process. These have been incorporated
into the revised draft of the plan, but did not necessitate any
changes to the grid extension needs set out. The second
draft of Grid Development Plan 2012 was delivered to the
Federal Network Agency and published by the transmission
system operators on 15 August. Of the 74 different actions
to be taken nationwide submitted by the transmission system operators, 12 concern the control area of 50Hertz. 51
different actions, including ten in the control area of 50Hertz,
were classified as urgent by the Federal Network Agency
and approved.
tinuously about the grid planning in general,
the consultations and the progress of the
Grid Development Plan on the website.«
Dr. Roland Bauer, Strategic Grid Planning at 50Hertz
On 29 May 2012, 50Hertz, Amprion, TenneT TSO and
TransnetBW submitted Grid Development Plan 2012 for the
first time to the competent regulatory authority, the Federal
Network Agency, in the presence of German Chancellor
Dr. Angela Merkel, Federal Minister of Economics and Technology Dr. Philipp Rösler and Federal Environment Minister
Peter Altmaier. Together with the other transmission system
operators, 50Hertz presented the draft of the Grid Development Plan and explained its content to interested members
of the general public in the course of several briefings and
discussions. More than 2,000 comments from the general
» Full
The results of the Grid Development Plan approved by the
Federal Network Agency were submitted to the Federal
Government as a basis for the first federal requirement plan,
which is to be adopted in 2013.
The Grid Development Plan is updated on an annual basis.
Consequently, the new generation and consumption scenarios for Grid Development Plan 2013 were prepared and
submitted to the Federal Network Agency in 2012.
The Grid Development Plan reflects the principles of 50Hertz:
maximum transparency and candour in the planning process,
continuous, fast and proper information to the general
public and participation of all relevant sections of society by
means of consultation procedures.
www.netzentwicklungsplan.de
integration of renewable energy sources
can succeed only through rapid extension of the
transmission systems. The Grid Development Plan
is a crucial step towards making it possible to
coordinate grid extension with the reorganisation
of energy generation and guaranteeing the secure
and stable supply of electricity in the future. The
rapid cooperation of all stakeholders – transmission system operators, Federal Network Agency, associations and
the general public – is exemplary.« Federal Environment Minister Peter Altmaier
32 • Annual Report 2012 Shaping the energy transition
New technologies
Reorganisation of the energy system is possible only if there
are major advances in the area of grid optimisation and
reinforcement so that system stability and security of supply
continue to be ensured in the future. Conversion to innovative transmission technology is a key aspect of the successful implementation of the energy transition.
50Hertz has opted for high-temperature conductors. Until
now, these have been regarded as new territory in Germany.
They represent one approach for increasing the transmission
capacity of existing overhead lines. With the launch of the
pilot installation in the substation at Güstrow for field testing
the latest generation of high-temperature conductors, 2011
saw 50Hertz recording its first activities in the areas of grid
reinforcement and optimisation. 50Hertz is using the installation to test the new technology during normal operation in
a secured installation. Insights for the wider use of this technology are being obtained from the test results in Güstrow
Federal Minister of Economics and Technology Dr. Philipp Rösler
answers questions from the media in Remptendorf
Moreover, 50Hertz put the first ACSS high-temperature
conductor into live operation in Germany’s extra high voltage grid in the presence of Federal Minister of Economics
and Technology Dr. Philipp Rösler on 4 December 2012
in Thuringia. The ACSS high-temperature conductor was
installed according to a strict time schedule thanks to timely
decommissioning of the conventional, heavily used connection between Remptendorf (Thuringia) and Redwitz (Bavaria). Commissioning enables us to create more capacity
at a sensitive point in our transmission system, in particular,
to transport green electricity from northeast Germany to the
heavily consuming regions in the Southwest.
By converting to high-temperature conductors – the first
line-related measure of the national Grid Development Plan –
the capacity of this important northeast-southwest connection can now be increased by some 300 megawatts from
a previous 1,800 megawatts to an initial 2,100 megawatts.
The total investment for the approximately 18 kilometre section stood at about seven million euro.
A member of staff of the regional centre ‘Südwest’ in the distribution
centre Remptendorf and Federal Minister of Economics and Technology,
Dr. Philipp Rösler, at the switching operation on the 4th of December
so as to increase the transmission capacity on existing lines.
For the future use of this technology, the behaviour of the
entire installation, the combination of fittings and lines, the
sag behaviour and long-term stability need to be analysed
based on the development of higher temperatures.
50Hertz also relies on new methods during aerial inspections of overhead lines. In addition to inspecting lines visually
by helicopter, 50Hertz now uses a thermal imaging camera –
or a camera that makes it possible to see corona discharges
in daylight – to examine lines for vulnerabilities from the air.
Shaping the energy transition Annual Report 2012 • 33
»Our system operators are central pillars of the energy transition.
They work with a huge degree of professionalism to achieve
secure system operation, with extreme commitment on the integration of an ever-increasing volume of electricity from renewable
energy sources, and innovatively use new technologies to develop
the transmission system. I was able to see that first-hand during
my visit to 50Hertz.« Federal Minister of Economics and Technology Dr. Philipp Rösler
High-temperature conductor assembling
34 • Annual Report 2012 Shaping the energy transition
Grid extension onshore
Electricity grids play a key role in the reshaping of the energy
landscape. They are the backbone of the energy infrastructure. To strengthen this further, demand-based extension of
the German electricity grid is a prerequisite for the success of
the energy transition, next to modernization. As the biggest
projects, implementation of the Southwest Interconnector,
the Uckermark Line and the Northern Ring Berlin is the focus
of 50Hertz’s attention.
The Southwest Interconnector, also known as ‘Thuringian
Electricity Bridge’, plays a key role in transporting the renewable electricity produced in the northeast of Germany to the
centres of consumption in the southwest of Germany, in
particular. It will run from Halle an der Saale (Saxony-Anhalt)
to Schweinfurt (Bavaria).
»We were very pleased that the
Thuringia State Administration
Office decided to grant planning
approval after a very extensive
50Hertz put the first section between Lauchstädt and
Vieselbach into operation in December 2008. The planning
authority approved the second section between Vieselbach
and Altenfeld on 31 January 2012. Works commenced at
the start of construction but were then initially interrupted
due to an expedited procedure filed in conjunction with the
suit opposing the planning decision. However, works were
continued in the area of the substation at Vieselbach near
Erfurt in April and May 2012 to prevent extension of the ICE
section from being obstructed subsequently.
It was possible to continue construction works apace after
the Court’s decision on the expedited procedure in favour of
50Hertz. Foundation works, including for the transmission
towers, started in September 2012 along with the necessary
site clearance in the area of the City of Erfurt and the municipalities of Mönchenholzhausen, Klettbach, Elleben, Elxleben,
Kirchheim, Stadtilm and Ilmtal.
50Hertz is working hard on completing the Southwest
Interconnector. This is of particular importance to transporting green electricity to the consumption centres in the
southwest of Germany and the secure supply of electricity
to Bavaria against the backdrop of the decommissioning of
the Grafenrheinfeld nuclear power station in 2015.
and comprehensive procedure.
After many suggestions from
the general public, citizens’ groups and local
mayors, a solution has been found that satisfies local needs and interests, as well as the
extension of transport capacity necessary from
the viewpoint of society as a whole.«
Dr. Yvonne Saßnick, Head of Authorisations
The long path to switching on the
380-kilovolt Northern Line
In putting the 380-kilovolt Northern Line into operation on
18 December 2012 in the presence of German Chancellor
Dr. Angela Merkel and Mecklenburg-Western Pomerania’s
Prime Minister Erwin Sellering, 50Hertz has made another
contribution to implementation of the energy transition. The
German Chancellor emphasised in her formal address that
commissioning of the Northern Line is a milestone for the
future supply of electricity with more wind power and at
the same time underpins the security of supply throughout
Germany.
December 2005:
2007 to 2009:
Completion of the regional planning
Planning approval procedure in
procedure in Mecklenburg-Western
Mecklenburg-Western Pomerania.
Pomerania and Schleswig-Holstein.
1990:
2006:
Preparations are made for electrical reunification.
Planning the final transmission route for
Grid planners believe that four interconnectors
the electricity link totalling 88 kilometres,
are necessary. One of these runs in the North
65 kilometres of which are new.
from Schwerin to Lübeck.
Shaping the energy transition Annual Report 2012 • 35
Prime Minister of Mecklenburg-Vorpommern Erwin Sellering, German Chancellor Dr. Angela Merkel and Boris Schucht at the
symbolic activation of the Northern Line
»If you are in agreement with renewable energy
sources, then you must also be in agreement
with extending the grid.« German Chancellor Dr. Angela Merkel
Summer 2010:
May 2012:
The line is completed up to the Mecklenburg-
Construction of the section in
Western Pomerania state border. The associated
Schleswig-Holstein begins.
110-kilovolt line is put into operation.
September 2009:
April 2012:
December 2012:
Planning approval granted for the section
Planning approval decision for the
The 380-kilovolt Northern Line is put
in Mecklenburg-Western Pomerania.
section in Mecklenburg-Western
into operation in the presence of
Construction begins.
Pomerania is available.
German Chancellor Dr. Angela Merkel.
Cable artists at work. The crew of a helicopter uses its aircraft to carry a leader cable from transmission tower to transmission tower on the final section of the ‘Wind Busbar’, which is currently
under construction
Shaping the energy transition Annual Report 2012 • 37
Also known as the ‘Wind Busbar’, the Northern Line now
connects the substations at Görries in Schwerin and Krümmel near Hamburg, bridging a distance of 88 kilometres in
all. Commissioning the new line significantly improves security of supply for the greater Hamburg area as compared to
last year, which, after the moratorium on nuclear power, now
reaches its former level. Moreover, the wind-generated electricity in northern Germany can be balanced out more efficiently, allowing better use of German’s existing north-south
transmission routes. To minimise the exploitation of land and
the landscape, certain sections of this extra high voltage
Skill, strength and endurance are needed
during the raising procedure
line include regional supplier WEMAG’s 110-kilovolt line in
accordance with the bundling principle for infrastructure projects. The 380-kilovolt Northern Line is the fourth east-west
connection within Germany since the so-called electrical
reunification of 1995. Construction work in MecklenburgWestern Pomerania started after the official approval procedure was concluded in September 2009 (completion in June
2010). For the Schleswig-Holstein section, line construction
started in May 2012 and was completed in December 2012.
The total investment amounted to some EUR 93 million.
38 • Annual Report 2012 Shaping the energy transition
Catching wind at sea
In the future, electricity from offshore wind turbines will
make an increasingly important contribution to the energy
transition. 50Hertz’s mission is to connect all offshore wind
turbines off the German Baltic Sea coast to its own grid –
bringing electricity offshore onshore and feeding it from the
generating plants to the transmission system.
EnBW Baltic 1, Germany’s first commercial offshore wind
farm in the Baltic Sea, was officially put into operation on
2 May 2011. Following the successful connection, another
offshore wind farm is being developed off the island of Rügen
in the Baltic Sea in the form of the Baltic 2. The Baltic 2 is
expected to produce six times as much electricity as the
Baltic 1. It is anticipated that the output generated by the
80 wind turbines will be 288 megawatts. That represents
1,200 gigawatt hours of electricity each year for approximately 340,000 households and a saving of about 900,000
tonnes of carbon dioxide. As with the Baltic 1, the onshore
connection point for the Baltic 2 is the substation at Bent­
wisch near Rostock. Due to its geographic position and for
reasons of efficiency, the grid connection for the Baltic 2
is being bundled with that of the Baltic 1. Two parallel sub­
marine cables up to the Baltic 1 substation platform and
from there two submarine cables to the Baltic 2 substation
platform are available for connecting the two wind farms in
the future.
Additional offshore projects are currently in planning. Consequently, we have started extensive preparations for the next
grid connections. The German Federal Government adopted
an amendment to the legal framework for the development
of offshore wind energy at the end of 2012. Key elements
Offshore team leader Eric-Denis Dräger
from 50Hertz examines one of the
cutter’s bits
Shaping the energy transition Annual Report 2012 • 39
Preparations for laying the Baltic 2 submarine cable are well under way.
The so-called trencher on board the cable vessel. The descending cutter can be seen in the middle
include an amendment to the grid connection policy towards
long-term extension planning by means of an offshore grid
development plan and the introduction of a liability regime by
which a share of the risks arising from delays or interruptions
of offshore grid connections will be borne by final consumers,
so as to enhance the basic conditions for offshore investors.
»As a multi-international energy supply company
and the world leader in renewable energy sources, Iberdrola sees massive potential for offshore
wind power in the Baltic Sea because reliability
and predictability are important to us. Constructively supporting the offshore extension and providing for the scheduled connection of the wind
farms to the transmission system, 50Hertz is the
right partner for this.« Jürgen Blume, Managing Director at Iberdrola Renovables Deutschland
40 • Annual Report 2012 Shaping the energy transition
Corridors of
ecological value
Encroaching on the particular region is an unavoidable part
of reorganising the grid infrastructure. Optimising transmission routes in consideration of every protected interest and
minimising the impact on humans, flora and fauna – that is
what we strive for in everything we do.
This involves 50Hertz working closely with local environmental and forestry authorities. We avoid densely populated
areas whenever possible and give high priority to protecting
the terrain when planning corridors. Consequently, transmission routes are bundled with existing overhead line routes
where possible. Similarly, we endeavour to bundle transmission routes with other items of infrastructure like railway lines
or motorways during the planning process. To avoid unnecessary impact on the landscape, the routes are planned to
blend as closely as possible with the given terrain.
50Hertz supports a range of measures to facilitate improved
bird protection. Greater insulation clearance on the planned
380-kilovolt overhead lines will preclude instances of birds
being electrocuted. Furthermore, we use bundle conductors, which consist of several conductors. These are more
visible to birds than single conductors. In addition, signs
are placed on ground conductors at ecologically sensitive
positions like water crossings or river valleys. The visibility
of these cables is thus significantly improved. Moreover,
transmission towers provide birds with additional nesting
sites. In the northeast of Germany, ospreys now breed on
transmission towers more frequently than in trees. Falcons
and corvids like to use these transmission towers. 50Hertz
has supported the protection of these birds, which were
threatened with extinction a few decades ago, very actively
for many years. Our activities range from constructing nesting aids to ringing young birds. For example, 50Hertz sponsors some 800 identification rings every year.
We continue to provide compensation areas to make good
for the considerable intrusion on nature and the landscape
caused by the construction of new overhead lines. We
safeguard the high standards of environmental protection by
continuously providing our employees with education and
further training.
The management of overhead line corridors in harmony with
nature is a special challenge when safe operation of the lines
must be ensured at the same time. New approaches for the
management and maintenance of transmission routes are
necessary to meet this requirement.
Supported by the European Community and in cooperation
with other partners, 50Hertz published the comprehensive
‘Ecological Management of Overhead Lines’ study in 2010.
This involved the formulation of an interdisciplinary approach
for an ecological management strategy for high voltage
overhead line corridors, which can be adapted and applied
to the conditions of various European regions. The strategy’s
The pilot corridor at Oberweißbach in
Thuringia after completion of the works
Shaping the energy transition Annual Report 2012 • 41
aim is to minimise intrusions on the landscape. Moreover, it
illustrates various aspects of the prevention and minimisation of intrusion as well as ecological compatibility within the
scope of the development and maintenance of corridors.
This study was conducted due to the planned construction of the Southwest Interconnector between Halle and
Schweinfurt.
In the spring of 2012, 50Hertz directed its focus towards
two pilot sections in Thuringia and together with environmen­tal planners and forestry workers practiced ecological corridor
management in line with the new approach for the first time.
We have also set ourselves the goal of continuously reducing greenhouse gas emissions that arise in the course of
grid operation during maintenance and repair. By constructing modern buildings in the plants, 50Hertz continually
lowers heating and operating costs. Due to a conscious
approach and internal self-monitoring, 50Hertz has complied with the voluntary commitment of German industry
to minimise the emission of sulphur hexafluoride (SF6).
Thomas Dockhorn from 50Hertz and all participants are very satisfied with the result of the
first ecologically maintained corridors:
»Ecological corridor management supports
nature and thanks to improved environmental
compatibility fosters the acceptance of overhead lines. And although real success will only
transpire completely in the coming years in
relation to nature, the two pilots in Thuringia
most definitely represent the starting point.«
Waste is recycled and proper disposal monitored. 50Hertz
also took the precaution of overhauling additional oil collection equipment at transformer stations, put noise abatement
measures into effect and removed residual pollution when
developing new sites in 2012.
Project manager Thomas Dockhorn and landscape planner Rocco Hauschild make their way along the transmission route
42 • Annual Report 2012 Shaping the energy transition
Commitment out
of conviction
As a transmission system operator social responsibility is
our core business. Moreover, we provide additional impetus – for a life worth living today and a secure tomorrow.
