TenneT Holding B.V.

Integrated
Annual Report
2024

We’re on it.
Together.
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Contents

4 19 103 129
TenneT at a glance 4 Executive Board Report 19 Corporate Governance 103 Sustainability statements 129

Key figures 5 Trends and developments 20 Corporate governance structure 104 General 130
Key events of 2024 7 Our purpose, promise and principles 22 Compliance and integrity 107 Environmental 137
Letter from the CEO 9 Our strategy 23 Executive Board 108 Social 162
Update on structural financing solution 13 Our stakeholders 24 Executive Board biographies 109 Governance 173
for TenneT's German activities How we create value 26 Supervisory Board biographies 112 Appendix 178
Our profile 14 Value chain and impacts 29 Supervisory Board Report 115
Our contribution to the SDGs 32 Remuneration report 123 Cover: Eindhoven’s busy city centre captures the energy
and movement of daily life. It reflects TenneT’s role in
keeping the lights on and supporting the energy transition
Our performance 2024 34 in the places where people live and work.
Building the electricity grid of tomorrow
Utilise the grid to empower society * The Executive Board Report and the Sustainability
statements reflect the director's report as mentioned by
Deliver more grid capacity together for our Part 9 of Book 2 of the Dutch Civil Code.
customers and to serve society
Disclaimer PDF print – Statement – This copy of the
Create a safe and inspiring workplace
Integrated Annual Report of TenneT Holding B.V. for
Transition to a brighter energy future within the year 2024 is not in the ESEF-format as specified
social and planetary boundaries by the European Commission in Regulatory Technical
Standard on ESEF (Regulation (EU) 2019/815). The ESEF
Safeguard sustainable financial performance reporting package is available at https://www.tennet.eu/
company/investor-relations/financial-reports/ In case of any
discrepancies between this ‘printed version’ and the ESEF
Risk management 86
reporting package, the ESEF reporting package prevails.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Contents

189 246 256

Financial statements 189 Other information 246 Supplementary information 256

Consolidated financial statements 190 Profit appropriation 247 Limited assurance report of 257
Notes to the consolidated 194 Independent auditor’s report 248 the independent auditor on the
financial statements Company addresses 255 sustainability statement
Company financial statements 241 About this report 260
Notes to the company 243 Key figures: five-year summary 262
financial statements Definitions 263
Glossary 264
Colophon 268
Disclaimer 269

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

TenneT at a glance Key figures

Key events of 2024
5
7
Letter from the CEO 9
Update on structural financing solution 13
for TenneT's German activities
Our profile 14
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Key figures
Building the Utilise the grid Deliver more grid
electricity grid to empower capacity together
of tomorrow society for our customers
and to serve society

Future proof grid Grid availability (onshore) Initiatives

Investments (EUR million)

10,637
Future proofNL:3,783 | DE: 6,852 | NR*: 2
grid
99.99988% 30
NL: 99.99988% | DE: 100.00000% 2023: 27
2023: 7,730 2023: 99.99993% 2022: 11
Target: 10,919 Target: 99.99962%

Grid availability (offshore)

97.09%
NL: 36%
DE: 64%
NL: 97.58% | DE: 96.77%
2023: 97.90%
Target: 95.07%

Circuit length
In kilometres

245
Target: 261

Newly installed GW offshore

0.0 GW
2023: 2.3 GW
Target: 0.0

* NR = non-regulated

Integrated Annual Report 2024 TenneT Holding B.V. 5

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Key figures

Key figures
Create a safe Transition to a Safeguard
and inspiring brighter energy sustainable
workplace future within social financial
and planetary performance
boundaries

Safe workforce Environmental impact Healthy financial

Total Recordable Incident Rate Reduction of carbon footprint operations

4. 0
compared to base year 2019
Underlying EBIT group
(Scope 1 and scope 2 market-
(EUR million)

1,745
based emissions)
NL: 1.9 | DE: 5.7

93%
2023: 4.5
Target: 3.7
2023: 1,817
Target 2030: 95% Target: 1,680
Healthy workforce
Absentee rate

nl 3.6 Percentage of non-virgin materials

procured
Safeguarded capital
structure

3.3 2 % Adjusted FFO/Net debt group

de
2023: NL 3.9 | DE 3.4
Percentage of recoverable waste
8.2%
97%
Target: 3.0%1 2023: 11.6%
Target: 8.0%

Diverse workforce
% Female inflow of total inflow Satisfied capital providers

32 % ROIC group (%)

Number of environmental

4.7%
incidents

171
NL: 34% | DE: 29%
2023: 32%
Target: 32% 2023: 5.8%
Target: 4.3%
2023: 190
% Non-Dutch/non-German inflow

11%
NL: 12% | DE: 10%
2023: 11%
Target: 10%
1
No target value for absentee rates, however a value TenneT strives for.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Key
Key events
events of
of 2024
2024 June - Discussions on a full sale of
TenneT Germany terminated
In June, discussions concerning the full
sale of TenneT Germany between
February - Start of offshore grid March – Reappointment of Maarten Abbenhuis TenneT Holding and the German
connection project BorWin6 In March, Maarten Abbenhuis was reappointed by the investment bank (KfW) acting on behalf
As part of the BorWin6 project in Büttel, Shareholder as statutory director of TenneT Holding B.V. of the Federal Government of Germany
a fourth high-voltage direct current for a second four-year term, from 1 January 2025 – were terminated. TenneT Holding is
transmission for offshore grid connection 31 December 2028. preparing to tap into public or private
is now being implemented. The wind power capital markets for a structural funding
generated at sea off the coast of Lower solution for its German operations. In
Saxony is transmitted as a three-phase the meantime, TenneT remains fully
current to a TenneT converter platform, committed to executing its large
where it is converted into direct current investment plans in both countries,
and transported a total of 235 kilometres backed by the Dutch State which
to the Büttel converter. This makes it provided TenneT a EUR 25 billion
TenneT's longest offshore wind energy shareholder loan facility for the years
connection system to date. Commissioning 2024 and 2025 and EUR 19.4 billion for
is planned for 2027. the years 2025 and 2026.

02 03 04 06 07
July – Development of multi-terminal
hubs with DC circuit breakers begins
German transmission system operators
and industrial companies launched an
innovation partnership to develop
April - TenneT publishes investment multi-terminal hubs with DC circuit
plans in the Netherlands and
breakers. These multi-terminal hubs
Germany
make it possible to efficiently use and
In April, the Dutch grid operators
distribute large quantities of wind power
published their investment plans, which
generated along the North Sea coast.
give more insight into investments and
By connecting direct current (DC) lines,
projects of grid operators for the next
they can flexibly deliver energy to where
10 years. TenneT expects to carry out
it is needed most. This innovation will
around 700 major infrastructure
establish the first extra-high-voltage
projects. In Germany, the Federal
DC grids.
Network Agency (BNetzA) confirmed
the Grid Development Plan (NEP)
2037/2045, presented by the four
German grid operators.

Integrated Annual Report 2024 TenneT Holding B.V. 7

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Key events of 2024

Key events of 2024 December - Power Grid in Zuid-Holland

reaches maximum capacity and no extra
space can be made in large area of Noord-
Holland
In December, TenneT announced that the
high-voltage grid in a large part of
Zuid-Holland has reached its maximum
August - Battery giant and TenneT capacity. This marks the last province in the
conclude first time-based contract Netherlands where there was still available
TenneT concluded the first ever capacity for large electricity consumers.
time-bound contract. This was a November – Commissioning of largest
Efforts are now being made to accelerate the
AC project in Germany
milestone marking an important step construction of energy infrastructure and to
The Wahle-Mecklar project ensures the trans-
forward in the more efficient use of the optimise flexible use of the existing grid. In
mission of wind energy on the north-south axis
existing electricity grid. The new addition, research shows that no extra
and stabilises the network in Lower Saxony
agreement gives customers the right to capacity can be created in Noord-Holland.
and Northern Hesse. With the completion of
take electricity off the grid or feed in at This means that many areas in the province
the remaining section in the Göttingen region,
least 85% of the time. This is offset by a will face waiting lists for large electricity
the overall pipeline is now fully operational.
discount of up to 65% on transport tariffs. consumers for at least the next ten years,
With 566 pylons, electricity now flows through
further highlighting the urgency of addressing
more than 210 kilometres of overhead line and
the growing demand for electricity
20 kilometres of underground cable.
nationwide.

08 11 12
November - Interconnector
LionLink included in Offshore
Wind Energy Development
Framework by Dutch Minister
of Climate and Green Growth
TenneT may now make investments
for LionLink, the first direct-current
hybrid interconnector. This project
connects the Dutch offshore grid
connection of wind farm Nederwiek
3 to both the Dutch and the UK
onshore high-voltage grid. The
connection can also be used as an
additional high-voltage link to
December - Tim Meyerjürgens appointed
exchange electricity between the CEO of TenneT Germany
countries. LionLink could supply up Tim Meyerjürgens was appointed Chief
to 2 gigawatts (GW) of electricity. Executive Officer (CEO, Vorsitzender der
Geschäftsführung) of TenneT Germany. The
appointment took effect on 1 January 2025.

Integrated Annual Report 2024 TenneT Holding B.V. 8

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Letter from the CEO

In the Netherlands and Germany, consumers and businesses challenges, delays, and unpredictable twists in direction and
are navigating the ongoing reality of higher costs and pace. Yet amid these uncertainties, one certainty remains: the
energy bills, fuelling an important conversation about the energy transition and the transformation of the high-voltage
affordability of the energy transition. Despite these challenges, grid is a shared mission that touches everyone—politicians,
we are making bold and necessary strides, with nearly industry leaders, small business owners, and citizens alike.
Manon
EUR van Beek,
160 billion Chief
set to be Executive
invested Officer in both
in grid expansion

We’re on it. Together.

countries by 2033. The urgency, scale, and complexity of this challenge are
too vast to face alone. Success depends on the strength
This investment is not just about infrastructure—it is about of collaboration and the collective effort of all stakeholders
building a sustainable electricity system that supports across the chain. That is why this year’s Integrated Annual
Europe’s 2050 climate goals and driving the implementation Report carries the theme ‘We are on it. Together.’.
2024 was a turbulent year,
of national renewable energy policies. Likewise, it’s also about
maintaining and even increasing our prosperity andboth geopolitically
the energy For us, and within
being "on it" means staying proactive, energized, and
“Nis etus, cum que dolorestet aliquod quia que
independence of Europe’s, Dutch and German societies. Europe,
A wheredetermined
economicto overcome the obstacles in our way. Whether
sed quos estis ario. Henienias magnatur, totae
competitiveness
robust and expanded electricity grid provides the backbone it isisresolving
declininga construction delay, adapting to changes in plandero de de quia qui beatintur.”
for all this. compared to the Unitedrenegotiating
regulation, States with suppliers, or addressing any
Maarten Abbenhuis, Chief Operating Officer
other roadblocks—big
and Asia. High energy costs or small.
The journey to a fully decarbonised economy and society
threaten the future of European
is anything but straightforward. The path is filled with Building European competitiveness
industry. Structural dependence
As Europe strives to bolster its global competitiveness, Netherlands and Germany share our commitment to a
on fossil fuel imports—
collaboration, foresight, and innovation have never been collaborative energy future.
exacerbated by moreRussia’s
crucial. The recently published Draghi report,
ongoing war inspearheaded
Ukraine—has by former European Central Bank Governor Key requirements for success
driven recent price
Mariospikes. To with TenneT’s vision for a green
Draghi, aligns To achieve our goals and thereby those of our society four
counter this, Europe must The report emphasises the urgent need for
energy future. essential conditions must be met.
expanded
accelerate its energy infrastructure, anticipatory investments, and robust
transition
international
and electrification to become cooperation, particularly across the North Sea. The first is ensuring that planning and licensing allows the
smart and rapid expansion of grid infrastructure. Access to
more energy independent. The
This shared vision resonates strongly with TenneT’s Target sufficient space to build is critical. We know this is not easy.
European Commission rightfully
Grid 2045 strategy. By proactively developing and investing The Netherlands has well-known space constraints and high
emphasizes the urgent need for
in the grid, we aim to transform the North Sea into population density. And yet we need to find space equivalent
significant investment in energy
Europe’s green energy powerhouse. This forward-thinking to around 4,000 football fields for our grid expansion projects
grids,
“Nis etus, cum que dolorestet aliquod quia que modernizing transmission,
approach ensures long-term benefits for future generations. in the Netherlands alone. Number of football fields for our grid
sed quos estis ario. Henienias magnatur,distribution,
totae hydrogen, and
However, achieving this vision requires deeper European expansion projects in Germany is outstanding.
plandero de de quia qui beatintur.” integration,
storage infrastructure to collective action, and a rejection of inward-
Arina Freitag, Chief Financial Officer looking, nationalistic tendencies. At TenneT, our mission Second, we need sufficient skilled labour. Building the Target
achieve a net-zero system.
transcends borders, and we trust that governments in the Grid is a huge undertaking, requiring a fast-growing and
highly skilled workforce. Beyond TenneT’s needs, we estimate

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Letter from the CEO
Tennet_24_IAR_Images_Forword_Quote2_picture

In our domestic markets, the Netherlands and Germany, Our investment portfolio is not just about infrastructure – it’s
consumers and businesses are navigating the ongoing reality about building a sustainable electricity system that supports
of higher costs and energy bills, fueling an important Europe’s 2050 climate goals and driving the implementation
conversation about the affordability of the energy transition of national renewable energy policies. Likewise, it’s also about
and the secure supply of electricity. Precisely to meet these maintaining and even increasing our prosperity and the energy
concerns, we are making bold and necessary strides, with independence of European, Dutch and German societies.
some EUR 200 billion set to be invested in grid expansion in
both countries by 2034. Achieving this ambitious goal relies The urgency, scale, and complexity of this challenge are
not only on technical progress and financial commitment but too vast to face alone. Success depends on the strength
also on the people who make it possible. Providing a safe of collaboration and the collective effort of all stakeholders
working environment for everyone working for and with us is across the chain. That’s why this year’s Integrated Annual
essential, as safety is a pre-requisite for everything our people Report carries the theme ‘We’re on it. Together.’ For us, being
do in their work for TenneT. "on it" means staying proactive, energised, and determined
to overcome the obstacles in our way. As an example, we’re
working relentlessly, together with regional grid operators "The security of supply level in 2024 has been high,
and governments at various levels, to solve persistent issues as society can expect from us. This is the result
such as grid congestion and long waiting times for new of all the effort our colleagues put into TenneT. At
grid connections. the same time, we are preparing and building the
high-voltage grid of the future. This requires massive
Building European competitiveness infrastructure expansion, better utilisation of the existing
As Europe strives to bolster its global competitiveness, grid and an innovative mindset on market design. These
collaboration, foresight, and innovation have never been elements will strengthen the momentum towards Target
more crucial. The Draghi report, spearheaded by former Grid 2045."
European Central Bank Governor Mario Draghi, aligns with
TenneT’s vision for a green energy future. The report Maarten Abbenhuis, Chief Operating Officer
emphasises the urgent need for expanded infrastructure,
anticipatory investments, and robust international co-
operation, particularly across the North Sea.

This shared vision resonates strongly with TenneT’s Target Key requirements for success
Grid 2045 strategy. By proactively developing and investing To achieve our goals and thereby those of our society, four
"Electricity grids are at the core if we want to meet in the grid, we aim to transform the North Sea into essential conditions must be met. The first is ensuring that
the climate target of no more than 1.5 degrees Celsius Europe’s green energy powerhouse. This forward-thinking planning and licensing allows the smart and rapid expansion
temperature rise. TenneT‘s large scale investments in the approach ensures long-term benefits for future generations. of grid infrastructure. Access to sufficient space to build is
energy transition are therefore no-regret. For more and At TenneT, our mission transcends borders, and we trust critical. We know this isn’t easy. The Netherlands has well-
smarter grids to be realised, we need to mobilise private that governments in the Netherlands and Germany share our known space constraints and high population density. And
capital for TenneT Germany." commitment to a collaborative energy future. yet we need to find a significant amount of space for our
grid expansion projects. National and especially provincial
Arina Freitag, Chief Financial Officer

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Letter from the CEO

governments play a crucial and socially responsible role in Collaboration across the value chain grid investments, which inevitably impact tariffs for consumers
this, helping us to plan and reserve the space we need. The energy transition is a collective effort requiring seamless and businesses. This underscores our social responsibility to
integration of various technologies like hydrogen and battery find equitable, sustainable solutions in collaboration with grid
Second, we need enough skilled labour. Building the Target storage. The electricity grid cannot exist in isolation; it must operators and governments.
Grid is a huge undertaking, requiring a fast-growing and interact cohesively with the broader energy system.
highly skilled workforce. In 2024, our workforce increased The cost of inaction is far greater than the cost of building
with 1,357, but we are just one of many employers looking Strong partnerships are vital—not only within Europe but also the grid. Without decisive investments, the energy system will
for talent. Even if we recruit enough people, it only solves among North Sea countries and between the Netherlands and fail to meet rising demands, businesses will stagnate, and
part of the problem. We need the whole supply chain to be Germany. As TenneT evolves, maintaining close ties between offshore wind electricity will remain untapped. By contrast,
adequately resourced to achieve our mission together. our Dutch and German operations, as well as with political, a decarbonised economy promises climate resilience, energy
investment, and shareholder stakeholders, remains critical. independence, and sustainable growth.
Third, we need sufficient materials and other critical
resources. Global pressures on the supply chain, made worse Enhancing Europe's competitive position in the energy sector,
by geopolitical and economic instability, inflate prices and particularly in relation to global powers like the United
make it more challenging to secure critical resources. We are States and China, will require innovative financing. Engaging
addressing these constraints by establishing partnerships and with institutions like the European Investment Bank and the
long-term framework contracts with suppliers – an approach European Commission is essential to unlock new funding
we achieved again in 2024. In an increasingly tight market, we mechanisms and attract private capital.
believe this is crucial to ensuring realistic planning and reliable
delivery of our projects. Internally, we sharpened our strategy in 2024, with an
improved focus on customer needs and societal expectations.
Fourth, we need political and policy support, with timely By embracing unconventional solutions and pioneering new
decision-making from national and European policymakers. approaches, we aim to build faster, utilise the grid better
As grid development involves decades-long planning, policy and work smarter and more sustainably. Leadership, too,
visibility of just four years ahead is not enough – we need plays a pivotal role in fostering trust, embracing vulnerability,
to see to 2040 and beyond. For example, in both Germany and forging partnerships to overcome resistance and unlock
and the Netherlands, we need strong public policy guidance progress, and we have supported our leaders in leading
on the use of overhead high-voltage connections versus through ambiguity.
underground power cables. Clarity on these topics is critical,
from the perspective of cost, security of supply and realisation A shared responsibility
time. The debate over how to integrate nuclear into the Dutch The progress we’ve made with Target Grid and the LionLink "Of course, we are very focused on our national
energy mix, and how that relates to the offshore wind agenda, hybrid interconnector underscores the transformative potential concerns regarding an affordable and sustainable
also has a big impact on us. These are the types of long-term of Europe’s offshore wind resources. These projects are electricity system. However, we need to plan across
questions we need answers to now. We see a clear need for pivotal in delivering cheaper, cleaner, and more independent borders if we want to create an efficient renewable
policy direction and consistency from national governments. electricity for all. energy system; the energy transition is a joint European
task in which the better we work together, the more
While society demands a reliable, affordable, and sustainable successful we will be."
energy system, we must also address the rising costs of
Tim Meyerjürgens, Chief Operating Officer

Integrated Annual Report 2024 TenneT Holding B.V. 11

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Letter from the CEO

Our Target Grid strategy ensures cost-efficient planning by

building only the infrastructure society genuinely needs and
leveraging cross-border electricity market efficiencies.
Moreover, smarter grid utilisation—such as alternative
contracts to optimise off-peak usage—can alleviate grid
congestion, cut waiting times for connection and reduce
the need for new infrastructure.

Addressing disparities in grid tariffs across Europe is a priority.

The current "user pays" principle ensures fairness among
major users, but harmonising energy rebate schemes at
the European level is essential for a level playing field.
Vulnerable groups, including households and major industrial
players, also require targeted support to combat energy
poverty and foster economic vitality.

People and partnerships drive success

Our achievements stem from the dedication of our people and
the strength of our partnerships. Despite external pressures,
our teams continue to deliver exceptional results while
prioritising safety. As we reflect on 2024, we express our
heartfelt gratitude to all our employees and partners who
make our mission possible. The journey to a secure,
affordable, and sustainable energy future demands collective
strength and resilience. At TenneT, we are fully committed to
tackling these challenges together—because together, we are
on it.

With warm regards, heartfelt thanks and confidence in

the journey ahead of us,

On behalf of TenneT's Executive Board,

Manon van Beek (CEO)

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Update on structural financing solution

for TenneT's German activities
The fast acceleration of TenneT's grid expansion, onshore and offshore, requires unprecedented investments
in the Netherlands and Germany. TenneT's investment plan in both countries for the period 2025-2034 adds
up to some EUR 200 billion, which is expected to be funded primarily through debt but also requires equity.

As a potential solution for the equity need in respect of its At 12 January 2024, TenneT and the Dutch state have TenneT will continue leveraging group synergies where
German operations, TenneT announced in early 2023 that it agreed upon a shareholder loan facility of EUR 25 billion possible. Achieving synergies across our operations has
intended to explore the possibility of a full sale of its German to safeguard the financing of TenneT's planned investments been a crucial driver of TenneT’s success over the past
operations to Kreditanstalt für Wiederaufbau (KfW), acting on in the Netherlands and Germany for 2024 and 2025. decade, enabling the company to deliver value and impact
behalf of the German state. At 21 February 2025, TenneT and the Dutch state have at every level. So regardless of the future ownership of TenneT
agreed upon a supplementary shareholder loan facility of Germany, the company continues close co-operation across
During 2023, constructive discussions took place between EUR 19.4 billion, safeguarding TenneT's planned investments national borders.
TenneT Holding and KfW, with close involvement of the in the Netherlands and Germany for 2025 and 2026. The loans
Dutch State as TenneT's sole shareholder. Although extensive drawn from the facility will be granted at market conditions. TenneT has developed a unique culture and its number
discussions lasted for more than a year, the Federal one synergy is the co-operative mindset, which allowed
Government of Germany informed the Dutch State that With the aforementioned loan facility and the successful setting standards and driving meaningful advancements in
it could not deliver on the envisaged transaction. As no issuance of the EUR 1.1 billion Green Hybrid Bond in 2024 areas where TenneT is known as pioneer. The offshore 2GW
agreement could be reached, negotiations were formally (issued to refinance the Green Hybrid issued in 2017), TenneT Program or Target Grid are leading examples.
terminated in June 2024. has the financial certainty it needs to remain fully committed
to executing the investment plan in both countries, delivering
As a result, TenneT Holding, in close co-operation with the grid capacity in time for our customers.
the Dutch State, is exploring alternative structural funding
solutions for its German activities. As the Dutch government In order to have an organisational structure in place for
has said it prefers to not use Dutch taxpayers’ money for potential investor participation in TenneT Germany, TenneT
grid investments in Germany, the preferred structural solution is transformed from a fully integrated, functional steered
for TenneT Germany’s capital requirements is either through organisation into two independent, national TSO organisations
an investment in TenneT Germany by private investors, or by as of 1 January 2025: TenneT Netherlands and TenneT “TenneT remains fully committed
a potential listing of TenneT Germany to raise equity in the
public capital markets.
Germany, held together as a group in TenneT Holding.
TenneT Germany has appointed CEO Tim Meyerjürgens per
to executing the investment
1 January 2025. plans in both the Netherlands
and Germany”

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Our profile We are a Transmission System Operator (TSO)

Who we are With over 25,000 kilometres of high-voltage connections both
onshore and offshore, our role as a Transmission System
Operator (TSO) is to ensure a secure supply of electricity to
over 43 million end-users, in the Netherlands and a large part
of Germany, and to create the infrastructure needed to secure
supply today and tomorrow.

Our end-users Our assets

End-users served Kilometres of high-voltage Underlying revenue (EUR million)
connections operated

43 mio+ 25,000+ 8,430

Pylons for energy transmission owned Underlying EBIT (EUR million)
Our people

28,000+ 1,745
(approximately)
Number of colleagues

9,693
“Our role is to Number of nationalities Substations operated

91 485
NL: 36%
ensure a secure DE: 62%
NR*: 2%
supply of electricity
to over 43 million
end-users, in the
Netherlands and
a large part of
Germany.’’
* NR = non-regulated

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Our profile

Our profile TenneT as a European investor

What we do TenneT is one of Europe’s largest investors in national and
cross-border electricity transmission capacity on land and
at sea, bringing together the Northwest European energy
markets and efficiently unlocking large-scale renewable
electricity sources. We collaborate with a wide range of
partners in the energy market to develop and apply new,
smart technologies and to contribute to the energy transition
in the future.

Our offshore assets

Offshore connections Installed offshore capacity
NL: 34%

19 12.2 gigawatt DE: 66%

Inter­connectors operated International connections

17 1,788
(interconnectors) in kilometres

“We bring together the Northwest

European energy markets and
efficiently unlock large-scale
renewable electricity sources.’’

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Our profile

Our profile Our core tasks, based on the Dutch and German energy legislation
Our core tasks Our primary tasks are to provide power transmission services, system services and facilitation
of the electricity market. These tasks follow from our role as grid operator under the Dutch
- ‘Elektriciteitswet 1998’ (E-wet) - and German - ‘Energiewirtschafts-gesetz’ (EnWG) energy
laws, based on three pillars:

Transmit electricity Power transmission services mean that our role is to transmit
electricity via our electricity system. We transmit electricity from where it is generated, either
on land or at sea or imported from other markets. As electricity is often generated far away from
where it is used, we need to transmit it over large distances without incurring major losses on
the way. To achieve this, we transmit electricity at high voltages. Electricity is transmitted to our
customers via our transmission system, being 110 kV and higher in the Netherlands and 220 kV
and higher in Germany.

Provide system services System services refer to our role in carefully managing the
balance between the supply and demand of electricity and to keep the frequency at a constant
level (50 hertz). To do this, we have control centres in the Netherlands and in Germany, where
supply and demand are monitored and controlled 24 hours a day, seven days a week providing
security of supply.

Facilitate markets In addition, we ensure that European electricity markets are set
up in an efficient manner, enabling a liquid market where consumers can rely on security of
supply at an affordable price. To this end, we build and operate for instance interconnections
(such as NorNed, NordLink, BritNed, COBRAcable and we are preparing LionLink, a hybrid
interconnector), to import and export electricity. We also work together with other European
TSOs and electricity markets to guarantee grid reliability and to balance supply and demand
across borders and markets.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Our profile

Our profile We drive the energy transition

How we do it
The energy system is increasingly dependent on renewable
sources. But renewables are, by nature, intermittent – the sun
does not always shine, and the wind does not always blow.
This calls for a change in the system. TenneT, together with
its stakeholders, is working to address these challenges, to
safeguard the balance between supply and demand in the
future. We build grids that integrate new energy sources, for
example with the battery-storage of electricity, and unlock
flexibility, both onshore and offshore.

