Foreword by the CEO

F O R E W O R D B Y T H E CEO

In July 2015, I had the honour of taking over the helm of the Elia Group. Following over 15 years’ experience in consultancy around organisation of the energy market, I discovered a group rooted firmly in the European landscape, mindful of its social responsibility and eager to play a decisive role in the integration of the energy market. I found teams with a high level of expertise and always on hand to perform practical tasks in the field as well as to get fully involved in development activities and in monitoring the electricity grid around the clock.

The various projects under way, both in Belgium and Germany, are indicative of the Group’s strategic focus areas and are structured around the crucial benefit afforded by the complementarity of the two system operators Elia and 50Hertz. Whether it is developing infrastructure or managing assets and operating the electricity grid, projects are generally conceived against a forward-looking backdrop: the aim is to utilise international cooperation to benefit the community. In terms of grid infrastructure development, significant progress was made in 2015 as regards shoring up our grid and extending international interconnections. Key decisions taken included that to invest in a direct-current (DC) interconnection between Belgium and the United Kingdom (the Nemo project) and that to install a fourth phase-shifting transformer on the border between Belgium and the Netherlands to enable international-trading flows to be monitored more accurately. Among other projects, the Group also continued work on building an interconnection between Belgium and Germany (the ALEGrO project) and on implementing investment plans in Belgium and Germany. These various projects form part of a wider scale investment programme. Completing these investment projects successfully will require the teams at Elia and 50Hertz to adopt a highly structured approach in planning and performing the necessary works, securing the appropriate permits, supporting local populations and keeping a tight rein on budgets. In terms of asset management, the Group is keen to optimise the methods it uses to manage assets more efficiently and effectively, while at the same time remaining steadfast when it comes to operational safety. Substantial progress has also been made where operation of the electricity grid is concerned thanks to the launch in May 2015 of flow-based market coupling in the Central West Europe (CWE) region. Via international partnerships between system operators and the use of more accurate models, this initiative will enhance economic wellbeing in the region and will also deliver greater price-convergence between the various markets. This is a first in Europe and is also an important milestone in building an integrated

The various projects under way, both in Belgium and Germany, are indicative of the Group’s strategic focus areas and are structured around the crucial benefit afforded by the complementarity of the two system operators Elia and 50Hertz.

OUTLOOKS

“ The emergence of new electricity transmission and generation technologies, new players and new forms of energy consumption present an opportunity for us to develop new tools, working methods and market mechanisms by which to incorporate them into the existing system to bolster the energy transition. ”

Chris Peeters CEO of the Elia Group

electricity market. It embodies advanced implementation of European legislation and is testament to the ongoing desire of TSOs to put in place the most innovative solutions to enable markets to function smoothly – and to do so as swiftly as possible. These various achievements were accompanied by several events which I consider to be pivotal for the years ahead: the approval by the Belgian authorities of the federal development plan for the period 2015-2025, CREG’s approval of Elia’s tariff framework for the next four years, and Elia’s issuing of a bond offering will all be crucial to our activities over the coming years. However, we must also plan for our longer term future and the Elia Group is committed to playing an active role in all the sectors in which it operates. Grid infrastructure will be a core component of the future electricity system if we are to be able to guarantee the security of supply required to enable the community as a whole to continue to prosper. However, we must build and operate our infrastructure in such a way that we are able to cope with the profound changes under way in the electricity system. Such an approach will require a detailed analysis of the relevant requirements and potential solutions, coupled with a continued commitment alongside all stakeholders (e.g. market players, civil society and the authorities). The emergence of new electricity transmission and generation technologies, new players and new forms of energy consumption present an opportunity for us to develop new tools, working methods and market mechanisms by which to incorporate them into the existing system to bolster the energy transition. The Elia Group is also keen to play its part fully by utilising the visibility afforded by its activities throughout the electricity system and by devising innovative solutions enabling the latter to evolve. Finally I should like to take this opportunity to thank all the staff of the Elia Group both for their efforts in achieving what we have in 2015 and for their unwavering commitment to achieving the very best for the benefit of the community as a whole. I know we will be able to count on this shared commitment and cooperation from dedicated and passionate individuals in rising to the challenges which lie ahead.

Chris Peeters

CEO of the Elia Group