50Hertz’s commitment goes beyond the measures required
by law. We focus on activities in our region – for people and
for social cohesion. We support outstanding and distinctive
projects in our control area that promote a diverse cultural
landscape or serve the protection of nature and social concerns. The well-being and the encouragement of children
and adolescents are especially dear to us.
Youth and social matters
As a transmission system operator social responsibility is
our core business. Moreover, we provide additional impetus – for a life worth living today and a secure tomorrow.
50Hertz’s commitment goes beyond the measures required
by law. We focus on activities in our region – for people and
for social cohesion. We support outstanding and distinctive
projects in our control area that promote a diverse cultural
landscape or serve the protection of nature and social concerns. The well-being and the encouragement of children
and adolescents are especially dear to us.
Environment and education
Inspiring young people to discover the natural sciences and
technology is one of our main objectives. As main sponsor of the special ‘Windstärken’ (wind forces) exhibition
at the German Museum of Technology in Berlin, we make
the subject of wind and its energy tangible – especially for
children and adolescents. 50Hertz vigorously drives forward
new solutions in the interest of climate-friendly, secure and
economic energy supply. As a gold partner of Germany’s
‘Clean Tech Media Award 2012’, we have helped to encourage the use of sustainable environmental technologies and
to create a platform for exchanging ideas. CEO of 50Hertz
Boris Schucht sat on the jury panel and made the presentation for the ‘Energy’ category.
Initiated by 50Hertz and implemented in conjunction with
the Independent Institute for Environmental Issues (UfU e. V.),
the interactive exhibition ‘Energie gemeinsam wenden’
(transform energy together) illustrates the energy transition
process to pupils from years 5 and 6. The exhibition spells
out what switching a country’s supply of electricity from fossil to renewable energy sources means in practice. It shows
that this is a process in which many players are involved
and that is associated with changes that affect every one of
us. In the course of the exhibition, pupils symbolically alter
the energy landscape on an ‘energy transition carpet’. The
‘Wendepunkte’ (points of transition) exhibit conveys different
aspects of the energy transition in word and picture and
leads into learning stations. In the eight ‘Es wird gewendet’
(in transition) learning stations, pupils carry out activities,
games and experiments on different topics relating to the
energy transition. The interactive exhibition was commenced
in the State of Mecklenburg-Western Pomerania in the presence of its Prime Minister, Erwin Sellering, and children from
the grammar school Goethe-Gymnasium Schwerin during
the formal commissioning of the 380-kilovolt Northern Line
(‘Wind Busbar’).
Culture
We support outstanding and distinctive projects in our control area that promote a diverse cultural landscape. 50Hertz
participates in the ‘Artist in Residence’ series at the concert
hall Konzerthaus Berlin, which is dedicated to an artist each
season. In the 2012/13 season, 50Hertz is supporting violinist Julia Fischer. In the Federal State of Mecklenburg-Western Pomerania, numerous events take place in the summer months during the Festival of Mecklenburg-Western
Shaping the energy transition Annual Report 2012 • 43
Pomerania. 50Hertz supported the Festival in 2012, too. By
fostering art at its best and nurturing young artists, 50Hertz
helps to enrich cultural life in Mecklenburg-Western Pomerania and increase its attraction as a tourist destination.
Funding activities in the form of focused donations also occupy a permanent place at 50Hertz. For example, 2012 saw
us supporting the ‘Aktion Rückenwirbel e. V. – Gesellschaft
zur Förderung der Rückenprävention’ (campaign for the
prevention of back injury) and in so doing imparting associated daily prevention measures to 1,365 pupils. We also
sponsored the swimming lessons for preschool children of
the Güstrow district association of the German Red Cross,
the ‘Kunterbunt’ day nursery in the district of Preilack, the
junior fire brigades in Anklamer Land and the Bad Sulza Fire
Brigade. In addition, paintings by Berlin artist Houda Tautenhahn have been loaned to 50Hertz and can be viewed in its
headquarters. Connecting lines and energetic colours reflect
the core business of 50Hertz.
Congratulations: Host Jan Hahn (left), award-winner Karl Kolmsee (Smart
Hydro Power) and the presenters Sabine Christiansen, media entrepreneur,
and Boris Schucht from 50Hertz (right)
Students of the Goethe Secondary School show the Prime Minister of Mecklenburg-Vorpommern, Erwin Sellering (left)
and Boris Schucht, Chief Executive Officer (right), the “Participative Exhibition”
44 • Annual Report 2012 Shaping the energy transition
Our employees –
well equipped
More than 750 people at a total of seven sites shape the
course of 50Hertz. As a responsible, open and forward looking company, 50Hertz is developing its transmission system
by means of an extensive investment programme in the
coming decade so as to lay the foundation for the success
of the energy transition. 50Hertz creates optimum working conditions: a motivating work environment that attracts
highly skilled and dedicated people and shows appropriate
development opportunities for.
Our growth trajectory continued in 2012. In the face of the
growing investment portfolio and increased demands on the
company, 50Hertz has recruited more than 70 new employees and significantly expanded staff development – to meet
the challenges associated with the necessary extension of
the electricity grids onshore and offshore.
Given its well-trained and highly specialised employees,
50Hertz actively strives to retain, develop and motivate its
workforce. We enable our employees to continuously develop their skills and knowledge and thus exploit potential
for development to the full. The ‘4×4 Proficiency Model’
developed by 50Hertz defines the key requirements for the
skill sets employees and executives should have and forms
the foundation for focused personnel development. All the
senior executives have already participated in the newly
launched development appraisal meetings and an adapted
performance management system. The performance of all
employees covered by collective wage agreements was also
appraised and they were remunerated accordingly for the
first time.
50Hertz maintains a long-standing and close partnership
with various universities and is strongly committed to fostering young talent. 50Hertz enables university graduates to
start work in all relevant functions of the company at the
different sites with its trainee programme. Candidates work
in different positions over a period of 18 months and are
introduced to related disciplines closely linked with their
specialist field, amongst other things. 50Hertz also offers an
internship of at least three months to students of universities or universities of applied sciences whose grades in
intermediate exams were above average. Aspiring professionals also have the opportunity to write their bachelor’s or
master’s thesis at 50Hertz. Working students can work at
50Hertz during the term and the semester breaks so as to
gain practical experience alongside their studies. 50Hertz
provides law students who have passed their first state
examination with the opportunity to apply their knowledge
of energy law in real-life cases. In 2012, 130 students are
grasping the opportunity to become familiar with day-to-day
business at 50Hertz during their studies.
50Hertz has successfully acquired LTB Leitungsbau GmbH
as a new partner for the dual training of a larger number of
industrial trainees. These trainees will work in 50Hertz installations during their training and two years afterwards as part
of a detailed succession plan. This means that in five to six
years they will be able to replace those employees who then
go into retirement.
Jenny Wegmann completed
her internship at the Central
Regional Centre in 2010. This
was her first encounter with
50Hertz. Two years later, she
was given a permanent position at 50Hertz as a fledgling electrical engi-
Strategic personnel planning, a higher number of trainees
and long-term succession planning enable us to face the
challenges of demographic and social change with optimism.
Moreover, a collective agreement will set standards in terms
of safeguarding and fostering the working capacity of employees up to an advanced age.
Together with Elia, 50Hertz has also set up four new international development programmes, each of which is directed
at core groups of the workforce with strategies tailored to
specific development needs. The first half of 2013 will see
the start of ‘Tesla’ for young professionals and the ‘Faraday’
programme, which is directed at tomorrow’s managers.
In 2012, 13 participants from 50Hertz were nominated for
these programmes in an internal selection process.
neer. Since May 2012, the 30-year-old female
from Berlin has worked in system management
strategies at 50Hertz’s TCC, thus far a maledominated environment. »This job is just right
for me.«
Shaping the energy transition Annual Report 2012 • 45
In accordance with the existing agreement on codetermination, 50Hertz cooperates closely and constructively with
those bodies that deal with matters of codetermination within the company. The Works Council at 50Hertz is responsible for codetermination within the company. Employee
representation is incumbent on the parity-based Supervisory
Board. At inter-establishment level, the interests of workers
are represented by the trade union; for example, within the
framework of collective bargaining. This task is carried out
on behalf of 50Hertz by the German Mining, Chemical and
Energy Industrial Union (IG BCE). In 2012, preparations for
the European Works Council of the Elia Group and the jointly
developed criteria for job evaluation were the main focus of
cooperation.
50Hertz acquired the plot at Heidestrasse 6, 10557 Berlin,
for its new headquarters on 9 July 2012. The building should
be completed at the end of 2015 and reflect the autonomy
and social role of 50Hertz in terms of security of supply and
climate protection while being a workplace for employees
and centre of information for the company vis-à-vis the poli­tical and business communities as well as customers and
suppliers. The building will promote interdepartmental inter­
action and communication, as well as provide modern, ver­satile workplaces for employees. Additional requirements
for the building include energy efficiency and the use of
renewable energy sources. Employees will participate in
the formulation of requirements for the building and working environment via the Works Council, which is involved in
organising the project, as well as a focus group composed
of employees of the company. Professional change management will support the project over the entire period as
well as promote and control the cultural change at 50Hertz,
which is marked by four core values: performance, dependability, trust, commitment.
Photo: IHK Berlin
A trainee from 50Hertz is Berlin’s ‘State Best’!
In mid-November, 50Hertz-trainee Rainer
Kunze was named Berlin’s ‘State Best’ in the
skilled trade category ‘Industrial Clerk’. After
completing his A-levels and alternative civilian service, Rainer Kunze began his vocational
training in September 2009 and finished this
after only two years with an A grade in June
last year. He now works in the Accounting/Tax
department. »I’m exactly where I want to be,«
said the 22-year-old. His next step is to complete evening studies alongside work.
46 • Annual Report 2012 Shaping the energy transition
An expert panel consisting of pro­fessionals as well as representatives of the City of Berlin and 50Hertz will evaluate
the architectural designs within the scope of an architectural
competition. The process will end in early 2013.
Preserving and actively promoting the health of employees
is an integral part of the 50Hertz corporate culture. A key
element of the occupational medicine provided is to assist employees in all aspects of industrial safety, accident
prevention and, in particular, health protection. This includes
advising employees on health issues, for example, during
preventive checkups. Existing policies for security and safety
are continuously improved and adapted in line with new
requirements. Four notifiable occupational accidents,
nine accidents during business travel and 16 commuting accidents occurred during the 2012 fiscal year. None
Doing sports collectively, is part of an established tradition at 50Hertz.
of these accidents resulted in serious injury. The fall arrest
system jointly developed for works on transmission towers
by 50Hertz and external experts was certified in May 2012
and has been used, for example, during works carried out
on the Northern Line and on the Southwest Interconnec­
tor. 50Hertz also carried out an accident prevention day at
all the company’s sites, which was met with an excellent
response. The health fund has enabled various programmes
and schemes, such as massages, yoga classes, Feldenkrais
exercises to en­hance suppleness and the optical health
seminars for employees. The well established ‘Health and
Safety Day’, which focuses on improving health care and
ergonomics, was held again at every site in 2012.
Exercising together has a long tradition at 50Hertz. We
continued this in early September with a broad offering at
Shaping the energy transition Annual Report 2012 • 47
the ‘Sports and Fitness Day’. The same applies to every
discipline: athletic performance, team commitment, reliability
within the team and confidence in one’s own athletic abilities
are encouraged. September also saw the most courageous
and best trained cyclists at 50Hertz overcoming the high
altitude challenges and 2,645-metre Col du Galibier in the
French Alps once again. Elia was one of the main sponsors
of the cycling event this year, too.
Riding a BMX bike demands concentration and coordination, as well as endurance.
02
Report on the fiscal year 2012
of 50Hertz Transmission GmbH
Business and general background conditions
50
Fiscal year
Statement of financial position Income statement
Cash flow statement Statement of changes in fixed assets 64
64
66
67
68
Notes to the financial statements
Company boards Audit opinion
70
84
85
50 • Annual Report 2012 Report 50Hertz Transmission GmbH
Business and general background conditions
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 NV/SA (Elia), Brussels, Belgium, and infra­
structure 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 transmission system operators for
electrical energy operating in Germany responsible for the
extra-high-voltage grid.
From the viewpoint of the transmission system operators,
discussions on energy policy in Germany in 2012 will be
shaped by four main issues:
–
Considerable delays in connecting offshore wind farms
to the grid in the North Sea, resulting in legislation limiting
liability risks for transmission system operators
–
Design of future electricity grid infrastructure resulting in
the first grid development plan (“Netzentwicklungsplan”:
NEP 2012) for the whole of Germany
–
Discussions on the rising costs of the new energy concept
in Germany and the foreseeable adjustments that will have
to be made to the EEG (“Erneuerbare-Energien-Gesetz”:
German Renewable Energies Act) as a result
–
Measures to improve supply reliability, especially during
the winter
Economic and political
environment
Despite the uncertainties both within and outside of Europe,
general economic development in Germany was fairly
resilient in the first three quarters of 2012, reporting slight
growth for the year as a whole. However, economic output
started to decline in the last quarter of the year. Domestic
demand for capital goods and external economic forces,
i.e., the main economic growth drivers in Germany, became
progressively weaker over the last few months of the year.
In light of the persistent difficulties in the euro zone, a slowdown in the economy cannot be ruled out for 2013, even
if preliminary indications at the end of 2012/beginning of
2013 suggest a slight improvement.
According to estimates published by Arbeitsgemeinschaft
Energiebilanzen e. V. (working group on energy balances)
on 14 December 2012, electricity consumption in Germany
reached 594 terawatt-hours (TWh) in 2012, down around
1 % on the prior-year level. The performance of the economy
as a whole as well as electricity consumption did not have a
significant impact on the business performance of 50Hertz.
With regard to the grid business, there were several political
uncertainties that developed in 2012 – primarily those in
connection with the discussion surrounding the situation of
offshore connections in the North Sea and the introduction
of offshore liability regulations. Following the announcement
of an amendment to the law at the end of the year, the fede­
ral government intends to accelerate the development of
offshore wind energy as of the coming year.
Overview of 50Hertz
As transmission system operator, 50Hertz operates the
transmission grid which, at voltage levels of 150 kilovolts
(kV), 220 kV and 380 kV (three-phase alternating current)
as well as 400 kV (direct current) and a network grid length
of around 10,000 km, spans the federal states of Berlin,
Brandenburg, Hamburg, Mecklenburg-Western Pomerania,
Saxony, Saxony-Anhalt and Thuringia, and runs through
parts of the states of Schleswig-Holstein and Lower Saxony.
50Hertz’s customers and partners are distribution grid
opera­tors based in the control area whose plants are directly
connected to the transmission grid, operators of power
plants 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 and KWKG (“Kraft-Wärme-Kopplungsgesetz”: German Combined Heat and Power Act).
As transmission system operator responsible for the control
area, 50Hertz is responsible for ensuring that the transmission grid remains secure, affordable, user-friendly, effi­cient
and environmentally friendly within the full scope of operation, maintenance and need-based expansion as well as
for maintaining the balance of generation and consumption
within the control area’s whole electricity generation system.
Report 50Hertz Transmission GmbH Annual Report 2012 • 51
In accordance with the provisions under European and
national law, the Company ensures free and nondiscriminatory access to its transmission grid.
In the course of its business activities, 50Hertz focuses on
creating value for its customers, partners and the general
public as well as developing a sustainable and environmentally conscious business in a European single electricity market. The vision of the Elia Group and 50Hertz is as follows:
“We lead the way in the energy revolution by developing the
diversified, sustainable and reliable power systems, spanning land and sea, with new possibilities”.
Certification as an ownership
unbundled transmission system
operator
On 9 November 2012, 50Hertz received certification as an
ownership unbundled transmission system operator. This
certification in the form of the strictest unbundling option
confirms that 50Hertz complies with unbundling requirements and is the only German transmission system operator
to do so to date. The certification also confirms that 50Hertz
has the financial, material, human and technical resources
to perform its tasks as a transmission system operator. The
BNetzA (“Bundesnetzagentur”: Federal Network Agency)
issued the certification on two conditions: Firstly, 50Hertz
must allow grid connection petitioners immediate connection to its grid upon application regardless of ownership,
also by means of 110 kV busbars. Secondly, 50Hertz Trans­
mission was required to put together its supervisory board in
compliance with unbundling requirements, a task it completed in December 2012.
Regulatory framework for the
energy industry
European law
On a European level, several legal measures came into force
in 2012 or are still at the implementation stage, which are
intended to aid the creation of a uniform single market by
increasing market transparency and further expanding the
infrastructure.