Our carbon footprint in absolute figures

Total GHG emissions location based Total GHG emissions market based

4,702,180 tCO2eq. 2,699,516 tCO2eq.

Our carbon footprint in relative figures

Greened carbon footprint

43%

“We build grids that integrate new

energy sources and unlock flexibility,
both onshore and offshore.’’

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Our profile

Our profile Our role in Europe:

Our climate neutral objectives we drive the transition to a climate-neutral
continent
By 2050, Europe aims to become the world's first climate
neutral continent. TenneT, along with European governments
and other energy parties, is key to making this ambition
a reality. In the transition to a climate-neutral continent, the
transition of the electricity system is an important element
to ensure that society has a sustainable supply of energy.
Governments in the areas we serve have formulated ambitions
to support Europe’s climate targets, with the German
government aiming for climate neutrality in 2045 and the
Dutch government in 2050.

Our long-term Target Grid vision:

we strive for a climate-neutral energy system
in 2045
As a key player in the energy market, we support the energy
transition by sharing our insights to integrate and switch to
more renewable energy sources to power society, while
aiming to ensure that we are able to keep the lights on at all
times. We are making sure that both offshore and onshore
generated electricity can be integrated into the grid properly,
for example by reinforcing, renewing and greatly expanding
our grid. To reach these goals, we launched in 2023 our Target
Grid vision, the long-term blueprint of our electricity grid,
needed to operate a climate-neutral energy system in 2045.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Executive Board Report Trends and developments

Our purpose, promise and principles
20
22
Our strategy 23
Our stakeholders 24
How we create value 26
Value chain and impacts 29
Connectivity table 31
Our contribution to the SDGs 32

Our performance 2024 34

Risk management 86
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Trends and developments

As a TSO, TenneT operates at the heart of Increased discussion on affordability of energy Retain competitiveness for Europe through
the energy sector, ensuring that the electricity The energy transition is crucial for achieving climate improved infrastructure
goals, ensuring energy security and strengthening energy In a changing world with new challenges, the European
which is increasingly generated from carbon-neutral
independence. The investments required to future-proof the Union is focused on staying competitive and prosperous.
sources (such as wind parks and solar farms) electricity system are significant and will have a clear impact Europe is working hard to maintain its leadership globally
is connected to the grid and transmitted to our on the development of grid tariffs in the coming years. The and to make sure it has control over its own future.
customers being large industries and distribution question of how to allocate the cost related to transitioning Therefore, Europe needs to look further ahead and set out
system operators (DSOs), which distribute electricity to a climate-neutral electricity system without undermining the how to remain competitive. Improving electricity infrastructure
to the households in the areas we serve. Several affordability of energy bills is at the heart of the current debate and strengthening cross-border connections can help drive
trends and developments affect us in our daily work and also has to reflect the cost of non-investment. Further progress and boost prosperity and competitiveness across
in a continuously changing environment and rapidly reference is made to the section Safeguard sustainable Europe. This is also stated by former president of the
financial performance. European Central Bank Mario Draghi in his report on the future
evolving energy landscape.
of European competitiveness at the behest of Ursula von der
Enhancement of the energy system through Leyen, president of the European Commission.
innovation and digitalisation
Innovation and digitalisation offer new opportunities and
can for example enhance monitoring and optimisation
of transmission systems. As energy storage technologies
advance, integrating these systems into the grid becomes
vital for balancing supply and demand. Sustainability and
innovation are important elements in our strategy and go hand
in hand. As mentioned before, we cannot shape a sustainable
future on our own but need the innovative brainpower of
other companies. Through ‘Open Innovation Programmes’ we
invite participants to work together on significantly reducing
greenhouse gas emissions of extra-high-voltage substations
over the entire life cycle.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Trends and developments

Decarbonisation needed to tackle climate change leading to price volatility and less readily available materials This calls for serious measures that facilitate acceleration
Climate change is one of the most urgent and complex are some of the external factors impacting TenneT in this of electricity grid expansion. In addition, grid operators and
societal challenges of our time, of which many scientists capacity expansion. For TenneT, a circular economy is of vital the government are taking additional measures to keep the
explain the increased occurrence of weather extremes as importance to connect everyone with a brighter energy future. electricity grid accessible and reliable. Examples include
being caused by climate change. To mitigate the most Overall, scarcity of resources may cause project delays, mandating smart charging stations, controllable heat pumps
adverse impacts of climate change, governments need to step rising costs and, in the broader context, delay in meeting and mandatorily unloading the grid at peak times. The
up their climate ambitions to build a net zero economy by sustainability targets. changing energy system also requires different behaviour from
2050. A shift towards renewable energy sources and reduction end-users, for example by using the grid more when the
of carbon emissions is crucial and TenneT's Climate Transition Growing demand and complexity of the energy supply of electricity is high.
Plan outlines our roadmap to that future: we take steps to system due to renewable energy
substantially reduce our emissions of greenhouse gases. In The growth in wind and solar energy and closure of coal Also in Germany, we notice that due to numerous bottlenecks
our risk management section we disclose our climate-related and nuclear power plants have drastically changed the in the onshore electricity grid, power from large wind farms in
risks, mitigating actions and opportunities. electricity system. Operating the system is becoming much the North Sea must increasingly be scaled back. More speed
more complex. Variability of electricity flows creates significant is therefore needed to expand the electricity grid, for example
To ensure grid resilience and reliability, TSOs must prepare for operating challenges for balancing, voltage control and by building important DC connections, such as SuedLink.
extreme weather events and other climate-related challenges. stability. This strained grid is now undergoing the greatest
Changing weather and climate patterns, such as storms, investment in new capacity of all time. Due to the growth
floods and droughts, can also affect our transmission system, of renewables and the increased electrification, the demand
which needs to be more resilient to a variety of different for transmission of electricity over large distances is growing.
external circumstances. All this also requires adjustments to the market model in the
coming years.
Scarcity of human and material resources as
a challenge In the Netherlands, the ever-increasing pace of demand for
A key development and challenge we see as we drive the additional transmission and connection capacity is exceeding
energy transition is the availability of key resources, such as the speed at which we, and our colleague system operators,
raw materials, manufactured components and qualified staff. can expand the electricity system. Although work on the grid
is advancing in all regions, the investments we are making,
Regarding the scarcity of human capital, difficulties in the alongside additional measures, are still not enough to meet
labour market have occurred in many more sectors in the demand, at such short and often immediate notice.
recent years. Recruitment of talent, which is needed to
realise our investment portfolio and to achieve the goals of System operators signal that the Netherlands is entering
the energy transition, remains a key challenge for TenneT, the next phase, where access to the electricity system will
especially as we are seeking talent alongside other employers come under further pressure leading to pressure on both
in our sector. sustainability goals and economic development.

TenneT is dependent on a large number of different materials

to ensure future network capacity and to facilitate the
energy transition. Geopolitical tensions, material scarcity

Integrated Annual Report 2024 TenneT Holding B.V. 21

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Our purpose, promise and principles

TenneT has a clear purpose: to connect everyone with a brighter energy future. This is challenging as we also work together with our suppliers to reduce the environmental
footprint of our procured assets by an Environmental Cost Indicator linked to Life-Cycle
This summarises how we have to fulfil our three core tasks for society, while
Analyses. The possible solutions might not relate to proven technologies, which poses more
enabling the changing energy landscape with all its challenges, day in and
risks to our security of supply standards. We strive to find the right balance between all
day out. three elements.

Our core tasks consist of transmission of electricity, provision of system services and market
facilitation. We are a key player in the energy landscape, working closely with our stakeholders
to drive the energy transition and to ensure a green and bright energy future in the most
Ou
cost-effective manner. With this, our promise is to light the way ahead together. We refine and rp
achieve our tasks by working together with our partners and stakeholders. How we aim to get ri

nc
there is described in Our strategy.

ip
le
s
Our principles of ownership, courage and connection will continue to guide us in this context,
giving us the confidence to be bold with our innovations, partnerships and ambition. Our purpose

To connect everyone
• Ownership: we are accountable for our words, actions and decisions. We take responsibility
together, for our part of the end-to-end chain but also for ensuring that all the parts
fit together. with a brighter energy
• Courage: we are honest, open and clear about what we think. We dare to make bold future
decisions, take ambitious initiatives and are willing to learn from our mistakes.
• Connection: we are involved with and work actively with other parties. The challenge of the
energy transition requires us to do things differently and collaborate with a wide range of Our promise

Own
Lighting the way ahead
partners. We know that we do not have all the answers ourselves.

together

ers
These three principles are the key to working together across the organisation based on clear

hip
expectations and honest conversations and represent the necessary mindset and culture.

|C
ur
ag

o
In translating our purpose and promise to a strategy, policies and actions that support us e
|C
achieve our ambitions, we balance the effect of our decisions in terms of (i) affordability, (ii) on
nec
reliability, and (iii) sustainability. This balance is reflected in how we aim to apply elements tion
included in our boundary conditions. For example, when building grid infrastructure, we need to
consider acceptable cost.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Our strategy
We launched our Sharpened Strategy 2030, focused on delivering grid capacity Collaboration and a focus on shared goals mean that everyone at TenneT will have a clear
understanding of what each of us must do to contribute to delivering more grid capacity and
in time for our customers and delivering the Target Grid by 2045. This is how we
to do so cost-effectively. It makes it easier to understand what is expected of us and helps
fulfil our purpose and promise.
measure our performance in terms of output and delivery.

To fulfil our purpose and with that, contribute to delivering the required electricity grid to help
meet Europe’s goal to become the first climate-neutral continent in 2050, we determined our
course for the next 5 years in our sharpened strategy 2030. This helps us to meet our ambitious
goals and our main strategic goal to deliver more grid capacity in time for our customers, which
is required to connect everyone with a brighter energy future.

Our strategy therefore focuses on realising an affordable, reliable and climate-neutral future
electricity system and it enables us to act as a key player in Europe’s energy transition. In this
way, we contribute to the mitigation of climate change and the UN Sustainable Development
Goals (SDGs), predominantly SDG 13 via SDG 7 and SDG 9. The transmission infrastructure
that fits this climate-neutral energy system is envisioned in our Target Grid for 2045 which was
launched in 2023. Our Target Grid 2045 sets out what we expect this future system to be and
which strategic actions are required to get there.

This is achieved by building the grid faster – both customer connections and transmission
capacity –, by utilising the grid better and delivering together for our customers. We can only
reach the required step change in output if we further streamline our end-to-end delivery
processes, scale our digital capabilities and innovate with our partners. While focusing on
delivering more grid capacity we adhere to our standards for safety, security of supply, quality,
sustainability and financial health. Those standards function as boundary conditions for our
business with clearly defined goals that must not be compromised.

We bring our strategy to life by translating our strategic priorities to goals and objectives for
our core processes and business units, ensuring progress through our quarterly performance
management cycle.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Our stakeholders
To act on our promise and ambitions, we believe that it is essential to deliver
together with stakeholders and through partnerships. Through our activities as
a TSO, we are already continuously interacting with the world around us. Our
activities could not take place without the often intensive co-operation with Employees Customers
other key players, inside and outside the energy sector. We aim to build and
maintain good relationships with our stakeholders and co-operate with them in
partnerships to deliver on our strategic objectives. Energy market Governments
participants and policymakers
We determined our stakeholder landscape by identifying the most important stakeholder
groups, based on their influence on us and our influence on them. We also engaged with these
stakeholder groups to gather their views on the Sustainable Development Goals (SDGs) that
relate most to us as an organisation and the topics related to the impact we as TenneT have on
the world around us.

To monitor the way we are perceived and how we are performing, we do various reputation Shareholders and
surveys among our key stakeholders. This year we conducted the first regional reputation capital providers NGOs
survey, which provided us with important feedback on how our organisation is perceived in
the regions. The results of this survey indicate that there is room for improvement, particularly
in terms of transparency in our information provision and our flexibility in adapting to local
circumstances. The results have been shared and discussed with the Executive Board and
the Senior Leadership Team. Based on the insights gained, several improvement actions have
been defined. TenneT is investing more in personal engagement, better investigation and more
integrated coordination with stakeholders regarding projects, as well as ensuring consistent
communication. This survey will be repeated in 2025.
Regulators Suppliers

Engaging with our stakeholders is crucial in achieving our strategic goals and to fulfil our
role in society. In addition to the stakeholder groups mentioned hereafter, we also value the
engagement with local communities in our service areas and specifically in the areas where our
assets are located, now and in the future. This year we invested in our stakeholder management
on regional and local level, as this is where the energy transition impacts society and the
environment. One of the ways we do this is through Energy Boards: a partnership between
regional governments and grid operators in the Netherlands to jointly work on solutions to
grid congestion.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Our stakeholders

In some regions this allows us to jointly address the bottlenecks and thereby prevent delays our role to secure electricity supply and driving the energy transition, we can emphasise the
or even speed up projects. Every quarter, the status of the joint projects and co-operations are social and collective importance of the work we do.
summarised in our Province Monitor.
These dialogues will help us to build and maintain the critical infrastructure required to facilitate
During stakeholder dialogues (such as workshops, webinars or events) we actively engage with the energy transition. It remains crucial to engage with local communities, but also with
local stakeholders and address any concern they might have regarding our projects. Moreover, NGOs and politicians at the earliest stage of a project to address their concerns and gain
we aim to engage with communities in our service area regardless of pending or planned understanding. As we expand our high-voltage grid, we must do so responsibly, by engaging
projects to inform them about the societal role of TenneT. By informing local stakeholders about with local communities and gaining their acceptance.

Stakeholder group Examples Method of engagement

Customers • DSOs Informative, close involvement in various areas and contractual agreements, customer survey, customer
• Large industries day, relationship management
Governments and policymakers • European Commission Province Monitor and regional reputation survey, meetings like Energy Boards
• National and regional parliaments (ministries)
• Local authorities
NGOs • Think tanks Informative, co-operative consulting and involvement on project level, partnerships
• Industry associations
• Other NGOs
Suppliers • Contractors Market consultations, pre-qualifications, negotiations, meetings, supplier day
• Vendors
• External service providers
Regulators • ACER Informative and close involvement, regular meetings
• BNetzA
• ACM
Shareholders and capital providers • Dutch Ministry of Finance Regular meetings, bilateral meetings. shareholder meetings, roadshows
• Investors
• Project shareholders
• Relationship banks
Energy market participants • Energy producers Close involvement, regular meetings
• Other TSOs and DSOs
• Market parties
Employees • Our employees Quarterly employee meetings, employee survey, periodic meetings with employee representatives
• Employee representatives
• Labour unions

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

How we create value

How we create value Building the electricity grid of tomorrow sustainable and inclusive place to work for all our employees.
As a company with a clear societal task, we strive to create Electricity plays a vital role in the lives of our stakeholders Our programmes and actions focus on creating an inclusive
value for our stakeholders. For instance, for our customers and society. TenneT designs, builds and maintains the high- and energising environment where people can thrive.
and for our end-users, to enable them to create value voltage onshore and offshore grid that is needed to secure
themselves. We have an important role to play as a secure supply of electricity. Our produced capital relates to the Transition to a brighter energy future within social and
supply of electricity is essential in enabling them to do so. components of our grid, such as our cables, substations, planetary boundaries
The way that we create value is represented visually on page pylons and interconnectors. We realise the grid that supports As a company at the centre of the energy sector, we have an
28, using the concept of value creation as described by today’s electricity needs as well as enable the energy system important role to play to help achieving the climate targets
the International Integrated Reporting Council (IIRC), which of the future. the governments in the areas we serve have committed
together with the Sustainability Accounting Standards Board themselves to. We do this by contributing to a sustainable
(SASB) formed the Value Reporting Foundation. By means Utilise the grid to empower society energy system, where we are able to connect everyone in
of the six capitals defined by this framework (produced, Our core task is to secure the supply of electricity now and in our service area to green electricity. Simultaneously, we are
intellectual, social & relationship, human, natural and financial) the future and hereby supporting the daily lives and activities aware that in our journey to get there, we must strive to do
we describe our inputs, outputs, outcomes and impacts. As of people and businesses in the areas we serve. Equipped so within social and planetary boundaries, ensuring we realise
in previous years, this model serves as the basis of our with decades of experience in operating our grid, together the electricity grid of the future in a responsible and future-
Integrated Annual Report. As a company that is deeply rooted with a vision of how the future grid and electricity markets proof manner. This relates to our impact on the planet via
in society, the engagement and interdependencies with our should be designed, we strive to utilise the grid in the best our carbon emissions, our impact on the natural environment,
stakeholders are at the basis of how we can create value. way possible to be able to deliver together for our customers. the materials we need to build, operate and maintain our grid
In addition, our inputs, through which we create impact for This expertise and knowledge are our intellectual capital. and from a social perspective also the way we are respecting
society, are influenced by how we add value through the human rights for our people and workers in the value chain.
way our colleagues bring our strategy to life, driven by our Deliver more grid capacity together for our customers and
purpose and principles, which have been described in the Our to serve society Safeguard sustainable financial performance
purpose, promise and principles and Our strategy sections. We are convinced that collaborating with stakeholders and In order to create long-term value, we are focused
While conducting our core activities as a TSO, our decisions creating strong partnerships with them are essential to being on maintaining our financial health. Our main sources of
are always influenced by the balancing act of affordability, able to meet our strategic goal to deliver grid capacity financing are our regulatory revenue and externally raised
reliability and sustainability. in time for our customers and bring our Target Grid 2045 capital. To safeguard our financial health, we aim to optimise
vision to life. By combining experience and knowledge from our financing costs and deliver a return on capital that
More information on the specific inputs, our related different organisations inside and outside the energy sector, meets the expectations of our capital providers. For this, it
outputs, outcomes and impacts are disclosed in subsection we achieve our strategic objectives. is essential to maintain strong credit and environmental, social
‘Our performance in 2024’, in each of the respective chapters. and governance (ESG) ratings.
The way that we aim to create long-term value is defined Create a safe and inspiring workplace
alongside the six outputs from our value creation model, as We consider our people to be our most important asset,
described in the visual on page 28. as they enable us to deliver on our strategic ambitions and
create value for society. To this end, we aim to offer a safe,

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
How we create value

How we create and measure societal impact in theory can receive 100% green electricity because of our
The way we are able to transform inputs to outputs does not work, provides us with this information.
merely enable us to create outputs on the short-term. It also
enables us to create medium and long-term societal effects: Our aim is to disclose the outcomes and impacts which we,
our outcomes and impacts. Our aim is to reduce our negative as a European TSO, create on a societal level. This provides
and increase our positive outputs, outcomes and impacts. insights from a broader perspective on how the people living
With the role and scale we have as a company, we are aware in the areas we serve experience the positive or negative
that we have societal impacts, both negative and positive. As impacts we create and have on them. By focusing on these
a state-owned company, serving society in the Netherlands impacts, we believe that we provide more meaningful insights
and a large part of Germany, we have significant societal for stakeholders. All of our impact indicators are also included
impact by (em)powering society when we are able to secure in the Sustainable Development Goals section in this report.
supply of electricity, together with the help of other partners
in this part of the value chain, such as DSOs and partners
in generation of electricity. In addition, we are an important
player regarding these service areas to help their governments
in delivering the energy transition, helping to avoid emissions
by enabling a greener electricity mix and helping large
industries and households to receive green electricity.
In addition, we are conscious that the costs we incur also
have an impact on our customers and their end-users. For
more details on how we performed, please refer to the 'Our
contribution to the SDGs' section and the respective chapters
in 'Our performance 2024'

We believe that these impacts are not the result of one output
or capital and therefore choose to connect them to all outputs
and to the sustainable development goals we contribute
the most to. We feel that these are our material societal
impacts to report on.

Measuring these impacts remains a journey as it is subject to

estimations and assumptions, We continue on this journey to
refine our methodology. Insights gained with respect to these
impacts help us see the extent to which we are meeting our
strategic goals and the extent to which we can fulfil our
purpose to connect everyone with a brighter energy future.
Reporting on the equivalent number of households that

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
How we create value

Value Creation Model

Our inputs How we create value Our outputs Our outcomes & impacts

Produced Our purpose Produced

Cables, lines, substations, offices To connect everyone with a brighter energy future Building the electricity grid
Our societal financial impact
and interconnectors Our promise of tomorrow 
on an average household in our
Lighting the way ahead together service area.
Intellectual Our strategic goal Intellectual
Extensive knowledge of and experience Deliver grid capacity in time for our customers Utilise the grid to empower Equivalent number of
households that in theory would
with operating the system and integrating society 
have been able to receive 100%
energy markets green electricity
Social & Relationship
Social & Relationship Deliver together for
Strategic partnerships and our customers and for society 
engagement with (project) stakeholders
Human
Human Create a safe and inspiring Societal impact due to
availability of our grid
Our skilled and motivated employees workplace 

Natural Natural
Energy, natural environment and Transition to a brighter energy
materials to build, maintain and future within social and
Avoided CO2 emissions
operate our grid planetary boundaries 

Financial Financial
Regulatory revenue, (Green) Financing Strategic foundation Safeguard sustainable
Corporate governance financial performance 
Corporate risk management and internal control

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Value chain and impacts

Our value chain to attract sufficient and the right people. Also, we need to Connecting the dots
As a transmission system operator, our core task is to provide ensure that we limit our environmental impact in designing, All concepts related to our impacts, our strategy and how
a secure supply of electricity to the more than 43 million building, maintaining and operating the grid, for instance with we contribute to the Sustainable Development Goals are
end-users in our service area. We can not do this merely the materials we use. not isolated from each other. They are linked to each other.
by ourselves. It takes each and every part of our value Identifying our key impacts and it's risks and opportunities in
chain to ensure that (large) industries and end-users are able Deliver together for customers line with the requirements set by the Corporate Sustainability
to receive electricity. We can only deliver together and not To enable us to deliver additional grid capacity for our Reporting Directive, helps us to identify where to focus on and
without the other stakeholders that contribute to the electricity customers better and faster, we aim to find solutions together maximise our positive impacts and opportunities and minimise
system. In addition, designing, building and maintaining a with stakeholders. Stakeholder engagement is a strategic our risks and negative impacts. These should be linked to the
future-proof electricity grid is of equal importance to maintain focus area for us and a mindset we aim to apply in finding key strategic goals that we identified and how we manage our
the security of supply today and tomorrow. That part of our these solutions. For instance in ensuring we can connect more outputs, outcomes and impacts. To do this, monitoring how
value chain entails all parties that are involved in the supply, customers to our grid, we work together with governments the policies and actions that we have set can be evaluated via
manufacturing, construction or deconstruction of materials and customers and develop new ways of customers being clear targets and metrics to ultimately not only create outputs,
used for our grid. The part of the value chain related to connected, such as with agreeing the first flexible contract but also outcomes and impacts. How this ties together has
transmitting electricity includes parties that are, either on the with our customer GIGA storage. Also we are working been depicted in the next section: our Connectivity table.
demand or the supply side, involved with the production, together with other TSOs to realise new interconnections, like
exchange or consumption of electricity. In the visual hereafter, LionLink, which increases our ability to import and export
our main value chain partners are represented. electricity that helps strengthen British, Dutch and European
security of supply. Furthermore, we also work together with
Our material impacts suppliers to realise our offshore portfolio in the 2GW Program
The impacts we create are located at various stages of our to create Europe's clean energy powerhouse of the future.
value chain(s). For instance, impact related to the opportunity Offering this combined portfolio creates more clarity and
to contribute to a future-proof and brighter energy system and certainty for market parties, reducing societal costs and
realising this in line with our Target Grid 2045 vision. At the increasing our ability to deliver these projects in time together
same time, we also need to make sure that our customers with these stakeholders.
today are able to have a secure supply of electricity. But
in doing so, we need to be mindful of social and planetary
boundaries. Realising this future-proof electricity grid also
means that we need to do this in a responsible manner.
This means ensuring the safety of our people and also those
who work together with us, such as workers in the value
chain, is safeguarded. This safety helps us to ensure we have
sufficient and the right talent to support us in realising our
strategic goals, besides being an employer of choice in order

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Value chain and impacts

TenneT’s value chain

Generation / Infeed grid 1 2 13 Consumption 2 13

Our core activities

Raw material extraction Prosumers
1 2 7 8 9 10 13
and production of materials 1 7 10 In a society that is
Construction 2 9 10
In building and maintaining our grid, we make By creating efficient markets becoming more and Export
Safety is of vital importance when
use of materials, to deliver a greener energy that support our task to more electrified, we supply We transport electricity
working with heavy machinery
system and in a way where we reduce our transmit electricity to our households with electricity to other areas if this
and high voltage equipment when
impact on the planet. Some of these materials customers, we aim to make together with the DSOs helps them secure
building and maintaining our grid.
are becoming scarcer than others. our grid future proof. Our core and work with them for supply in a consistent or
activities are related to the the system-serving and more cost-efficient way.
three pylons as it is the centre grid-serving integration
of both axes. of flexible prosumers.
Large industries
More and more large
Transmitting Facilitating Maintaining the
industries are greening
electricity the market energy balance
DSOs their processes which
results in a higher
electricity demand. As
Offshore a partner for industries,
we therefore play an
important role in the
transition to a climate-
neutral economy.

Onshore

DSOs
Renewables
More offshore wind Renewables
farms are connected Onshore, we aim to create
to our grid. more capacity to enable
more renewables to be
connected directly to our
grid, DSOs or new
technologies that enable
flexible solutions.

Recruitment and retention Decommissioning 7 9 10 Our impacts, risks and opportunities

Power plants
Import of employees 8 In our projects, we strive to
Conventional power plants are in the supply chain
We import electricity to To achieve our strategic re-use our materials as much
still in the mix, but are increasingly 1 Climate change
balance our grid which objectives we need to hire and as possible or dispose of
being phased out by governments Environment 2 Delivering the energy transition
can also save societal retain the right and sufficient them in a proper way.
in the areas we serve. 7 Resource use and circularity
costs. employees. At the same time,
8 Good employment
our supply chain partners also
need sufficient personnel to 9 Safe working environment
Social
help us deliver on the energy 10 Responsible supply chain practices
transition. 13 Security of supply

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Connectivity table
Performance Performance
Material topics Capital Link to corporate strategy Page Key KPIs Target 2024 2023 SDGs

2 Delivering the energy Produced Strategic focus area 35 • CAPEX investments (EUR mio) 10,919 10,637 7,730

transition (E1) ‘Building the grid faster’ • KM’s lines built 261 245 N/A
• Newly installed GW offshore 0.0 GW 0.0 GW 2.3 GW
• # connections realised 36 40 N/A
• # connection requests N/A 728 N/A

13 Security of supply Intellectual Strategic focus area • Grid availability onshore 99.99962% 99.99988% 99.99993%
 44
(Entity specific) ‘Utilising the grid better’ • Grid availability offshore 95.07% 97.09% 97.90%

Social & Relationship Strategic focus area

51 • Number of initiatives N/A 30 27
‘Deliver together for customers’

8 Good employment (S1) Human Strategic focus area 60 • TRIR 3.7 4.0 4.5
9 Safe working environment (S1) ‘Deliver together for customers’ • Absentee rate 3.0%1 NL 3.6 / DE 3.3 NL 3.9 / DE 3.4
10 Responsible supply change • % female inflow 32% 32% 32%

practices (S2) • Supplier visits N/A 77% 82%
• % Non-Dutch/non-German
hires 10% 11% 11%

1 Climate Change (E1) Natural Boundary condition 68 • Own Carbon footprint

7 Resource use and circularity (E5) (Scope 1, 2 and 3 tCO2eq,
market-based) N/A 2,699,516 3,377,736
• Resource inflow (% virgin
materials procured) N/A 2% N/A
• Resource outflow (waste
metrics) N/A 97% 75-90%

Financial Boundary condition 78 • Underlying EBIT (EUR mio) 1,680 1,747 1,817
• Adjusted FFO / net Debt 8.0% 8.2% 11.6%
• ROIC 4.3% 4.7% 5.8%

1
No target value for absentee rates, however a value TenneT strives for.

Integrated Annual Report 2024 TenneT Holding B.V. 31

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Our
Our contribution
contribution to
to the
the SDGs
SDGs
The Sustainable Development Goals (SDGs) are a set of 17 global objectives established by the United Nations to tackle
pressing issues by 2030. They encompass diverse challenges, from poverty eradication and quality education to climate
action and gender equality. They serve as a universal roadmap for governments, businesses, and communities to work
together, promoting peace and prosperity for people and the planet, now and into the future. TenneT wholeheartedly
supports all global goals, while – considering our main business – we are specifically committed to three main SDGs.

