Press release

Half-year report: Cooperation essential for successful energy transition

Rotterdam, 31 July 2018 – In the first half of 2018, Stedin Group posted an operating result of €121 million (2017: €87 million). We are investing heavily in today and tomorrow's energy supply: €282 million in the first half of 2018 (2017: €213 million). Gerard Vesseur, Stedin Group CFO: ‘We are happy with these results, which are in line with our expectations. However, we also realise that we cannot get ready for the future on our own. Cooperation is growing ever more essential and we will continue to look out for partners going forward as well.’

The Netherlands intends to meet the targets of the Paris Agreement in 2050. After two years of arguing the case, Stedin Group is pleased that the duty to connect newly-built homes to the natural gas grid is being scrapped from legislation, so from now on they will no longer be heated directly by fossil fuels. For existing buildings, Stedin Group will have to redevelop virtually its entire energy grid to provide all dwellings and companies in its coverage area with alternatives to the natural gas connection. 

Collaboration

Discussions about the climate agreement have kicked off the public debate on the affordability of the energy transition. The attendant costs will have to be borne by society as a whole. Stedin Group is doing everything to keep the social costs as low as possible through smart collaborations with local authorities, partners and our customers. The required cooperative agreements were concluded in the past few months. For example, we have signed the Natural Gas-Free Newly-Built Homes Covenant with provinces and municipalities. Under this covenant, provinces, municipalities and the grid operator are joining forces to convince project developers and their clients of switching to sustainable alternatives in projects currently under construction that are being provided with natural gas. We can also limit any nuisance to our customers by working with water companies on the underground infrastructure. Furthermore, projects can be jointly put out to tender, allowing for contractors to be deployed more effectively.

New clients

We are also seeking to cooperate in the construction of new grids. Around 75,000 new houses will need to be built in the Netherlands each year. The current process to build new residential areas, for instance, is highly complex due to the number of parties involved: property developers, housing construction companies, water companies, telecommunications companies and grid operators. They all need to work with a tight but at the same time flexible agenda, both in their preparations and on the construction site itself. For this reason, Stedin recently started an initiative to explore the working method which assigns control of the mains services construction process to the construction company. This type of cooperation will see building projects completed faster. At the same time, we are exploring whether this working method can be used to facilitate the transition to a natural gas-free society. Over the next few decades, we will need to seek alternatives to natural gas for around 6,000 dwellings every month. 

Hydrogen

A study carried out by research institute KIWA and commissioned by Netbeheer Nederland shows that the existing gas network can be adapted for the use of hydrogen. Stedin Group sees the potential of hydrogen gas as a sustainable alternative to increase the sustainability of the built environment and, together with Delft University of Technology as well as grid companies Enexis Group and Alliander, is studying the use of hydrogen in the home. The use of hydrogen in the existing gas network may be beneficial in specific cases. Take, for example, historic city centres with many listed buildings that are difficult to insulate and are therefore unsuited for full electrical heating. Moreover, we see hydrogen as an alternative to natural gas in heavy industry in particular. The Dutch Climate Agreement calls for a reduction of four megatons of CO2 in 2030 through the production and use of hydrogen. 

Growing employment

The changes involved in the energy transition will see the number of jobs in our sector climb substantially in the years ahead. However, the growing shortage of technical personnel will be a challenge. Moreover, demand also exceeds supply in the labour market for specialists in the fields of digitisation and cyber security. Stedin Group is trying different methods to recruit new staff and retain current employees. The company is not only focusing on young people leaving education with a diploma, but it is also considering people coming from other professions and asylum residence permit holders who will be trained to become mechanics in the Stedin company training centre, for example. 

Half-year report 2018 Stedin Group

About Stedin Group

Working together towards a lifeworld full of new energy. Stedin Group’s 4,500 employees work towards this goal every day. We believe it is our responsibility to ensure that all our customers can have sustainable energy where they live, work and do business. As Stedin Group, we are making the energy system more sustainable while keeping it robust and affordable. Grid operators Stedin (Zuid-Holland and Utrecht) and Enduris (Zeeland) and infrastructure specialists Joulz and DNWG Infra work together within Stedin Group to achieve this. 

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