The European Regulation on Wholesale Energy Market
Integrity and Transparency (REMIT) already came into force
in December 2011. The regulation was transposed into
national law by adopting a law on the market transparency
agency. The idea of establishing the market transparency
agency is to create a monitoring center which meets the
obligations contained in this regulations and is integrated
as a national market monitoring authority in the European
oversight regime. Regardless of the above, the transmission
system operators have had to comply with the particular
requirements under the REMIT since December 2011, in
particular the transparency and publication duties as well
as the duties relating to insider information. This applies in
particular with regard to business divisions or organizational
business units that have access to the market or are recipients of such insider information.
National law
In 2012, national law continued to be shaped by the
implementation of the new energy concept in Germany
commenced in 2011. Several pieces of legislation served to
further expand renewable energies, continue development
of the regulatory framework as well as to transpose European legislation into national law.
In this regard, amendments to the third Energy Industry
Act are of particular importance. In addition to amendments
to the regulations governing accounting unbund­ling, 50Hertz
is primarily affected by the plans to implement fundamental
changes regarding the connection of offshore wind farms
to the grid. This concerns new regulations governing the
offshore grid plan of the Federal Maritime and Hydrographic
Agency (“Bundesamt für See­schifffahrt und Hydrografie”),
the introduction of a new offshore grid development plan for
transmission grid operations, comprehensive regulations governing liability for pecuniary damage in the event of malfunctions, delayed commissioning and operating maintenance
work, the introduction of an equalization of burdens for compensation payments between transmission system operators,
the regulatory recognition of compensation payments, further
access rights to power plant operators and the expansion of
the scope of the German act to accelerate grid expansion
for transmission grids to include offshore connection lines.
The liability amount the transmission system operator
must bear in the event of delays or interruptions to the grid
connection is limited to between 5 % and 20 % relative to
the financial damage incurred by the wind farm operator.
However, in the event of gross negligence, this can reach
a maximum amount of EUR 110 m per case and calendar
year. In the event of gross negligence – this also applies for
agents engaged by the transmission system operator – the
transmission system operator is presumed to be at fault
(reversal of the burden of proof). In the event of simple neg­
ligence, the maximum liability amount the transmission system operator must bear is limited to EUR 17.5 m, depending
on the case at hand.
52 • Annual Report 2012 Report 50Hertz Transmission GmbH
The federal government has granted additional rights to
transmission system operators in the form of Sec. 13 EnWG
(“Energiewirtschaftsgesetz”: German Energy Industry Act),
stipulating that power plant operators must inform the
transmission system operators about any planned de­
commissioning in future. Should the power station due for
decommissioning be one that is of systemic relevance, the
transmission system operators can refuse the decommissioning proposed by the power plant operator. Accordingly,
all four transmission system operators must prepare a list
of power plants they declare to be of systemic relevance for
the first time in March 2013. The amendment therefore also
means legislators must give priority to electricity supplies
over gas supplies, i.e., should it become apparent that there
will be supply bottlenecks at a gas power plant, the gas
long-distance network operators must inform the transmission system operator responsible for the control area and
comply with the latter’s decision. An additional element is
an authorization to issue decrees serving the expansion
of a strategic grid reserve by means of new constructions.
In order to promote offshore wind power, an amendment to
the SeeAnlV (“Seeanlagenverordnung”: German Maritime
Structure Ordinance) was adopted at the beginning of the
year, coming into force as of 30 January 2012. The amendments are designed to accelerate approval proceedings for
offshore wind farms.
With regard to regulatory legislation, important amendments
to the ARegV (“Anreizregulierungsverordnung”: Incentive Re­-gulation Ordinance) came into force as of 22 March 2012.
The amendment to the ARegV eliminated the time delay of
two years it took for revenue from investments to take effect (t
minus 2), with an adjustment to the revenue cap for investment
measures already having been made in the year it was commissioned on the basis of budgeted costs. This had a positive
effect on 50Hertz Transmission’s net income for the year 2012.
The legal framework for renewable energies was devel­oped
further in 2012 by means of several legislative amendments.
With retroactive effect as of 1 April 2012, the amendment
pertaining to photovoltaics in the EEG was announced in the
Federal Legal Gazette on 23 August 2012. The primary aim
of this amendment is to increase restrictions on the promotion of electricity generated by means of photovoltaics and
to constantly make adjustments as necessary. Remuneration and degression rates were also redesigned. Furthermore, the market premium model introduced as of
1 January 2012 was modified. The market premium is to
encourage plant operators to become active market players.
Rather than receiving fixed feed-in compensation, they are
to feed in electricity as and when it is needed and to assume
economic responsibility for forecast variances, thereby allowing them to command higher prices on the market.
To avoid any threats to the system stemming from an uncontrolled shutdown of EEG plants in the event that a critical
frequency is exceeded (“50.2 Hertz problem”), the federal
government adopted the system stability ordinance effective
as of 26 July 2012. The ordinance stipulates that electricity
distribution grid operators upgrade the inverters installed
in photovoltaic systems, with the costs being borne by the
grid operators. Half of these costs may be allocated through
network user charges, the other half through the EEG cost
allocation.
Grid development plan 2012
In 2012, 50Hertz and the three other transmission system
operators prepared the first national grid development plan
2012 based on input parameters for 2022 (looking towards
2032) fixed by the Federal Network Agency after a broadbased consultation process. This package of measures was
submitted for approval as a coherent concept for ensuring
stable electricity supply in 2022 (looking towards 2032),
again following a broad-based consultation process. On this
basis, the Federal Network Agency confirmed the grid development plan 2012 on 26 November 2012. In a first step,
the confirmation comprises the priority measures already
deemed necessary by the Federal Network Authority in light
of the changing conditions in the energy industry. This phase
involved the Federal Network Agency going beyond the
planning approach taken by the transmission system operators and introducing more far-reaching criteria to assess the
necessity and robustness of the measures. The aim of this
procedure is to create a time-based prioritization approach
and to grant the necessary flexibility in expanding the grid in
light of a changing energy policy and energy industry environment. Of the 74 measures submitted by the transmission
system operators across Germany, 12 relate to 50Hertz’s
control area. Nationwide, 51 measures – of which 10 relating
to 50Hertz’s control area – were classed as top priority and
approved by the Federal Network Agency. The grid development plan will be updated annually, allowing the planning to
be continually developed.
The confirmed grid development plan 2012 was then used
by the German Federal Ministry of Economics and Technology to draft the German Federal Requirements Plan Act,
which the federal cabinet enacted on 19 December 2012.
The parliamentary legislative procedure is yet to be concluded. The German Federal Requirements Plan Act is binding
in setting Germany’s need to expand the extra-high-voltage
grid for the next ten years.
Report 50Hertz Transmission GmbH Annual Report 2012 • 53
Grid usage and grid connection
Regulatory issues
50Hertz is currently processing eight 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 of the scope of
application of the KraftNAV). The projects are spread across
nine locations and together have a gross nominal capacity
of around 6,900 megawatts (MW), of which 50Hertz has
granted grid connection permits for approximately 5,000 MW.
The revenue caps for 2012 were set as of 1 January 2012
in accordance with the provisions of the ARegV. An increase
of around 15 % was recorded on the prior year. The revenue
caps for 2013 are in turn around 26 % higher compared to
2012 and form the basis of the price list valid since
1 January 2013. The increase in the revenue caps for 2013
is primarily due to the basic amount doubling for redispatch
measures in accordance with the corridor model in comparison to the prior year and also to subsequent amounts
charged from prior years. Approvals of onshore and offshore
investments also contributed to this increase.
Over the course of 2012, the power plant unit Boxberg R
began continuous operation (with an output of approximately 670 MW). Furthermore, the grid connection application
was withdrawn for the gas and steam turbine power plant at
Wustermark with an output of approximately 1,250 MW. As
a result, the gross nominal capacity of conventional power
plants and storage facilities for a network connection applied
for at 50Hertz fell by around 1,900 MW to 6,900 MW in 2012.
With regard to the grid connection applications that fall
under the EEG, 50Hertz has received 21 applications for
offshore wind farms in the Baltic Sea of up to 6,100 MW
when completed (including competing applications). In
2012, four new applications were made with an output of
approx. 1,800 MW. There are six applications for onshore
wind farms of up to 1,300 MW, bringing the output for
applications to connect to 50Hertz’s grid to approximately
7,400 MW for offshore- and onshore wind farms. On top of
this there are two applications for solar farms with an output
of around 200 MW.
As of 15 October 2012, the preliminary network user char­
ges were determined and published on the basis of the
revenue caps for 2013. The prices are valid as of 1 January
2013 and apply equally in terms of treatment and amount
for all grid users. For customers connected to 50Hertz’s
grid, the statutory allocations based on the EEG, KWKG,
Sec. 19 (2) StromNEV (“Stromnetzentgeltverordnung”:
Ordinance on Electricity Network User Charges) (allocation
for individual network user charges and exemptions from
network user charges) and as of 2013 on Sec. 17f (5) EnWG
(offshore liability cost allocation) were also included and
calculated.
By 31 December 2012, of the 80 active applications filed
since 2008 for the approval of investment measures,
50Hertz had received a total of 61 approvals. Based on the
total application volume of EUR 6.4b, an investment volume
of EUR 3.3b had been approved by the Federal Network
Authority by the aforementioned date.
In February 2012, 50Hertz signed an agreement with the
Federal Network Agency settling litigation in connection with
the approval of investment measures. This settlement
accommodates 50Hertz’s interests in key areas. This re­­lates
to the elimination of the reduction of investment measures
by an amount to avoid double recognition. This is to be
replaced by the introduction of a lump-sum replacement
portion for investments, calculating imputed trade tax and
recognizing borrowing costs.
The costs for investment measures can now be refinanced
through network user charges by introducing a planning
cost approach (t minus 0) in place of the previous t minus 2
time delay in the ARegV without any time delay.
As a member of the ENTSO-E (European Network of Transmission System Operators for Electricity), 50Hertz is actively
involved in determining the network codes in accordance
with EU law, which will then be directly incorporated in
applicable law in the member states after completion of
European legislative procedure.
Grid provision and expansion
The provision and maintenance of 50Hertz’s 65 substations and switching systems with its 151 transformers in
operation, amounting to a total capacity of 43,150 MVA,
comprises inspection, servicing and maintenance. While
servicing and maintenance is largely performed by external
54 • Annual Report 2012 Report 50Hertz Transmission GmbH
personnel, inspection and monitoring of the quality and
safety of the services performed is secured at all times by
its own qualified staff. Furthermore, the ability to respond to
an event effectively is ensured by means of a contingency
system implemented in collaboration with other grid operators and users.
Transformer capacity reserves are being increasingly deter­mined by the feed-in volume from the distribution grid level
into the transmission grid, which is attributable to the growth
in renewable energies.
The focus in fiscal year 2012 was again on carrying out
construction activities and planned measures for strengthening and expanding the grid. The planning approval decision on the 380 kV overhead line from Schwerin (Görries)
to Hamburg (Krümmel) was made for Schleswig-Holstein
in the second quarter of 2012; construction work on this
section of the line was commenced immediately in order to
be able to activate it before the winter period 2012/2013
began. The connection and thus the direct connection of
the Hamburg network territory to the 50Hertz grid was commissioned on 18 December 2012. For the European priority
project relating to the southwest interconnection line from
Halle (Saxony-Anhalt) to Schweinfurt (Bavaria), the planning approval decision for the second section was issued
in the first quarter of 2012, which directly led to construction work on that section of the line beginning. Actions filed
at the Federal Administrative Court in Leipzig against the
planning approval decision resulted in the construction being interrupted. Following rejection of the urgent appeal to
halt construction, work was immediately resumed. A final
court decision on and confirmation of the planning approval
decision is expected in 2013. For the western section of the
Nordring Berlin, the public works planning procedure was
commenced in November 2012. With regard to the Remp­
tendorf-Redwitz line, work involving refitting with high-tem­
perature conductors was completed as of 4 December
2012 following several weeks of continuous test operations
and the line was reactivated. This measure saw 50Hertz
make use of high-temperature conductors on a heavy-duty
interconnector, with the transmission capacity initially being
increased by up to 300 MW.
The first grid connection for the new power plant Boxberg
(unit R) was made in February 2012 and the voltage setpoint
for the first unit of the new power plant in Moorburg in
November 2012. Work on connecting the Werder/Kessin
onshore wind farm to the 380 kV grid was begun in June
2012. At the Wolmirstedt and Vierraden substations, a
new 380/220 kV transformer and an additional 220/110 kV
transformer were installed and commissioned.
Environmental protection is an extremely important factor in the use of technical plants. For this reason, such
work included regularly controlling and modernizing the
environmental equipment in the substations, implementing
noise protection measures and performing decontamination as part of new construction measures. The high level of
environmental protection is ensured by the constant training
of its employees. By way of compensation for the invasion
of nature and landscape as a result of constructing the new
overhead lines, compensatory and replacement measures
are performed to the extent demanded by authorities.
System management
As of 31 December 2012, 50Hertz’s control area contained
onshore wind turbines with a total installed output of approximately 12,370 MW. This corresponds to 40.2 % of
Germany’s installed capacity and an increase of some 7 %
in comparison to the end of 2011. The installed output of
offshore wind farms continues to stand at around 50 MW.
The photovoltaic output installed within 50Hertz’s control
area increased by approximately 104 % in comparison to the
end of 2011 and now stands at around 7,220 MW.
The maximum simultaneous feed-in from wind turbines
of 10,208 MW in 50Hertz’s control area in 2012 was
achieved on 5 October 2012. The maximum amount fed
into 50Hertz’s transmission grid – registered on 6 November
2012 – came to 14,979 MW (instantaneous oneminute
value).
To avoid the failure-related overloading of grid elements
within 50Hertz’s transmission grid, it was necessary at
the beginning of 2012 to take measures on 262 days in
accordance with Sec. 13 EnWG (thereof on 77 days with
a reduction in output generated by renewable energies).
This resulted in a redispatch amount of 2.824 TWh and a
reduced EEG energy offering of 120 gigawatt-hours (GWh).
Since the decision was taken by the federal government
in March 2011 to suspend the extension of some nuclear
power plants’ working lives, the situation in 50Hertz’s control
area continued to be marked by increased load flows from
north to south and east to west in 2012.
Following evaluation of the winter 2011/2012, 50Hertz
together with the other German transmission system operators prepared for the winter 2012/2013 by carrying out an
extensive investigation into the effects of the decision taken
by the federal government to suspend the extension of
Report 50Hertz Transmission GmbH Annual Report 2012 • 55
some nuclear power plants’ working lives. It was determined
that
–
The provision of reserve power plants of EUR 2,500 MW
is essential to ensure the effectiveness of redispatch
measures in southern Germany
–
A year-on-year increase of up to 4 GW of wind energy
fed in is expected as a result of the continued increase
in wind turbine construction
–
The northern line between the Görries and Krümmel
substations is having a positive effect on voltage control
in the Greater Hamburg region
The system security of the German transmission grids in
the previous winter 2012/2013 was ensured at all times.
Energy management
Balancing group management
50Hertz settles the control area and therefore all balancing groups on a monthly basis, including its own balancing
groups. As of the end of 2012, this involved 1,290 balancing groups for 474 of the traders, electricity sellers and grid
operators operating in the control area. Balancing group
settlement is constantly becoming more complex as a re­sult
of new legal developments and the resulting need to adjust
the settlement regulations.
EEG/KWKG settlement
In the fiscal year 2012, the supply of EEG electricity within
the control area increased by 22 % in comparison to the
prior year. This is primarily attributable to the renewed
increase in the electricity fed in from photovoltaic systems
by some 80 % in comparison to 2011. 2012 saw a steady
increase in the use of direct selling (in particular in accordance with the market premium model). Overall, just under
50 % of EEG electricity output in the control area was still
sold by the transmission system operators. As of year-end,
almost 80 % of onshore wind turbines and 100 % of offshore
wind turbines were directly sold using the market premium
model, also causing electricity volumes exchanged between
the transmission system operators in the horizontal equalization of burdens to fall considerably.
Over the course of 2012, it was found that the EEG cost allocation for 2012 had not been set high enough. Across the
whole of Germany, a deficit of around EUR 3b was recorded
in October and November; for 50Hertz, the maximum deficit
came to some EUR 566 m in November. This difference
was primarily due to the significant fall in prices on the
spot market compared to the future prices required by law
to be included in the calculation of the cost allocation for
2012. The low price level on the spot market continued to
be reflected in the future prices for 2012. Furthermore, the
addition of photovoltaic systems far exceeded the expected
values that had been calculated. The unexpectedly heavy
use of the market premium model also led to high additional
costs. Due in part to the catch-up effects for 2012, the EEG
cost allocation has increased considerably to EUR 5.28 ct/
kWh for 2013 which was published punctually by the
transmission system operators. Overall, the cost allocation
method has a tendency to increase the EEG cost allocation
further when electricity market prices are down as a result of
catch-up effects.