Ensure access to affordable, Build a resilient infrastructure, Take urgent action to

reliable, sustainable and promote inclusive and combat climate change and
modern energy for all sustainable industrialisation its impacts Other SDGs
and foster innovation
7.1 By 2030, ensure universal access to affordable, 9.1 Develop quality, reliable, sustainable and resilient 13.2 Integrate climate change measures into national In the execution of our activities, we also have an impact
reliable and modern energy services infrastructure, including regional and transborder policies, strategies and planning on other SDGs. We contribute to SDG 5 and SDG 8
7.2 By 2030, increase substantially the share of infrastructure, to support economic development and when we look at policies relating to our people (including
renewable energy in the global energy mix human well-being, with a focus on affordable and The consequences of climate change are tangible and our contractors). Our impact and management of these
equitable access for all. as a cross border TSO and key player in the energy topics is also reflected in our Social chapter of our
transition, we can help mitigate the effects by Sustainability statements regarding our own workforce
As TenneT’s entire business revolves around affordable SDG 9 is another key area where our operations make contributing to a climate neutral future energy system. (S1) as well as workers in the supply chain (S2). With
and clean energy, we can have a profound influence on a substantial contribution. Our impact is measured With our business choices and conduct we have a respect to the choices we make that affect our planet,
SDG 7. We have developed an impact indicator that through an indicator of how the availability of our grid positive, but also negative impact: We measure our we contribute to SDG 12, SDG 14 and SDG 15. SDG 12
quantifies the financial impact we have on has a q uantifiable value for society (through electricity greenhouse gas emissions (GHG) against Science relates to our circularity ambitions, which also influence
the average electricity bill of households in the Netherlands delivered). Additionally, our role in creating Based Targets Initiative-approved targets and also report climate change. More details on our Circular Economy
and Germany. Furthermore, we track our impact by interconnections facilitates efficient electricity trade, the amount of avoided emissions. Detailed information Strategy are outlined in the Environmental chapter of our
measuring the gigawatts of renewable energy connected ultimately lowering costs for end-users. This fosters on the topic of Climate Change is outlined in the Sustainability statements.
to our grid. Our efforts are evident in the offshore wind market development and aligns with the goal of building Environmental chapter of our Sustainability statements.
capacity connected, aligning with the renewable energy resilient infrastructure and promoting inclusive and
ambitions of the governments in our service areas. sustainable industrialisation and innovation.

Target KPI Contribution Target KPI Contribution Target KPI Contribution Target KPI Contribution
2024 2023 2024 2023 2024 2023 2024 2023

7.1 Societal financial impact NL: 22.7% NL: 8.7% 9.1 Societal value of the > GDP > GDP 13.2.2 Total greenhouse gas 2,699,516 3,377,736 5.5 % of female board 40% 46%
on households in our DE: 10.8% DE: 4.3% availability of our grid of the of the emissions (Gross, tonnes tonnes members
serving area Netherlands Netherlands market-based) CO2eq CO2eq
8.8 Total Recordable 4.0 4.5
7.2 Equivalent number of NL: 8.9 mio NL: 8.2 mio 13.2.2 Total avoided emissions NL: 10.0 NL: 9.7 Incident Rate
households that in DE: 6.3 mio DE: 6.1 mio (in mio tonnes) DE: 8.2 DE: 8.3
theory would have been 12.2 % circular inflow 2%
able to receive 100% % circular outflow 97% 75-90%
green electricity

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Our contribution to the SDGs

Ensure access to affordable, reliable, sustainable and Take urgent action to combat climate change and workers in the value chain (S2). With respect to the choices
modern energy for all its impacts we make that affect our planet, we contribute to SDG 12, SDG
As TenneT’s entire business revolves around affordable and The consequences of climate change are tangible and as a 14 and SDG 15. SDG 12 relates to our circularity ambitions,
clean energy, we can have a profound influence on SDG 7. cross-border TSO and key player in the energy transition, which also influences climate change. More details on our
We have developed an impact indicator that quantifies the we can help mitigate the effects by contributing to a Circular Economy Strategy are outlined in the Environmental
financial impact we have on the average electricity bill of climate-neutral future energy system. With our business chapter of our Sustainability statements.
households in the Netherlands and Germany. Furthermore, choices and conduct we have a positive, but also negative
we track our impact by measuring the equivalent number of impact: We measure our greenhouse gas emissions (GHG)
households that in theory would have been able to receive against Science Based Targets Initiative-approved targets
100% green electricity in the areas we serve. Our efforts and also report the volume of avoided emissions. Detailed
are evident in the offshore wind capacity connected, aligning information on the topic of Climate Change is outlined in the
with the renewable energy ambitions of the governments in Environmental chapter of our Sustainability statements.
our service areas. This impact indicator is based on the
green electricity that we are able to directly connect to Other SDGs
our grid. Note that currently with these volumes in 2024 In the execution of our activities, we also have an impact
the theoretical amount of households that have been able on other SDGs. We contribute to SDG 5 and SDG 8 when
to receive 100% green electricity has surpassed the actual we look at policies relating to our people (including our
amount of households in the Netherlands. As green electricity contractors). Our impact and management of these topics
is consumer by both households and industries, this outcome is also reflected in our Social chapter of our Sustainability
explains this situation. For next year, we are looking into statements regarding our own workforce (S1) as well as
updating our methodology to account for this.

Build a resilient infrastructure, promote inclusive and

sustainable industrialisation and foster innovation
SDG 9 is another key area where our operations make a
substantial contribution. Our impact is measured through
an indicator of how the availability of our grid has a
quantifiable value for society (through electricity delivered).
Additionally, our role in creating interconnections facilitates
efficient electricity trade, ultimately lowering costs for end-
users. This fosters market development and aligns with the
goal of building resilient infrastructure and promoting inclusive
and sustainable industrialisation and innovation.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Our
performance
2024
Building the electricity grid of tomorrow 35
Utilise the grid to empower society 44
Deliver more grid capacity together for
our customers and to serve society 51
Create a safe and inspiring workplace 60
Transition to a brighter energy future
within social and planetary boundaries 68
Safeguard sustainable
financial performance 78
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Building the electricity

grid of tomorrow
In our role as a Transmission System Operator (TSO) we design, build,
maintain and operate over 25,000 kilometres of high-voltage electricity grid Introduction
in the Netherlands, large parts of Germany and across borders. Ensuring In order to deliver grid capacity in time for our customers with
the aim to ensure the transition to a climate-neutral energy
a future-proof electricity grid is essential to the strength of the European
system by 2045, TenneT has a clear focus to accelerate and
economy and achieving Europe’s climate goals.
help meet the climate targets set by the governments in the
areas we serve. Just two decades away from this destination,
TenneT must move full speed ahead, implementing our
planned investments in both the Netherlands and Germany.
Investments (EUR million) Target # connections realised Target To be able to deliver the energy transition, we have set
our Target Grid 2045 vision, translated into our sharpened
10,637 10,919
40 36
strategy 2030, which shows what we must deliver and by
NL: 3,783 | DE: 6,852 | NR1: 2 NL: 40 | DE: 0 when. To ensure we have the necessary infrastructure ready
2023: 7,730 by 2045, the Target Grid is based on scenarios with the
2022: 4,493
highest level of electrification. This plan is however regularly
adjusted over time in line with the changing demands of
society and policy changes. How we invest in accordance
# connection requests Target Circuit length (in kilometres) Target with the Target Grid vision in the next 10 years is included
in our the NetzEntwicklungsPlan (NEP) in Germany and the
728 N/A
245 261
onshore and offshore investment plans (IP's) 'Net op Land'
NL: 624 | DE: 104 NL: 59 | DE: 186 and 'Net op Zee'.

A clear focus on delivery and execution is key to ensuring

that our grid has the necessary capacity for the short-term
Newly installed GW offshore Target and long-term future, meeting the fast-growing demands on
our grid to power essential services of the economy, such as
0.0 GW 0.0 GW
transport, industry, healthcare, heating, housing and trade.
2023: NL: 1.4 | DE: 0.9
2022: NL: 1.4 | DE: 0.0

1
NR = non-regulated

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Building the electricity grid of tomorrow

To accelerate our output and focus the full capability of That is why, in realising a future-proof electricity system for and meet the needs of customers and society. Regular
TenneT on delivering grid capacity in time for our customers our customers and society, we are focusing on faster delivery. maintenance of the infrastructure, which we aim to do in
and society and delivering the energy transition in line with In doing so, we aim to build more customer connections and the best possible way, helps to minimise the risks of power
the Target Grid vision, we have sharpened our strategic focus increase grid capacity, while maintaining our grid smartly and failures, damage to the environment and safety incidents.
and defined three strategic focus areas (please refer to Our building at acceptable costs. Preventive maintenance helps to ensure our assets continue
strategy). One of these relates to ensuring that we build the to perform in accordance with their intended function with
grid faster. How we managed this topic in 2024 a full lifetime of service, while fast action on corrective
We reached important milestones during 2024, including maintenance minimises downtime in the grid. Maintaining
While focusing on delivering the necessary infrastructure the green light for the system operators’ Investment Plans a specific section within our grid requires the grid to
on time, we need to consider smarter ways of working to in the Netherlands and Germany. In April, the Dutch grid be switched off – known as planned outages. As the
increase our speed. During execution of our delivery plan, operators published their Investment Plans. These plans give grid operates close to maximum capacity, and with more
we feel committed and responsible, also from a compliance the regulator ACM, the ministry of Climate Policy and Green unpredictable power flows, it becomes increasingly difficult to
perspective, to secure our standards for safety, security of Growth, governments and market players more insight into find windows for planned outages.
supply, quality, sustainability and financial health. the planned investments and projects for the next 10 years.
Especially all developments in the energy sector and the
To meet the expectations of society, politicians, customers The Dutch Investment Plans include grid extensions, transition to a climate-neutral economy make it more complex
and other end-users, we cannot rely solely on organic growth replacement investments, new customer connections, for us to maintain the current levels of grid availability.
of the TenneT organisation and conventional ways of working. connection systems for offshore and reconstruction projects. This requires us to reconsider our approach to risk, which
We must work smarter and more efficient, with new and non- Among others, TenneT will develop five larger new 380 kV may impact our ability to secure supply. Therefore, we
linear solutions, grid-enhancing technologies and stronger high-voltage connections over the next ten years and will increasingly prioritise our maintenance activities for our assets
partnerships. To make maximum use of the capacity of modernise 140 high-voltage substations. based on an assessment of their potential failure and the
our grid, we must also be prepared to consciously stretch associated consequences. We use this approach to plan
the capabilities of our system. We have already achieved a In Germany, the four German grid operators, presented optimal maintenance schedules and identify the most critical
lot with improving the speed of our delivery. However, our their Grid Development Plan (NEP) 2037/2045 to the components in the system, calculating when intervention is
delivery rate has to further increase to meet societal demand Federal Network Agency (BNetzA). The current NEP contains needed and when it can be safely delayed. We also take
for the energy transition. scenarios for the years 2037 and 2045 and describes for the this approach with financial responsibility and affordability in
first time an electricity transmission grid for a climate-neutral mind, balancing the financial impact of maintenance against
energy system. the value for society.

While continuing with the design and construction of During 2024, we boosted the efficiency and effectiveness
“We aim to build more customer projects in these national plans, we also continued to of our maintenance work with the continued application
invest significantly in maintenance, ensuring that our existing of our workforce management system, in which our field
connections, increase grid electricity grid is in a good condition to support the grid of maintenance teams use mobile devices linked to a central

capacity, maintain our grid tomorrow and to deliver grid capacity in time for customers. database to log and monitor performance data across the
network. This approach helps our teams assess maintenance
smartly and build at acceptable Smartly maintaining our grid key performance indicators monthly. As a result of these
Our maintenance programme is essential to maintain our insights, we aim to carry out fewer but targeted inspections,
costs.” current grid capacity and to be able to deliver more capacity perform less preventive maintenance work in general, but

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Building the electricity grid of tomorrow

more where necessary, and only replace equipment if that is Travel & Journey Management and Permit to Work (PTW) energy. In simple terms, without a much higher capacity
the most efficient option. This smarter and more risk-based system tools were adopted by offshore maintenance teams, onshore grid, the huge growth in offshore wind energy in the
approach to maintenance is not only more cost-efficient but helping to optimise resource utilisation, risk assessments, North Sea cannot be distributed to end-users.
also reduces our impact on the environment, with fewer reporting and safety. The digital PTW system will also be
interventions needed. introduced onshore during 2025. In Germany, two of the most critical onshore projects are
the long-distance high-voltage direct current (HVDC) onshore
We are always looking for innovative ways to improve the Building more grid capacity connections, SuedLink and SuedOstLink. These DC projects
efficiency of our inspections. In 2024, we tested the use of During 2024, we made significant progress in building more play a vital role in the energy transition in Germany, carrying
remote-controlled site inspection technology, including the grid capacity, investing a record EUR 10,637 million in the wind energy from the North Sea to users in the south. In
use of drones to scan onshore and offshore assets as a safer, Dutch and German grids, onshore and offshore. An increase February, we officially started construction for the SuedLink
cheaper, more flexible and efficient alternative to helicopters of 38% compared to 2023 (EUR 7,730 million) and nearly converter in Brunsbüttel. It will convert wind energy from AC
and sea vessels. Drones are particularly useful for checking on target. With rising prices, the increased investment figure into DC so that it can be carried in bulk capacities of up to 2
overhead lines, as the line does not need to be taken out of alone does not reflect the true increase in delivery. The GW over 700 kilometres with low transmission losses. Other
service for the inspection, thereby maintaining grid availability. progress made on important projects provides additional converter stations for the project are also now in construction.
In the Netherlands, we are also testing the use of robotic insights into this. For more information please refer to our Grid In April, an important milestone was reached with the
‘dogs’ to perform daily routine maintenance inspections. The Map on page 39. Examples of this include the progress made first planning approval decision for the Bavarian section of
dog takes remote-controlled walks around onshore assets, in the IJmuiden Ver and Zuid West (Oost) 380 kV projects and SuedOstLink. This HVDC connection enables the transmission
such as substations, to take pictures and perform thermal the completion of Westküstenleitung and Ganderkesee - St. of renewable energies from the north and east to the south
imaging. In addition, we are making more use of smart Hülfe projects. of Germany and thus makes an important contribution to
sensors, installed in high maintenance ‘hot spots’ in the security of supply and CO2 reduction in Bavaria.
grid, to alert us to required intervention. We are installing The acceleration of our output is key in ensuring we are able
more sensors in the grid when we perform replacement and to deliver grid capacity in time for our customers. TenneT is SuedLink and SuedOstLink are part of a bigger DC grid vision
upgrade works. Not only do these allow us to monitor the grid seeking support for our work in the areas we serve, as the in Germany, that TenneT is driving ahead with two other
for maintenance, but these sensors also help us optimise and urgency of delivering the needed grid capacity to realise a German TSOs. Together, we are laying the foundation for a
steer load on a daily basis. future-proof grid to support the energy transition in time for smart, meshed DC grid in Germany that is optimally designed
Europe’s climate goals has the attention of regulators and to transmit fluctuating renewable energy sources. This plan for
As can be seen onshore in our Dutch substation-focused Bay policymakers. The use of 12 provincial and two city-based ‘Electricity Grid DC’’ also includes four more DC connections –
Replacement Programme and offshore in the 2GW Program, Energy Boards – for Amsterdam and Rotterdam – has brought SuedWestLink, NordOstLink, NordWestLink and OstWestLink.
the standardisation of equipment and assets is designed to municipal, provincial and national stakeholders together to These projects are all being developed under the Electricity
increase the speed and efficiency of our maintenance work find collaborative solutions for faster development of essential Grid DC umbrella, together forming the building blocks for the
in the future, making it easier and more efficient to fit and energy infrastructure. We expect that the co-operation with energy transition grid.
maintain assets that share common design and components. these Energy Boards should reduce the throughput times of
The modules can also be tested and configured in a controlled complex licencing procedures. Building an onshore network of DC multi-terminal hubs will be
environment before installation. critical to the realisation of an integrated offshore and onshore
Onshore grid and to link future extra-high-voltage DC connections.
Offshore, the efficiency of our maintenance work in 2024 The expansion of the onshore grid is a key focus in They will help to bring high capacities of wind energy to
was improved by the introduction of new digital workflow sustainable industry policy, supporting the electrification of shore efficiently, and to distribute the electricity throughout
management tools, as part of the GO4IT project. New digital industry and facilitating the future expansion of offshore wind the country in the most efficient way. As part of our alliance

Integrated Annual Report 2024 TenneT Holding B.V. 37

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Building the electricity grid of tomorrow

in Germany with 50Hertz, Amprion and TransnetBW, we have drilling rigs for our cable system installations. This also helps
an innovation partnership with industrial partners Siemens us address the risk of delays regarding permitting, related to
Energy, GE Vernova and Hitachi Energy. The partnership aims emission or air pollutants such as nitrogen.
to develop multiterminal hubs with DC circuit breakers for
the first time. The technical concept is unique in Europe and Offshore
represents an important step on the way to realising a grid TenneT is a leading offshore transmission system operator
that facilitates the climate-neutral energy system. (TSO) in the European Union. With our current offshore grid
connection systems, we safely transmit more than half of
In the Netherlands, we are increasing the capacity of parts the EU’s entire offshore wind capacity from sea to land.
of the national 380 kV ‘ring’ - the backbone of the Dutch To meet the rising demand for green electricity in Europe,
high-voltage grid. The capacity of the existing connections we are working hard and systematically to expand our
in the ring is being expanded by replacing the existing offshore electricity grid according to the governmental plans,
conductors with new conductors. Larger capacity has already developing the North Sea as a green energy powerhouse
been unlocked on the Lelystad-Ens and Diemen-Lelystad for Europe.
connections and the section between Ens and Zwolle. We
are upgrading the capacity of the Dutch grid – and opening The North Sea has a potential for up to 300 GW of installed
the possibility for more customer connections – with plans to wind capacity – enough to cover the green electricity needs of Installed offshore capacity by TenneT
build new substations around the country. Many substations its bordering countries and to make a significant contribution Gigawatt

will be modernised over the next 10 years. to Europe’s 2050 climate targets. The Esbjerg Declaration - 43.1 43.1
which still needs to be incorporated into national government
20.8
In addition, we are increasing capacity in key areas of policies – identifies new targets for offshore wind energy in
high demand and making additional efforts to alleviate the North Sea. It is the first intergovernmental agreement
congestion with an innovative 'sub-grids' solution, developed between Belgium, Denmark, Germany and the Netherlands
by TenneT. Sub-grids are like new slip roads built into the and proposes the construction of up to 150 GW of offshore
electric highways of the grid. By dividing the high-voltage wind energy until 2050, whereof 65 GW until 2030.
grid into smaller sub-grids and expanding capacity, the 22.3
traffic of electricity is better distributed, thereby alleviating
congestion. Currently we have fourteen of these sub-grids 12.2 11.5 12.2 12.2
9.9 9.9
in the Netherlands. But that is not enough. As part of our 8.0 8.0
7.1
strong efforts to ‘build, build, build’ we aim to have 48 of these
sub-grids by 2035. These will provide more slip roads and 2.8 4.2 4.2
substantially increase the total capacity of the Dutch AC grid.
2022 2023 2024 by ~2030

Furthermore, we also took an important step to reduce the ■ Netherlands ■ Germany ■ Target
environmental impact of our infrastructure construction, as we
used green hydrogen for drilling in the construction of a new
* 1GW of older offshore wind farms in the Netherlands
high-voltage connection between the Woensdrecht substation use a private connection to the onshore grid.
and Bergen op Zoom. We are also using fully electrical power

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Building the electricity grid of tomorrow

Grid map Pre-project

Study on
Planning
& Licensing
Planning
& Licensing
Construction
& commissioning
Construction
& commissioning
alternatives Technical Final permits Construction Closing
DolWin5 specifications & detailed design & commissioning
Westküstenleitung & spatial planning
BorWin5

Westküsten- Status 2023 Status 2024

Noord West leitung Zuid West (West) 380 kV After solving the quality issues in 2023, the project is well
380 kV on track to complete the project in the 2nd quarter of 2025. In 2024 all towers have
been erected and stringing works are progressing as scheduled.

IJmuiden Ver Alpha In summer 2024 construction activities for the converter
station of our first 2GW offshore grid connection IJmuiden Ver Alpha started.
The offshore grid connection will transport offshore wind generated in the IJmuiden
IJmuiden
Ver Alpha area to shore. The connection is planned for commissioning in 2029.
Ver Alpha
Zuid West (Oost) 380 kV The Zuid-West Oost project started construction in 2024
SuedLink
Ganderkesee - at substation Tilburg 380 kV. The works are progressing as scheduled. Also in 2024
St. Hülfe the Council of State submitted her ruling on the permit of the trace between Rilland
and Tilburg. As a result the works can commence in 2025.

DolWin5 In 2024, the offshore platform related to the DolWin5 project in Haugesund
(Norway) was technically equipped and prepared for transport and installation in the
North Sea in 2025 which is later than expected due to a delay.

BorWin5 In 2024, the offshore platform related to the BorWin5 project in Cádiz
(Spain) was technically prepared for transport and installation in the North Sea
in 2025.

Ganderkesee - St. Hülfe closes a significant gap in the north-south transport

Zuid West (West) Zuid West (Oost) of renewable energy. In August 2023, the transmission line was successfully put into
380 kV 380 kV operation. In future, 3.3 gigawatts of green electricity can be transported here,
SuedOstLink
allowing the project to stabilise the regional and national electricity grid and saves
significant redispatch costs.

Westküstenleitung The approximately 140-kilometer-long west coast line from

Brunsbüttel to the Danish border went into operation on time in September 2023.
The line collects electricity from renewable energies in Schleswig-Holstein in order
to transport it towards the south of Germany. From 2026, the border-connection
will also ensure improved electricity exchange with Denmark.
In Germany and the Netherlands, onshore
SuedLink In 2024, major progress was made in plan approval phase. Three more
and offshore, we have been working hard to plan approvals were granted and the first civil works and cable pulls have taken
make progress on our projects to secure supply place. In addition, the tunnel boring machine was delivered to the ElbX construction
site and officially inaugurated.
today and tomorrow and drive the energy
SuedOstLink We have been able to realise 4 out of 6 plan approvals and has
transition. In our Grid map 2024, we highlight also started initial construction work at various locations. In addition, the first cables
a selection of these projects. have been laid in the cable ducts. In 2025, the planning & licensing phase will be
completed with the granting of the last two planning approvals and the project will
become a pure construction project.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Building the electricity grid of tomorrow

As TenneT operates in both the Netherlands and Germany – of 2025, after which the final connection work and tests for Build more customer connections
with significant access to offshore wind energy – we are well commissioning can take place, so that the first feed-in will be Investments in the onshore grid, especially in the Netherlands,
positioned to play a prominent role in realising this vision for possible from autumn 2025 at the earliest. are crucial for alleviating grid congestion and delivering more
the European energy transition. Offshore grid development is customer connections. For this reason, our focus in 2024 was
therefore an important factor in our Target Grid. Key to our Target Grid planning is the realisation of an on utilising our grid better to get more capacity from our
integrated grid in the North Sea. In 2023, TenneT and National existing assets. Working on our existing assets in this way can
To make this happen, TenneT will invest significant in offshore Grid Ventures from the UK took an important first step be more complex, especially in finding outage windows. As
grid expansion by 2031, as we are an important partner in towards an integrated North Sea grid with the announcement lengthy licensing and permitting procedures are not required
Europe’s path to a green energy future. Our aim is to more of a project to develop a multi-purpose interconnector for existing assets, grid-enhancing projects that unlock new
than triple our current capacity, from 12.2 GW of offshore grid between the UK and the Netherlands. Called LionLink, the capacity can be realised faster, for the benefit of customers.
capacity today to 43.1 GW around 2030. In May, physical project is referred to as a hybrid interconnector because it
work on the 2GW Program began with the start of production will be the first interconnector that not only connects the This is particularly important in the Netherlands, where
of cables for two of the new 2GW offshore connections, high-voltage grids of two countries, but also an offshore reducing the waiting list for new connections is urgent.
BalWin4 and LanWin1. The new high-performance 525 kV wind farm in the Dutch part of the North Sea. With a Through the applications of grid enhancing technologies and
cables make it possible to transmit 2 GW of direct current capacity of 2 GW, LionLink will support decarbonisation the use of flexible (time-bound) contracts, we aim to free up
over long distances with low transmission losses. and energy independence, and strengthen British, Dutch and capacity for more customers to be connected. Furthermore,
European security of supply. In November 2024, the British we are significantly accelerating our building programme for
Also in May, the jacket for the Hollandse Kust (west Beta) regulator Ofgem approved the Initial Project Assessment for additional customer bays, thereby creating more available
transformer platform was installed. The topside will be this interconnector. Minister Sophie Hermans of the Dutch ‘sockets’ for connection to the grid.
installed next year. The connection system will connect the Ministry of Climate and Green Growth has included LionLink
OranjeWind wind farm that will be built in the coming years. in the latest Offshore Wind Energy Development Framework. The cost of grid congestion and long waiting times for
Meanwhile, the 900 MW offshore platform DolWin epsilon This means we are allowed to commence investments for our customers have a significant economic and social impact,
has been successfully transported from its manufacturing site LionLink project. frustrating ambitions of customers in their electrification
in Singapore and is in the process of being installed. The efforts, business growth or investments in the economy. This
DolWin5 130 km-long grid connection breaks new ground In line with the Climate and Green Growth Minister's letters effect is predominantly applicable for our Dutch operations.
for TenneT. For the first time, the so-called 66 kV direct to Parliament on this issue, TenneT has been committed to Another consequence of grid congestion is greater need – and
connection is being used. Unlike previous projects, this achieving deep landings of offshore wind energy through the cost – for ancillary services.
means a wind farm transformer station is no longer required. Delta Rhine Corridor project in 2024. However, in December,
Instead, the wind power produced off the coast of Lower the Minister of Climate and Green Growth decided that the
Saxony is transmitted directly as three-phase (AC) current required direct current cables should no longer be part of
to TenneT's converter platform. The elimination of the wind the Delta Rhine Corridor project. TenneT regrets this decision
farm's transformer station not only minimises costs, but also because this seriously delays the realisation of deep landings
construction time and interference with the marine ecosystem. of offshore wind energy and creating an alternative route will
In summer 2024, TenneT announced that the completion of have a major spatial impact. The costs incurred by TenneT
the DolWin5 grid connection is expected to be delayed with have been charged to the result.
approximately 1 year until 15 December 2025. The platform
related to the DolWin5 project is expected to be transported
to the North Sea and installed there in the second quarter

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Building the electricity grid of tomorrow

What could prevent us from reaching our goals? In this regard, our model of long-term framework agreements
As we accelerate in our critical work to build the electricity with key suppliers and modular, standardised designs that
grid of tomorrow, there are negative impacts that we must allow faster roll-out of offshore and onshore assets are
manage. The affordability of the energy transition is a growing important for our success. This approach is core to our
concern. The necessary investments have a direct impact on landmark 2GW Program.
rising energy costs for consumers and businesses through
grid tariffs. Large industries argue higher (total) energy costs Another challenge we must face is uncertainty. The time
are affecting their competitiveness, in Europe and beyond. needed to complete our projects is long – often 10 years or
Higher energy bills increase the cost of living for domestic more – requiring us to plan our work years ahead. In this
end-users. To reduce these costs, we must build the future respect, errors in grid planning, or policies and assumptions
grid responsibly and in line with society’s needs. This is also that change, can disrupt the long-term success of our plans.
an important part of our Target Grid vision, to ensure we build Our Target Grid 2045 vision is designed to minimise these
in line with expected demand. risks, using back-casting to guide us on what we need
to build, by when and where. Finding adequate space,
As our assets are built in the natural and cultural landscape, strategically located to suit the needs of the future energy
on land, underground, and at sea, we also have a significant system (e.g. electrolysers located near the coast where
impact on nature and local communities. To minimise the offshore wind energy reaches land) is particularly essential, As TenneT relies on a predictable and stable legal and
impact of our work and to build support, we engage but also highly challenging. regulatory environment to plan our critical infrastructure
in stakeholder dialogues that address potential societal investments and safeguard our financial health, changes to
concerns. We also mitigate the impact on nature, using We are also exposed to economic factors beyond our legislation and regulation can pose challenges to our critical
‘nature inclusive design’ in our projects and setting clear control, such as inflation, price fluctuations and resource infrastructure investments. To mitigate this, we ensure we are
performance goals for nature, circularity, climate and human scarcity. The intense demand for specialist suppliers in the fully informed of anticipated developments on regulatory and
rights (see ‘Transition to a brighter energy future within social energy market from us and other TSOs exposes us to legal issues affecting our work.
and planetary boundaries’). risks of abuse of market position by a small number of
in-demand suppliers, with the associated danger of budget Increased overloading of the grid, while close to
In addition, we also face challenges with respect to the overruns and disproportionate cost increases. Signing long- transport infrastructure, induces the risk of electro-magnetic
supply chain, particularly related to the growing scarcity of term framework contracts or diversifying supply contracts compatibility – for example interference with electric railway
skilled personnel and contractors needed to execute our where needed help protect us against such risks, as well as infrastructure. This is increasing the challenge of spatial
projects, due to intense demand in the market and the high using index based price adjustment clauses in contracts to planning in the already space-constrained Dutch environment.
number of projects needed to be completed in a relatively reflect market developments. Scarcity of land remains a key issue.
short time. Major project delays are therefore an ongoing risk
that could also be influenced by scope changes, permitting Also in our supply chain, we face risks if any of our existing or
procedures or environmental restrictions. Project delays could potential partners experience business instability or financial
lead to claims, penalty payments, higher project costs and difficulties from unforeseen market disruptions and could
reputational damage for TenneT. This can become a limiting become unavailable for working with TenneT, thereby delaying
factor if we do not act properly. our critical project work.

