Press release
2019 Financial Statements: a joint plan to advance the energy transition
Rotterdam, 24 March 2020 – The energy transition is well under way. New developments in the energy system need to take their place in our energy infrastructure. It is essential to look and plan ahead together in order to ensure that the energy grid is ready for the future. Our joint efforts in the Netherlands are needed to meet this challenge. For this reason, Stedin engages with customers, local and regional parties, as well as public authorities. Transitioning together is therefore the title of the annual report that is published today.
At the time of publication of this 2019 Annual Report far-reaching measures are taken in the fight against the coronavirus. The energy infrastructure is vital to our society. In this situation, too, we are taking all necessary measures to ensure our electricity and gas grid remains as reliable as ever.
Work increases
Demand for energy infrastructure is greater than ever and the increase shows no signs of abating. For example, Stedin Group laid 1,034 kilometres of electricity cables in 2019, over 200 kilometres more than in the previous year (2018: 806 km). Electric transport is growing fast as well. Four times as many charging points were connected than the year before: 4,961 (2018: 1,215). A further 91 fast chargers were also added, more than double the number last year (2018: 44). Stedin Group invested € 39 million more in total compared with 2018. In Stedin's opinion, we can only ensure that the energy transition remains feasible and affordable by cooperating.
Regional Energy Strategy
Drawing on the Climate Agreement, each region is developing a Regional Energy Strategy (RES). Stedin is actively involved in every RES within its coverage area. Zeeland was the first province in the Netherlands to develop a draft RES. The early involvement of the grid manager and the many stakeholders, who were able to make a contribution through the sector platforms, helped to turn this process into a success.
Heat Transition Opening Bid
Stedin's Heat Transition Opening Bid contains information for municipalities on the potential alternatives to natural gas in each of the more than 3,000 neighbourhoods within the service area of Stedin and Enduris. It is focused on existing buildings. The Opening Bid relies on three existing Dutch models for the energy transition and combines their outcomes. These outcomes can assist municipalities in choosing a future-proof heat supply for each individual district.
NetVerder
Stedin Group launched NetVerder B.V. in 2019. This subsidiary focuses on energy infrastructures apart from natural gas and electricity, such as heat and steam. NetVerder is cooperating with the Woonbron, Vestia, Vidomes and DUWO housing associations as well as the municipality of Delft, for instance, to install a heat grid in the Voorhof and Buitenhof residential districts of Delft. In addition, NetVerder operates a steam network in the Botlek area of Rotterdam.
Financial
In 2019, Stedin Group achieved operating results of € 325 million (2018: € 118 million), of which € 251 million was related to the sale of Joulz Diensten. Compared with 2018, the revenue from regulated activities of € 1.2 billion is stable and we see the impact on our revenue from the phasing-out of non-regulated activities (2018 net revenue and other income: Joulz Energy Solutions € 30 million and Joulz Diensten € 46 million). Investments have also increased further to € 646 million (2018: € 607 million). Stedin Group expects this increase to continue in the years ahead as well.
Danny Benima, CFO of Stedin Group: 'The sale of Joulz Diensten in the first half of 2019 resulted in a one-off gain and the positive cash flow was used to strengthen our financial position. The investments in the energy transition increased as planned in 2019 and will continue to grow over the coming years. This growth places a heavy demand on our financial position. Ensuring the continued reliability of our energy grid, both in the present and in the future, is our duty to society. Together with various stakeholders, we are therefore considering the possibilities for financing the energy transition.'
Internal measures were also implemented in keeping with our goal of remaining financially healthy. The five-year efficiency programme that Stedin Group launched in 2018 is proceeding according to schedule and should yield savings of € 150 million.