After the volume of subsidies bottomed out as a result of
existing subsidies pursuant to the KWKG either expiring or
declining in 2011, the regulations of the amended KWKG took
effect as of 2012, with the forecast for the nationwide subsidy
volume in 2012 up on the 2011 volume by some 34 %.
International Grid Control Cooperation
The International Grid Control Cooperation (IGCC) was en­
larged considerably in 2012. In February, the Netherlands
joined the IGCC, followed by Switzerland in March, the
Czech Republic in June and Belgium in October. This will
avoid any imbalances in supply and demand in these control
areas if there are sufficient transmission grid capacities available, thereby allowing 50Hertz and the other participating
transmission system operators to make a significant contribution towards the integration of balancing energy markets in
Europe and ultimately lowering balancing costs.
Energy to cover grid losses
During 2011, 50Hertz established the organizational and
technical prerequisites needed to use the forward market
of European Energy Exchange AG for the procurement of
“long-term components” in order to cover grid losses. Since
November 2011, 50 % of the energy volumes to be procured
each month have been procured on the forward market.
This made it possible to better meet the reference price set
by the Federal Network Agency. Due to the positive experiences gathered, long-term components have been procured
exclusively via the forward market since July 2012.
Cooperation with TenneT TSO
The cooperation with TenneT TSO GmbH (TenneT TSO)
was intensified further in 2012. Since January 2012, as part
of 50Hertz’s services for TenneT TSO, ¼ h intraday trading
on the European Power Energy Exchange spot market has
been used to sell the expected feed-in volume of renew
56 • Annual Report 2012 Report 50Hertz Transmission GmbH
able energies that meets needs as closely as possible. As
over 80 % of the energy from photovoltaic systems continues to be fed into the market by the transmission system
operators and these systems exhibit a high power gradient,
this makes a significant contribution towards maintaining
system security and reducing the needs for balancing ener­
gy when the hour changes. This also made it possible to
balance the energy difference via the electricity exchange in
the event of redispatch measures by TenneT failing to do so.
Unplanned load flows
In response to the growing debate in Europe, in particular with transmission system operators in Poland and the
Czech Republic, on the increasing volume of unplanned
load flows across transnational borders and their influence
on ensuring secure system management, 50Hertz commenced negotiations with PSE Operator S.A. (PSE Opera­tor) and CEPS, a.s. in summer 2012. Together with PSE Operator, in a first step a contractual agreement was reached
on the implementation of a “virtual phase shifter”,
a response mechanism into how power plants are run to be
applied under defined conditions and coordinated across
borders, for a pilot phase in 2013. In a second step, it was
agreed to jointly set up real phase shifters at the two border
switching stations. Similar offers were also submitted for
the Czech Republic. However, an agreement could not be
reached in 2012. In any case, a permanent solution to the
problem of unplanned load flows also requires the network
to be expanded further between generation regions and
consumption centers.
Regional initiatives
50Hertz is involved in the development of electricity markets
in various European regions. In northwestern Europe, progress was made in 2012 with preparations for the introduction of load flow-based market coupling procedures
especially for awarding bottlenecks capacities a day ahead.
In central Europe, by contrast, hardly any progress was
made. A positive development is only expected here if
progress is made in solving unplanned load flows.
Employees
The number of workers employed at 50Hertz Transmission
increased from 664 to 720 as of 31 December 2012, a rise
of more than 8 % compared to 31 December 2011. This
increase is due to a rise in the volume of tasks as a result
of 50Hertz’s positioning as a fully ownership unbundled
transmission system operator. The increase in these tasks
is primarily attributable to the expansion of the grid and the
integration of renewable energies. The number of trainees
stayed constant at 20 as of year-end 2012.
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.
The existing safety guidelines are constantly being improved
and adjusted to meet new requirements. In fiscal year 2012,
there were 4 reportable work-related accidents, 9 accidents
while travelling on business and 16 commuting accidents.
None of these accidents resulted in serious injury.
IT security
Towards the end of November 2012, 50Hertz was the target
of an international DDoS (distributed denial of service) attack, which was fully warded off on 25 November after five
days. This attack blocked 50Hertz’s websites and internet
portals by overloading the IT data transmission capacities,
rendering websites, external IT services and external communication temporarily unavailable. At no point were any
system management related IT systems jeopardized. Before
this incident, 50Hertz was already working on establishing
a comprehensive IT structure that could also combat cyber
attacks, and was able to improve the structure as a result of
this attack.
Research and development
In addition to expanding the grid, 50Hertz is examining and
testing technologies and methods to optimize and expand
the capacities of existing lines and transmission system. In
this regard, two line sections on the Remptendorf-Redwitz
line were equipped with innovative hightemperature conductors, for which around EUR 7 m was invested in 2012. In
addition to this, around EUR 2 m was spent on research and
development projects.
Report 50Hertz Transmission GmbH Annual Report 2012 • 57
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 2012
in EUR m
1 Jan to 31 Dec 2011
in EUR m
Change
in EUR m
7,457.2
6,199.3
1,257.9
253.1
45.6
207.5
7,710.3
6,244.9
1,465.4
894.8
749.2
145.6
58.7
39.6
19.1
Expenses for the grid business
-537.2
-537.9
0.7
Other expenses
-186.1
-180.9
-5.2
1.3
-13.3
14.6
231.5
56.7
174,8
Income statement
Cost-matching revenue
Other cost-matching income
Non-profit issues
Revenue from the grid business
Other income
Financial result
Result from operating activities
50Hertz Transmission’s absolute income and expenses were
largely characterized by the non-profit settlement of the EEG
and KWKG. The transmission system operators sell the EEG
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 control area to cover the difference from the
costs for the reimbursement of electricity generated from
renewable sources as well as the revenue from selling the
electricity generated from renewable sources. The settlement of the EEG and the KWKG generated revenue of EUR
6,343.8 m (prior year: EUR 4,415.7 m).
Under revenue and cost of materials, the settlement
volume of services rendered to third parties amounts to
EUR 1,113.4 m in each case (prior year: EUR 1,783.6 m).
Under other income, the settlement of the KWKG generated
revenue of EUR 76.2 m (prior year: EUR 45.6 m). In fiscal
year 2012, a new allocation mechanism for grid customers
in accordance with Sec. 19 (2) StromNEV was created as a
result of changes in legislation; pursuant to this, any reductions in charges granted are subject to a nationwide allocation mechanism and also represent a non-profit transaction
for the transmission system operator. In fiscal year 2012,
this generated income for the first time of EUR 176.9 m.
The income generated from the KWKG as well as from
the settlement of Sec. 19 (2) StromNEV is matched by
expenses of the same amount.
The business volume from the settlement of non-profit
issues increased in the fiscal year to EUR 7,710.3 m (prior
year: EUR 6,244.9 m).
Revenue from the grid business primarily related to
increased network user charges (EUR 713.7 m; prior year:
EUR 656.7 m), balancing group management (EUR 79.8 m;
prior year: EUR 28.7 m) as well as system services (EUR
50.3 m; prior year: EUR 70.6 m). There was also a positive
impact in fiscal year 2012 from the effects on income
of various catch-up effects of EUR 44.6 m (prior year:
EUR –12.8 m), which was recognized under revenue from
the grid business.
58 • Annual Report 2012 Report 50Hertz Transmission GmbH
Other expenses include personnel expenses (EUR 62.8 m;
prior year: EUR 57.8 m); the increase on 2011 is due to a
collectively bargained wage and salary adjustment from
2012 and also reflects the constant growth in the number of
employees as a result of the ever-increasing scope of tasks.
Amortization, depreciation and write-downs amounted to
EUR 65.1 m (prior year: EUR 57.9 m). The year-on-year
increase in amortization, depreciation and write-downs is
primarily attributable to the rise in property, plant and equipment stemming from comprehensive investments. Necessary depreciation to the fair value was also recognized in the
amount of EUR 5.4 m.
Other operating expenses amount to EUR 311.3 m (prior
year: EUR 110.8 m), mainly comprising expenses in accordance with Sec. 19 (2) StromNEV of EUR 176.9 m (prior year:
EUR 0.0 m) and the costs for the equalization of burdens
pursuant to the KWKG of EUR 76.2 m (prior year: EUR
45.6 m).
The negative interest result as a portion of the financial result
amounts to EUR 15.3m (prior year: EUR 21.6m). Under
investment result, 50Hertz Transmission generated income
from the profit transfer performed by 50Hertz Offshore of
EUR 16.9m (prior year: EUR 8.3m); this was countered by
write-downs of financial assets of EUR 0.3m. In fiscal year
2012, the internal financing and refinancing measures performed by the Company as well as the somewhat lower
interest rate had a positive effect on the interest result.
The result from ordinary activities amounts to EUR 231.5 m
(prior year: EUR 56.7 m). This positive result is mainly due to
non-recurring effects relating to decisions made for the regulatory framework, which primarily involve catch-up effects
for fiscal year 2010. These effects were included in current
income. Furthermore, a further improvement in the business
operations led to a sustainable improvement in the result,
with the “Mehrtz” efficiency program contributing EUR 4.3 m
in fiscal year 2012. However, overall the volume of operative
improvements cannot be compared with the non-recurring
effects from 2012. The weather in 2012 did not affect the
Company’s cost and income situation to the same degree
as in the prior year.
For income tax risks arising from assessment periods before
the consolidated tax group was formed with Eurogrid, income
taxes amounted to EUR 4.6 m (prior year: EUR 4.6 m). Other
taxes amounted to EUR 0.5 m (prior year: EUR 0.5 m).
The Company closed fiscal year 2012 with a profit for the
period (before profit transfer) of EUR 226.4 m (prior year:
EUR 51.6 m).
The other revenue reserves of EUR 1.4 m recognized in past
years for the purpose of a distribution lock in accordance
with Sec. 268 (8) HGB were released to income in the fiscal
year. Taking into account this release from the reserves, a
net profit for the period of EUR 227.8 m (prior year: EUR
50.3 m taking into account the amount posted to the reserves) was transferred to Eurogrid.
Report 50Hertz Transmission GmbH Annual Report 2012 • 59
Net assets and financial position
31 Dec 2012
in EUR m
31 Dec 2011
in EUR m
Change
in EUR m
Fixed assets
1,691.2
1,533.2
158.0
Current assets (including prepaid expenses)
1,056.0
1,141.4
– 85.4
2,747.2
2,674.6
72.6
Equity
855.8
857.2
– 1.4
Non-current liabilities*)
554.9
555.9
– 1.0
1,336.5
1,261.5
75.0
2,747.2
2,674.6
72.6
Statement of financial position
Assets
Equity and liabilities
Medium and current liabilities*)
*) The allocation of the prior year was adjusted by EUR 17.7 m.
In addition to intangible assets of EUR 38.0 m (prior year:
EUR 35.7 m), fixed assets primarily comprise 50Hertz
Transmission’s technical grid systems of EUR 1,084.2 m
(prior year: EUR 1,013.5 m), prepayments and assets under
construction of EUR 149.4 m (prior year: EUR 145.3 m) as
well as financial assets of EUR 322.9 m (prior year: EUR
243.2 m). The latter primarily relates to the investment in
(EUR 146.0 m) as well as a loan (EUR 176.3 m) issued to
50Hertz Offshore. For fiscal year 2012, additions to investments in property, plant and equipment amount to EUR
139.1 m (prior year: EUR 112.5 m) and chiefly comprise the
northern line completed at the end of 2012.
Under current assets, EUR 446.0 m (prior year: EUR
620.3 m) relates to trade receivables. When considering the
results of operations, this highlights the high billing volumes
attributable to the largely non-profit business despite the decrease in comparison to the prior year. Other assets of EUR
595.4 m (prior year: EUR 273.1 m) largely comprise compensation claims stemming from the EEG settlement process as
well as 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 liability to affiliates of EUR 258.0 m
(prior year: receivable of EUR 230.6 m).
The year-on-year decrease in equity is attributable to the use
of other revenue reserves of EUR 1.4 m.
Non-current liabilities include the shareholder loan granted
by Eurogrid of EUR 300.0 m (prior year: EUR 300.0 m). This
item also mainly contains various provisions of EUR 85.6 m
(prior year: EUR 80.0 m) and deferred income of EUR 122.3 m
(prior year: EUR 128.0 m) which both have a long term.
Medium and current liabilities mainly contain the remaining
provisions of EUR 556.8 m (prior year: EUR 925.1 m), which
in turn mainly result from the EEG and KWKG. As a result of
its ongoing liquidity needs stemming from the prefinancing
of the EEG business, the Company utilized additional funds
of EUR 200.0 m from Eurogrid in the fiscal year. Trade payables amounted to EUR 173.3 m (prior year: EUR 184.0 m).
60 • Annual Report 2012 Report 50Hertz Transmission GmbH
Statement of cash flows
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
Change
In EUR m
Cash flow from operating activities
– 241.5
458.7
– 700.2
Cash flow from investing activities
– 217.7
– 229.6
11.9
Cash flow from financing activities
–27.8
– 112.2
84.4
Change in cash and cash equivalents
– 487.0
116.9
– 603.9
Cash and cash equivalents at the end of the period
– 256.4
230.6
– 487.0
Consolidated statement of cash flows (condensed)
The development in the cash flow from operating activities
reflects the high impact from the settlement of the non-profit
business in particular on the Company. This primarily relates
to the necessary prefinancing of the EEG business and
the compensation applied later via the EEG cost allo­cation
charged. As a result of the market price level on the electricity exchange remaining low, this inevitably gives rise to a significant shortfall between the income from EEG-re­lated sales
and the income generated from the EEG cost allocation.
As well as additions to property, plant and equipment, the
cash flow from investing activities also include the issue of
a loan of EUR 43.0 m as well as an allocation to the capital
reserves of EUR 37.0 m at 50Hertz Offshore. In addition to
the net cash flow from the profit transfer for fiscal year 2012
(EUR 227.8 m), the cash flow from financing activities also
contains the utilization of current liabilities (EUR 200.0 m) at
Eurogrid.
The financing of 50Hertz was secured throughout the entire
fiscal year 2012. The cash pool with Eurogrid continued
throughout the entire fiscal year.
In fiscal year 2012, 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.
Overall picture of the economic situation
The year-on-year change in the result from operating activities in 2012 reflects significant non-recurring 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) allocable to prior years. Non-recurring effects accounted for more than 38 % of the net profit
for the year. 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 2012.
The financial obligations due in fiscal year 2012 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 Offshore received the task of constructing
and operating the grid connections of offshore wind farms in
the Baltic Sea from 50Hertz Transmission.
50Hertz Transmission has a 12.5 % shareholding in Central
Allocation Office GmbH (CAO) based in Freising. 50Hertz
Transmission holds 20 % of the shares in European Market
Coupling Company GmbH (EMCC) based in Hamburg. The
two companies were founded in 2008 for the purpose of
providing bottleneck management services for transmission
grids. CAO’s tasks and shareholder structure are expected
to see some changes in connection with the development
of European electricity market. 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. As of 31 December 2012, the carrying amount of
EMCC was written down to a notional value of EUR 1.00.
50Hertz Transmission has a 10.1 % shareholding in CORESO SA (CORESO) based in Brussels, Belgium. CORESO is
the coordination and service center for load forecasts and
load flows in the CWE region.
Report 50Hertz Transmission GmbH Annual Report 2012 • 61
Opportunity and risk report
Risk management system
The aim of the risk management system is to avoid any
risks jeopardizing 50Hertz’s ability to continue as a going
concern, reduce existing risk items and optimize the risk/
opportunity profile. Risks are recognized, recorded, evaluated and monitored in a standardized manner applying the
risk guidelines in place. 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 the early recognition of risks to the Group’s ability
to continue as a going concern, and supports the selection
and implementation of measures to overcome such risks.
Enhancement of the risk management system hinges on
the systematic preparation and central pursuit of plans of
action for combating key corporate risks. Relevant individual
risks and the entire risk situation are reported regularly to
management, the supervisory board and the shareholders.
The responsible decision makers are informed ad hoc in
the event of any significant changes. The functionality and
effectiveness of the risk management system are subject to
regular review.
Opportunities and risks
By maintaining its efficiency and ensuring 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 it 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 served in the control area.
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 extensive European, national and regional legislation. 50Hertz
pro­actively monitors and anticipates European legislative
pro­ceedings. Nevertheless, the preparation of new guidelines and regulations at a European level as well as existing
guidelines and regulations due to be transposed soon into
natio­nal law (e.g., provisions contained in the third energy
libera­lization package) can lead to burdens 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, 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 being confronted by constantly monitoring
the costs and reasonably weighing up the costs and benefits.