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Sophie Hermans, Minister of Climate Policy and Green Growth, Deputy Prime Minister,
Government of the Netherlands

“We should be proud of

what we’ve achieved.”
With responsibilities including the Netherlands’ She says affordability is also high on the agenda: “The
climate and energy policy and the greening of investments in the grid are crucial but have an impact on
industry, Minister Sophie Hermans has a pivotal tariffs for companies and households. We’re transforming to
a totally different energy system but the costing mechanisms
role in the Dutch energy transition.
are based on an old model. TenneT is an important partner “As a government, we make
for our large-scale policy research to find possible solutions.’’ plans for the energy transition,
“I believe the energy transition is about much more than To alleviate grid congestion, the government is working
climate goals alone,’’ says the Minister. “It’s also about closely with TenneT. “It’s a serious problem,’’ says the Minister, but without the creativity and
building energy independence, ending dependence on fossil
fuels, and most importantly, achieving a sustainable and
“and we’re doing everything we can with TenneT to strengthen
the grid. However, this takes time, so we also need short-term
motivation of partners like
competitive economy for the future.’’ solutions that bring flexibility into the system and use grid TenneT to make them happen,
The Minister sees TenneT as an indispensable partner in
capacity in a smarter way, for example with new flexibility
contracts. We can only solve these problems by working
we won’t achieve our goals.’’
this journey. “When I started this position, (TenneT CEO) together and challenging ourselves to think outside the box.’’
Manon van Beek was one of the first people I met to discuss
the energy transition and tackling grid congestion. That’s an Looking to the offshore grid, the Minister says TenneT’s
indication of how important TenneT is for me and the expertise in the North Sea will be critical for the Netherlands sector is dealing with a far more complex system, with
government.’’ to achieve its goals for 21 GW of offshore wind capacity uncertainty and challenges we didn’t have 10 years ago.
by 2032, 50 GW by 2040 and 70 GW by 2050. She says However, we should be proud of what we’ve achieved. If you
The Minister acknowledges that the energy transition “is not this growth in capacity, combined with new hybrid look at how fast renewable electricity is growing, how industry
in the easiest period right now’’. After years of talking about interconnectors, such as LionLink, will be crucial in is investing in green technologies, we’ve made incredible
far-away goals, she says the reality of action is hitting home: strengthening energy security. “TenneT’s role in this vision is progress. The same goes for TenneT – what they’ve done and
“People are seeing the real consequences, whether it’s essential,” she says. will do in the years ahead is extraordinary. As a government,
construction near their homes or the challenges that arise we make plans for the energy transition, but without the
when plans are executed. For example, grid congestion Ultimately, Minister Hermans stresses the optimism and pride creativity and motivation of partners like TenneT to make them
prevents companies from investing in green and innovative of building a clean energy future: “In such a difficult process, happen, we won’t achieve our goals.’’
solutions.’’ it’s normal to focus on what we could do better. The energy

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Mechthild Wörsdörfer, Deputy Director-General, Directorate-General for Energy,

EU Commission

“Cross-border thinking
is key.”
The Directorate-General for Energy develops and a Clean Industrial Deal and an Affordable Energy Action Plan.
supports the implementation of the European Mechthild suggests TSOs also have a role to play here. “I think
Commission’s energy policies, which focus on there’s a discussion about how TSOs can make the system
cost as bearable as possible for consumers and industry.
delivering secure, sustainable and affordable energy
In the medium- and long-term, we need to roll out more grids, “We work a lot with TSOs like
to Europe. It engages in dialogue with European
TSOs, including TenneT, on investing in grid
either within countries or across borders. TenneT is well-placed TenneT to discuss how we can
here given its presence in both the Netherlands and Germany.
infrastructure and boosting cross-border collaboration And in the short-term, it’s about seeing where we can use make the clean energy transition
to make the clean energy transition happen. existing grids more efficiently, with a particular focus on happen, knowing that grids are
digitalisation, smart grids and the sharing of best practices
between TSOs. Ultimately, by working together, we have a a fundamental part of this.’’
As TenneT works to deliver a grid that can support Europe’s stronger chance of bringing that system cost down.”
climate goals for 2030 and 2050, the European Commission
is a crucial partner. With a new Commission entering power Mechthild believes that to achieve a true energy union,
in December 2024, Mechthild Wörsdörfer is now in place as integrating energy markets and fostering European cooperation work towards ensuring energy produced in the North Sea
Deputy Director General for the Directorate General for Energy. are both needed. She says the new Commission is reaches beyond coastal countries. This is only possible when
encouraging this approach: “Cross-border thinking is key. we have interconnected grids.”
“For us, the energy transition is all about competitive, The Commission is looking at updating our Trans-European
affordable and secure energy prices,” she says. “We need Networks for Energy policy in the year ahead to have more TenneT’s wealth of experience and expertise means it can lend
more renewables and more energy efficiency, which means European planning and coordination. We want to do this while its voice to the formation of EU policy and the development
we need more grids. We work a lot with TSOs like TenneT to respecting the grid plans of individual Member States, of of projects of common interest (PCIs). “TenneT is very active
discuss how we can make the clean energy transition happen, course.” when it comes to our dialogue with TSOs,” says Mechthild.
knowing that grids are a fundamental part of this.” “To have more integrated European energy markets, we need
“A good example of regional cooperation is the North Seas a lot of input from TSOs, including TenneT, which is already
Affordability is top of mind for the new Commission, Energy Cooperation (NSEC) that brings together Member really well-placed and serves a model for interconnectivity.
particularly in relation to energy-intensive industry and EU States to support the development of the offshore grid. TSOs I hope all TSOs continue to engage on an EU level.”
citizens. Some of the Commission’s first policies will include and the Commission also have a role here, as together we can

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Utilise the grid to

empower society
To fulfil our core task to ensure the continuous supply of electricity to our
end-users across the Netherlands and large parts of Germany, we rely on the Introduction
important work of our colleagues working in the field, our offices and control As a transmission system operator (TSO), our core task is
to ensure that society has a secure supply of electricity,
centres. As demand on our grid and the complexity of the electricity system
today and in the future. One of the key impacts we have on
grows, our priority is to utilise the grid better, making maximum use of
society is to facilitate the needs of society, ensuring we deliver
available capacity and unlocking solutions that prepare our grid for a climate-
electricity and sufficient grid capacity to over 43 million end-
neutral energy system. users today, and develop a sustainable, reliable and affordable
energy system that can meet the demands and ambition of
tomorrow. We achieve this together with important partners in
the electricity supply chain, such as electricity producers and
Grid availability (onshore) Target Grid availability (offshore) Target distribution system operators.

99.99988% 99.99962%
97.09% 95.07%
Timely scaling up of our investments in grid infrastructure
NL: 99.99988% | DE: 100.00000% NL 97.58% | DE 96.77% and a future-proof way of operating our system are essential
2023: 99.99993% 2023: 97.90% to fulfil our core task. We must keep the grid balanced,
2022: 99.99963% 2022: 94.08%
secure and reliable, while accommodating the increasing
ramp-up of electrification and the infeed of carbon-neutral
energy sources. To cope with all challenges, we must find
new solutions to utilise the grid better, stretching the grid’s
capacity, optimising how we handle planned outages and
future-proofing system operations and market design. By
getting more capacity from our existing assets, we can
serve more of society’s growing need for electricity, which
helps to mitigate the financial and environmental impact
that comes with new infrastructure. Grid enhancement and
reinforcement serves society by helping to alleviate grid
congestion, as unlocking additional capacity helps to connect
more customers to the grid.

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Utilise the grid to empower society

We are proud of our track record of providing a stable and the rail network in the area. Nevertheless, we are pleased with
secure supply of electricity. To be able to maintain this, we an onshore grid availability of 99.99988% and an offshore “Delivering connections and grid
design, build, maintain and operate our high-voltage grid,
transmitting electricity from where it is produced to where it
grid availability of 97.09%, both meeting our targets and
in line with prior year's performance, though a little under
capacity for our customers is at
is consumed. By ensuring the reliable supply of electricity to last year's performance. Last year, we recorded an onshore the core of our sharpened
end-users, we have a significant impact, supporting economic grid availability of 99.99993% and offshore 97.90%. The
and social development and the provision of essential offshore grid availability was impacted by the downtime of our strategy.”
services that society relies upon. Looking ahead, our impact is interconnectors NordLink and COBRAcable and the offshore
evident as we build a decarbonised grid to support the energy grid connection systems SylWin1 and Hollandse Kust (zuid In 2024, we specifically addressed our strategic focus on
transition and Europe’s 2050 ambition to become the world’s Alpha). The interruptions related to our interconnection did not delivering for customers with the creation of a dedicated
first climate-neutral continent. impact the onshore security of supply in the areas connected Customer Connections and Capacity (CCC) unit, with a clear
to these interconnections, but did prevent the cross-border focus and mandate to faster connect more customers. This
Long-term, we are committed to providing security of supply import and export of electricity between the Netherlands and unit aimed to deliver 36 customer connections in 2024. We
by developing a future-proof grid that fully facilitates a the respective Scandinavian countries in certain moments. were able to realise 40 customer connections and received
climate-neutral energy system and supports an integrated 728 connection requests, which is above target. Colleagues
European electricity market. This means more than building Unlock available grid capacity from the CCC-unit are determined to speed up the completion
infrastructure – it also requires us to fundamentally reconsider Our teams work around the clock to ensure our grid provides of more customer connections through a cross-unit approach
how electricity markets operate with an enhanced and future- a 24/7 supply of electricity in our service areas. The focus to speed up grid expansion and to maximise the utilisation
proof market design, what is required to operate the electricity of this work takes place at our control centres where we of our grid by unlocking more flexibility by shortening the
system and how we operate it. operate the grid and coordinate the system across borders. contract process and through a range of grid enhancing
Although we are proud of our achievement in providing a high technologies. Through this, we are successfully extracting
This requires us to work with many stakeholders, including security of supply to our existing end-users, it is becoming more capacity from our existing grid. For example, we
national, regional and local governments, other TSOs and increasingly challenging to sustain this high level of availability. were able to unlock a total of 700 MW additional capacity
DSOs and gas network operators. Our electricity grid is undergoing a transition to a system to in the Utrecht area following a combination of actions,
which more climate-neutral energy sources are connected. including grid-conscious charging of electric vehicles, grid-
How we managed this topic in 2024 This electricity is generated often in more remote areas, thus efficient installations in existing buildings and deployment of
The results of all our efforts to operate the grid are measured requiring new assets and capacity to ensure we are able to controllable power generation. Unlocking flexibility within the
in our ability to secure supply and delivering a high grid transmit it to where it is consumed, making it a more complex system has a great potential to better utilise the grid.
availability. With the help of our colleagues, specifically those system to build, maintain and operate.
in our control centres and in the fields, we were able to Some of these possibilities to better utilise the grid include:
maintain our high levels of security of supply this year. Society’s growing demand for grid capacity, and rapidly rising • Stability and voltage control: the growth in wind and
Despite having a strong performance in 2024, there were use of electricity – such as in transport and industry – solar energy sources and the closure of coal and nuclear
unfortunately also some instances of interrupted supply during is placing further pressure on our grid capacity. Delivering power plants have drastically changed the electricity
the year. Examples of this are outages at the Dordrecht connections and grid capacity for our customers is therefore system. With a large capacity of wind and solar generated
Merwedehaven substation in June and at the Meeden at the core of our sharpened strategy. This strategy is energy successfully integrated, the level of renewables
substation in August. In September a short power outage designed to help us increase our output and deliver much- fed into the grid often meets or even exceeds electricity
at the Port of Rotterdam caused an interruption to services, needed grid capacity for our customers, while balancing the demand. The resulting volatility inherent to the energy
including the BP oil refinery, as well as smaller operations and need for energy system affordability, security and stability. resource causes variability of electricity flows and creates

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Utilise the grid to empower society

significant operating challenges for balancing, voltage the Authority for Consumer and Markets (ACM) gave the DLR is a smart technology that provides up to 30 percent
control and stability. Although we are proud of and fully green light for time-based and time-block contracts in July more transmission capacity on an existing connection.
committed to our high reliability level, maintaining this 2024. Time-based contracts enable connection of large When electricity is transmitted, the conductors in the high-
level of grid availability becomes challenging as the infeed customers to the electricity grid, where the connection is voltage lines heat up. This heating causes the conductors
of renewable energy sources into the grid increases. available for a minimum of 85% of the time. In return to sag, which limits the maximum transmission capacity
Unlike the traditional energy system, where conventional for making flexible use of the grid, customers pay a of a high-voltage line. However, at low temperatures,
synchronous generators would not only produce electricity reduced transmission tariff. These new contract types especially when there is wind, the line is cooled more,
on demand, but also provide necessary stability, a are particularly interesting for companies without 24/7 resulting in less sag. In such cases, more electricity can
renewables-based energy system requires us to balance business processes and are offered as an alternative to the be safely transmitted, increasing the capacity of the high-
numerous sources of renewable energy that have a more existing fixed transmission right. In August 2024, TenneT voltage line. This, of course, is applied while guaranteeing
volatile and intermittent nature. This makes system stability signed its first time-based contract with the mega-battery that the system remains stable at all times. In recent years,
and voltage control far more complex to manage. We are operator, GIGA Storage. The flexible contract allows GIGA we have gained more experience with DLR. Initially, it was
therefore investing in new technologies to increase both Storage to connect its battery project, GIGA Leopard in applied to a few 380 kV transmission overhead lines in
stability and the transmission capacity of the existing grid, Delfzijl with a capacity of 300 MW and storage capacity the Netherlands. In 2024, it was extended to some 110 kV
including equipment that can help us reduce congestion. of up to 1,200 MWh, to the electricity grid. The battery transmission overhead lines and we will continue piloting
For example, phase-shifting transformers provide active consumes electricity from the grid outside of peak hours, DLR on these types of high-voltage lines.
power flow control, making it possible to redirect the flow when prices are low, and then feeds it back into the grid
within the grid. Another technology we use in this context when demand is higher. As a result, scarce grid capacity is Future-proof the grid
are STATic synchronous COMpensators (STATCOM): a used more efficiently. TenneT is building the grid for the generations to come. In
fast-acting voltage control device. • Opportunities for dynamic line rating: the increasing this way we fulfil our promise of a brighter energy future.
• Flexible customer agreements: meeting society’s need for congestion in the grid due to insufficient capacity – Target Grid is our vision and roadmap that shows what we
security of supply in the context of a more volatile and particularly in the Netherlands – has a significant financial must deliver. It is our plan for onshore and offshore grid
interdependent energy system requires innovative new impact in the form of redispatch costs. Redispatch is infrastructure needed to support a carbon-neutral energy
solutions. This includes contractual solutions, for example needed when a grid operator has to use market-based system by 2045. Enabling the transition to the Target Grid
with flexible customer agreements, where customers resources at a specific location to keep the grid congestion requires a fundamental rethink of how electricity markets
have a financial incentive to decrease or shift their free, with balanced supply and demand. We as a TSO operate, with an enhanced and future-proof market design
electricity use, thereby decreasing grid load. This use can control the electricity fed into the grid from redispatch and also of the way we operate the electricity system with
of flexible contracts, where customers are encouraged resources – increasing or decreasing the electricity flow to different energy mixes and technologies.
to contribute to an adequate grid load, as well as solve the congestions. Not only does this sometimes mean
congestion management by changing customer behaviour renewable electricity generation needs to be ‘switched In the future, our Target Grid will be part of a carbon neutral
and adjusting their electricity demand, implies a sense of off’ to avoid overloading the grid – which leaves valuable European energy system, where market design and system
shared ownership and societal responsibility in operating renewable electricity unused - it also means TenneT has operations facilitate an efficient and reliable interconnected
the grid. Customers and multiple stakeholders increasingly to pay for the intervention of market-based redispatch. As system for renewable generation, electricity consumption and
become part of the solution, with the grid as a shared grid congestion grows due to limited grid capacity and storage. The work towards that goal has already started, as
asset for society that provides long-term value for all. This the rising in-feed of renewables, the need for redispatch we work to implement system operations and a market design
vision shows how we can achieve more by co-operating remains as well as the associated cost. Therefore TenneT that is fit for the future.
with partners, unlocking integrated sector solutions. In is utilising its existing grid better by applying Dynamic Line
the Netherlands, this model is now taking shape, as Rating (DLR) to both 380 kV and 110-150 kV connections.

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Utilise the grid to empower society

Setting up system operations for a carbon-free and topology optimisation. This essential project also helps us faster and utilising the grid better will not do the trick if
electricity system improve grid utilisation and automation, by making our grid we do not find new concepts in the design of the energy
With a growing weather dependency, the power system is far control centres future-proof and equipped to manage our market. A future-proof market design is essential to better
more complex to control than it was a few years ago. increasingly complex and data-driven grid. align the dispatch of electricity with investment decisions of
The variability of the energy resources and consequently market participants, given the current challenges regarding
of the operational conditions, creates significant operational An example of a project from the CROF programme, in congestion management and the need to expand the grid.
challenges that will increase as traditional fossil-fuelled power collaboration with the Dutch Research Council (NWO) and the This can also support us in building against for costs.
generation is eventually phased out of the system. Ministry of Economic Affairs, is the creation of a 'digital twin'
of our grid infrastructure, allowing us to replicate the real- Our vision for market design is to have so-called locational
As such, operating the future grid will require us to balance world system and its behaviour, including stability analysis signals improved, so these can support in congestion
numerous sources of renewable energy, additional assets of the grid with a high penetration of renewable energy management and grid expansion needs. We have brought
such as electrolysers, mechanisms to influence consumer’s sources. For more information please refer to 'Deliver more forward these concepts in discussion platforms organised by
demand for electricity and integration of new technologies to grid capacity together for our customers and to serve society'. the German ministry of Economic Affairs and Climate Action.
transmit green electricity over longer distances. At the same As a result, we developed and implemented a revised concept
time, we will also be expected to deliver a reliable 24/7 supply Market design for the future energy system on how we can create flexibility when there is a surplus
of electricity, maintaining the standards of reliability our Our market design needs to meet the new circumstances of renewable energy generation from wind or solar energy.
customers expect today. Achieving all this requires of the future energy system. Therefore only building the grid In addition, we actively contribute to the current design
a fundamental approach to develop the new power system.

To keep this more dynamic power system in balance, TenneT

may not be able to make the same use of traditional fossil-
fuelled synchronous generators, as it has done in the past.
Instead, electronics-based technology will play a bigger role
in system operations and ancillary services, helping to
enhance system controllability and stability. Being largely
weather-dependent with constant fluctuations in electricity
supply from renewable sources also means a future grid must
operate as close to real-time as possible. This requires major
changes in our system operations and market processes to
ensure reliable and clear, instant communication with market
parties.

An important development to make our system operations

resilient for the years to come is the Control Room Of
the Future (CROF) programme. CROF has the ambition to
develop methodologies, processes and tools to guarantee
excellence at system operations, including improved
forecasts, dynamic security assessment, inertia monitoring

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Utilise the grid to empower society

and discussion of capacity mechanisms to help keep the The result of not connecting customers in a timely manner is the risk of cyber threats. Cyber attacks can result in the
electricity system stable and secured. An example of this is reduced trust and negative perception of TenneT as a reliable unavailability of critical IT systems, data loss or hardware
the aforementioned new time-based contract TenneT agreed partner. It could have a significant impact on our climate failure causing power outages. We are also highly alert to
with GIGA Storage to make efficient use of the scarce grid target if for instance large industries and businesses cannot the threat of physical attacks on or sabotage of our assets.
connection capacity. connect and complete the electrification of their operations. Additionally, there are multiple new security and Business
We are mitigating the risk of congestion not only by building Continuity Management (BCM) regulations in development
Provision of planned outages new infrastructure, but also by utilising our current grid more and being implemented by the European Commission and
The rapidly growing demand on our grid makes it increasingly efficiently. One of the mitigating actions we perform is to national legislators. This also results in compliance risks.
difficult to plan and execute maintenance and capacity connect customers based on prioritisation, instead of a first-
expansion projects. Providing sufficient outage windows come-first-serve-basis, as this results in a more efficient way We mitigate these risks through the implementation and
that allow planned maintenance work or to connect new of working and helps reduce the lead time with several certification of our Integrated Security Management System
installations, are key to the planning of maintenance and months. We are also working on reducing congestion by (ISMS) in accordance with international standards. In parallel
asset replacement or reinforcement across our network. A applying new grid-enhancing technologies, such as Dynamic we are investing in our cyber resilience through an extensive
system that is increasingly stretched to the limits of its Line Rating. cyber security programme which includes topics as improved
capacity requires us to activate operational measures, such as IT/OT security monitoring, increased security awareness
redispatch to prevent congestion, keep a stable system and As more and more volatile and weather-related energy sources initiatives, more robust incident management and BCM.
guarantee supply. are connected to our grid, the grid operates closer to the To manage our physical security risks, similar programs
limits of its capacity, with the risk of system overload. are being executed for the protection of onshore and
What could prevent us from reaching our goals? Keeping the system balanced and within voltage limits in such offshore infrastructure.
A key risk regarding security of supply is asset, system an unpredictable and dynamic energy environment requires
or software failure, causing power losses or interruptions extensive preparation and remedial actions on a daily basis,
to supply. This could be caused by IT system or control as well as the need to purchase ancillary services.
system interruptions, cyber attacks, physical attacks on our
assets, lack of voltage control, manual error or end-of-life However, the availability of ancillary services can also be a risk
applications. Other causes could be delayed or unperformed that affects our plans. Our ability to keep the grid in balance
maintenance of our assets, increase of renewable energy by activating ancillary services could be affected by limited
systems or an unbalanced prioritisation between new projects availability of interconnected power in Europe, or significant
and maintenance. We mitigate this through the optimisation increases in traded electricity prices. Working with other TSOs
of outage planning – creating windows where we can perform and market parties to increase the availability of ancillary
maintenance work – alongside an increasing focus on risk- services is an important mitigating action. However, the high
based maintenance, resilience strategy and improved training. amounts of ancillary services that are increasingly required
to balance our grid also carries financial and climate-related
In some areas of our grid, particularly in the Netherlands, risks, as the purchase of these services is costly and on-
congestion continues to be a challenge for our ability to demand energy requires the use of conventional fossil-fuelled
ensure security of supply. This challenge mainly relates to new electricity generation.
large customers wishing to be connected to our grid, whereas
existing end-users should continue to enjoy the high reliability As we are responsible for infrastructure that is critical for
of supply TenneT is known for. national security and resilience, we are also highly alert to

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Dr. Christian Hartel, President & CEO, Wacker Chemie AG

“We need to act together

with partners.”
WACKER, the global chemical and biotech group, Christian says WACKER and TenneT are in close contact, at
employs 16,400 people at 27 production sites an organisational and leadership level. “We interact almost
around the world. In Germany, WACKER sites daily – both parties know how important it is to work together.
As the biggest company in the Bavarian chemical triangle –
consume approximately 0.8% of the country’s
the third largest concentration of chemical industry in “Single players can’t do it all
electricity, with its largest plant in Burghausen,
Bavaria. As the group’s electricity demands grow,
Germany – we’re in a position to advocate for the energy alone. The cost and the scale
transition for our industry cluster.’’
its access to the grid, and its relationship with of the energy transition are just
TenneT, are crucial to its future. A key example of this is WACKER’s success, alongside
too great. Political support is
other local companies, in winning approval for a new 380 kV
booster line to strengthen electricity supply to the Bavarian essential here.’’
One of the biggest challenges in the energy transition is in chemical triangle. With around 25 companies operating there,
industry, as production processes shift from fossil fuel-based the triangle consumes as much electricity as Munich. As these
energy to electricity. As a result, large industrial users of companies increase their use of green electricity, the new
energy will dramatically increase their electricity consumption, connection – due to come into operation in 2035 – will where WACKER and TenneT need “better alignment’’.
placing more demands on the grid. WACKER, one of the significantly boost the region’s energy transition. He explains: “With our processes we need to operate at
biggest chemical companies in Germany, is a leading player in Christian says he thinks TenneT is making good progress 100%, 24/7 all year round, so when people ask us to be more
this transition, as it aims to cut greenhouse gas emissions by in grid development, helped by its strong alignment with flexible in our electricity use, the answer is: this is possible,
50% by 2030 and become carbon-neutral by 2045. industry: “We’re acting in a well-synchronised way,’’ he says. only to a limited extent. There could be a little more
Dr. Christian Hartel, President and CEO of WACKER, says: The delays, in his view, are mainly on the regulatory side: understanding on both sides of that topic.’’
“The nature of our production processes means we are a very “That’s where we see the most hurdles and most need
energy-intensive company. We are already a front-runner in acceleration.’’ Looking at the scale of the challenge ahead, Christian says,
our share of electrification – currently around 70% – so it’s “Clearly, we need to act together with partners. The cost and
essential for us to have a secure, reliable and affordable As for areas where the relationship with TenneT could the scale of the energy transition are just too great. Political
access to green electricity. That’s where our collaboration be better, Christian says some topics could be better support is essential here – to achieve the energy transition on
with TenneT plays a crucial role – not only for our business coordinated. For example, he says the topic of industrial time for society, we need the constructive participation of
but also to achieve our climate goals.’’ customers making more flexible use of the grid is an area governments.’’

