TenneT invested EUR 904 million in Dutch and German high-voltage grids in the first half of 2018, which represents an increase compared to EUR 750 million in the first half of 2017, according to the company's latest financial report.
The report states that the underlying operating result (EBIT) decreased from EUR 478 million in the first half of last year to EUR 362 million in the first half of 2018 due to regulatory changes.
EBITDA also dropped in the first half of this year, equalling EUR 699 million, compared to the first half of 2017, when it amounted to EUR 796 million, which, as TenneT said, is caused by a regulatory change in the Netherlands.
The underlying revenue stayed at EUR 1,996 million, the same as in the first six months of 2017, the report writes.
Higher compensation for feed-in management costs, those related to avoiding the oversupply of electricity on the grid, is said to be partially offset by lower revenue to cover offshore operating expenses in Germany.
“The energy transition is gaining momentum, also in the Netherlands. While the Netherlands has been trailing behind Germany until now, it is expected to catch up soon. This will create an entirely new situation in which TenneT, market parties and end consumers of electricity will be dealing with large-scale, weather-dependent generation of wind and solar energy," said TenneT CEO Mel Kroon.
"This not only requires the construction of new infrastructure – such as grid connections for many offshore wind farms and high-capacity onshore connections – but also the development of innovative hard- and software systems for real-time coordination of the variable supply of green electricity."