Non-capitalized investments also lead to lower imputed
costs and therefore to a decrease in network user charges.
50Hertz was certified as the only ownership unbundled
transmission system operator in Germany to date and has a
permit to operate the grid in Germany. This permit does not
expire but can be revoked if 50Hertz does not, for instance,
have the human, technical and economic capacity and
reliability to ensure that grid operations are constantly in
compliance with legal requirements. Furthermore, negative
consequences for the value of the company as a result of
losing this permit cannot be ruled out.
Technology/infrastructure
50Hertz’s non-current assets are geographically widespread
and can be the potential target for acts of terrorism and
sabotage as well as theft.
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; this can also incur additional costs.
The connection of offshore wind farms is a relatively new
business field. There are many technical problems that
remain unresolved and delays during the planning and
construction phase are likely to occur. Should 50Hertz be
deemed responsible for the delay (normally the case if the
fault lies with one of 50Hertz’s contractual partners), the
Company must reimburse the wind farm operator for most
of 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. Furthermore, an amendment to the EnWG
comes into force as of 1 January 2013 limiting the risks for
transmission grid operators stemming from the connection
of 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
62 • Annual Report 2012 Report 50Hertz Transmission GmbH
submitted by the transmission grid operators. However,
despite this new regulation, significant risks still remain in
this business field. With this new regulatory framework, the
legislator aims to encourage the continuous expansion of
offshore wind energy.
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 2012. Taking into account the measures taken,
there are no such risks for fiscal year 2013 either.
The construction of overhead transmission lines constantly
meets with protests from locals and involves long-winded
proceedings. Line construction delays are therefore 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 for transporting the ever-growing volatile feed-in
volume of renewable energies in 50Hertz’s control area in
high-consumption areas.
Forecast report
Health and industrial safety
Work, especially that with and around electrical and parti­
cularly exposed systems requires careful attention and a
high degree of conscientiousness, which 50Hertz encourages with procedures, instructions, controls and other
measures. Despite this, serious accidents cannot be ruled
out entirely, which could result in claims for damages entailing considerable financial obligations, unplanned tying up of
resources and loss of reputation.
The know-how of our employees is essential for 50Hertz’s
business activities. Essential know-how can be lost as a
result of employee turnover and insufficient know-how transfer. Measures are in place to minimize this risk.
Markets and finances
50Hertz is obligated to purchase the energy generated from
renewable energy sources in the control area at a specified
price and to sell it on the exchange. Significant liquidity risks
(and opportunities) stem from this process, albeit without
affecting profit.
Extreme fluctuations can also arise in the costs for balancing energy, grid losses and redispatch measures. Effects on
earnings and liquidity risks are minimized by means of the
corridor model.
A case of fraud concerning transmission grids which came
to light in 2012 showed that balancing group management
can also be susceptible risk as a result of data reports
extending over a longer period of time. 50Hertz examined
its own reporting process and took suitable measures to
minimize this risk.
50Hertz must obtain funding on the capital market together
with the parent company Eurogrid. Restrictions on the
money and capital markets can therefore lead to financing
bottlenecks.
50Hertz will continue to invest in grid expansion. Realizing
these investment projects helps to channel the exceedingly
high levels of EEG electricity in 50Hertz’s control area into
the consumption centers. 50Hertz’s largest onshore projects
are the construction of the southwest connecting line, the
Nordring Berlin and the Uckermark line, and in the offshore
area the connection of the Baltic 2 offshore wind farm. Investing activities will remain high over the next few years and
will most likely even increase considerably. Cross-border
investments are also planned. In addition to the construction
of a third line connecting with Poland, there are also plans to
set up phase shifters to improve management of cross-border load flows. In the Baltic Sea, there are also plans to link
the grid connection of the Kriegers Flak offshore wind farm
with a cross-border line between Germany and Denmark.
As a result of the increasing investing activities and the
volumes from the EEG that have to be pre-financed, the
financing volume will increase, with the liquidity situation
becoming tighter for the EEG business due to the influence
of persistently low market prices on the electricity exchange,
the constant increase in the number of new EEG generating facilities and 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 the
Company’s financial instruments and more intensive cash
management. Financing will continue to be secured via the
parent company Eurogrid for which Moody’s confirmed a
Baa1 rating in July 2012.
Cost development for actual grid operations, i.e., mainten­
ance, personnel, administration and operations, will continue
to 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 already makes a great effort to ensure a high
degree of efficiency in its processes and cost structure and
thereby minimizing the increased costs that are necessary
for the new energy concept in Germany. The Company will
already start to benefit from this during
fiscal 2013. 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.
Report 50Hertz Transmission GmbH Annual Report 2012 • 63
The result for fiscal year 2013 will again be positively influenced by non-recurring catch-up effects stemming from the
changes to the regulatory framework, although the result will
fall short of the 2012 level. Once the non-recurring effects
no longer apply, 50Hertz expects to achieve the result possible under current regulatory conditions at the beginning
of the second regulatory period in 2014. 50Hertz expects a
positive outcome of the cost and efficiency review examining
the charges for the second regulatory period. Nevertheless,
it also anticipates the result for 2014 to be down on the
2012 and 2013 level.
On all accounts, 50Hertz will fulfill the legally assigned tasks
regarding the transport of electricity in the control area, the
promotion of renewable energies and the European single
market to a high standard and contribute to a secure electricity supply system. In this regard, 50Hertz will contribute
to climate protection, the new energy concept in Germany
and the development of the economy, particularly in northern and eastern Germany.
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, 12 February 2013
The management
Boris Schucht
Dr. Frank Golletz
Udo Giegerich
Hans-Jörg Dorny
Dr. Dirk Biermann
64 • Annual Report 2012 Fiscal year 50Hertz Transmission GmbH
Fiscal year
Statement of financial position
31 Dec 2012
In EUR m
31 Dec 2011
In EUR m
38.0
35.7
1,330.3
1,254.3
322.9
243.2
1,691.2
1,533.2
3.4
6.8
446.0
620.3
Receivables from affiliates
0.1
230.8
Receivables from other investees and investors
1.5
1.6
595.4
273.1
1,043.0
1,125.8
1.6
0.0
1,048.0
1,132.6
2.8
3.3
Note
ASSETS
Fixed assets
(1)
Intangible assets
Property, plant and equipment
Financial assets
Current assets
Inventories
(2)
Receivables and other assets
(3)
Trade receivables
Other assets
Cash and cash equivalents
(4)
Prepaid expenses
Special loss account from the recognition of provisions
(5)
4.1
4.1
Excess of covering assets over pension and
similar obligations
(6)
1.1
1.4
2,747.2
2,674.6
Fiscal year 50Hertz Transmission GmbH Annual Report 2012 • 65
31 Dec 2012
In EUR m
31 Dec 2011
In EUR m
Issued capital
200.0
200.0
Capital reserves
655.8
655.8
–
1.4
855.8
857.2
8.0
7.9
Pensions and similar obligations
9.6
8.1
Tax provisions
5.3
5.0
627.5
992.0
642.4
1,005.1
39.4
50.8
Trade payables
173.3
184.0
Liabilities to affiliates
763.8
300.7
56.4
48.3
1,032.9
583.8
208.1
220.6
2,747.2
2,674.6
Note
EQUITY AND LIABILITIES
Equity
(7)
Other revenue reserves
Special items
(8)
Provisions
(9)
Other provisions
Liabilities
(10)
Prepayments received on account of orders
Other liabilities
Deferred income
(11)
66 • Annual Report 2012 Fiscal year 50Hertz Transmission GmbH
Income statement
Revenue
Note
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
(12)
8,352.0
6,948.5
– 3.7
2.5
Decrease in work in process (prior year: increase)
Own work capitalized
(13)
18.6
2.2
Other operating income
(14)
296.9
80.5
Cost of materials
(15)
– 7,994.4
– 6,737.2
Personnel expenses
(16)
– 62.8
– 57.8
Amortization, depreciation and write-downs
(17)
– 65.1
– 57.9
Other operating expenses
(18)
– 311.3
– 110.8
Investment result
(19)
16.6
8.3
Interest result
(20)
– 15.3
– 21.6
231.5
56.7
Result from operating activities
Income taxes
(21)
– 4.6
– 4.6
Other taxes
(22)
– 0.5
– 0.5
Expense from profit transfer
(23)
– 227.8
– 50.3
– 1.4
1.3
– 1.4
1.3
– 1.3
1.4
– 0.0
0.0
Net loss for the year (prior year: net income for the year)
Profit appropriation
Net loss for the year (prior year: net profit for the year)
Transfer to other revenue reserves
Withdrawal from other revenue reserves
Retained earnings
(24)
Fiscal year 50Hertz Transmission GmbH Annual Report 2012 • 67
Cash flow statement
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
226.4
51.6
65.4
57.9
– 362.7
371.4
– 0.6
– 0.6
Loss from the disposal of fixed assets (prior year: gain)
0.8
– 0.2
Decrease in inventories (prior year: increase)
3.4
– 2.5
– 147.0
45.6
– 27.2
– 64.5
Cash flow from other operating activities
– 241.5
458.7
Cash paid for investments in property, plant and equipment and intangible assets
– 144.4
– 100.5
Cash received from construction cost subsidies
6.5
11.0
Cash received from disposals of fixed assets
0.2
– – 80.0
– 140.1
– 217.7
– 229.6
200.0
0
– 1.4
– 61.9
Cash paid from the profit/loss transfer
– 226.4
– 50.3
Cash flow from financing activities
– 27.8
– 112.2
Change in cash and cash equivalents
– 487.0
116.9
230.6
113.7
– 256.4
230.6
Net income for the year before profit/loss transfer
Write-downs of fixed assets
Decrease in provisions (prior year: increase)
Other non-cash income
Increase in receivables and other assets (prior year: decrease)
Decrease in liabilities and other equity and liabilities
Cash paid for investments in fixed financial assets
Cash flow from investing activities
Cash received from shareholder loans
Cash paid to owners (distribution from the reserves)
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
68 • Annual Report 2012 Fiscal year 50Hertz Transmission GmbH
Statement of changes in fixed assets
Cost in EUR m
1 Jan 2012
Additions
Reclassifications
Disposals
31 Dec 2012
50.9
5.3
– 0.1
– 56.1
– – – – – 50.9
5.3
– 0.1
– 56.1
118.8
1.1
1.1
0.3
120.7
2,543.9
45.7
81.5
3.2
2,667.9
62.9
4.0
1.7
2.7
65.9
145.3
88.3
– 84.2
– 149.4
2,870.9
139.1
0.1
6.2
3,003.9
Shares in affiliates
109.0
37.0
– – 146.0
Loans to affiliates
133.3
43.0
– – 176.3
Investments
0.5
– – – 0.5
Other loans
0.4
– – 0.0
0.4
243.2
80.0
– 0.0
323.2
3,165.0
224.4
– 6.2
3,383.2
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
Fixed assets
Fiscal year 50Hertz Transmission GmbH Annual Report 2012 • 69
Amortization, depreciation and write-downs in EUR m
Carrying amount in EUR m
1 Jan 2012
Additions
Reclassifications
Disposals
31 Dec 2012
31 Dec 2012
31 Dec 2011
15.2
2.9
– – 18.1
38.0
35.7
– – – – – – 15.2
2.9
– – 18.1
38.0
35.7
40.9
1.6
– 0.3
42.2
78.5
77,9
1,530.4
55.6
– 2.3
1,583.7
1,084.2
1.013,5
45.3
5.0
– 2.6
47.7
18.2
17,6
– – – – – 149.4
145,3
1,616.6
62.2
– 5.2
1,673.6
1,330.3
1.254,3
– – – – – 146.0
109,0
– – – – – 176.3
133,3
– 0.3
– – 0.3
0.2
0,5
– – – – – 0.4
0,4
– 0.3
– – 0.3
322.9
243,2
1,631.8
65.4
– 5.2
1,692.0
1,691.2
1.533,2
70 • Annual Report 2012 Notes to the financial statements 50Hertz Transmission GmbH
Notes to the financial
statements
General
50Hertz Transmission GmbH (50Hertz Transmission) is re­
gistered 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
registered office in Berlin, and in the consolidated financial
statements of Elia System Operator NV/SA, with its regis­tered office in Brussels, Belgium. The consolidated financial
statements of Elia System Operator NV/SA with the largest
group of companies can be obtained from Elia System Ope­
rator NV/SA, 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.ebundesanzeiger.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 inter­
posed 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 de­
pre­ciation. 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 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
Notes to the financial statements 50Hertz Transmission GmbH Annual Report 2012 • 71
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, whichever is lower. All recognizable individual risks and the general
credit risk are accounted for by appropriate allowances.
Special loss account from the recognition of provisions
A special loss account from the recognition of provisions
pursuant to Sec. 17 (4) DMBilG (“DM-Bilanzgesetz”: 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 finan­
cial 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 hedging of the provision for
employee entitlements from working lifetime accounts.
Prepaid expenses
Prepaid expenses refer to expenses of the reporting date,
insofar as they concern future periods.
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 assets concerned.
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 5.06 % (prior year: 5.13 %) for a remaining term of 15
years in accordance with the Rück­AbzinsV (“Rückstellungs­
abzinsungsverordnung”: German Ordinance on the Discounting of Provisions). The interest rate of 5.06 % p. a. (prior year:
5.13 %) 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: 3.5 % 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
72 • Annual Report 2012 Notes to the financial statements 50Hertz Transmission GmbH
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 increasing 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 3.98 % p. a. (prior year: 4.09 % p. a.)
in accordance with the RückAbzinsV over an average term
of three 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: 3.5 % 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.
The provisions for potential losses from pending transactions were measured at fair value as of the reporting date. In
the measurement as of the reporting date, the expected income from determining the zero point as part of the corri­dor
model (voluntary commitment system services) was taken
into account by the BNetzA.
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.
Since 2007, amounts paid to 50Hertz Transmission in prior
years from cross-border bottleneck management are recor­
ded 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. The horizontal
grid income deferred in 2007 is recognized over 30 years as
determined by the Federal Network Agency. Income from
the auctioning of bottlenecks for subsequent years was also
recorded as deferred income. The income is deducted from
revenue; it is recognized in profit or loss in the year in which
the regulatory authorities deduct the network user charges.
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 making a correction
to the network user charges in subsequent years.
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.
EEG and balancing group settlement
When preparing the financial statements, expenses and
income and the corresponding receivables and liabilities
for the settlement of the EEG process as well as for the
accounting of the balancing group were determined based
on preliminary data provided by third parties and partly
based on forecasts.
A final statement on the actual expenses and income
incurred in the EEG process can only be made when the
audit certificates for the electricity volumes fed in from EEG
plants become available. With regard to the accounting
of the balancing group, 50Hertz Transmission is reliant on
the complete data from all balancing groups. Due to the
very nature of the activity, these data are not available in
their entirety as of the time of preparing the financial statements, resulting in uncertainties surrounding the amount of
expenses and income in these areas.
Notes to the financial statements 50Hertz Transmission GmbH Annual Report 2012 • 73
The related items of the financial statements were determined using the data available as well as relying on estimates 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.
Notes to the statement of financial position
(1) Fixed assets
A breakdown of the fixed asset items combined 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:
Shareholding %
Equity in EUR m
Earnings in EUR m
100. 0
146.0
– 1)
European Market Coupling CompanyGmbH, Hamburg
20.0
0.0
0.1 2)
Central Allocation Office GmbH, Freising
12.5
1.6
0.1 2)
CORESO SA., Brüssel, Belgien
10.1
1.4
0.1 3)
31 Dec 2012
In EUR m
31 Dec 2011
In EUR m
Change
In EUR m
Raw materials, consumables and supplies
2.4
2.1
0.3
Work in process
1.0
4.7
– 3.7
3.4
6.8
– 3.4
1. Affiliates
50Hertz Offshore GmbH, Berlin1)
2. Investments
1)
Profit and loss transfer agreement
2)
Financial statements as of 31 December 2011
3)
Financial statements as of 31 December 2012
(2) Inventories
74 • Annual Report 2012 Notes to the financial statements 50Hertz Transmission GmbH
(3) Receivables and other assets
Trade receivables
Receivables from affiliates
thereof from shareholder
Receivables from other investees and
investors
Other assets
31 Dec 2012
In EUR m
thereof due
> one year
31 Dec 2011
In EUR m
thereof due
> one year
446.0
– 620.3
– 0.1
– 230.8
0.0
– 230.6
– 1.5
– 1.6
– 595.4
10.1
273.1
10.1
1,043.0
10.1
1,125.8
10.1
Receivables from affiliates and from other investees and investors relate to trade receivables. As of the reporting date,
there was no receivable from the shareholder from the cash
pool with Eurogrid (prior year: EUR 230.6 m).