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Ruud Nijs, Founder GIGA Storage

“The sooner we come to

solutions together, the better.”
GIGA Storage is a Dutch energy company GIGA Storage already has two large BESS installations in the
specialised in Battery Energy Storage Systems Netherlands and several more in development, including GIGA
(BESS). Utility-scale batteries can be connected to Leopard, with a capacity of 300 MW and storage capacity of
the electricity grid, wind farms and solar fields to up to 1,200 MWh. Located at a former aluminium plant in “From entrepreneurs like me,
Delfzijl, the site will offer battery storage on an industrial scale
temporarily store electricity. TenneT sees BESS
from 2027. to TenneT and the government,
technology as an important component in the future
grid, as it helps to integrate renewable energy The strength of TenneT’s partnership with GIGA Storage was
we are all talking – the lines
sources, maintain grid balance and alleviate grid highlighted last August, when the two signed the Netherlands’ are open.’’
congestion. first time-limited grid contract for GIGA Leopard. This new
agreement gives GIGA Storage the right to take electricity
from the grid, or feed it back in, for 85% of the time, as a
minimum. Flexible solutions like this free up scarce grid space we are helping to solve it. I feel we need a more balanced
GIGA Storage is an example of the new energy players that during peak hours, alleviating congestion and feeding green reflection of our contribution in future tariffs. In other European
TenneT is partnering with to unlock innovative solutions in the electricity back into the grid when there is less sun and wind. countries BESS projects are exempted from grid costs.’’
energy transition. Because renewable energy sources are Ruud says it’s essential more large-scale projects like this are
weather-dependent and unpredictable, battery storage allows realised, as they strengthen energy security and boost Ruud says positive collaboration between stakeholders
sustainable electricity generated by wind or solar to be economic growth. “The grid is like a highway congested with is essential to make the energy transition happen. “From
temporarily stored, providing green flexible power to maintain traffic jams. By working with TenneT to integrate battery entrepreneurs like me, to TenneT and the government, we
grid balance, connect more customers, and ensure security of storage, we can smooth those traffic jams out and get more are all talking – the lines are open. We’re dealing with smart,
supply. companies and citizens connected. The sooner we come to committed people who all want to contribute. In the bigger
solutions together, the better,’’ he says. picture, this is about so much more than business. We are
Ruud Nijs, Founder of GIGA Storage, says: “We’re a new working together on critical infrastructure for the future of
industry and are tiny compared to a TSO like TenneT. But As in most relationships, there can be challenges. Ruud says our society and the security and prosperity of Europe.’’
we’re all in the energy transition together. Whether it’s talking grid tariffs are an ongoing concern: “They represent 70-80%
to TenneT, to DSOs, the government or the regulator, it’s of our operational costs, but as a battery business we don’t
important to stay positive and find solutions.’’ feel this is fair. Ultimately, we are not causing congestion,

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Deliver more grid

capacity together for
our customers and to
serve society Introduction
The ambition for Europe to be the world's first climate-
neutral continent by 2050 has consequences for the whole
of society. TenneT is one of many parties tasked with
The nature of our work as a TSO and our commitment to the energy making this ambition a reality, alongside many others in the
transition requires us to work closely with our stakeholders – the task energy, engineering, finance, technology, academia and policy
ahead of us is too vast and complex to act alone. We forge and maintain sectors. Our role is to design, build, maintain and operate an
electricity grid that is climate-neutral and can meet the future
strong strategic partnerships with a variety of external stakeholders,
needs of a decarbonised economy. This is a huge task, and
seeking co-operative ways to achieve our strategic goals.
urgent: we must build the grid faster and utilise it better to
achieve our aim of delivering more grid capacity.

As we are committed to continuously improve, work smarter

Number of initiatives with and develop radical new solutions, we know that collaboration
other stakeholders that with an ever-expanding network of partners is essential to
helped build the grid faster build the grid faster, utilise it better, and ultimately to deliver
or utilised the grid better together for our customers, and society. No single player can
achieve the goals of the energy transition alone.
30
2023: 27 We work with a wide range of partners: customers, supply
2022: 11
chain parties, academia, like-minded European countries,
technology providers, national and local governments,
regulators, DSOs and other TSOs. While we rely on others
and collective efforts, we are also aware of our societal
responsibility. We aim to use our combined size and
investment volume to shape our sector for the better. We
acknowledge that our high investment volume presents us
with a unique opportunity – our project pipeline provides
a basis for investments in supply chain growth, green

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Deliver more grid capacity together for our customers and to serve society

jobs and manufacturing capacity of components essential security. The start of cable production for the 2GW Program in
for the energy transition. We work with our partners to 2024, shows these long-term partnerships bearing fruit. “The expansion of the electricity
deliver results at scale, prioritising international collaboration
with peer networks of DSOs and other TSOs, so that we The first DC cables produced by the South Korean cable
grid is highly needed to meet
can unlock innovation and deliver transformation beyond manufacturer LS Cable are intended for the BalWin4 and the rapidly increasing demand
national borders. LanWin1 grid connection projects (see ‘Build the grid faster’
for more information). Besides, in 2024, we redefined our for new and heavier
How we managed this topic in 2024 cable construction policy to foster greater innovation and connections.”
To accelerate our plans for Target Grid 2045, while also sustainability with our framework partners in both cable
improving the performance of our existing grid, we must and civil works. Together, we are moving from traditional
find the right strategic partners to co-operate with. This open trenching to duct installation with advanced trenchless internationally, as many of the solutions needed to realise this
chapter looks at our performance in 2024 from the lens of techniques, allowing cables to be pulled in later. Our vision do not exist yet.
our sharpened strategy: how we worked with stakeholders framework partners' expertise is essential to achieving this
to forge new partnerships and strengthen existing ones, to transformation in electrification, working in unison to meet A good example of a partnership that is focused on the
support our aims to build the grid faster and utilise it better so the demands of the energy transition. Moreover, regional grid development of this new HVDC technology, principles of
we can deliver together for our customers. owners will be benefitted from this initiative as well, which standardisation and hands-on collaboration across borders,
creates a unified, forward-driven approach to the energy is the InterOPERA programme. Co-funded by the European
Build the grid faster, with our partners transition across the sector. Commission’s Horizon Europe programme, InterOPERA is
Building the grid faster means delivering more grid capacity a consortium of 21 European partners: a team of HVDC
for customers, while overcoming barriers that slow us The expansion of the electricity grid is highly needed to manufacturers, TSOs, sector associations and a technical
down. The rapid growth of renewable energy generation meet the rapidly increasing demand for new and heavier university, working together to enable the transition of the
and expected onward growth in electricity demand require connections. By working together strategically with qualified European energy sector. This collaboration is designed to
accelerated expansion of the transmission grid. We must partners we can reduce delivery time, starting with our ensure that the HVDC technologies used in the future grid
connect more customers, at an acceptable cost. We have an agreements. For example, we signed a framework agreement use standardised and inter-operable technologies that can
opportunity to lead the way in sector standardisation and find in 2024 with partners Siemens Energy, Hitachi Energy and be supplied by multiple vendors (as opposed to closed,
ways to work efficiently across our supply chain, which will GE Vernova for the supply of 110 kV and 150 kV gas proprietary systems). This will help TenneT to procure its first
help us to reduce costs and accelerate, together. insulated switchgear (GIS) installations in the Amsterdam area multi-vendor HVDC system ensuring interoperability by design
and Rotterdam port. This new agreement provides us with – a key project that will have a tremendous impact on our
We rely on our partners in many ways to achieve our an average reduction in lead time of six to eight months ability to accelerate building and eventually to utilise the future
goals. Supply chain readiness is essential as we need our compared to the current method of tendering, accelerating the DC grid better. The project completed its second year in 2024,
partners in place to expand our project execution capacity. building process. with TenneT leading a working group focused on ensuring that
We therefore need to address constraints in planning and HVDC components from different suppliers are interoperable
permitting timelines, material shortages and scarcity in the Building faster by interconnecting and innovating in the future.
labour market for skilled personnel. Our co-operation with key As our Target Grid 2045 strategy envisions a meshed
suppliers in the 2GW Program shows this in action, as the onshore and offshore DC grid, with high-voltage DC Reliability and resilience of our grid – both now and in the
multi-year, large-scale contracts awarded for this work will (HVDC) corridors and multi-terminal DC hubs, we need to future – is crucial. We must safeguard a secure electricity
help to attract more people into our sector with greater job overcome technological challenges and expand connections supply as part of our societal commitments. We partner in
a European consortium called HVDC-WISE, which focuses on

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Deliver more grid capacity together for our customers and to serve society

solutions to ensure reliability and resilience of the high-voltage noticeable because a large part of the design is available and Partnerships to secure talent and foster knowledge exchange
grid. TenneT leads a work package on ‘concept architecture construction can start immediately. Besides, the visualisations Due to the growing ambitions to accelerate the energy
for reliable and resilient AC/DC systems’, and is developing a help to provide stakeholders more concrete impressions of the transition, TenneT’s workload is rapidly increasing. In order
tool for studying reliability of supply and issue reporting, along impact on the environment. This approach provides clarity and to fulfil our targets, a significant growth of our internal and
with the other 13 European network partners collaborating enables us to quickly implement improvements, enabling us external workforce is taking place. However, we are doing
in HVDC-WISE. to speed up and do more work in more places with the same so in a challenging labour market, which poses a risk to our
number of people. build faster ambitions: new talent is scarce due to intense
Furthermore, in 2024 TenneT together with one of its contract competition for personnel. As the energy transition is a global
partners, announced an innovative solution for making While we are focused on connecting more customers, endeavour, we are one of many employers – not only other
construction projects more sustainable, especially in areas we must also ensure that our existing infrastructure is TSOs, but also DSOs and utility companies– who are scaling
facing nitrogen reduction challenges. This pilot project used equipped for the future. We work with partners to find up investments in energy projects. In this regard, TenneT
green hydrogen to power drilling during the installation of a innovative maintenance solutions to boost efficiency. The does not only need to ensure it can recruit and retain the
new high-voltage cable connection between the Woensdrecht Bay Replacement Programme is an example of how we use people it needs, but that our value chain partners also have
power substation and Bergen op Zoom. a modular, standardised approach to replace high-voltage the personnel to deliver the work we need to achieve Target
substations in busy urban areas in a faster, simplified way. Grid 2045.
Building faster by standardising A total of 140 substations must be replaced by 2031 -
Standardisation is not only critical to build our grid faster for a massive maintenance project to get these 110 and 150 To remain a competitive employer and attract new talent,
connecting more customers, but also the key to realise our kV stations ready for the future. In 2024 we moved from while retaining the valuable people we already have on board,
sustainability ambitions. Our ‘Decarbonising the supply chain’ the proof-of-concept phase into the implementation phase, we are committed to ensuring that TenneT is an energising
project aims to reduce upstream emissions in our supply making progress in this programme and replacing substations and sustainable place to work (read more about this in our
chain, while our Joint Industry Project is developing common in the Dutch locations of Hengelo Weideweg and Nederweert. chapter 'Create a safe and inspiring workplace’).
standards for measuring and evaluating sustainability in power TenneT works closely with external design and manufacturing
transformers. The aim is to develop a standard sustainability partners in this programme, who have developed a prefab Looking outside TenneT, we also have partnerships in place
measure, so that there is transparent comparability. This is the solution to help us build our future-proof grid faster while to support this aim. We collaborate with academic institutions
only way to create a fair benchmark in the industry, regarding making it easier to maintain the grid efficiently by boosting and have long-term framework agreements with suppliers and
the approach, measurement and comparison of sustainability digitalisation capabilities. other players in the energy sector, which help to ensure we
of our assets. have the talent we need to deliver on our goals, not only within
Our overhead line maintenance pilot project with Siemens TenneT but also in our value chain.
Working with modular standards for high-voltage substations made good progress in 2024, entering the scale-up execution
and high-voltage pylons is another way we accelerate our phase. This project aims to implement a multi-tiered approach For example, we partner with educational institutions in
building process. Modular construction is based on standard for digital inspections of high-voltage lines using satellite, several ways: we outsource research to advance our industry
design and requires an integral way of working throughout the helicopter, and unmanned aerial vehicle (drone) imagery. By insights, expertise and cutting-edge innovation and we also
chain - from TenneT to our market parties to subcontractors. employing advanced AI analytics for comprehensive defect inspire the next generation by educating and engaging with
Together we develop the modular design solutions in one detection and process integration, we can ensure ongoing new talent. We have a vested interest in supporting institutions
place, where they are managed and deployed. Currently, system health and safety while using the latest technology to to attract more young people into STEM-courses (Science,
the first 380 kV high-voltage substations (Musselkanaal build and maintain our grid faster. Engineering, Technology and Mathematics) and work to forge
and Halsteren) are being built according to the Modular pathways for that talent to grow their skills and careers
Construction design. The added value for the contractor is at TenneT.

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Deliver more grid capacity together for our customers and to serve society

We have academic partnerships with a wide range

of academic and research centres, such as the University
of Erlangen and Bayreuth, RWTH Aachen, TU Delft and TU
Eindhoven. Furthermore, we have a multi-year partnership
with HAN University of Applied Sciences in Arnhem. To foster
more specific education and qualifications tailored to our
sector, we have also helped to introduce the Power Minor. We
collaborate with universities of applied sciences in The Hague,
Amsterdam, Arnhem and Nijmegen for this minor programme,
which teaches students about the generation, distribution and
transmission of electricity. In 2024 we took the first steps
in setting up a long-term knowledge-exchange partnership
with The Royal Netherlands Meteorological Institute (KNMI) -
the Dutch national weather service - and Top-sector Energie,
a platform committed to driving energy innovation in
the Netherlands. Our energy sources are increasingly
dependent on sun and wind and have a direct impact on both
the generation and purchase of electricity. The variability
of weather is therefore a major influence on, for example,
choices made in energy system planning. This collaboration
with KNMI will see us work closely with both partners to
develop a joint research agenda at the intersection of energy
and climate. The aim is to jointly gain greater insight into Using the grid optimally also means future-proofing A challenge to our efforts to maximise our grid and
the impact of weather effects on the energy security of the system operations toolbox for the future carbon-neutral minimise our impact on the environment is the use of SF6
the Netherlands. electricity system. It also requires updating the market design insulating gas in our switching installations. As a harmful
to enable efficient use of the grid by our customers onshore greenhouse gas, we recognise the need to replace SF6
Utilise the grid better, with our partners and offshore, as well as the integrated European electricity gas with more sustainable alternatives that provide similar
Utilise the grid better means making optimal use of our market. We must build on the power of technical expertise functional properties without harmful emissions. We are
existing and growing grid, with improved insights and grid- towards non-linear solutions, driving innovation and efficiency working closely with industry partners to explore and test
enhancing technologies, system operations tools and market across our operations and together with our partners and SF6 alternatives in our assets, for example with our long-
design. In the short-term, this includes managing grid stakeholders. term Hybrid gas insulated switchgear partnership (GIS). We
congestion. With improved forecasts and real-time insight have a five-year research project with Siemens and Hitachi,
in the electricity grid, we aim to ensure that the available grid Partners for sustainable energy systems which are independently developing special disconnectors
infrastructure can be used optimally. This also requires We work closely together with governments, our peer that are needed in addition to the standard GIS components
unlocking flexibility from electricity generators, consumers and TSOs and DSOs, partners and stakeholders to continue for an SF6-free hybrid GIS. This innovative collaboration is
storage systems. to design and develop the optimum future energy system, key to making our operations SF6-free in the future and is
taking into account the role of electrification and other an important step towards reducing our SF6 emissions in the
decarbonisation options. coming decades. In 2024 we moved into the initial stages of

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Deliver more grid capacity together for our customers and to serve society

investigating and researching the technical requirements for To tackle the challenge of a future grid that is more dependent in balancing the grid is to have data available for society to
this (see ‘Transition to a brighter energy future within social on renewable sources and especially that of an increasing enable people to make the right choices at the right time
and planetary boundaries’ chapter for more information on share of offshore wind energy generation, an important to actively participate in this. That is why we are working in
partnerships to mitigate SF6 leakages). partnership is our FUTURESYSTEM project. Here, together partnerships with other stakeholders like TSOs and others like
with TU Delft, TenneT is investigating how to manage the risk technology companies to provide these insights and data.
Our commitment to innovation requires us to seek out new of an unstable electricity system. The project findings will form
types of partnerships. One example of this is when TenneT the basis for new operational principles for both offshore and In March 2024 TenneT and Gasunie, the gas transmission
signed its first time-based contract with the mega-battery onshore multi-energy hubs. system operator in Germany and the Netherlands, launched
operator, GIGA Storage, in August 2024. The flexible contract the Dutch National Energy Dashboard. This dashboard
allows GIGA Storage to connect its battery project, GIGA Data-driven grid provides insights and data on energy generation, energy use
Leopard in Delfzijl, with a capacity of 300 MW and storage As we look for ways to utilise the grid better, we must become and CO2 emissions in the Netherlands and is free for everyone
capacity of up to 1,200 MWh, to the electricity grid. As more data-driven and boost our digital capabilities. to use. The launch of the National Energy Dashboard is an
a result, scarce grid capacity is used more efficiently and important step towards a more sustainable energy future,
renewable energy is made more affordable. This partnership is The Control Room Of the Future (CROF) is an overarching as data plays a key role in using energy more efficiently.
a milestone and example of innovation, marking an important programme that aims to make our system operations resilient In Germany, a similar dashboard has been developed; the
step forward in more efficient use of the existing electricity for years to come by boosting grid utilisation, data insights CO2 Monitor.
grid (more information in the ‘Utilise the grid to empower and automation. The CROF programme includes projects
society’ chapter). where TenneT is partnering up with external stakeholders to We are convinced that a sustainable future energy supply
enable the acceleration of the energy transition and tackle can only succeed through cross-company data exchange.
We work closely with other European transmission system societal challenges. For instance, a new project 'Real-time With this in mind, we set up the energy data-X consortium,
operators in Equigy, a cross-border joint-venture that System Operation for Network Advancement and Transport a network of 14 interdisciplinary partners across the energy
develops the crowd balancing platform. The goal of this Efficiency (RESONATE)' has been initiated this year. This industry, information and communication technology, science
platform is to enable millions of European consumers to do project is funded by the Netherlands Enterprise agency. and standardisation sectors, in late 2023. Energy data-X
their part in the energy future to balance the grid, using TenneT, Alliander, Enexis and Stedin are contributing to this aims to achieve German and European climate targets by
small flexibility devices such as home batteries, electric research which is led by TU Eindhoven. The goal of this enabling a secure and sovereign data exchange amongst
vehicles and heat pumps. In 2021, we founded the joint project is to establish preconditions for implementing real-time energy partners. As project coordinator, we are responsible
venture Flexcess GmbH, together with TransnetBW, which system operations and to develop an appropriate system for the overall consortium as well as designing the compliance
will scale up crowd balancing services on a broader level architecture. Through real-time system operations, available system and evaluating energy-specific experience. After one
so we can establish a common German TSO roadmap. We transport capacity can be used more efficiently, enabling year of intensive collaborative work, we achieved good results
also focused on developing and testing distributed flexibility more grid connections to be realised and less curtailment of in 2024: a detailed description of the blueprint required for
redispatch processes in Germany, working closely with our renewable energy is required at peak times. the data ecosystem, based on DSSC (Data Spaces Support
pilot partners. In the Netherlands, we worked on embedding Centre) building blocks, which are the official EU standards,
crowd balancing platforms in TenneT’s policy in 2024, opening In the end, we need flexibility to ensure we can balance and a data exchange prototype between four parties within
the market to balancing service providers by offering voluntary supply and demand of electricity in a changing energy the ecosystem. Energy data-X was granted Lighthouse Project
and contracted bids for aFRR capacity via the platform. These landscape. The concept of flexibility relates to how TSOs status in spring 2024, recognising its importance as an energy
partnerships help us to balance the grid in a more volatile and make use of energy sources to call for the required capacity project within the wider Gaia-X European initiative to develop
intermittent electricity system. when needed and reduce capacity when there is excess. This a federated secure data infrastructure for Europe.
is necessary to always balance the grid. An important factor

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Deliver more grid capacity together for our customers and to serve society

Enterprise Digital Twin projects potential cyber-attacks by using digital twins for scenario more customers to the transmission and distribution grids. As
In 2024, we were closely involved in two projects focused analysis and training simulation. a result of this programme, a partnership with N-SIDE was
on building and scaling our digital capabilities: TenneTwin and formed that pitched a solution related to the challenge on how
TwinEU. These innovative research projects will help us to also Delivering for our customers, with our partners to make optimal use of the transport capacity and connection
utilise our grid better. Making strides in building the grid faster and utilising the points to the electricity grid. In 2024 the N-SIDE collaboration
grid better is how we plan to achieve our overarching moved into the proof-of-concept phase.
Within the CROF programme, TenneTwin involves the creation goal of delivering more grid capacity for our customers. As
of a “digital twin’’ of our power grid, allowing us to replicate outlined before, we work closely with stakeholders to ensure The 2024 edition invited participants to solve a challenge
the real-world system and its behaviour, including stability we can deliver the grid capacity needed by our customers related to TenneT’s SBTi targets (Science Based Targets
analysis of the grid with a high penetration of renewable and society. We seek out partners and collaborations that initiative), specifically regarding the question 'How to
energy sources. This project is co-funded by the Netherlands enable us to find innovative solutions so we can meet our significantly reduce greenhouse gas emissions of operations
Enterprise agency and sees TenneT work closely with TU customers’ needs. buildings of extra-high-voltage substations over the entire life
Delft. With this, we are making TenneT’s grid control centres cycle?'. International engineering and consultancy company
future-proof and equipped to manage the data-driven grid We work closely with partners to unlock solutions for creating Ingérop is the winner of TenneT's 2024 Open Innovation
of tomorrow. more customer connections. In 2024, we set up a dedicated Programme who came up with a solution that emphasises
Customer Connections and Capacity (CCC) unit for this efficient use of materials and simple modular and low-tech
TwinEU is an EU-funded project focusing on data federation, purpose. Also for this, we work with partners to achieve our construction methods, combined with attention to efficient
which aims to look at how we can exchange data at the goals, by tightening the collaboration with existing partners use of space and integration of renewable energy. In doing so,
European level to unlock the potential of the European energy to speed up the building process and through scouting Ingérop meticulously follows the principles of sustainable
system. Together with 75 European consortium members, (technical) innovation partners to utilise the grid smarter. design. Ingérop's idea also provides the right balance
such as Alliander, Stedin and TU Delft, we are looking into between innovation and readiness for implementation. This
creating a federated data exchange. The project officially Open Innovation Programme balance is crucial, as TenneT will soon apply the solution
kicked off in January 2024. This initiative is linked to Our Open Innovation Programme is an annual competition in the operations building of the planned “green substation”
the EU Action Plan Digitalising the Energy System and where TenneT invites external parties to submit solutions, in Marienberg, Germany.
this pilot aims to create mutual benefits for TSOs and concepts and ideas relating to the energy transition and
DSOs by providing computationally efficient and numerically future grid. We are firm believers that it takes all of society A solid financial foundation
trustworthy tools for anticipating and mitigating electricity to solve the energy transition challenges and we welcome To meet the challenges of affordability in the context of
instability. The project is expected to have a significant these contributions. the rising cost of the energy transition, we actively engage
impact in improving the resilience and cyber security of with regulators, relationship banks, investors and our
interconnected power grids and ensuring rapid recovery from The 2023 edition focused on finding solutions to optimise shareholder to ensure we can work in a sustainable regulatory
grid usage and combat congestion, helping us to connect framework and access the financing we need. TenneT’s
annual grid investments have doubled since 2020 and are
expected to increase to around EUR 200 billion in the coming

“We seek partners and collaborations ten years. Additional investments in our grid must fit in a cost-
effective and affordable total energy system.
that enable us to find innovative solutions so we
can meet our customers’ needs.”