(7) Equity
The Company’s issued capital of EUR 200 m is fully paid in
and is held in full by Eurogrid. The capital reserves remain
unchanged on the prior year at EUR 655.8 m.
Other assets contain receivables from the tax office from
deductible input tax of EUR 94.3 m (prior year: EUR 162.6 m),
for which returns had not been filed as of 31 December
2012. As of the reporting date, compensation claims of EUR
430.0 m remained from the EEG process (prior year: EUR
55.1 m). Furthermore, earmarked subsidies with a term of
more than one year were disclosed at EUR 10.1 m (prior
year: EUR 10.1 m), which are to be used by the syndicate
over the next few years.
Other revenue reserves of EUR 1.4 m were released in the
fiscal year and, together with the net profit for the year of
EUR 226.4 m, transferred to Eurogrid.
(4) Cash and cash equivalents
Cash and cash equivalents comprised cash on hand as well
as bank balances on the reporting date.
(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 burdens. This nominal obligation amounted to EUR 4.1 m (prior
year: EUR 4.1 m) as of the reporting date.
(6) Excess of covering assets over pension and
similar obligations
Offsetting the recognized provision against the cash sur­render value from the employer’s liability insurance (covering
assets) produces an excess of covering assets over pension
and similar obligations of EUR 1.1 m as of the reporting date
(prior year: EUR 1.4 m). The item results from netting the
provisions for working lifetime accounts of EUR 2.4 m (prior
year: EUR 2.0 m) with the respective asset values of EUR
3.5 m (prior year: EUR 3.4 m).
(8) Special item
The special item for investment subsidies and grants
amounts to EUR 8.0 m (prior year: EUR 7.9 m).
(9) Provisions
The provisions for pension obligations arise from the settlement amount of the liabilities offset of EUR 22.0 m (prior
year: EUR 20.1 m) and the fair value of the assets offset
(covering assets) of EUR 12.4 m (prior year: EUR 12.0 m).
The tax provisions recognized relate to periods not yet covered by the tax group.
Notes to the financial statements 50Hertz Transmission GmbH Annual Report 2012 • 75
Other provisions break down as follows:
31 Dec 2012
In EUR m
31 Dec 2011
In EUR m
Change
In EUR m
361.1
530.5
– 169.4
Easements for line use rights
67.9
63.7
4.2
Network user charges
89.2
119.8
– 30.6
– 202.4
– 202.4
EEG balancing energy
27.0
– 27.0
Personnel-related provisions
12.0
11.4
0.6
Provisions for potential losses
2.8
4.5
– 1.7
14.7
8.4
6.3
574.7
940.7
– 366.0
52.8
51.3
1.5
627.5
992.0
– 364.5
Outstanding EEG and KWKG invoices
EEG subsequent delivery obligations (old mechanism)
Litigation risks
Sundry other provisions
No more provisions were recognized for EEG subsequent delivery obligations as a result of the old EEG
mechanism expiring.
Provisions for the German phased retirement scheme of EUR 4.6 m (prior year: EUR 6.1 m) were offset under other
provisions against the cash surrender values from the employer’s liability insurance cover (covering assets) of
EUR 3.2 m (prior year: EUR 4.0 m).
76 • Annual Report 2012 Notes to the financial statements 50Hertz Transmission GmbH
(10) Liabilities
31 Dec 2012
In EUR m
Total
31 Dec 2011
In EUR m
Due in
Total
< one year
> five years
39.4
39.4
– Trade payables
173.3
173.2
Liabilities to affiliates
763.8
Due in
< one year
> five years
50.8
50.8
– 0.0
184.0
184.0
0.0
463.8
– 300.7
0.7
– 763.0
463.8
– 300.0
– – 56.4
56.0
0.4
48.3
48.3
– thereof from taxes
1.7
1.7
– 1.2
1.2
– thereof relating to social security
0.4
0.4
– 0.1
0.1
– 1,032.9
732.4
0.4
583.8
283.8
0.0
Prepayments received
thereof to shareholder
Other liabilities
At EUR 763.0 m (prior year: EUR 300.0 m), liabilities to affiliates relate almost exclusively to the financing relationship with
the shareholder. This includes EUR 258.0 m for the cash pool balance (prior year: receivable of EUR 230.6 m), short-term
loan liabilities in connection with the settlement of the EEG of EUR 200 m (prior year: EUR 0.0 m) as well as the mediumterm shareholder loan of EUR 300 m. The remainder relates to accrued interest (EUR 3.6 m) as well as trade payables
(EUR 1.4 m).
(11) Deferred income
Investment-related construction cost subsidies
Income from bottleneck management as well as amounts for
future offsetting from voluntary commitments
Other amounts
31 Dec 2012
In EUR m
31 Dec 2011
In EUR m
Change
In EUR m
48.9
48.5
0.4
138.8
150.2
– 11.4
20.4
21.9
– 1.5
208.1
220.6
– 12.5
Notes to the financial statements 50Hertz Transmission GmbH Annual Report 2012 • 77
Notes to the income statement
(12) Revenue
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
Change
In EUR m
EEG income
6,343.8
4,415.7
1,928.1
Services for third parties
1,113.4
1,783.6
– 670.2
Cost-matching income
7,457.2
6,199.3
1,257.9
713.7
656.7
57.0
System services
50.3
70.6
– 20.3
Balancing group management
79.8
28.7
51.1
Compensation for network user charges in past periods
44.6
– 12.8
57.4
6.4
6.0
0.4
894.8
749.2
145.6
8,352.0
6,948.5
1,403.5
Network user charges
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.
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 control area. The compensation for network
user charges in past periods includes effects arising with a
time delay as a result of the current regulatory framework.
These relate to network user charges from earlier periods as
well as system services.
(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.
78 • Annual Report 2012 Notes to the financial statements 50Hertz Transmission GmbH
(14) Other operating income
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
Change
In EUR m
76.2
45.6
30.6
176.9
– 176.9
Income from the reversal of provisions
1.1
1.1
0.0
Income from provisions for potential losses
3.5
1.4
2.1
Income from the reversal of special items
for investment grants
0.6
0.5
0.1
Income from the reversal of construction
cost subsidies
6.1
9.2
– 3.1
Services
8.2
5.6
2.6
24.3
17.1
7.2
296.9
80.5
216.4
KWKG cost allocation*)
Income pursuant to Sec. 19 (2) StromNEV*)
Other income
*) Cost-matching income
The income pursuant to Sec. 19 (2) StromNEV was incurred for the first time in fiscal year 2012 as a result of introducing
the nationwide allocation mechanism for special network user charges. According to this, the transmission system operator
receives compensation for reductions in network user charges via a nationwide cost allocation.
There were no significant effects from other periods recognized under other operating income in fiscal year 2012. Income
from currency translation amounted to EUR 0.0 m (prior year: EUR 0.0 m).
(15) Cost of materials
Cost of materials, consumables and supplies and
purchased goods
Cost of purchased services
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
Change
In EUR m
– 7,776.2
– 6,502.5
– 1,273.7
– 218.2
– 234.7
16.5
– 7,994.4
– 6,737.2
– 1,257.2
Notes to the financial statements 50Hertz Transmission GmbH Annual Report 2012 • 79
Cost of materials contains a large volume of non-profit items:
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
Change
In EUR m
Energy procured under the EEG
– 6,343.8
– 4,415.7
– 1,928.1
Services to third parties
– 1,113.4
– 1,783.6
670.2
Income-matching costs
– 7,457.2
– 6,199.3
– 1,257.9
– 537.2
– 537.9
0.7
– 7,994.4
– 6,737.2
– 1,257.2
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
Change
In EUR m
– 51.8
– 46.8
– 5.0
– 7.7
– 7.0
– 0.7
Pension costs
– 3.0
– 3.9
0.9
Other benefit costs
– 0.3
– 0.1
– 0.2
– 62.8
– 57.8
– 5.0
1 Jan to 31 Dec 2012
1 Jan to 31 Dec 2011
Change
Wage earners
169
158
11
Salaried employees
533
486
47
702
644
58
Expenses for the grid business
(16) Personnel expenses
Wages and salaries
Social security
Expenses
Average headcount for the year
An average of 18 trainees were employed in fiscal year 2012 (prior year: 18 trainees).
(17) Amortization, depreciation and write-downs
The extraordinary write-downs of EUR 5.4 m recognized in the fiscal year relate to equipment and components whose useful
life is considerably restricted in comparison to the useful lives originally forecast as a result of past experiences with cases of
damage. This resulted in an extraordinary write-down being recognized in the fiscal year.
80 • Annual Report 2012 Notes to the financial statements 50Hertz Transmission GmbH
(18) Other operating expenses
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
Change
In EUR m
– 76.2
– 45.6
– 30.6
– 176.9
– – 176.9
Services
– 27.1
– 30.0
2.9
Other expenses
– 31.1
– 35.2
4.1
– 311.3
– 110.8
– 200.5
KWKG cost allocation*)
Expenses pursuant to Sec. 19 (2) StromNEV*)
*) Income-matching costs
Other expenses include potential losses from the procurement of energy to cover grid losses as well as allocations
to other provisions and to impairment losses.
There were no significant effects from other periods recognized under other operating expenses in fiscal year 2012.
Expenses from currency translation amounted to EUR 0.0 m (prior year: EUR 0.0 m).
(19) Investment result
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
Change
In EUR m
Income from profit transfer agreements with affiliates
16.9
8.3
8.6
Write-downs on financial assets
– 0.3
– – 0.3
16.6
8.3
8.3
Income from the profit transfer from affiliates relates fully to 50Hertz Offshore. Write-downs on financial assets had to be
recognized as a result of the shareholder discontinuing business operations at an investment as intended.
Notes to the financial statements 50Hertz Transmission GmbH Annual Report 2012 • 81
(20) Interest result
1 Jan to 31 Dec 2012
In EUR m
1 Jan to 31 Dec 2011
In EUR m
Change
In EUR m
Income from non-current loans
0.0
0.0
0.0
Other interest and similar income
8.2
7.0
1.2
8.0
6.4
1.6
– 23.5
– 28.6
5.1
– 14.7
– 21.4
6.7
– 15.3
– 21.6
6.3
thereof from affiliates
Interest and similar expenses
thereof to affiliates
With regard to the discounting of provisions, EUR 4.5 m (prior year: EUR 7.2 m) relates to interest expenses and EUR 0.5 m
(prior year: EUR 0.5 m) to interest income. In accordance with Sec. 246 (2) Sentence 2 HGB, interest expenses are netted
against interest income of EUR 0.5 m (prior year: EUR 0.4 m).
(21) Income taxes
Income taxes of EUR 4.6 m (prior year: EUR 4.6 m) relate to
assessment periods before the consolidated tax group was
formed with Eurogrid.
(22) Other taxes
Other taxes of EUR 0.5 m (prior year: EUR 0.5 m) relate to
property tax, vehicle tax and electricity tax.
(23) Profit transfer
The net profit for fiscal year 2012 of EUR 226,398,289.29
(prior year: EUR 50,348,711.50 was transferred to Eurogrid
on the basis of the profit and loss transfer agreement in
place.
(24) Profit appropriation
The other revenue reserves of EUR 1,437,999.17 were
released in the fiscal year and transferred to Eurogrid.
The negative cash and cash equivalents at the end of the
period (EUR -256.4 m) consist of bank balances of EUR 1.6 m
as well as the utilization of the cash pool (liabi­lity) at Eurogrid
of EUR 258.0 m. In the prior period, there were short-term
deposits as part of the cash pool of EUR 230.6 m (receivable) as well as bank balances of EUR 0.015 m.
Income tax-related cash flows amounted to EUR 4.3 m (prior
year: EUR 15.1 m) in fiscal year 2012.
Other financial obligations
On 31 December 2012, there was a purchase obligation for
investments and maintenance measures of EUR 206.2 m
(prior year: EUR 175.4 m). The purchase obligation exists
solely to third parties.
Notes to the statement of cash flows
Based on the recommendations of GAS 2 as issued by the
German Accounting Standards Committee (GASC), the
statement of cash flows shows cash flows from operating,
investing and financing activities.
As part of cross-border bottleneck management, 50Hertz
Transmission is legally obligated to make investments to
avoid future bottlenecks using agreed 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 122.3 m until the reporting date, means that EUR 122.3 m
has been repaid and EUR 44.1 m 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.
The cash inflow from operating activities included interest
received of EUR 7.5 m (prior year: EUR 6.5 m). Interest payments amounted to EUR 19.1 m (prior year: EUR 21.4 m).
Issuing a guarantee to 50Hertz Offshore resulted in an
obligation of EUR 4.2 m which is not currently expected to
be utilized.
Other notes
82 • Annual Report 2012 Notes to the financial statements 50Hertz Transmission GmbH
Contingent liabilities
In connection with Eurogrid issuing the bond of EUR 500 m
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.
in accordance with Sec. 133 UmwG (“Umwandlungsgesetz”: German Law of Reorganizations) amount to five years
for liabilities for the transferring legal entities; for the pension
obligations arising 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.
On 14 June 2011, 50Hertz Transmission and 50Hertz Off­
shore entered a five-year syndicated loan agreement, as
additional guarantors, with Royal Bank of Scotland, N.V.
as syndicate leader and Commerzbank AG, Luxembourg
branch, for a volume of EUR 350 m.
With regard to the electricity procured to cover grid losses
based on market conditions, 50Hertz Transmission entered into purchase obligations of EUR 65.9 m (prior year:
EUR 137.9 m).
On 9 December 2011, 50Hertz Transmission and 50Hertz
Offshore issued a maximum guarantee to BNP Paribas
S.A., Frankfurt/Main branch, totaling EUR 126 m to hedge a
short-term credit line from Eurogrid.
On 27 August 2012, 50Hertz Transmission and 50Hertz
Offshore jointly issued a maximum guarantee to with a term
until 15 February 2013 to ING Bank, a branch of ING-DiBa
AG, Frankfurt/Main branch, totaling EUR 102.5 m to hedge a
short-term credit line of Eurogrid.
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.
On 10 September 2012, 50Hertz Transmission and 50Hertz
Offshore jointly issued a maximum guarantee to with a term
until 15 February 2013 to Coöperatieve Centrale RaiffeisenBoerenleenbank b.a. (Rabobank), Utrecht, Netherlands, of
EUR 102.5 m to hedge a short-term credit line of Eurogrid.
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.
On 25 October 2011, 50Hertz Transmission, as shareholder
of EMCC, issued a maximum guarantee on first demand of
EUR 3.7 m to Nordea Bank Finland Plc, German branch, to
secure part of a loan granted to EMCC.
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.
50Hertz Transmission is jointly and severally liable with
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.
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.
50Hertz Transmission is jointly and severally liable with
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.
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.
As part of the spin-off of 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 for liabilities arising
before the effective date of the spin-off. The liability periods
Expenses for management remuneration amounted to
EUR 1,643k in the reporting period (prior year: EUR 1,560 k).
It consists of fixed remuneration, performance-related remuneration and other fixed components. The increase is also
attributable to additional management members.
Notes to the financial statements 50Hertz Transmission GmbH Annual Report 2012 • 83
Pension obligations covered by the employer’s pension
liability insurance for former members of management
amount to EUR 0.4 m (prior year: EUR 0.4 m).
The management of 50Hertz Transmission GmbH
Boris Schuch
The members of the supervisory board of 50Hertz Transmission received EUR 21 k for their activities (prior year: EUR
20 k).
Udo Giegerich
In fiscal year 2012, new employee representatives were
elected for the Company’s supervisory board. The super­
visory board was reconstituted on 22 August 2012.
Dr. Biermann
The changes to the composition of the Company’s super­
visory board were published in the Bundesanzeiger
(German Federal Gazette).
Dr. Frank Golletz
Loans granted to board members
Loans granted to members of the supervisory board
amounted to EUR 6 k as of the reporting date (prior year:
EUR 9 k). The loans bear interest at 5 % p. a. and have terms
of ten years. An amount of EUR 3.0 k was repaid in the
reporting period.
Berlin, 12 February 2013
Hans-Jörg Dorn
84 • Annual Report 2012 Notes to the financial statements 50Hertz Transmission GmbH
Company boards
Members of the supervisory board
Daniel Dobbeni
Chairman of the Board of Eurogrid International CVBA,
Braine-I’Alleud, Belgium
– Chairman –
Ulrich Freese*
Deputy Chaiman of the German Mine, Chemical and Power
Workers’ Union, Spremberg
– Deputy Chairman – (until 17 December 2012)
Peter Hausmann*
Member of the Executive Board of the German Mine,
Chemical and Power Workers’ Union, Hanover
– Deputy Chairman – (since 18 December 2012)
Markus Berger
Chief Officer Asset Management of Elia System Operator
S.A., Antwerp, Belgium (since 22 August 2012)
Werner Kerschl
Investment Director of Industry Funds Management (UK)
Ltd, London, UK
Andrea Ludwig*
Electrical engineer, Berlin
Dr. Lutz Pscherer*
Electrical engineer, Berlin
Jacques Vandermeiren
Chairman of the Executive Committee of Elia System
Operator NV/SA, Antwerp, Belgium (until 21 August 2012)
*Employee representative
Members of management
Boris Schucht
Berlin, Chairman
Dr. Dirk Biermann
Berlin, markets and system operations division
(since 1 April 2012)
Hans-Jörg Dorny
Neuenhagen near Berlin, HR division
Udo Giegerich
Berlin, commercial division
Dr. Frank Golletz
Dresden, technisches Ressort
Notes to the financial statements 50Hertz Transmission GmbH Annual Report 2012 • 85
Audit opinion
We have audited the annual financial statements, comprising the statement of financial position, the income statement, the cash flow statement and the notes to the financial
statements, together with the bookkeeping system, and the
management report of 50Hertz Transmission GmbH, Berlin,
for the fiscal year from 1 January to 31 December 2012.
Pursuant to Sec. 6b (5) EnWG [“Energiewirtschaftsgesetz”:
German Energy Industry Act], our audit of the financial statements additionally 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 management.
Our responsibility 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 [“Handelsgesetzbuch”:
German Commercial Code] and German generally accepted
standards for the audit of financial statements promulgated
by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we
plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial
position and results of operations in the annual financial
statements in accordance with [German] principles of proper
accounting and in the management report are detected with
reasonable assurance and such that it can be assessed
with reasonable assurance 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 management, evaluating the overall
presentation of the annual financial statements and 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 reasonable 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 [German] 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, 13 February 2013
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
GlöcknerHerlitz
German Public Auditor
German Public Auditor
03
Report on the fiscal year 2012
of 50Hertz Offshore GmbH
Business and general background conditions
Fiscal year
Statement of financial position Income statement
Cash flow statement Statement of changes in fixed assets Notes to the financial statements
Audit opinion
88
94
94
96
97
98
100
107
88 • Annual Report 2012 Report 50Hertz Offshore GmbH
Business and economic environment
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 Company was restructured at the beginning of fiscal
year 2012. All of 50Hertz Offshore’s employment agreements were transferred to 50Hertz Transmission. Since
then, 50Hertz Offshore has performed its business activities
with­out its own workforce. All services necessary for the operations of the Company are rendered by 50Hertz Transmission under existing service contracts. The general managers
appointed since 15 December 2011 serve their function
for both the Company and 50Hertz Transmission.
Economic environment
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. 17 (2a) EnWG (“Energie­wirt­
schaftsgesetz”: German Energy Industry Act), the obligation
for connecting offshore wind farms to the grid primarily rests
with the transmission system operator 50Hertz Transmission.
To make a distinction from its onshore activities, 50Hertz
Transmission assigned this task to 50Hertz Offshore.
Under the previous legal framework, the transmission
system operator responsible was obligated to establish the
connection to the grid by the time the respective offshore
wind farm was ready to commence technical operations
(Sec. 17 (2 a) Sentence 1 Clause 2 EnWG). However, the
orders for establishing connection to the grid could only
be issued once there was reasonable assurance that the
planned offshore wind farms would actually be built. Otherwise, there would be the risk of stranded investments for
connecting the offshore wind farms to the grid and of the
projects ultimately not being realized. This was supported
by the position paper published by the Federal Network
Agency in October 2009, in which it pointed out its understanding of the obligation to be connected to the grid as
defined by Sec. 17 (2 a) EnWG. A central component of this
position paper was a catalog of criteria which the project
sponsor financing the offshore wind farms could use to
provide reasonable assurance of the project being realized.
If the project sponsor financing an offshore wind farm ful­
filled these criteria, the Federal Network Agency assured
the transmission system operator obligated to connect the
wind farm to the grid that it would in any case recognize the
investments made for connection to the grid in its cost and
efficiency reviews (in particular even if the offshore wind farm
projects were not realized).
In order to remove any obstacles hindering investment, the
German lower house of parliament enacted the Third Act
Revising the Legislation Governing the Energy Sector on
29 November 2012, which was confirmed by the upper
house of parliament on 14 December 2012. The law came
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. Short, medium and long-term plans of the
transmission system operators are approved by the authorities responsible (Federal Maritime and Hydrographic Agency
(“Bundesamt für Seeschifffahrt und Hydrografie”), Federal
Network Agency), with the public being included by means
of broad consultation. The planned measures are then incorporated into the federal requirements planning. The new
law also regulates liability for any delays and interruptions
when establishing the 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 – taking into account any deductibles – to the
grid users via a newly introduced offshore liability cost allo­
cation, provided the transmission system operator has not
acted with willful intent. If the transmission system operator acted negligently, it must pay a deductible of a limited
amount.
For 50Hertz Transmission’s control area, there were new
orders from 4 offshore wind farm project sponsors in fiscal
year 2012, meaning there were 21 orders in total for connecting to the grid as of year-end 2012, some of which are
in competition with each other in terms of location. As a
result of the newly introduced offshore grid development
plan, these orders serve as a basis for planning the future
offshore grid.
Due to this new regulatory framework, the expansion of
offshore wind energy exploitation is to be given permanent
basis.
Report 50Hertz Offshore GmbH Annual Report 2012 • 89
Investments
After Baltic 1, the first wind farm to be connected to the grid, was commissioned in the prior year, intense work is underway
to complete the second connection Baltic 2, with production of the sea and land cables already having begun. Construction and laying of the underwater cable route is planned to begin in 2013. Prior work involved removing munitions and other
metal parts to exclude any danger to persons and materials as far as possible when laying the cables. The commissioning of
the wind farm and its connection to the grid is currently planned for mid-2014.
Investments in fiscal year 2012 amounted to some EUR 109m, down on the prior-year figure. They primarily relate to connecting Baltic 2 to the grid.
There are further grid connection projects currently in preparation.
Economic situation of 50Hertz Offshore
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
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 23,856.2 k (prior year: EUR 10,967.7 k). This
rise in revenue is attributable to the increase in the Compa-
ny’s fixed assets as result of expanding its investing activities
(in particular connecting the wind farms Baltic 1 and Baltic 2
to the grid). In addition to revenue, the Company generated
other operating income of EUR 13,500.1k (prior year: EUR
11,015.2 k), primarily from allocating expense-matching
costs to the shareholder.
Income statement
2012
In EUR k
2011
In EUR k
Change
In EUR k
Revenue and income
37,419.4
22,029.4
15,390.0
– 12,856.8
– 9,400.6
– 3,456.2
Interest result
– 7,671.1
– 4,325.0
– 3,346.1
Result from operating activities
16,891.5
8,303.8
8,587.7
– 16,891.5
– 8,303.8
– 8,587.7
Operating expenses
Profit transfer to the shareholder
90 • Annual Report 2012 Report 50Hertz Offshore GmbH
Operating expenses amount to EUR 12,856.8k (prior year:
EUR 9,400.6 k). In addition to amortization and depreciation
incurred on non-current assets (EUR 6,985.9 k), significant
items also include costs for insurance (EUR 2,072.3 k)
as well as for inspection and maintenance services
(EUR 1,412.0k).
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.
There was an increase in the result from operating activities. This was primarily attributable to the considerable
EUR 15,390.0 k increase in revenue and income compared
to expenses which rose to a lesser extent. 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 increase in fixed assets on the prior year is primarily attributable to the grid connection (underwater and land cable)
for the Baltic 2 offshore wind farm. With regard to the ongoing planning and realization of grid connections, the share of total
assets accounted for by fixed assets was around 99 % as in the prior year. The equity to fixed assets ratio came to 41 %
(prior year: 44 %).
31 Dec 2012
In EUR k
31 Dec 2011
In EUR k
Change
In EUR k
352,286.9
250,030.5
102,256.4
3,534.1
11,137.4
– 7,603.3
355,821.0
261,167.9
94,653.1
Equity
146,020.1
109,020.1
37,000.0
Long-term liabilities
176,342.9
133,342.9
43,000.0
33,458.0
18,804.9
14,653.1
355,821.0
261,167.9
94,653.1
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 agreement. EUR 37,000 k
was added to the capital reserves by the shareholder.
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 solvent at all times due to its inclusion in the cash pool.
Report 50Hertz Offshore GmbH Annual Report 2012 • 91
Statement of cash flows (condensed)
2012
In EUR k
2011
In EUR k
Change
In EUR k
Cash flow from operating activities
32,686.6
4.673.7
28,012.9
Cash flow from investing activities
– 109,242.3
– 130.848.9
21,606.6
Cash flow from financing activities
63,108.5
131.696.2
– 68,587.7
– 13,447.2
5.521.0
– 18,968.2
– 2,990.5
10.456.7
– 13,447.2
Change in cash and cash equivalents
Cash and cash equivalents at the end of the period
Cash and cash equivalents at the end of the period amounted to EUR -2,990.5 k (prior year: EUR 10,456.7 k), relating
entirely to the liabilities due to Eurogrid under the cash pool
arrangement (prior year: receivable due from Eurogrid).
133,342.9 k) 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.
The Company’s financing was secured throughout the entire
fiscal year 2012. 50Hertz Transmission issued non-current
shareholder loans of EUR 176,342.9 k (prior year: EUR
Overall picture of the economic situation
The year-on-year rise in the result from operating activities in
fiscal year 2012 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 2012 were
covered at all times by the available liquidity and the
share­holder loan.
Opportunity and risk report
Risk management system
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 and risks
Opportunities for the Company lie in the growing investment
activities for connecting offshore wind parks to the grid.
Planning, construction and operation of the grid connections
of offshore wind farms is a new business area and therefore
entails uncertainties and technical challenges (especially
when manufacturing and laying the cables). For example,
in the course of the Baltic 1 project, it became clear how
dependent the maritime processes in particular were 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 still only a small
number of potential suppliers for key components needed
to connect the farms to the grid.
Although the amendment to the EnWG limits liability, high
barriers have been erected to prevent transmission system
operators causing economic damage; moreover only a
portion of the liability risks can be transferred to the suppliers. This will cause the requirements providing for strict
and effective cost management with sufficient and legally
watertight documentation to increase once again.
92 • Annual Report 2012 Report 50Hertz Offshore GmbH
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 being confronted
by constantly monitoring the costs and reasonably weighing
up the costs and benefits.
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, 12 February 2013
Overall, there was no threat to the Company’s continuing
existence in fiscal year 2012 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 years taking into account the
measures taken as well as the insurance cover in place.
Forecast
Further business development will primarily be determined
by the progress made in preparing for the offshore wind
farm projects. In fiscal year 2013, efforts to connect Baltic 2
to the grid will be continued. Investing activities will remain
high and most likely increase in subsequent years as a result
of additional grid connection projects, which will also cause
assets to increase considerably. The financing of these
activities over the next few fiscal years will be secured by
agreements already in place.
Activities relating to operational management, such as maintenance and repair services as well as the implementation of
security concepts, will also be driven forward and developed
further. This will push costs up.
Earnings are expected to increase in 2013 and subsequent
years in comparison to 2012. 50Hertz Offshore will continue
to make every effort to connect the offshore wind farms to
the grid in both a timely and compliant manner. The new
legal framework will help uphold investment conditions.
The management
Udo Giegrich
Dr. Frank Golletz
94 • Annual Report 2012 Fiscal year 50Hertz Offshore GmbH
Fiscal year
Statement of financial position
Note
31 Dec 2012
In EUR k
31 Dec 2011
In EUR k
(1)
352,286.9
250,030.5
352,286.9
250,030.5
Trade receivables
345.8
495.5
Receivables from affiliates
509.0
10,493.0
2,666.1
102.0
3,520.9
11,090,5
13.2
46.9
355,821.0
261,167.9
ASSETS
Non-current assets
Property, plant and equipment
Current assets
(2)
Other assets
Prepaid expenses
(3)
Fiscal year 50Hertz Offshore GmbH Annual Report 2012 • 95
Note
31 Dec 2012
In EUR k
31 Dec 2011
In EUR k
1,000.0
1,000.0
145,000.0
108,000.0
20.1
20.1
146,020.1
109,020.1
– 1,716.1
3,374.5
3,231.5
3,374.5
4,947.6
27,075.0
13,838.6
179,333.4
133,361.6
18.0
0,0
206,426.4
147,200.2
355,821.0
261,167.9
EQUITY AND LIABILITIES
Equity
(4)
Issued capital
Capital reserves
Other revenue reserves
Provisions
(5)
Pensions and similar obligations
Other provisions
Liabilities
Trade payables
Liabilities to affiliates
Other liabilities
(6)
96 • Annual Report 2012 Fiscal year 50Hertz Offshore GmbH
Income statement
Note
1 Jan to 31 Dec 2012
In EUR k
1 Jan to 31 Dec 2011
In EUR k
Revenue
(7)
23,919.3
11,014.2
Other operating income
(8)
13,500.1
11,015.2
Cost of materials
(9)
– 1,744.9
– 2,312.6
Personnel expenses
(10)
– – 987.4
Amortization, depreciation and impairment
(11)
– 6,985.9
– 2,650.7
Other operating expenses
(12)
– 4,126.0
– 3,449.9
Interest result
(13)
– 7,671.1
– 4,325.0
Result from operating activities
16,891.5
8,303.8
Expenses from profit/loss transfer
– 16,891.5
– 8,303.8
– – Net profit for the year
Fiscal year 50Hertz Offshore GmbH Annual Report 2012 • 97
Cash flow statement
1 Jan to 31 Dec 2012
In EUR k
1 Jan to 31 Dec 2011
In EUR k
Change
In EUR k
16,891.5
8,303.8
8,587.7
6,985.9
2,650.7
4,335.2
Decrease in provisions
– 1,573.1
– 17,638.8
16,065.7
Increase in receivables and other assets
(prior year: decrease)
– 2,853.4
66.9
– 2,920.3
Increase in other liabilities and other equity
and liabilities
13,235.7
11,291.1
1,944.6
Cash flow from operating activities
32,686.6
4,673.7
28,012.9
Cash paid for investments in property,
plant and equipment
– 109,242.3
– 130,848.9
21,606.6
Cash flow from investing activities
– 109,242.3
– 130,848.9
21,606.6
Cash received from equity contributions
37,000.0
60,000.0
– 23,000.0
Cash received from shareholder loans
43,000.0
80,000.0
– 37,000.0
Cash paid from the profit/loss transfer
– 16,891.5
– 8,303.8
– 8,587.7
63,108.5
131,696.2
– 68,587.7
– 13,447.2
5,521.0
– 18,968.2
Cash and cash equivalents at the beginning of the period
10,456.7
4,935.7
5,521.0
Cash and cash equivalents at the end of the period
– 2,990.5
10,456.7
– 13.447.2
Net profit for the year prior to profit/loss transfer
Write-downs of non-current assets
Cash flow from financing activities
Changes in cash and cash equivalents
98 • Annual Report 2012 Fiscal year 50Hertz Offshore GmbH
Statement of changes in fixed assets
Cost in EUR k
1 Jan 2012
Additions
Reclassifications
Disposals
31 Dec 2012
– 28.0
– – 28.0
110,130.6
1,748.4
28,895.6
– 140.774.6
632.5
– 0.6
– 633.1
141,918.1
107,465.9
– 28,896.2
– 220,487.8
252,681.2
109,242.3
– – 361,923.5
252,681.2
109,242.3
– – 361,923.5
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
Fiscal year 50Hertz Offshore GmbH Annual Report 2012 • 99
Amortization, depreciation and impairment in EUR k
Carrying amount in EUR k
1 Jan 2012
Additions
Reclassifications
Disposals
31 Dec 2012
31 Dec 2012
31 Dec 2011
– 0.3
– – 0.3
27.7
– 2,598.0
6,906.5
– – 9,504.5
131,270.1
107,532.6
52.7
79.1
– – 131.8
501.3
579.8
– – – – – 220,487.8
141,918.1
2,650.7
6,985.9
– – 9,636.6
352,286.9
250,030.5
2,650.7
6,985.9
– – 9,636.6
352,286.9
250,030.5
100 • Annual Report 2012 Notes to the financial statements 50Hertz Offshore GmbH
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 2012, 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 supplemen­
tary 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.
In fiscal year 2011, the size criteria pursuant to Sec. 267 (1)
HGB for a small corporation were exceeded for the first
time; the Company now fulfills the size criteria for a mediumsized corporation as defined by Sec. 267 (2) HGB for a
second time and has prepared the financial statements in
line with the requirements for this legal form accordingly.