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Deliver more grid capacity together for our customers and to serve society

To finance the expansion of offshore grid connections, requests to be connected to our grid is significantly higher supportive of innovation, working together on cross-border
TenneT co-operates with co-investors such as KfW-IPEX, than we can cater for within reasonable time, or our local partnerships and incentivising solutions for future challenges.
Copenhagen Infrastructure Partners (CIP) and Chubu Electric grid capacity is more heavily used such that there is limited
Power. These co-investors contribute equity via separate bandwidth left to connect new customers. Congestion From all perspectives we need to focus on unlocking
legal entities and therefore have financial participation rights. management in the Netherlands has become a pressing innovation through strong strategic partnerships with our
Their financing helps to ensure adequate financial ratios. issue, leading to significant adverse impacts on society. external stakeholders to achieve our goals and ultimately
Furthermore, their participation strengthens TenneT’s interest It could hamper the energy transition, preventing small to deliver our Target Grid. Getting there will involve collaboration
in a reliable and stable regulatory framework as co-investors large businesses achieving their sustainability targets and and negotiation to reach our shared destination of a clean
interests have been communicated to policymakers and the overflowing grid also holds back expansion plans for energy future. We aim to ensure we are a partner of choice
regulators. To secure a solid financing and ensure that we businesses and new homes. If our efforts to address these to help drive progress and solve these important societal
can drive the energy transition in an affordable way, we challenges are insufficient, it could, besides the societal challenges, together.
maintain strong relationships with our Shareholder, the Dutch impact, also effect TenneT’s climate target and green
state, potential third party investors and with the banks that ambition. This would cause negative media exposure and
participate in TenneT’s Revolving Credit Facility (RCF) – ABN reputational damage. TenneT is currently investing in its
AMRO, BNP Paribas, Commerzbank, Deutsche Bank, HSBC, customer connection activities to address this now and in the
ING, NatWest, Rabobank, Santander, UniCredit and SMBC. future, through our new Customer Connection and Capacity
Through these partnerships, together with the shareholder unit. One of the mitigation strategies is to step away from the
loan facilities and issued hybrid green bonds, we are able 'first come first serve' principle and instead take into account
to secure our financing (please also refer to the 'Safeguard overall system effectiveness and efficiency.
sustainable financial performance' section).
Societal acceptance of the climate ambition is not only
What could prevent us from reaching our goals? affected by the political landscape, but also by the speed of
To be able to drive the energy transition and deliver Target delivery and the financial cost of it. A high ambition to deliver
Grid, societal acceptance is essential in keeping pace. on a green society, with a focus on electrification, could lead
Building new assets impacts local communities living near to higher-than-average costs to realise these projects. Costs
our assets. For instance, acceptance by local communities of materials and services are increasing due to unavailability
is higher for using underground cabling rather than overhead and worldwide geopolitical tensions also contribute to high
lines, due to less visible impact on the landscape and energy prices. These higher costs related to the green
safety perception (i.e. regarding high-voltage lines and ambition and delivering under these circumstances are in the
electromagnetic fields). If societal acceptance for overhead end paid by society and could lead to lower acceptance by
lines is not secured it could impact not only reliability of lower income households and therefore affect our reputation.
supply, as it is more difficult to maintain an underground cable
than an overhead line, but also affordability as it is more costly Furthermore, a changing political environment can create
to build and maintain underground cables. uncertainty and slow our progress towards our ambition.
Political change can also affect rules, regulations, or the
Due to the currently growing electrification predominantly regulatory environment in general. While this could be seen
in the Netherlands, congestion of our grid becomes more as a risk, it could also become an opportunity for us. Political
important to manage. For certain areas, the number of change could be a catalyst when legislation and regulation are

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Jacob Tas, CEO, Royal Netherlands Sea Rescue Institution (KNRM)

“Our mantra is safe away,

safe home.”
The Royal Netherlands Sea Rescue Institution, operations are also increasing. “The ambition to expand
or KNRM, is the voluntary organisation in the offshore wind energy generation dramatically by 2050 will
Netherlands tasked with saving lives at sea. Its profoundly impact the region. The waters are already very
busy and wind farms are located farther offshore, which adds
rescue boats are on call 24/7 for emergencies in the
complexity,” he explains. “Only by working hand in hand
North Sea, where TenneT is increasingly active in
offshore grid development to accelerate the energy can we make North Sea
For many parties active in the North Sea, the Julietta D
transition. Safety at sea is a priority for both parties. freighter incident on 31 January 2022, during Storm Corrie, development as efficient and
is still top of mind. The ship drifted and collided with the
foundations of the Hollandse Kust Zuid wind farm and a
safe as possible.’’
KNRM’s crew of 1,500 professional volunteers rescue 4,000 TenneT transformer platform. Thanks to the efforts of the
people from Dutch coastal waters annually and provide radio KNRM and evacuation by a Coastguard search and rescue
medical advice to seafarers anywhere in the world. As a helicopter, the ship’s 18-person crew was brought to safety.
charitable organisation offering services free of charge, Human error accounts for 80% of incidents at sea, so
without government subsidies, KNRM relies on donations to Reflecting on the incident, Jacob sees it as a wakeup call education and prevention are at the core of KNRM’s work.
stay afloat. for the industry to how dangerous the North Sea can be. Jacob’s team recently gave a presentation highlighting its
Thankfully TenneT’s platform was unmanned at the time, lifesaving work during TenneT’s 2024 Offshore Days workshop
The North Sea is a key development area for TenneT. As an but there was still damage done. for Large Project Offshore (LPO), and there are more planned
offshore grid operator, it manages and builds infrastructure to for the future.
connect wind farms far out at sea to the onshore grid. In often In July 2024, TenneT and KNRM formalised their partnership,
hostile and hazardous conditions, TenneT’s employees and with TenneT committing to donate € 20,000 annually for five Jacob says he is pleased with the collaboration to date and
partners work on the construction and maintenance of years. Safety is the foundation of the partnership, as Jacob hopes that it will encourage other major infrastructure players
offshore sockets and sub-sea cables that bring wind energy explains: “Our mantra is safe away, safe home, which fits with operating in the North Sea to follow suit. “We trust that TenneT
to land. TenneT’s safety values. Financial donations from long-term will serve as an inspiring example. We cannot achieve the
partners like TenneT enable us to train our volunteers and energy transition alone – only by working hand in hand can we
Jacob Tas, CEO of the KNRM, says that as Dutch offshore provide them with the best materials, so they can do their make North Sea development as efficient and safe as
development intensifies in the North Sea, search and rescue job professionally and safely,” says Jacob. possible,” Jacob says.

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Tim Oliver Holt, Member of the Executive Board, Siemens Energy

“We strongly believe in our

strategic partnership.”
Siemens Energy is a global leader in energy long-term challenge that needs a co-operative strategic
technology, at the forefront of engineering solutions approach by supplier and TSO, not the traditional
in the energy transition. As such, it is a vital supplier transactional relationship.’’
and technology partner across a wide range of “As two large engineering organisations, we’re confident
in each other’s expertise. We’re always learning from the
“This is a long-term challenge
TenneT’s onshore and offshore projects.
projects we do together – it creates a great team spirit.’’ that needs a co-operative
However, the size of the two organisations can also create
challenges, particularly when joint project teams involve
strategic approach by supplier
Responsible for Grid Technologies at Siemens Energy, hundreds of people. “In two large companies, there are and TSO, not the traditional
Tim Holt is at the forefront of the low and zero carbon energy
systems needed to deliver the energy transition. With a
different ways of working, commercial boundaries, targets and
so on. There’s always room for improvement in how we work
transactional relationship.’’
portfolio including transformers, convertors and switchgear, together.’’
to battery energy storage, grid digitalisation and HVDC
interconnectors, Tim’s division delivers essential products Tim also says TenneT and Siemens Energy “can push and the Siemens Energy transformer factory in Nuremberg
and services for TenneT’s fast-growing investments. ourselves jointly a bit more’’ when it comes to standardisation makes up to 75 units per year, this is a significant step in
of design in grid assets. He says the 2GW Program has been circular resourcing and supply chain decarbonisation, saving
As Siemens Energy works with TSOs from around the world, an important first step, but more can be done. “I see some an estimated 6,500 tonnes of CO2 emissions by 2030. “It’s
it has an international perspective on TenneT’s reputation other TSOs and DSOs taking a more standardised approach a groundbreaking innovation,’’ says Tim. “We both wanted
in the energy transition. “TenneT is recognised for taking a to substations, for example. They may not always be the best to make a statement to the industry, showing that we stand
pioneering role. They were the first to install HVDC platforms engineered solutions, but they help get projects done faster for the circular economy and decarbonising the supply chain.
in the North Sea to connect offshore wind, and the first to and at a lower cost. In a market that’s growing 30% year These are the lighthouse projects the industry needs.’’
propose framework agreements as a way to meet the massive on year, you need to take a more industrialised approach.’’ Ultimately, Tim says this and other collaborations between
demands of offshore development. Other players are happy Although standardisation has clear benefits, Tim says Siemens Energy and TenneT show the power of their
TenneT took the lead and learned the lessons.’’ collaborative bespoke solutions can deliver technological combined commitment: “We strongly believe in our strategic
As for the strength of the partnership, Tim says the scale and breakthrough for the industry to follow. An example is a new partnership. We rely on each other. We face complex projects
urgency of the energy transition has changed the way that joint initiative to use recycled copper in power transformers. and work through the details together to get them done.
TenneT and Siemens Energy work together: “This is a As just one transformer can contain 60 tonnes of copper, That’s how partnership works.’’

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Create a safe and

inspiring workplace
Our people and others working with us to deliver grid capacity in time for
customers are key to ensure we are able to deliver. We must ensure that Introduction
current and future employees experience us as an employer of choice and a At TenneT, we build, maintain and operate critical
infrastructure that powers society today and supports our
safe and inspiring workplace, by having sufficient attention for safety, both
journey towards a renewable energy future. Our people are
physical and psychological and an inclusive, diverse and equitable working
our foundation and key strength and it is their combined effort,
environment. Ensuring we and our partners in the supply chain have the
teamwork and commitment that achieves these crucial goals
appropriate workforce is key to being able to deliver our societal task. for society.

TRIR Target Absentee rate NL Target To realise our rapidly expanding portfolio of investments
and accelerate building an energy system that can support
4.0 3.7
3.6 3.01
a decarbonised economy, we focus on providing a safe
NL: 1.9 | DE: 5.7 2023: 3.9 working environment for the people working for and with
2022: 3.7
2023: 4.5 us. We must have enough qualified people on board to
2022: 4.9
complete the task ahead of us and ensure they make it
home safely, every day. This is a core value in our work.
Percentage of female
In 2024 we showed our ongoing commitment to safety,
inflow of total inflow Target Absentee rate DE Target
making progress in embedding our centralised Health, Safety

32% 32%
3.3 3.01 and Environment (HSE) structured approach throughout our
organisation, following its introduction in 2023 (please refer to
NL: 29% | DE: 34% 2023: 3.4
2023: 32% 2022: 4.1 section 'Creating a strong safety culture so our people can
2022: 33% thrive' hereafter). Standardisation of design and guidelines is
key to our sharpened strategy and applies to how we manage
Percentage of non-Dutch safety – clarity and standard processes are catalysts to our
non-German inflow Target ambition to build faster in a safe environment.

11% 10%
With safety as a prerequisite for everything our people do
NL: 12% | DE: 10% in their work for us, we work to ensure that we recruit,
2023: 11% retain and develop the talent we need to meet our growth
2022: 9%
objectives, so we can ultimately deliver for our customers. To
1
No target value for absentee rates, however a value TenneT strives for.

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Create a safe and inspiring workplace

this end, it is essential that TenneT is an employer of choice How we managed this topic in 2024 Regarding safety, we continue to work thoroughly to improve
in an increasingly competitive labour market, especially for Currently TenneT has 8,349 employees, working in the our performance and to achieve our zero-harm ambition.
technical talent. Netherlands (3,383) and Germany (4,966). In addition, we have TenneT has taken substantial steps over the past few years
1,344 valued colleagues who are externally contracted to us, to introduce a new approach to safety, which is leading to
In 2024, we devoted further attention to our people strategy such as our contractors on site or colleagues working on a better performance as the Total Recordable Incident Rate
by revisiting and updating our vision and goals. This means project basis. To deliver on the ambitious targets needed to (TRIR) decreased in 2024 to 4.0, compared to a rate of 4.5
that we are focusing our HR efforts on the following five achieve Europe’s climate goals, we continued to grow, adding in 2023. The trend in this rate has been impacted by a change
ambitions: to achieve our growth targets and plan ahead; to more than 1,800 new employees to our own workforce in in definition as explained in the text box hereafter. Although
provide a seamless employee journey; to enable leadership 2024. With around 400 employees that left TenneT, a net our TRIR has improved by 11% and our severity rate by 30%
excellence; to develop our people; and to use technology to increase of employees is realised of about 1,400 employees. year on year, these are still above target level.
continuously improve. We believe that all five elements are
crucial to the success of TenneT’s strategy. At TenneT we aim to provide a streamlined employee
experience and we are exploring ways to use technology to In 2024, we updated the definition of our Medical Treatment
We focus on enhancing and embedding Inclusion, Diversity continuously improve. Despite the tight labour market with Cases (MTC). In prior years, the applied definition was broader
and Equity (ID&E) across TenneT so we continue to build a many parties competing for the same talents, we still have than required per international standards and increased the
diverse workplace where every individual feels seen, safe and managed to fill almost all open positions. The effort and quantity of HSE events considered as MTC. This definition
included. This is crucial to achieving our growth ambitions as improvements were possible due to our applicant tracking hence artificially increased our Total Recordable Incident Rate
we know that only through a diverse workforce we do have tool and process adjustments and the joint efforts between (TRIR), limiting our ability to compare our performance to
the capacity and different points of view to foster innovation hiring managers and the talent acquisition team. We continue other companies. The MTC definition now follows international
and safeguard our future performance. to seek out ways to use data and technology to work smarter, guidance and the TRIR target for 2024 was adjusted to reflect
not harder, so that we can ensure we have the people in place this change.
It is essential that we have a competitive position in the to execute our strategy and deliver our societal obligations.
relevant international labour market and that we take a
long-term view to achieve our wider goals at TenneT. While However, maintaining a net inflow of FTEs became harder in
we have a net growth target, we need to recruit more 2024 as more external contract workers left TenneT due to We also monitor our absentee rates by country on a regular
people to account for the outflow of employees, internal legislative restrictions on interim contracts, particularly in the basis, as an indicator to understand the health of our
movements and part-time workers. To support the further Netherlands. Current law limits the term of interim contracts. workforce. In Germany, we recorded an absentee rate of 3.3
growth of TenneT, we intentionally work on prioritising and As many of these contracts are coming to an end, we are in 2024 (3.4 in 2023) and in the Netherlands a rate of 3.6
filling the positions needed to ensure business continuity, seeing a larger attrition level than normal. Recruitment is also (3.9 in 2023). While we see a decreasing trend in short-term
taking the challenging market and changing employee needs more challenging as an increasing number of employees make absenteeism with our employees, long-term absenteeism is
into account. This requires finding people with the right internal moves to new positions, requiring vacant positions increasing. This trend, particularly in the Netherlands as it is
skills and competencies while paying attention to succession to be filled. During 2024 we also worked on our strategies trackable there, is partly explained by a rise in mental health
planning and development of our people. regarding future talents, how to collaborate with external issues among employees during 2024. We will continue to
partners and identify new ways of training international monitor this closely (more on this in the section 'Creating a
In the tight labour market, it is essential that TenneT candidates so they can adjust better in our local working strong safety culture so our people can thrive').
offers an inspiring place to work, where our people grow environments in the Netherlands and Germany.
professionally and personally, feel safe and supported to be To ensure we grow as a diverse and inclusive organisation,
their authentic selves. we track the diversity of our workforce. With 11% of new

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Create a safe and inspiring workplace

employees being both non-Dutch and non-German, we met benefits of our new organisational approach to safety, which increase, which is a sign of openness and transparency as
our target of 10%. We also worked hard to improve in was introduced in 2023. This is a centralised, uniform and issues increasingly come to light, which we encourage very
other areas with respect to being an inclusive and diverse systematically applied approach to safety across all sites and strongly. We investigate every incident reporting to understand
workforce. This includes, but is not limited to, areas such locations where TenneT’s employees and subcontractors work its cause and work to address this in a structural way with all
as gender diversity. In 2024, our female inflow accounted for – whether it is offshore in Germany or on a construction parties involved, integrating learnings back into our processes
32% of new employees, meeting our target of 32%. More on site in the Netherlands. We have been working towards and procedures. It is essential to understand our strengths
our efforts to achieve this, is included in the sections hereafter. a clear aim since its launch: more structure and company- and acknowledge areas for improvement so we can take the
wide standardisation, ensuring everyone working for TenneT right measures to increase safety.
Creating a strong safety culture so our people can thrive and our subcontractors speak the same safety language,
executing their work in line with a set of safety standards Psychological safety
Physical safety and protocols. At TenneT we recognise that safety goes beyond physical
The nature of our work carries risks, often involving working wellbeing – we must care for the psychological safety of
at height with high-voltage assets and with heavy lifting TenneT’s safety management is centralised in our Health our employees. As such, psychological safety at work is
equipment and materials, onshore and offshore. Despite Safety and Environment (HSE) organisation, which introduced an explicit aspect of our internal safety programmes and
this, we must deliver a secure and stable renewable energy a new Safety Management System in 2023 and worked in trainings, including the Safety Leadership Programme 'Safety
supply for society in a safe and responsible way. We are 2024 to roll this out across our operations. A crucial part needs our energy'.
committed to building faster and delivering more together for of this system is continuous improvement, meaning that any
our customers and know that the health and safety of our safety incident is analysed and learned from, with suitable We are determined to ensure we provide our people with
people is the foundation of this. system improvements identified and implemented. a safe environment where they feel confident to share their
experiences with their team and manager, so that suitable
We want all people working for TenneT to come home safely The HSE team is also working to embed the TenneT safety measures can be put in place to protect their psychological
every day and aim for zero harm in the workplace. At TenneT approach with our contractors and subcontractors. We hold safety. This is a commitment that extends from our Senior
we view a strong safety culture as an enabler of operational regular meetings with leaders from our partners and also Leadership Team to team managers – we need our leaders
success: as the scale and speed of our work increases our embed our safety requirements into our contracts, with to model the mindset shift and proactive attitude, so that
safety culture and standardised protocols provide a solid follow-up meetings to ensure compliance. In situations where everyone is willing and able to speak up, every time. In
foundation of clarity, quality and efficiency upon which we can discrepancies and non-compliances are identified, we act 2024, we appointed four confidants to ensure that our people
pursue our goals. decisively and our policy is to immediately stop working have trusted counsellors to turn to and show our ongoing
and take corrective measures – at TenneT we must set the commitment to investing in a working environment of trust,
Across TenneT, we are proud of the steps we have taken to example for our people and for the wider industry. Simply put: inclusion and psychological safety. In 2024 we achieved
create a safety culture and view 2024 as a year of progress if you do not work safely, you do not work with us. high completion rates for our 'Safety needs our energy'
and good performance. In 2024, we started to reap the programme, with 100% of our managers (employed as of
In 2024 we continued to use the system for embedding our July 2024) now trained – a milestone for TenneT that sets the
Life-Saving Rules (LSRs). These rules acknowledge that a safety requirements for all leaders in our organisation. This is a

“At TenneT we view a strong safety incident is often not an independent occurrence, but
in most cases an accumulation of small decisions. LSRs are
sign of our commitment to investing in a healthy safety culture
by shifting mindsets and behaviours. Course completion is
safety culture as an enabler designed to stop those wrong decisions from being taken. important and just the start, as safety is a culture we create
Speaking up about safety is crucial for this – in the process together through good leadership and everyday actions.
of operational success.” of creating a healthy safety culture reporting of incidents can

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Create a safe and inspiring workplace

We completed a TenneT-wide safety culture survey in 2024,

conducted by an external consultant. In prior years this survey Diversity at TenneT
was conducted in separate units and departments. Now, we
have an overarching view of how we are doing and how safety
Non-Dutch/non-German Number of Female/male/other % External employees
is perceived by our own people, who are at the core of our employees newly hired nationalities

11% 91 29/71/~0 1,344

company culture. The outcomes of this survey show positive
results, also indicating we are performing better than
the industry benchmark.
NL: 12% | DE:10% NL: 49 | DE: 89 NL: 26/74/~0 | DE: 28/72/~0 NL: 74% | DE: 26%

To get a better understanding of the workload and work-

related stress of our employees, we started researching
the psychosocial workload (PSA) of our people in Internal employees Age distribution
7%
the Netherlands in 2023. The 2024 findings show that many

8,349
17%
0%
of our colleagues experience a high workload and work- Internal employees in % NL DE Total
17%
related stress and that mental health problems contribute to ■ Under 20 years 0 0 0
approximately 50% of long-term absenteeism. This is a trend NL: 3,383 | DE: 4,966 ■ 20-30 years 10 21 17
particularly prevalent among office workers and we are ■ 30-40 years 26 40 34
committed to giving this the attention it deserves. ■ 40-50 years 29 22 25
Acknowledging this, we took several measures in 2024 to 34%
■ 50-60 years 25 12 17
address the root causes, including leadership training and 25%
■ Over 60 years 10 5 7
focusing more on mental health in our vitality programme. We
also followed up on the PSA by running pilots in three units.
In 2024 the non-regulated activities employed 134 internal employees and 12 external employees.
The next step is to define an organisation-wide approach to
psychosocial workload interventions, starting with a clear
strategy. Enhancing and embedding Inclusion, Diversity and To not only be able to attract, but also retain talent with
Equity (ID&E) so many backgrounds, we consciously invest in making
In Germany, we conducted a survey in 2024 on the workload To ensure that we are able to deliver grid capacity in time our workforce and our business ID&E-friendly. ID&E requires
and psychological wellbeing of people involved in the for our customers, we are aware that this requires us to look long-term efforts and attention to tackle unconscious and
SuedLink project. With a length of around 700 kilometres, this beyond geographical borders and to be an inclusive, diverse conscious biases so that decisions are made objectively when
is a massive infrastructure project enabling the energy and equitable place to work to be welcoming for talent from all recruiting, promoting and developing our employees. This is
transition in Germany. The survey results were analysed and across the globe to work in the Netherlands and Germany. a constant learning process, where our employees are the
several measurements were initiated, including various We are proud to have more than 90 different nationalities most important input contributors in our ID&E journey and
workshops for leadership teams to define improvement represented in our workforce in 2024. Diversity is visible in cycle of continuous learning. Actions we took in 2024 relate
measures. Furthermore, a health app (nilo.health) was piloted TenneT from entry level to the most senior members of our to: encouraging our trainees to work cross-border during
within SuedLink to provide online support around the clock for team. For example, our trainee groups are a diverse mix of their traineeship, hiring two dedicated ID&E officers (one in
all employees, including external contractors. This pilot was participants from both the Netherlands and Germany, and Germany, one in the Netherlands), giving this topic more
successful and will be rolled out across TenneT Germany. other countries, with different educational backgrounds. focus and dedicated resources and empowering networks
to bring people together to create safe spaces for sharing

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Create a safe and inspiring workplace

and dialogue, strengthening our corporate culture in the Recruiting the right people Retaining our valuable people
process. An example of this is the creation of a female At TenneT, we want to facilitate growth and ensure timely To meet the challenges ahead and fulfil our strategic
mentoring programme, to foster mutual learning between filling of positions with people who have the right skills and objectives, it is essential that everyone at TenneT can grow
people of different ages, genders and positions. Besides competencies to drive the energy transition. In 2024, we and develop their skills. This is essential for TenneT to not
this, we joined forces with other Dutch grid operators and focused efforts on developing a future-focused plan for our only grow but also retain the people with the skill-set we need
WomenInc. and organised a conference on gender diversity workforce, which will set us up for success in achieving our to drive the energy transition. It is especially challenging to
in the energy sector. In Germany, an internal LGBTI+ network Target Grid growth ambitions. This plan is based on data- retain younger generations and we must work to understand
was established this year, inspired by the strides made in this driven insights to help us make the right decisions as we step their needs and adjust our hiring, mentorship and onboarding
area by TenneT in the Netherlands in previous year, together up our recruitment efforts. efforts accordingly in this candidate-driven market. In 2024 we
with these other grid operators. took a more structured approach to leadership development,
In 2024 we also started rolling out the competency-based based on our aim to support managers by training them
To evaluate whether our policies and actions are effective, hiring approach that was developed in 2023. This means with respect to their ability to lead, inspire, support, value
we have set targets for both female and international new hiring people for their individual talent, interests and skills and create learning opportunities for their teams to ensure
hires, which we monitor continuously. The target for new rather than solely for their experience. We also participate in business continuity and drive sustainable workforce growth.
female hires in relation to total hires was set at 32% for the sector-wide consortium in the Netherlands via a matching Our aim is to cultivate a more diverse and inclusive workplace
2024. TenneT has achieved 32%. The target for international platform, that connects workers with potential employees in and to strengthen our ability to identify, develop and retain
new hires was set at 10%. TenneT has achieved 11%. Our the technical sector. our talented people, ensuring that they are engaged and
ongoing collaboration with the Refugee Talent Hub in the supported in their career progression. This is key to our long-
Netherlands was strengthened in 2024 with the launch of We also engage with talent earlier in their career and strive to term horizon: to achieve our growth targets and build the grid
a special programme called ‘Energy Skills’, which creates remain in contact with them through ‘talent pools’, which help faster, we need to devote attention to succession planning.
both learning and job opportunities for talented refugees. In us to identify future recruits. To this end, partnerships with We made progress in this area in 2024 by introducing a
this endeavour TenneT joined forces with other Dutch grid academic institutions (such as the TU Delft, TU Eindhoven, succession planning framework at all TenneT units. In addition
operators elevating this to a broad energy sector initiative. In Universities of Erlangen and Bayreuth, or RWTH Aachen), to developing engagement and learning programmes we also
the meantime, several of these newcomers have also become play an important role in our recruitment efforts. In the analyse turnover to understand how we can improve our
employees at TenneT. We also worked in 2024 to strengthen Netherlands for example, we are closely involved in the Power retention rates. We also made progress on our Job Grid 2.0
our internal readiness for refugee hires with the goal of Minor, a course on high-voltage power, offered at the Dutch in 2024. This is a project that provides a structured framework
creating a better onboarding experience for new refugee talent universities of applied sciences of The Hague, Amsterdam, for jobs within TenneT with a clear understanding of skills
in the future. Arnhem and Nijmegen. and competencies required for each position. This local
competency framework is already in place in the Netherlands.
Inspiring the best talent to join us and stay with us And in Germany, we established a future talent and For Germany a different approach is needed due to the
To ensure we have the workforce we need to meet our partnership team in 2024, which focuses on increasing the existing tariff agreement and we will continue to work on
strategic goals and create value for our stakeholders, we need overall pool of available talents for the energy sector. TenneT this to ensure it is in place as a foundation for all career
to appropriately attract and also retain our talent. This is a Germany is a founding member of the NET association, development in the future.
significant challenge for TenneT, especially as we are seeking alongside TU Dresden, DNV Germany, 50Hertz, Sachsen
talent alongside other employers in our sector. We sharpened Energy and others. This association will focus on short, mid
our people strategy in 2024 to meet these goals and are and long-term strategies for attracting more talented people to
implementing initiatives to support achieving our ambitions. the energy sector.