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 NV/SA, with its registered office in
Brussels, Belgium. The consolidated financial statements of
Elia System Operator NV/SA with the largest group of companies can be obtained from Elia System Operator NV/SA,
Boulevard de l´Empereur 20, 1000 Brussels, Belgium. The
consolidated financial statements prepared by Eurogrid covers the smallest group of companies and can be obtained
from the elektronischer Bundesanzeiger (Electronic German
Federal Gazette) (www.ebundesanzeiger.de). The Company
is registered in the commercial register of Charlottenburg
district court under HRB no. 130427 B.
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). In the fiscal year, the
useful lives for offshore wind turbines were brought into
line with the provisions of the Federal Network Agency in
order to better meet the regulatory requirements through
the accounting and to increase the informative value of the
financial statements in terms of the applicable regulation
framework. The change in the useful lives for offshore wind
turbines has an annual effect on earnings of EUR 844k.
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 (2 a) 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
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.
Prepaid expenses
Prepaid expenses refer to expenses of the reporting date,
insofar as they concern future periods.
Notes to the financial statements 50Hertz Offshore GmbH Annual Report 2012 • 101
EQUITY AND LIABILITIES
The interest portion from the increase in personnel-related
provisions was recorded in the interest result in the prior
year.
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.
The projected unit credit method was selected for pension
obligations and long-service bonuses accounted for in the
prior year. Discounting was calculated using the mean market interest rate of 5.13 % for a remaining term of 15 years
in accordance with the RückAbzinsV (“Rückstellungsabzinsungsverordnung”: German Ordinance on the Discounting of
Provisions). The interest rate of 5.13 % p. a. was also used
for the measurement of obligations from working lifetime accounts. The calculations were based on the 2005 G mortality tables of Prof. Dr. Klaus Heubeck. Future salary increases
were set at 3.5 % p. a. Expected pension increases were
taken into account at rates between 1.00 and 3.00 % p. a.
In the prior year, a portion of the defined pension plans was
fully covered by employer’s pension liability insurance at
one insurer. The amount of these defined pension obligations was therefore measured based on the fair value of the
covering assets where it exceeds the guaranteed minimum
amount. It was assumed that the fair value of the covering
assets corresponded to the cash surrender value announced
by the insurer as of the reporting date.
Liabilities
Liabilities are recognized at the settlement value deemed
necessary.
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 differen­
ces 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.
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.
Fixed assets in the prior year were primarily characterized
by subsequent costs relating to the grid connection (underwater and land cable) for the offshore wind farm Baltic 1.
The 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) Receivables and other assets
31 Dec 2012
In EUR k
thereof due
> one year
31 Dec 2011
In EUR k
thereof due
> one year
Trade receivables
345.8
– 495.5
– Receivables from affiliates
509.0
– 10,493.0
– 509.0
– 36.3
– 2,666.1
– 102.0
– 3,520.9
– 11,090.5
– thereof from shareholder
Other assets
102 • Annual Report 2012 Notes to the financial statements 50Hertz Offshore GmbH
In the fiscal year, receivables from affiliates contained VAT receivables from the shareholder due to the tax group in place
for VAT purposes. As of 31 December 2012, no trade receivables and trade payables (prior year: EUR 554.1 k) were offset
against each other. Other assets primarily contain a credit note from a supplier.
(3) Prepaid expenses
This item mainly contains prepaid insurance contributions.
(4) Equity
The Company’s issued capital of EUR 1,000 k is fully paid in and is held in full by 50Hertz Transmission.
The shareholder passed a resolution on 11 December 2012 to make a contribution of EUR 37,000 k to the capital reserves
which was performed before the end of the fiscal year 2012. As of year-end, the capital reserve amounted to EUR 145,000 k.
(5) Provisions
31 Dec 2012
In EUR k
31 Dec 2011
In EUR k
Change
In EUR k
– 1,716.1
– 1,716.1
3,374.5
3,231.5
143.0
2,195.4
2,464.1
– 268.7
– 202.3
– 202.3
Dues, fees, contributions
911.0
497.5
413.5
Litigation risks
133.0
– 133.0
Restoration obligation
102.8
34.6
68.2
32.3
33.0
– 0.7
3,374.5
4,947.6
– 1,573.1
Provisions for pensions and similar obligations
Other provisions
Thereof:
Outstanding invoices
Personnel-related provisions
Other provisions
Effective 1 January 2012, all of the Company’s employee arrangements were transferred to 50Hertz Transmission, as a result
of which the provisions for pension and other personnel-related provisions were also transferred to 50Hertz Transmission.
Notes to the financial statements 50Hertz Offshore GmbH Annual Report 2012 • 103
(6) Liabilities
31 Dec 2012
In EUR k
Due in
Total
Trade payables
Liabilities to affiliates
thereof to shareholder
Other liabilities
thereof from taxes
31 Dec 2011
In EUR k
Due in
Total
< one year
> five years
< one year
> five years
27,075.0
27,075.0
– 13,838.6
13.838.6
– 179,333.4
2,990.5
176,342.9
133,361.6
18.7
133,342.9
176,342.9
– 176,342.9
133,361.6
0.0
133,342.9
18.0
18.0
– – – – 18.0
18.0
– – – – 206,426.4
30,083.5
176,342.9
147,200.2
13,857.3
133,342.9
Liabilities to affiliates relate almost exclusively to a loan taken out by the Company of EUR 176,342.9 k (prior year:
EUR 133,342.9 k) as well as to liability from the cash pool of EUR 2,990.5 k (prior year: EUR 0.0 k). As of 31 December 2012,
no trade receivables and trade payables (prior year: EUR 554.1 k) were offset against each other.
Notes to the income statement
(7) Revenue
Revenue includes the return on investment, amortization, depreciation and impairment, trade tax and subsequent amounts
charged on account of the conversion of useful lives for offshore facilities. 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. The following items were included in the calculation:
Allocation of expense-matching costs
Allocation of other costs
Allocation to the shareholder
Income from the allocation of purchased services
to third parties
Sundry other operating income
1 Jan to 31 Dec 2012
In EUR k
1 Jan to 31 Dec 2011
In EUR k
Change
In EUR k
12,802.5
10,345.5
2,457.0
– 355.2
– 355.2
12,802.5
10,700.7
2,101.8
– 314.5
– 314.5
697.6
– 697.6
13,500.1
11,015.2
2,484.9
Sundry other operating income primarily contains income from the reversal of provisions (EUR 621.4 k).
104 • Annual Report 2012 Notes to the financial statements 50Hertz Offshore GmbH
(9) Cost of materials
1 Jan to 31 Dec 2012
In EUR k
1 Jan to 31 Dec 2011
In EUR k
Change
In EUR k
– 332.8
– 220.9
– 111.9
– 1,412.1
– 2,091.7
679.6
– 1,744.9
– 2,312.6
567.7
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 thirdparty services.
(10) Personnel expenses
1 Jan to 31 Dec 2012
In EUR k
1 Jan to 31 Dec 2011
In EUR k
Change
In EUR k
Wages and salaries
– – 705.2
705.2
Social security
– – 66.7
66.7
Expenses for pension and other benefit costs
– – 215.5
215.5
– – 0.1
0.1
– – 987.4
987.4
thereof for old-age pensions
All employees at 50Hertz Offshore were transferred to 50Hertz Transmission as of 1 January 2012. As a result, no personnel
expenses were incurred during the fiscal year.
The Company did not have any employees in 2012 (prior year: 3).
(11) Amortization, depreciation and write-downs
The increase in amortization, depreciation and write-downs by EUR 4,335.2 k to EUR 6,985.9 k is primarily due to the depreciation for connecting the offshore wind farm Baltic 1 to the grid, recognized for an entire fiscal year for the first time, as well
as adjusting the useful lives to the provision of the Federal Network Agency.
Notes to the financial statements 50Hertz Offshore GmbH Annual Report 2012 • 105
(12) Other operating expenses
1 Jan to 31 Dec 2012
In EUR k
1 Jan to 31 Dec 2011
In EUR k
Change
In EUR k
– 924.8
– 1,406.1
481.3
– 54.8
– 93.9
39.1
– 2,072.3
– 1,558.8
– 513.5
Rent and leases
– 683.3
– 43.6
– 639.7
Sundry other expenses
– 390.8
– 347.5
– 43.3
– 4,126.0
– 3,449.9
– 676.1
1 Jan to 31 Dec 2012
In EUR k
1 Jan to 31 Dec 2011
In EUR k
Change
In EUR k
8.3
12.9
– 4.6
8.3
12.9
– 4.6
– 7,679.4
– 4,337.9
– 3,341.5
– 7,676.0
– 4,262.7
– 3,413.3
– 7,671.1
– 4,325.0
– 3,346.1
Services
Legal and consulting fees
Insurance contributions
(13) Interest result
Other interest and similar income
thereof from affiliates
Interest and similar expenses
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 3.4 k (prior year: EUR 75.2 k) relate to the
mark-up of long-term provisions.
Other notes
There were no income tax-related cash flows as a result of
the tax group with 50Hertz Transmission.
Notes to the statement of cash flows
Based on the recommendations of GAS 2 as issued by the
German Accounting Standards Committee (GASC), the
statement of cash flows shows cash flows from operating,
investing and financing activities.
Other financial obligations
On 31 December 2012, there was a purchase obligation
for investments and maintenance measures towards third
parties of EUR 329,571k (prior year: EUR 362,819 k). There
was no purchase obligation towards affiliates.
The cash inflow from operating activities included interest received of EUR 8.3 k (prior year: EUR 12.9 k). Cash paid for interest amounted to EUR 7,676.0 k (prior year: EUR 4,262.7 k).
Contingent liabilities
In connection with Eurogrid issuing a bond of EUR 500 m on
22 October 2010, 50Hertz Offshore was named an additional guarantor. The guarantors are irrevocably, unconditionally
and jointly liable for the punctual payment of all amounts
Eurogrid is to make as part of the bond.
Cash and cash equivalents at the end of the period amounted
to EUR –2,990.5 k (prior year: EUR 10,456.7 k), relating entirely
to the liability due to Eurogrid under the cash pool arrangement.
106 • Annual Report 2012 Notes to the financial statements 50Hertz Offshore GmbH
On 14 June 2011, 50Hertz Offshore entered a five-year
syndicated loan agreement, as an additional guarantor,
with Royal Bank of Scotland, N.V. as syndicate leader and
Commerzbank AG, Luxembourg branch for a volume of
EUR 350 m.
On 9 December 2011, 50Hertz Offshore and 50Hertz Trans­mission issued a maximum guarantee to BNP Paribas S.A.,
Frankfurt/Main branch, totaling EUR 126 m to hedge a
short-term credit line of Eurogrid.
On 27 August 2012, 50Hertz Offshore and 50Hertz Transmission jointly issued a maximum guarantee with a term until
15 February 2013 to ING Bank, a branch of ING-DiBa AG,
Frankfurt/Main branch, of EUR 102.5 m to hedge a shortterm credit line of Eurogrid.
On 10 September 2012, 50Hertz Offshore and 50Hertz
Transmission issued a maximum guarantee with a term
until 15 February 2013 to Coöperatieve Centrale RaiffeisenBoerenleenbank b.a. (Rabobank), Utrecht, Netherlands, of
EUR 102.5 m to hedge a short-term credit line of Eurogrid.
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 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
Members of management:
Udo Giegerich
Berlin, commercial director
Dr. Frank Golletz
Dresden, technical director
The general managers did not receive any remuneration
from the Company.
Berlin, 12 February 2013
50Hertz Offshore GmbH
We currently do not expect any risk of claims relating to the
above contingent liabilities to arise.
Udo Giegerich
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.
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.
The volume of services utilized by 50Hertz Transmission in
fiscal year 2012 (service and general contractor agreement)
amounted to EUR 7,603.2 k (prior year: EUR 5,060.5 k).
Dr. Frank Golletz
Notes to the financial statements 50Hertz Offshore GmbH Annual Report 2012 • 107
Audit opinion
We have audited the annual financial statements, comprising the statement of financial position, the income statement, the cash flow statement and the notes to the financial
statements, together with the bookkeeping system, and the
management report of 50Hertz Offshore GmbH, Berlin, for
the fiscal year from 1 January to 31 December 2012. Pursuant to Sec. 6b (5) EnWG [“Energiewirtschaftsgesetz”:
German Energy Industry Act], our audit of the financial
statements additionally 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 management. Our responsibility 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 [“Handelsgesetzbuch”:
German Commercial Code] and German generally accepted
standards for the audit of financial statements promulgated
by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we
plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial
position and results of operations in the annual financial
statements in accordance with [German] principles of proper
accounting and in the management report are detected with
reasonable assurance and such that it can be assessed
with reasonable assurance 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 management, evaluating the overall
presentation of the annual financial statements and 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 reasonable 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 [German] 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, 13 February 2013
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
GlöcknerHerlitz
German Public Auditor
German Public Auditor
Publishing information
Editor
50Hertz Transmission GmbH
Eichenstrasse 3A
12435 Berlin
Telephone +49 (0)30 5150-0
Fax +49 (0)30 5150-4477
Board of Directors
Chairman and Chief Executive Officer (CEO)
Boris Schucht
Chief Technical Officer (CTO)
Dr. Frank Golletz
Chief Officer for Markets and System Operations (CMO)
Dr. Dirk Biermann
Chief Human Resources Officer (CHRO)
Hans-Jörg Dorny
Chief Financial Officer (CFO)
Udo Giegerich
Editorial staff
Olivier Feix (in charge)
Silja Bilz
Picture credits
Jan Pauls, Andreas Teich, Frank Wölffing,
Archiv 50Hertz,
Anna Subbotina/Fotolia.com
CDU/CSU parliamentary group in the Bundestag/
Christian Doppelgatz
Copyeditor
Textperlen, Bärbel Philipp
Print
Book and Offset Printing Company
H. Heenemann GmbH & Co. KG
Concept and design
CB.e Clausecker | Bingel AG
agency for communication
List of abbreviations
50Hertz Transmission 50Hertz Transmission GmbH, Berlin
50Hertz Offshore 50Hertz Offshore GmbH, Berlin
ACSS Aluminium conductor steel support (type of high-temperature conductor)
Amprion Amprion GmbH, Dortmund (formerly RWE Transportnetz Strom GmbH, Dortmund)
CAO Central Allocation Office GmbH, Freising
CHP Combined heat and power
DMBilG Act on the Opening Balance Sheet in Deutsche Mark and the Reassessment of
Share Capital (D-Mark Opening Balance Sheet Act)
DRS German Accounting Standards
E.ON edis E.ON edis AG, Fürstenwalde/Spree
EEG German Act on Granting Priority to Renewable Energy Sources (Renewable Energy Sources Act)
EEX European Energy Exchange AG (electricity exchange)
Elia Elia System Operator NV/SA, Brussels/Belgium
EMCC European Market Coupling Company GmbH, Hamburg
Energinet.dk Energinet.dk, Fredericia/Dänemark
ENTSO-E European Network of Transmission System Operators for Electricity
EnWG German Electricity and Gas Supply Act (Energy Industry Act)
EnBW EnBW Transportnetze AG, Stuttgart
EPEX EPEX Spot SE, a subsidiary of EEX and the French company Powernext SA,
which has its headquarters in Paris (electricity spot market)
Eurogrid Eurogrid GmbH, Berlin
Eurogrid International Eurogrid International CVBA/SCRL, Brussels/Belgium
FNA Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway, Bonn
GW Gigawatt
HGB German Commercial Code
High voltage direct-current transmission
HVDC HRB Commercial Register Section B
IDW Institut der Wirtschaftsprüfer in Deutschland e. V. (Institute of Public Auditors in Germany,
Incorporated Association), Dusseldorf
IFM Industry Funds Management PTY Ltd, Melbourne/Australien
IFRS International Financial Reporting Standards
IG BCE Mining, Chemical and Energy Industrial Union
kV Kilovolt
kWh Kilowatt-hour
KWKG Law on the Conservation, Modernization and Development of Combined Heat and Power
(German CHP Law)
MVA Megavolt ampere
MW Megawatt
PSE
PSE S.A., Polskie Sieci Elektroenergetyczne Spółka Akcyjna,
Polish Transmission System Operator
RückAbzinsV Regulation on the determination and announcement of rates for discounting provisions
(Regulation on the calculation of accrued interest on provisions)
TenneT TSO TenneT TSO GmbH, Bayreuth
TWh Terawatt-hour
Transmission system operator
TSO Vereinigte Energiewerke AG
VEAG WEMAG WEMAG Netz GmbH, Schwerin
www.50hertz.com
50Hertz Transmission GmbH
Eichenstrasse 3A · 12435 Berlin
T +49 (0)30 5150-0
F +49 (0)30 5150-4477
[email protected]