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Create a safe and inspiring workplace

Workplace health and wellbeing remote working, while also putting in place clear expectations training and coaching to maintain employee wellbeing. We
For our employees to perform at their best and contribute for time spent in the office, for regular face-to-face team also offer generous amounts of paid leave days and other
to the TenneT strategy, they need to feel fit, well-informed collaboration. In this way, a post-pandemic working trend has benefits to ensure a good work-life balance of our employees.
and engaged. Our long-standing Always Energy programme been managed into a new model of hybrid working across
is an important way in which we support our people, helping the organisation, taking into consideration local norms and the As TenneT works in an intrinsically high-risk sector – with
them perform at their best by focusing on their health and needs of specific teams. We will continue to devote attention many of our people working at height or on busy construction
wellbeing. This is an internal vitality programme, featuring to this to ensure we offer working conditions that suit both sites, with heavy and high-voltage equipment offshore and
workshops, trainings and events to ensure our people are TenneT’s needs and accommodate our employees' wishes. onshore – safety is of primary importance in everything we
energised and engaged, with a focus on: physical energy, do. We are acutely aware that safety incidents and major
mental and emotional energy, social energy and purpose or What could prevent us from reaching our goals? occupational or industrial accidents (such as fire, explosion,
meaning. In 2024, we further developed the Always Energy To realise our fast-growing investment portfolio and to achieve helicopter crash, vessel collision, structural failure or release
programme with a broader focus on mental health with new the goals of the energy transition, we need a significant of toxic substances) could result in fatalities, severely impact
offers like a health app, which can be used online at any number of new colleagues every year. However, we face the environment, damage our critical infrastructure and harm
time and offers different interventions, including talking to a ongoing difficulties in hiring the required resources for our our reputation.
psychologist. We see a strong Always Energy programme as a planned operations and projects due to very tight labour
valuable and positive way to improve employees’ wellbeing market conditions. At the same time, we see a higher number During 2024, TenneT increased its investment in safety and
and address low engagement due to physical or mental of our workforce leaving the company, as well as more of environmental protection, making strides in embedding our
health issues. our employees reaching retirement age. The companies we HSE organisation and approach. We are stepping up our
partner with and rely on to realise our projects – such as safety measures across TenneT. Safe work plans, workplace
The TenneT work culture and practices are the core of international engineering and energy contractors – face the inspections, trainings and instructions, incident investigation
employee wellbeing in the workplace and we are pleased that same challenges in recruitment and retention and this will and follow-up are all part of our journey to creating a proactive
the illness rate at TenneT is well below the benchmark in both likely remain a challenge looking ahead. safety culture.
countries for 2024. Despite this, we strive to facilitate our
employees in the best possible way to prevent absenteeism To mitigate these issues, we continued our recruitment effort.
and illness. We offer a Preventive Medical Assessment as part Looking to the near future we will launch the new TenneT
of our ongoing programmes and initiatives to boost employee employer brand and target groups for recruitment efforts. We
wellbeing in the Netherlands. To better understand how we are need to ensure that TenneT is always visible in the market and
performing in terms of energising, engaging and informing our will continuously develop our employer brand to attract the
people, we continued our Pulse Check (quarterly employee right people to our organisation.
survey) in 2024 across TenneT.
TenneT’s challenges that come with our ambition as set
Furthermore, as a large employer with a diverse and in Target Grid 2045 are huge. Mental wellbeing due to
international workforce, it is essential that we recognise that the societal pressure of building faster leads to possible
the workplace and attitudes to working norms are changing. challenges on psychological safety and work stress levels.
We are aware of new ways of working and the shifting Long-term absenteeism due to mental health difficulties has
expectations of jobseekers in the post-Covid era and aim to been showing an upward trend over the past few years.
support their wellbeing, psychological safety and motivation. To address this, TenneT will continue to offer health-related
In 2024 we have accommodated the growing demand for programmes, increased involvement of company doctors,

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Antonella Battaglini, CEO Renewables Grid Initiative

“We proved many sceptics

wrong.”
The Renewables Grid Initiative (RGI) brings picture of the energy transition. Everyone has a role to play,
together TSOs and NGOs from across Europe. across the technological, political and economic arenas,’’
It promotes transparent, environmentally sensitive she says.
grid development to enable the steady growth of
Renewable energy, particularly offshore wind power, is key
“Working ‘together’ means
renewable energy and advance the energy transition.
TenneT is one of the network’s founding partners.
to TenneT’s vision of an interconnected European grid and increasingly working also
contribution to national and European energy and climate
targets. Achieving these requires accelerated cooperation
with those who have very
between diverse parties. different views and
RGI was established in 2009, a time when calls for renewable
energy were becoming increasingly loud. Environmental One of the main activities TenneT has been involved in
perspectives to our own.’’
activists considered the transition to wind and solar essential with RGI was to understand how the regulatory framework
to prevent dangerous climate change. At that time no one was needs to change to enable the creation of local benefits.
talking about the electricity grid. Antonella Battaglini, CEO of “In a world where polarisation and conflict are on the rise, and progressive TSO. Its new procurement policies are a good
the Renewables Grid Initiative, saw a clear need for TSOs and energy infrastructure development can and should become example of bold leadership: incremental changes are not
NGOs to work together to ensure renewable energy strategies an engine for addressing local needs. It is essential to involve enough, we need new ways of working together to achieve
were prioritised and to minimise the impact on nature and communities in constructive decision-making processes. This the energy transition,” she says.
people. “There was a lot of public opposition. Many NGOs requires a favourable regulatory framework,” Antonella says.
were calling for 100% renewable energy and TSOs were new Antonella sees room for improvement, too. “The energy
legal entities: they did not understand each other. RGI created RGI and TenneT also collaborate in the FlatEMF project, transition is a complicated business and one we should
a space where they could work together.’’ alongside Europacable and other European TSOs. This approach from all angles. I’d like RGI to have the opportunity
initiative studies the potential impact of electromagnetic fields to work more with TenneT’s technical teams, because the need
Fifteen years on, Antonella says RGI has grown to 30 (EMF) from subsea cables on certain commercial fish species, to find new approaches to energy system planning is huge and
members and focuses on three aspects of renewable grid with results expected in early 2025. can only be tacked in collaboration with others. Working
development: technology, environment and societal impact. ‘together’ means increasingly working also with those who
“We proved many sceptics wrong: TSOs and NGOs can work Reflecting on the partnership, Antonella says it’s clear that have very different views and perspectives to our own. We
well together, and must! We need to address the bigger TenneT values the work that RGI does. “TenneT is a very open need to welcome new players in whatever we do,” she says.

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Marjolein Demmers, CEO, Natuur & Milieu

“It’s important we develop

nature inclusive solutions.”
Natuur & Milieu is a Dutch non-governmental the Netherlands’ largest nature reserve, with a wealth of flora
organisation (NGO) that supports the ‘nature and fauna. Together with the North Sea Foundation, Natuur &
inclusive’ decarbonisation of the grid in the quest for Milieu works to achieve a healthy North Sea ecosystem that
can absorb external influences – including the construction of
net zero. It is a key stakeholder for TenneT, which,
as a green grid operator, is committed to creating
offshore windfarms. This work is particularly urgent as studies, “Nature inclusive design is
a sustainable energy future with minimal impact
such as the recent OSPAR Quality Status Report, show
declining biodiversity and habitat degradation across many
about creating infrastructure
on the environment. areas of the North Sea. and assets that
Marjolein explains: “We’re not just standing on the side
accommodate nature.”
Natuur & Milieu focuses on climate change and biodiversity passively. We are in the wind parks and in the sea. Our
solutions in the Netherlands. It seeks to influence government partnership has given us a deeper understanding of the
policy and works with partner organisations, such as TenneT, complexity of TenneT’s work and the challenges they face.
to help bring about change in how the country develops, We learn from them and they also learn from our knowledge understanding, and finding mutually beneficial solutions.”
including any new energy infrastructure, so that it is more about the North Sea ecology and inclusive design.” This partnership has the potential to develop further too. For
nature inclusive. “For example, we’ve organised workshops with TenneT on the example, Natuur & Milieu is in discussions with TenneT about
Marjolein Demmers, CEO of Natuur & Milieu, says: “There’s process of developing new infrastructure and how important sharing resources for offshore monitoring activities: “There’s
no doubt that electrification and green energy is crucial to it is to engage early on nature-inclusive considerations. This a lot of demand for research vessels, so it makes sense for
tackling climate change. With an energy-intensive industry often leads to a different design approach which benefits us to pool resources and share a vessel when possible.’’
in the Netherlands, plus the demands of mobility and ecosystems and also helps TenneT as it helps avoid delays And how does Marjolein think TenneT can further improve?
households, the availability of green electricity is critical to our in planning.” “It would really help if TenneT could use its powerful voice to
future. At the same time, as we transform our infrastructure speak out more clearly and amplify our messages about the
and energy production capacity, it’s important we work with Marjolein appreciates the proactive approach TenneT takes importance of nature inclusive design in the development of
partners like TenneT to develop nature inclusive solutions.” to their partnership: “They’re very open to our perspectives infrastructure. They could make a big impact by talking more
and keen to overcome obstacles. It can be complicated as openly and publicly about how crucial it is to work with nature.
The Rich North Sea Project is one of Natuur & Milieu’s joint there are procedures to follow, and innovating is never This could help prevent ecological boundaries becoming a
initiatives with TenneT. At 57,480 km², the Dutch North Sea is straightforward. But they’re committed to learning, block to the energy transition.’’

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Transition to a brighter
energy future within
social and planetary
boundaries Introduction
The world’s dependency on finite natural resources is reaching
its limit. Not only will these resources be running out in the
course of time, but their use is impacting climate change and
As a European TSO, the main positive impact we have as a company is harming the natural environment. As a result, society needs
driving the energy transition to support Europe’s goal to become the first to transition away from fossil towards renewable sources
climate-neutral continent by 2050. Whilst doing this, we strive to reduce of energy – and this is where TenneT adds value. As part
of our responsibilities as a TSO, we develop the assets,
the environmental impact of our operations and minimise our carbon
knowledge and innovations to build a reliable and affordable
emissions.
future-proof grid that supports the EU’s net-zero ambitions. At
the same time, we must ensure we operate within social and
Reduction of carbon footprint Percentage of non-virgin planetary boundaries and drive sustainable change together
compared to base year 2019 materials procured Target with our stakeholders.
(Scope 1 and scope 2 market-
based emissions) Target
2% N/A
As a TSO, our biggest impact lies in the assets and
93 % 95% connections we build, which support the energy transition and
reduce emission of greenhouse gases (GHG). To that end, we
2023: 20% Number of environmental
incidents Target are pleased that around 86% of electricity consumption in
Germany and 100% in the Netherlands came from renewable
171 N/A
sources in 2024.
2023: 190
2022: 97
Percentage of supplier However, as we prepare our grid for the future, we are
visits performed that conscious there are ways in which we have an adverse
meet our standards Percentage of recoverable impact on the world around us. Our Sustainability Framework
(of a.o. quality, sustainability, etc.) Target waste Target
consists of four topics: climate, circularity, nature and human

77% N/A
97% N/A rights. While enabling the energy transition and delivering for
our customers, we strive to manage these topics responsibly
2023: 82% 2023: 75-90%
2022: 86% 2022: 75-90% and create a positive impact.

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Transition to a brighter energy future within social and planetary boundaries

Procuring and producing the materials needed to build our We have three main levers in place to manage our
assets on land and at sea, operating the assets to ensure a climate impact: “We consider it our responsibility
reliable energy system and effectively managing the emissions
which result from our own operations all pose risks to the
• We aim to reduce our direct and indirect emissions.
• We green the emissions from our own operations as a TSO
to tackle our emissions across
environment and society. As the energy transition is a global where reduction measures can not apply. all three scopes, no matter how
challenge involving a wide array of other parties from the • As a last resort, we seek compensation for the emissions
energy sector and the associated value chain, our sector’s which we absolutely cannot reduce or green. insignificant they seem.”
demand on resources and impact on the four topics listed
before is growing along with our investment portfolio. At TenneT, we consider it our responsibility to tackle our Scope 1 (direct own emissions)
emissions across all three scopes, no matter how insignificant
At the same time, the expectations from our stakeholders – they seem. SF6
such as governments in the areas we serve – are increasing, TenneT needs to use special insulating protection for
demanding more effort to limit the environmental and social The policy document that guides our climate mitigation efforts our high-voltage stations and distribution systems. Sulphur
impacts on the world around us. is our Climate Transition Plan. This is where we outline our hexafluoride (SF6) is widely used by TSOs as a highly effective
targets across the three scopes. In line with the Science insulating gas in switching installations. This remains essential
Through our climate, circularity, nature and human rights Based Targets initiative (SBTi), which we committed to in for operations where safety and reliability of the grid are
ambitions, we aim to shape what we believe is necessary 2021, we are determined to contribute to the goals of the fundamental to guarantee security of supply. However, SF6 is
for a responsible growth path, while supporting Europe’s Paris Agreement. We have set 1.5°C-degree-aligned targets also a greenhouse gas, with one unit equivalent to over 24,300
goal to become the first climate-neutral continent in 2050. for our scope 1 and scope 2 market-based GHG emissions, units of CO2.
Our efforts are geared towards tackling emissions across our with an aim to reduce them by 95% by 2030 (measured
scopes, optimising the circular use of materials for our assets, against a 2019 baseline). Our target for our scope 3 GHG While SF6 leakages currently only account for 1% of our
protecting nature and advancing human rights. emissions from purchased good and services and capital carbon footprint, we still aim to mitigate its impact as much
goods in our value chain is in line with the Paris ‘well below as possible. We are working to find sustainable alternatives
How we managed this topic in 2024 2°C’ scenario, as we aim for a reduction of 30% by 2030 (with to SF6 that provide similar safety properties without harmful
the same baseline). emissions. At TenneT, our long-term strategy is to use gases
Climate for installations which have insulating properties with a Global
The largest positive impact that TenneT has in terms of Since our investment portfolio will continue to grow Warming Potential (GWP) of ≤1, when at least two market
climate action is to enable the switch from a fossil fuel- significantly over the next few years, our absolute targets parties are able to offer this.
driven economy to a climate-neutral economy by connecting are much more ambitious than these might appear. In
renewable energy sources and transmitting the generated relative terms, a 30% reduction would equal a much higher Our actions to address SF6 leakages relate both to our
electricity. Where we have a negative impact, in the form percentage in practice, which is why we have decided to maintenance of existing assets and investment in new assets.
of our emissions, we are also taking important steps. The stick to the ‘well below 2°C’ scenario for our scope 3 In the Netherlands this year, we scaled up our efforts
majority of our direct (scope 1) and indirect (scope 2) GHG GHG emissions. to manage leakages with a new, sharpened process that
emissions results from our use of the insulating gas SF6 describes clear actions to take according to the different
and our grid losses, which is the electricity lost during In order to pursue these targets, we identified a series of types of leakages and involves a step to inform the relevant
transmission across our grid. For our indirect scope 3 GHG actions to take, which we outline hereafter and which are authorities. This process is also aligned with the DSOs.
emissions, the biggest impact comes from our purchased further explained in the Sustainability statements.
goods and services and capital goods.

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Transition to a brighter energy future within social and planetary boundaries

Furthermore, we set up a framework contract in

the Netherlands for our 110 kV gas insulated switchgear (GIS)
to only use alternatives to SF6. We have also put in an order
for a 380 kV AIS SF6-free circuit breaker, to be installed for
a project in Germany in 2026. This will serve as a pilot project
for using SF6 alternatives on extremely high-voltage circuit
breakers.

We recognise that our impact on reducing SF6 leakages can

be greater when we partner with others. In 2024, we launched
a new initiative in the Netherlands through Reddyn, our joint
venture with Alliander, to resolve complex leakages by using
an easy-to-apply and non-invasive solution that doesn’t
require installations to be dismantled. The solution can serve
as a robust temporary fix until the components are due to be
replaced. Moreover, we have launched a one-of-a-kind, five-
year partnership with Siemens and Hitachi, who will each
develop SF6-free 420 kV hybrid GIS installations, to be
installed by TenneT by the end of the decade. The focus for
2024 was on aligning the technical requirements of our
research with suppliers to investigate what opportunities exist
to develop such a solution.
Scope 2 (indirect emissions from generation of To mitigate this, in 2024 we began to incentivise our suppliers
Lease vehicles purchased energy) to supply technology to reduce grid losses by integrating
The mobility of our employees, whether travelling to and from sustainability in some of our tenders and including the use
the office or out in the field, results in GHG emissions and is Grid losses phase of assets in our calculations. In some instances, such
an area we are addressing with carbon-reducing policies. For As we transport electricity across our network, it is as in our Dutch framework agreement for overhead line
example, in the Netherlands we moved to a diesel-free unavoidable that some electricity will be lost. Known as grid conductors and in different cable project tenders, we therefore
business fleet in 2024 and aim to move to a fully electrical losses, these are measured as the difference between the steer our suppliers to improve the conductivity of our assets,
fleet in the long-term. electricity fed into the grid and the electricity delivered. Each which helps to reduce grid losses. We are currently exploring
MWh lost can no longer be used to power an electric vehicle how we can further improve and standardise this.
Gas consumption or to keep the lights on. The emissions related to those grid
Gas usage for heating our offices, substations and other losses fall within TenneT’s scope of responsibility. Currently, grid losses account for around 44% of TenneT’s
locations is also part of our scope 1 GHG emissions. To carbon footprint (scope 1, 2 and 3), based on a location-
ensure we are meeting our climate-neutral goals regarding our Grid losses depend, among other things, on the current, based approach. When applying a market-based approach,
locations, we have greened our gas consumption via the voltage and the distance that electricity is transmitted. this would be around 7%.
guarantees of origin, green gas contracts or compensation We cannot prevent grid losses from occurring: these are an
through carbon credits. inevitable part of electricity transmission over high distances.

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Transition to a brighter energy future within social and planetary boundaries

The impact of our grid losses on the environment has Scope 3 (indirect emissions in TenneT’s value chain) using low carbon-aluminium. These are actions we have
always been determined by the local electricity grid mix: identified that can help us achieve our scope 3 upstream
the average emissions per MWh are considered to be the Purchased goods and capital goods CO2eq reduction goals. We are also looking to incentivise our
environmental impact of that grid loss. When all purchased Our scope 3 emissions are spread across our procurement suppliers to increase their use of green energy in producing,
electricity related to these grid losses would have been categories, but the majority of emissions come from a limited transporting and installing our assets and we are evaluating
purchased from climate-neutral electricity sources, that would number of categories. Based on our latest analysis we possibilities of changing product specifications to allow for
mitigate our carbon impact from grid losses as well. It is estimate that more than 80% of our total scope 3 emissions more efficient material use or use of recycled materials. Also in
not possible to purchase only renewable energy upfront. are caused by the production, transport and installation of line with our offshore 2GW Program partnership frameworks,
Therefore, we purchase guarantees or origin, equal to the our biggest assets, such as cables, overhead lines, pylons, we aim to enter into more CO2eq reduction partnerships
amount of electricity lost for the previous reporting year. offshore platforms, transformers and substations. with suppliers.

We procure guarantees of origin (GoO) at a group level: To make further progress on our target of reducing Another priority this year was on improving the availability
for 2024, we have greened 100% of grid losses in the scope 3 GHG emissions by 30% by 2030, in 2024 we of primary and supplier-specific data. In addition to
Netherlands and 87% of the grid losses in Germany. entered a new phase of our ‘Decarbonising the Supply Chain’ integrating sustainability within our tenders, we developed and
project. This is how we aim to develop and implement distributed a questionnaire to all our suppliers and held Q&A
Over the past years, TenneT has been actively pushing the sustainable sourcing strategies that promote the reduction of sessions with our largest partners.
debate on greening grid losses, which has resulted in more emissions along our supply chains while ensuring that the
awareness but no regulatory change yet. This means that availability, affordability and quality of our procured products Our assets are produced along complex global supply chains.
TenneT takes the financial responsibility for greening its grid and services remain unaffected. In 2023 our focus was The majority of emissions in these supply chains therefore do
losses in Germany, and it is its longstanding policy to do this primarily on analysis and obtaining insights into our portfolio, not occur at our tier 1 suppliers, but further down the supply
in a balanced way – with a budget cap. Since we foresee no whereas this year we have taken the project a step further chain, e.g. in the extraction and refining of raw materials
regulatory change in 2025, it is likely we will not meet our and begun several pilot initiatives. These have included using or in the production of semi-finished products. Stimulating
2025 ambition to fully green our German grid losses. concrete with a 30% lower carbon footprint for overhead our supply chains to reduce these emissions while not
line foundations, using recycled steel for pylons and for steel having direct control adds to the challenge of reducing our
Electricity use in substations and offices construction in our substations, and using renewable granules scope 3 GHG emissions by 30%. We must also factor in
Similar to gas usage, the electricity use in our offices and for the high-density polyethylene (HDPE) in our underground the rapid growth in grid expansion and investments in the
substations has an impact on our carbon footprint, which we cable protection pipes. If these pilots are successful from a coming years, which will lead to a significant increase in the
mitigate by purchasing green electricity. In some cases, we feasibility, cost and logistical perspective, we aim to roll them procurement of goods and services.
are limited by regulation and cannot choose for renewable out in a standardised way in the coming years.
electricity suppliers. In these cases, we buy guarantees of Mobility as a result of our own activities
origin and apply a market-based calculation to have a more This year, we signed a memorandum of understanding with With respect to the smaller sources of scope 3 GHG
accurate estimate of our emissions corresponding to our one of our biggest suppliers, Siemens Energy, to enter into a emissions, we continue to improve our policies on mobility,
supplier base. In addition to this, where regulations permit strategic partnership on decarbonising the grid supply chain. motivating employees to make more environmentally friendly
us to deploy renewable energy, we install solar panels on The first milestone of this new partnership is that Siemens choices in the way they travel for work. We integrate our
our substations. Energy will produce all future power transformers and shunt Mobility Vision with our hybrid and flexible working, so that
reactor units for TenneT’s German grid using 100% recycled employees can choose the means to do their job in the best
copper. In the Netherlands, we awarded a new framework way possible. We incentivise employees to cycle to work
agreement for overhead line conductors to several suppliers by awarding the same compensation for kilometres cycled

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Transition to a brighter energy future within social and planetary boundaries

as kilometres driven. In 2024, we also introduced a travel can make a positive impact by incorporating circularity within outlined in the respective section before, these include using
policy to limit our climate impact, especially since many of our our activities and promoting circularity with our partners. recycled steel, renewable HDPE and recycled copper.
offshore business partners are located internationally.
In 2023 we announced the launch of our first Circular For circular outflow, we are working to strengthen the data
TenneT’s sustainable Revolving Credit Facility: linking climate Economy Strategy, which included a common understanding availability for our waste management by engaging our
performance to finance of circularity for TenneT, a mission statement, a circular contractors to share their data with us. We are contacting
To make progress against our climate ambitions even more economy framework as well as targeted KPIs (Key them directly and holding Q&A sessions to facilitate and
visible, we have linked our financing costs to our climate Performance Indicators) to measure our performance. In 2024, accelerate the exchange of data. We are also taking steps
performance. Secure access to finance is essential to ensure we moved into the implementation phase of this strategy, to digitalise our processes, having piloted a data management
that we maintain the pace of our investment portfolio. focusing on the three pillars of circular design, circular tool this year while preparing to tender a tool for future use.
An example of this is our EUR 3.3 billion sustainable procurement and circular outflow.
Revolving Credit Facility (RCF), which is linked to sustainability To bring circular procurement and circular outflow together,
performance indicators and targets. In practice this means This year we developed a set of circular design principles we are also investigating opportunities to completely close
that, depending on the realisation of our climate-related KPIs, that will provide guidance for advancing circularity in our and shrink materials loops with our supply chain partners. For
a discount is applied to the interest margin of the RCF. This is assets and projects. We are looking to review six of our focus instance, we investigate whether we can use the old copper
related to the percentage of green energy use of our stations asset categories in 2025 for these circular design principles (or steel or aluminium) from our own assets at end-of-life in
(100% in 2024 vs 100% in 2023) and our offices (100% in to identify where we can improve on circular design and the production of our new assets.
2024 vs 100% 2023). It is also linked to the net carbon therefore remove potential barriers for circular procurement
impact of mobility per employee against the total number of and outflow. In the same asset categories, we will also dive The availability of data and information upstream and
employees (0.5 in 2024 compared to 1.0 in 2023) and the net deeper into the potential recovery of our assets to better downstream our value chain is one of the greatest challenges
carbon footprint of leaked SF6 gas divided by theoretical CO2 understand the extent to which our materials can be recycled when it comes to circularity. Our work is most effective when
impact of banked SF6 (0.07% in 2024 compared to 0.11% in or even re-used at the end of their intended useful life. We we have a clear picture of what our supply chain looks like,
2023). To reduce our carbon footprint, we compensated for a have estimated the potential recovery of our procured assets how our assets are produced and what happens to them at
part of our leaked SF6 and mobility through carbon offsets. for the first time in 2024, which is an assumption-based figure the end of their life. Introducing circular economy initiatives
of 98.7%. can, however, be complex, and is often a matter of debate
Circularity and balance. It is also disruptive by nature, involving changes
To facilitate the energy transition, TenneT must reinforce and For circular inflow, we have set a target for our copper inflow to established processes and increased collaboration between
expand the grid, which means using a variety of different to be 40% circular by 2025. We measured the circularity many different stakeholders.
materials to build, operate and maintain our assets. The of our overall inflow for the first time in 2024, which is an
extraction, refining, use and disposal of these materials is one assumption-based figure of 2%. In 2025, we will look to Nature
of the key drivers of the negative environmental and societal further improve our data maturity. We aim to bring four further In driving the energy transition, we can have a positive impact
impacts we have as a TSO. There is a risk of becoming focus materials to the same level as copper, measuring their on the natural environment by helping to reduce carbon
overdependent on these materials at a time when competition circular inflow based on supplier-specific data and setting emissions and the harmful effects of climate change. Yet
is increasing, caused by crises and geopolitical tensions, quantitative targets. These are steel, aluminium, concrete and to do this, we need to construct and operate our assets
which might expose us to supply chain disruptions, price plastics. To pursue our target of making our material inflow on land and at sea, which can disturb natural habitats and
volatility and longer lead times. It is therefore important from more circular, we have introduced several measures this year affect biodiversity. As part of our ambition to operate within
both an environmental and business perspective that we shift that have set a strong statement of intent. In line with our planetary boundaries and drive sustainable change, we look
from a linear to a circular model of material use. This way, we scope 3 emissions reduction target of 30% by 2030 and as to minimise these negative impacts while maximising our

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Transition to a brighter energy future within social and planetary boundaries

positive impacts, all with a goal to reduce our net impact on Around our offshore platforms and Around our high-voltage substations Around our lines - and cable connections
cables • Maintain insect populations by (sinus) • Measures to avoid bird collisions, such as
nature to zero.
• Facilitating species population mowing management ‘varkenskrullen’
• Ecological cable crossings • Lower environmental impact due to • Coastal breeding zone protocol
To make progress on our biodiversity ambitions, we include • Artificial reefs alternatives for insecticides • Nesting boxes for the Common Kestrel
• Measures regarding sound pollution • create large green spaces to compensate • Pilot with drones to hang wire markers for birds
details on nature commitments in our investment plans. for marine life for the adverse impact our assets have on • Vegetation management,
Currently each proposed investment contains a ‘Commitment the environment such as flower lines
• Improve biodiversity with fauna
to Nature’ paragraph detailing a description of the anticipated
eco-measurements e.g. insect hotels, Cable
impact on nature, the measures to mitigate and bird boxes. connections
the opportunities for positive impacts. • Green roofs on our substations

A large focus for TenneT in 2024 has been on developing our

new nature strategy, which will launch in 2025 and
Converter High High
concentrate our efforts in addressing nature issues. As a basis station voltage voltage grid
substation
for the strategy, we are using a mitigation hierarchy that
defines our priorities and guides our actions along the lines
of avoidance, minimisation, rehabilitation or restoration and
compensation. Though the strategy is yet to come into force,
this structured thinking is already influencing our approach to Sea cable
nature today. For example, we have developed KPIs for nature Offshore wind farm Offshore platform

at a unit level to increase the sense of ownership and Wind farm TenneT offshore grid TenneT onshore grid

responsibility across our organisation for our shared nature

ambitions.

Our new nature strategy will serve us well as we address

the challenges inherent to an expanding grid. With more
assets, more risks exist that we adversely affect the natural from cables in 2024, compared to the 2,698 litres reported Biodiversity measures around our onshore assets
environment. At the same time, we see opportunities to lead in 2023. We consider every incident that occurs one too many As an example of how we turned our policies into actions
in enacting effective green measures that improve rather than and we are aiming to learn from the root causes of these in 2024, we were a signatory of the Sector Accord for
harm biodiversity in the locations in which we operate. incidents. Nature Inclusive Infrastructure alongside Alliander, Enexis and
Gasunie, all of whom primarily work with onshore assets.
To take action to reduce our impacts on nature, we carefully Our impact on nature primarily relates to where our assets This Dutch agreement includes an ambition for the collective
track the number of environmental incidents, such as leakages are located when building, maintaining or operating them. infrastructure to have a positive impact on nature by 2040
of SF6 gas, oil leakages from our assets and other This is mainly around our offshore platforms and cables, and specific measures for all parties to follow. One of these
occurrences. In 2024, we recorded 171 environmental around our high-voltage substations and around our lines is including nature requirements in tender processes for
incidents (compared to 190 in 2023). As the number and cable connections. Taking into account the biodiversity contractors. TenneT already had this policy in place, but we
of investments and activities needed to drive the energy around these areas is an important lever for achieving our are now held accountable for it and can share best practices
transition increases, so too does the number of potential nature ambitions. with our Sector Accord partners.
incidents. This year we also recorded 2,869 litres of oil leaked

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Transition to a brighter energy future within social and planetary boundaries

In Germany, we launched a new programme this year to Human Rights are related to the safety of our people and those that help
create large green spaces to compensate for the adverse Ensuring that all workers, irrespective of whether they are us build the electricity grid of the future. For the latter, topics
impact our assets have on the environment. working for us or one of our contractors, are able to like forced labour, decent wages, adequate working hours,
work under proper working conditions is key for them collective bargaining and the right to adequate housing are
To reduce our impact on wildlife, we work with the right to help us deliver the energy transition in a sustainable also salient rights.
partners to identify high-risk bird spots and implement animal- manner. Those working outside our offices are especially
friendly bird barrier measures. We also work to protect nature vulnerable to the risks of working with heavy material and Our human rights policy addresses the broader set of human
in the immediate vicinity of our assets. For example, in 2024 high-voltage equipment. rights and the salient rights and this policy applies to all value
we installed 16 nesting boxes for the common kestrel near our chain workers. Here, we commit to respecting international
stations. These serve multiple purposes, including creating In order to accommodate for the accelerating speed of human rights standards (including the International Bill of
better breeding conditions and preventing the birds from the energy transition and in accordance with our offshore Human Rights and the ILO Declaration on Fundamental
making nests in our installations. development plans, formed by the governments in the areas Principles and Rights at Work), as well as to the UN Guiding
we serve, our procurement and construction activities outside Principles on Business and Human Rights, OECD Guidelines
Biodiversity measures around our offshore assets of Europe (specifically in South- and East-Asia, and the for Multinational Enterprises and the UN Global Compact.
Our policy for addressing our impact on nature around Middle-East), where it is more challenging to ensure our A more detailed description of what these commitments
our offshore assets revolves around the concept of ‘Nature- policies and procedures are applied compared to locations mean in practice, and what we expect of our suppliers
Inclusive Design’ (NID). This means we incorporate eco- closer to the areas we serve, are increasing. In addition, and contractors, can be found in our human rights policy
friendly designs and ecological measures in our projects, working at faster pace to deliver more grid capacity for our document (p.2-3).
such as fish enclosures. To gain more knowledge on customers and to realise the energy transition might impact
the effectiveness of these kind of measures in marine the lives and working conditions of our value chain workers. In line with our human rights commitment and roadmap, we
environments, we have concluded our three-year monitoring The increasing speed at which we will have to deliver our have taken several actions to prevent or mitigate negative
programme of the Hollandse Kust (zuid) eco-crossing pilot. projects could result in other impacts, such as exceeding impacts on our value chain workers. This relates for instance
Among our main findings were that calcareous rocks do not working hours. to engaging with other companies to build leverage. An
seem to influence the settlement or success rate, but rock example of this is our Multi Stakeholder Initiative on worker
size seems to be a good predictor of biodiversity. Our offshore construction activities are partially based in welfare regarding our Singapore yard: TenneT joined to
South- and East-Asia (including China, India and Singapore), work with a group of businesses in the energy sector (BP,
Open Innovation Programme and green substation and the Middle-East (including Bahrain and the United Arab Equinor, Ørsted and Shell), to further develop the Worker
As part of our Open Innovation Programme this year, we Emirates) where there is a significant risk of forced or Welfare Group, our partnership focused on labour rights and
invited parties to collaborate and help us develop innovative compulsory labour for value chain workers. This risk is worker welfare requirements within the marine construction
solutions to make the control buildings of our substations widespread in these geographies and not related to individual sector. This group has developed a set of principles and
more sustainable. In pursuit to combine many of our green incidents. As a result, material impacts for our value chain guidelines to support, in the first instance, the Singapore
measures and raise the ambition level even further in an workers are particularly at risk in these geographies. We have marine construction sector to meet international standards
integrated initiative, we are working on a pilot project to build a prioritised list of rights of value chain workers that make for worker rights and worker welfare, particularly focusing
TenneT's greenest ever substation. up our ‘salient rights’. We have identified these based on on responsible recruitment, improved accommodation, better
possible material impacts and we have defined our human transport and improved access to grievance mechanisms. We
rights strategy and roadmap based on our learnings from have engaged with key stakeholders to advocate for systemic
these salient rights and value chain engagement on these improvements and are also working with local organisations to
rights. The material (or salient) matters in the social domain facilitate access to remedy for workers. What is more,

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Transition to a brighter energy future within social and planetary boundaries

engaging with credible proxies of value chain workers and commitment to human rights prohibit forced labour and we rights policies in place. There are risks to nature here too,
other industry peers helps us in achieving our objective of are committed to eradicate this issue from our supply chain. as the more assets we build, the higher the possibility of
building a robust due diligence policy. In that respect we have disrupting biodiversity.
joined the International Responsible Business Conduct (IRBC) What could prevent us from reaching our goals?
for renewable energy. Furthermore, we are continuing to set To prepare for the grid of the future, we need to scale up Under certain conditions, TenneT might still depend on the
up structures within our projects to manage grievances and our activities and operations in the coming years. At the usage of environmentally harmful raw materials and gasses,
the frequency of stakeholder engagement also helps us with same time, we must ensure this growth does not come at such as the mining of rare metals, if there are no other viable
this objective. the expense of the environment or society. It is a challenge solutions available. This could cause an environmental or
for TenneT to find the balance between supporting Europe’s ecological impact in countries where this material or gas is
The size of our supply chain and the number of suppliers ambitions of reaching carbon neutrality by 2050, and keeping excavated or used.
we have does make our work on human rights challenging. the negative impacts resulting from our actions to a minimum.
Some of our partners may have less mature human rights Resource circularity will become increasingly important in
management or come from countries with systemic human Regarding our scope 1 GHG emissions, SF6 leakages the years ahead. So to ensure the measures we have in
rights issues that no single business can solve. But the first currently account for less than 1% of our climate footprint, place here have a greater positive impact, we will need to
step is acknowledging the scale of the task and working yet we are working hard to reduce our use of this insulating improve our data availability along our value chain. Having
towards more responsible business practices. This is also why gas. We started strategic partnerships as an effective way more accurate insights can allow us to take more targeted
collaboration offers us a greater chance of creating longer- for us to find alternatives to SF6 and solutions to mitigate action, which is particularly valuable given the complexity of
term impact. against leakages. introducing circular economy initiatives to embedded, long-
standing processes.
Based on our risk assessments and stakeholder input, we Grid losses are a major contributor to our scope 2 GHG
understand that there might be impacts in our upstream emissions. Unfortunately, the nature of power transmission
value chain, more specifically in Asia related to our offshore makes grid losses inevitable. It is also challenging to lower
portfolio. In line with this understanding, this year we became our grid losses when using materials like aluminium as a
aware of forced labour indicators in the value chain of one conductor in our power lines. It is not as scarce as copper, for
of our suppliers. After an in-depth analysis and engagement example, which is a positive, but it is less effective, meaning
with our direct supplier, we have drafted a corrective action grid losses are higher. When it comes to greening our grid
plan and further engaged with peers in the region to use our losses, we are limited in what we can do in Germany due
collective leverage and drive change in the region. to regulations in the country, and we do not expect to see a
change in policy in 2025.
In December 2024, TenneT was associated with a Chinese
organisation, which was linked to forced labour practices. When we look along our supply chain, there are emissions
The allegations however do not connect to TenneT’s direct that need to be reduced, but which we do not have direct
supplier, but the mother company of the major stake control over. This is why we encourage and incentivise our
shareholder of one of TenneT’s direct suppliers. In this supply chain partners to act sustainably to help us reach
specific case, we are assessing the situation with a third-party our target of reducing our scope 3 emissions by 30% by
expert organisation to decide on appropriate actions. Our 2030. Another challenge here is the expansion of the grid,
policies as indicated in our supplier code of conduct and which will require us to procure more goods and services,
and potentially engage with suppliers with less mature human

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Jan Vos, Chairman, NedZero

“The next generation is

counting on us.”
NedZero is the trade association for wind energy strategy, involving multi-pipelines transporting CO2 and
in the Netherlands. Its ambition is to decarbonise hydrogen. Both NedZero and TenneT advocated for the timely
the entire Dutch energy system, working with 300 inclusion of electricity cables into the corridor, to connect
offshore wind energy to the onshore grid and carry it deep
members to advocate for wind energy projects and
inland. Jan says he was disappointed to hear of the Dutch
policy that supports a green future. NedZero is a
government’s decision to exclude the HVDC cables, “We have to make the
valuable ally to TenneT as the two have shared goals
relating to the energy transition in the Netherlands,
announced in December 2024.*
energy transition happen.’’
and beyond. “The DRC project is key to accelerating the energy transition
and European Green Deal. TenneT’s cables are crucial for
electrifying the Netherlands and our industry. We fear this and knows it needs to be more cost efficient and find ways
The North Sea is a vital source of renewable energy for decision will lead to more grid congestion, more CO2 to use its existing infrastructure more efficiently,” he says.
the Netherlands, Germany and other European countries. emissions and less green electricity. These are the types of Despite the challenges, Jan is pleased with the steps NedZero
As such, the development of North Sea wind power is an key decisions that we try to positively influence, and we will and TenneT are taking together. “Wind energy is already the
essential part of TenneT’s target grid 2045 strategy, requiring not give up – the next generation is counting on us to make largest supplier of electricity in the Netherlands. By 2030,
strong partnerships with other offshore stakeholders. the energy transition happen,” says Jan. 75 percent of our electricity will come from wind turbines.
Prominent among these is Jan Vos, Chairman of NedZero, We need each other to ensure this keeps going in the right
formerly known as NWEA (Netherlands Wind Energy NedZero is also strongly focused on the evolution of energy direction,” Jan says.
Association). markets to support decarbonisation. Jan says there is still
work to be done in creating a stronger business case for wind
* On the same day of this interview the Netherlands Minister of Climate Policy
Advocating for important infrastructure projects that facilitate energy, as high costs can deter parties from bidding for
and Green Growth announced that the HVDC cables will no longer be part
the integration of offshore wind energy into the grid is a focus offshore wind energy plots. “We can’t sell all the offshore of the DRC project.
of NedZero’s work. In 2024, this saw TenneT and NedZero energy produced and shifting these costs to producers
working closely together on the Delta Rhine Corridor (DRC), dampens our business case. There’s still a lot of potential to
with both partners strongly arguing for the inclusion of adjust pricing on both the supply and demand sides. We must
underground HVDC cables in this major infrastructure project. ensure that it’s lucrative enough for capacity providers and
The DRC is part of a broader European integrated energy producers to keep on constructing. TenneT has a role in this

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Sven Utermöhlen, CEO, RWE Offshore Wind

“TenneT is a key partner

for RWE.”
RWE is one of the largest offshore wind operators necessary grid infrastructure and offshore wind grid
in the world, with over 20 years’ experience in the connection systems is of the utmost importance.’’ He adds:
development, construction and operation of projects. “TenneT is one of the most experienced TSOs when it comes
to offshore grid infrastructure.’’
RWE is aiming to triple its offshore wind capacity
“Building the necessary grid
by 2030, including projects in the Netherlands and
Germany, where it is an important partner for TenneT.
Sven says the offshore wind market faces short-term
infrastructure and offshore wind
challenges, with strained supply chains, rising costs and
uncertainty about the financial risk of wind farm investment. grid connection systems is of
With responsibility for RWE’s global offshore wind portfolio,
He says this is causing some players to withdraw from the
market. Furthermore, he is concerned about declining political
the utmost importance.’’
Sven Utermöhlen has a key role in the energy transition, and societal momentum behind the energy transition. “Very
working closely with TSOs to harness the power of clean large infrastructure projects need societal support to make
wind energy. sure they happen,’’ he says.
Sven says northern Europe is particularly well-positioned to To maintain support and investment appetite, he says it’s or sharing available grid capacity between wind farms.
make the most of this opportunity: “The energy resource we important for wind farm operators and TSOs “to make sure Also, looking further back, I would say TenneT didn’t always
have in the North Sea is almost unique in the world, with the we go for the low-hanging fruit’’ in the offshore wind projects embrace its offshore role. However, things are different now.
combination of high and constant wind speeds and relatively they prioritise. TenneT is more proactive and innovative and also fully
shallow water over a large area.’’ embraces its offshore responsibility, seeing it as an enabler
TenneT and RWE work closely together to unlock this RWE’s close partnership with TenneT helps navigate these of the energy transition.’’
potential, with projects such as the OranjeWind wind farm in challenges. “We have common objectives to drive forward He concludes: “We can only make the energy transition
the Dutch North Sea. This will supply sustainable electricity the energy transition, in particular on the synchronised happen if players like TenneT and ourselves move in the same
to over one million households in the Netherlands when fully development of offshore wind farms and the grid. There are direction. That includes individual projects, where the
commissioned in early 2028. RWE is delivering this wind farm strong relationships at all levels, from the board to individual engineering only works if our technical designs literally fit
together with TotalEnergies. teams.’’ together. And also in the wider sense, as we share the same
Sven says RWE’s relationship with TenneT has evolved over objectives and interests. The scale of the challenge is
“TenneT is a key partner for RWE, in offshore wind and the the years: “In the past, we had some difficult discussions, enormous, so cooperation is the only way to tackle it.’’
energy transition as a whole,’’ says Sven. “Building the for example about TenneT accommodating new technology,

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Safeguard sustainable
financial performance
As one of the largest investors in the energy transition in Europe, TenneT
strives to build long-term value for society, while safeguarding its financial Introduction
health and delivering healthy returns for capital providers, as well as raising As a leading electricity transmission system operator with
a critical role in the decarbonisation of the energy system,
the necessary external financing. The rising cost of grid investments has
TenneT has an important responsibility to society. The
an impact on society, yet investments are essential to enable the energy
decisions made by us and other stakeholders in the
transition for generations to come.
energy system have a financial impact and are therefore
considered carefully, when we balance the energy trilemma
of affordability, reliability and sustainability. Securing supply
today and tomorrow and enabling the decarbonisation of the
energy system, requires substantial investments.
Underlying EBIT (EUR million) Target Adjusted FFO/Net debt Target
As the energy transition picks up speed, the cost is also
1,745 1,680
8.2% 8.0%
rising considerably. As such, affordability is at the centre
2023: 1,817 2023: 11.6% of the growing societal and political debate around the
2022: 1,210 2022: 11.1%
energy transition.

While the cost of building the future grid is a heavy burden,

these are investments that the European economy and society
ROIC Target cannot afford to miss. By delivering grid capacity and enabling
the decarbonisation of the energy system, thereby powering
4.7% 4.3%
a net zero economy, our investments will help to deliver long-
2023: 5.8% term stability and growth, as well as competitiveness and
2022: 4.9%
security. Therefore, we have a duty to the current and future
citizens of Europe.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Safeguard sustainable financial performance

Looking at 2024 and beyond, we are committed to providing How we managed this topic in 2024 2024 2023
an electricity system that balances affordability, reliability TenneT discloses its financial performance according to both (EUR million)
Underlying IFRS Underlying IFRS
and sustainability. With Target Grid, we are taking a underlying financial information and International Financial
Revenue 8,430 9,999 9,222 9,298
holistic, forward-looking, smart, and pragmatic approach to Reporting Standards as adopted by the European Union (IFRS
EBIT 1,745 3,204 1,817 1,424
grid expansion. This includes making smarter use of our Accounting Standards).
existing assets, harnessing the benefits of standardisation
and economies of scale, as well as delivering more through Underlying financial information is based on IFRS plus the Investments 10,637 10,637 7,730 7,730
partnerships and innovation. This requires leadership, a principle of recognising regulatory assets and liabilities for all
collaborative mindset, a discussion on risk appetite and a our regulated activities. This implies that amounts resulting
consistent and long-term energy policy that enables the whole from past events, and which are entitled to be received, or
energy sector to transform and make the needed investments. are required to be returned through future tariffs, are recorded
as an asset or liability, respectively. TenneT’s Executive
The financial solidity of our company is a prerequisite to invest Board is of the view that the presentation of underlying
in the energy transition. As such, our mission to safeguard our financial information provides additional relevant insight into
financial health remains unchanged. TenneT's actual business, financial performance and, as such,
prevailing economic reality. By comparison, the consolidated
Together with our Shareholder, we are establishing a financial statements are prepared based on IFRS. Based on
sustainable financing solution for our German activities, the prescribed treatment in IFRS, amounts to be received
following the termination of the negotiations with the German or required to be returned through future tariffs cannot
government on the full sale of TenneT’s German business. be recognised.
We are currently exploring participation in TenneT Germany
by private investors, either through a private sale, or through A large part of the amounts to be settled through future tariffs
a public sale via an initial public offering. In this regard, is related to the costs TenneT must incur for ancillary services
our Shareholder, the Dutch state, took significant steps. (in 2024 an amount of EUR 1.4 billion is settled), in particular
At 12 January 2024, TenneT and the Dutch state have to compensate for grid losses, to maintain the energy balance
agreed upon a shareholder loan facility of EUR 25 billion in the grid and to pay for alternative routes for the electricity
to safeguard the financing of TenneT's planned investments when grid sections are congested or unavailable due to grid
in the Netherlands and Germany for 2024 and 2025. expansions (redispatch). As ancillary services require TenneT
At 21 February 2025, TenneT and the Dutch state have to procure electricity, these costs are directly affected by
agreed upon a supplementary shareholder loan facility of electricity market prices.
EUR 19.4 billion, safeguarding TenneT's planned investments
in the Netherlands and Germany for 2025 and 2026. The loans
drawn from the facility will be granted at market conditions.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Safeguard sustainable financial performance

Underlying revenue and EBIT

Underlying EBIT group 2023 1 2 3 4 5 2024 Underlying revenue in the year 2024 decreased by
Asset Extension of Regulatory rates Non-regulated Other
Amounts in EUR million base useful lives operation EUR 792 million to EUR 8,430 million (2023:
EUR 9,222 million) year-on-year. Included in our underlying
61 revenue is a reimbursement of costs made for ancillary
-175 services. Overall costs for ancillary services decreased,
1,817 181 -97 -42 1,745
resulting in lower underlying revenue. Furthermore, revenue
decreased due to lower regulatory rates for return on equity
in Germany. This decrease is partly offset by an increase
Underlying EBIT group to IFRS EBIT group A 
To be settled in tariffs – Ancillary services 1,434 of revenue due to increasing ongoing investments, resulting
B To be settled in tariffs – Other differences -692 in a growing regulatory asset base and higher onshore and
C Auction receipts 458 offshore revenue.
D Maintenance of the energy balance 243
E Other 16 Underlying EBIT decreased by EUR 72 million to
EUR 1,745 million. The described development in revenue
IFRS EBIT group 3,204
regarding lower regulatory rates regarding lower regulatory
rates resulted, in combination with the decreased results
1 As a result of the larger asset base, resulting from TenneT's A Costs of ancillary services can be passed through and lead to of our non-regulated joint venture due to lower auction
growing investments, EBIT increased compared to 2023. revenue adjustments in underlying while invoiced to customers
2 The Group reassessed its estimate for the useful lives of tangible (resulting in IFRS revenue) in later years. The ancillary services receipts, in decreased EBIT. The aforementioned is partly
fixed assets. Based on that review, the Group concluded that settlement in 2024 is mainly based on the difference between offset by an increase of revenue due to the earlier mentioned
the useful lives of several onshore assets should be extended actual costs and reimbursed cost in 2022. Furthermore, the actual increasing ongoing investments, together with reassessed
prospectively as per 1 January 2024, resulting in decreased costs for ancillary services decreased compared to 2023.
depreciation. B Other differences relate to regulatory assets and liabilities in useful lives of tangible fixed assets resulting in decreased
3 Due to changes in the regulatory rates for return on equity underlying that will be settled in future tariffs (resulting in IFRS depreciation expenses.
in Germany, EBIT decreased compared to 2023. revenue) in later years. They relate to among others the ex-post
4 The lower auction receipts are causing decreased results of settlement of entitled investments and interest rates as part of
our non-regulated joint venture and as such EBIT decreased the WACC which are settled two years later. The EBIT for the TSO Netherlands segment and the TSO
compared to 2023. C Auction receipts lead to revenue in IFRS and will be given back Germany segment amounted to respectively EUR 625 million
5 No individual material items. via tariffs in later years. Not recognised as revenue in underlying.
D Costs of maintaining the energy balance are passed through in (2023: EUR 548 million) and EUR 1,087 million (2023:
underlying as reimbursed in later years, while immediately EUR 1,141 million) during this period. For our non-regulated
recognised in IFRS.
businesses EBIT amounted to EUR 33 million (2023:
E No individual material items.
EUR 128 million) during 2024.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Safeguard sustainable financial performance

IFRS revenue and EBIT

During 2024, our IFRS revenue increased by EUR 701 million Focus on affordability of the energy system Growing concern about affordability has led to a call from
to EUR 9,999 million. IFRS revenue mainly increased because As the energy transition accelerates, the scale of investments the business community and various industry associations
of the higher regulatory asset base, as a result of our needed to expand and modernise the electricity grid so it to reconsider the sharing of investment costs. This call
growing investments, resulting in higher onshore and offshore can support a decarbonised energy system is growing. These included some proposals to cover (part of) the investment
revenue in Germany and the Netherlands in combination investments will have an impact on the development of grid costs through the national budget, rather than charging them
with higher grid fee tariffs that included the reimbursement tariffs in the coming years, leading to rising energy costs to grid users, as is currently the case. From a systems
of the higher ancillary services costs of earlier years in the for consumers and businesses. We consider it our social perspective, we believe the current tariff model in the
Netherlands. Contrary to underlying accounting, the IFRS responsibility too to address affordability. Netherlands provides a solid basis for a fair and efficient
result in these earlier years only reflected our higher costs, distribution of costs among those who benefit most from
but did not account for the future reimbursements of these We are continuously seeking ways to help keep the TSO the grid infrastructure, with the added benefit of encouraging
costs. The consequently higher revenue in 2024 is however part of the energy bills affordable. One of TenneT’s realised efficient use. The debate on grid tariffs is intensified by large
partly offset by lower regulatory rates for the return on equity initiatives, is the establishment of TenneT Reinsurance N.V., differences within Europe with regard to rebate schemes
and includes lower reimbursement compared to 2023 due to our in-house reinsurance entity, that received its license on for large-scale consumers (industrial). There are countries
decreasing expected costs for ancillary services in Germany. 28 September 2024 from the Dutch Central Bank (DNB). with energy rebates for large-scale consumers and countries
Furthermore, revenue decreased in Germany compared to As an insurer, it has to comply with the so-called Solvency without rebates and compensation schemes. To retain an
2023, due to an adjustment of EUR 535 million as a result II, a European regulatory framework, and the DNB acts as attractive business climate and have a level playing field, it is
of reassessed estimation assumptions for accruals regarding the supervisory authority. Having an in-house reinsurance important that there is agreement at a European level on how
ancillary services. entity will result in a reduction of insurance costs which is countries deal with compensations and subsidies for industry,
one of the investments’ elements. In addition, we help by as mentioned in the report of Mario Draghi about the future
In 2024, overall costs for ancillary services decreased as focusing on innovative technologies that help us increase of European competitiveness. Without such a level playing
a result of decreased energy prices combined with lower the capacity of our existing grid. This reduces congestion field for industry, there will continue to be major competitive
grid losses. Lower volumes further contributed to the fall in costs as well as the need for new infrastructure. Efficient differences across countries. To combat energy poverty, we
ancillary services costs, compared to 2023. and flexible use of the electricity grid can also limiting recognise the discussion in public that vulnerable households
the increase in grid costs. Long-term, affordability is a key and businesses should be supported.
IFRS EBIT increased by EUR 1,780 million to pillar of our Target Grid 2045 vision. Using a back-casting
EUR 3,204 million mainly due to lower actual costs for approach allows us to plan for future needs in the most
ancillary services in combination with higher revenue, partly cost-efficient way, only building the infrastructure society
offset by decreased result of our non-regulated joint venture will realistically need, planning ahead for the most efficient
BritNed, compared to 2023. use of space and contributing to a new market design that
supports decarbonised energy and harnesses the efficiencies
of integrated national electricity markets.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Safeguard sustainable financial performance

Investment and raising the necessary funding reference is made to note 11 ‘Capital management’ of the energy prices and futures fell substantially since Q4 2023,
In 2024, TenneT continued its strong efforts to drive the consolidated financial statements. TenneT’s large investment an additional EEG funding need arose across all German
energy transition, investing a record EUR 10.6 billion in the programme resulted in an increased debt position, which puts TSOs throughout 2024. To help find a sustainable solution and
grid (2023: EUR 7.7 billion). The increase is mainly related to pressure on the adjusted FFO/ Net debt ratio and the ROIC. avoiding further pre-financing of EEG contributions, TenneT
increased investments in our 2GW Program – for example and the other German TSOs held constructive talks with
with the start of production of cables for two of the new TenneT maintains a broad and sustainable access to financing the German government, culminating in an agreement to
2GW offshore connections, BalWin4 and LanWin1 – as well readily available and at the right cost. Part of those funds provide an additional EUR 8.8 billion in 2024. As a result,
as milestones being met on several critical onshore projects, come from equity and the majority from borrowings. To the additional federal funding is sufficient for 2024. The
such as SuedLink and SuedOstLink in Germany (please refer raise equity, TenneT is exploring together with its shareholder EEG financing requirement for 2025 that the four TSOs
to 'Building the electricity grid of tomorrow'). the Dutch state alternative structural equity solutions for its have jointly calculated and published based on the EnFG
German activities, in the public or private capital markets. (Energy Financing Act or Energiefinanzierungsgesetz) amounts
In April, the Dutch grid operators published their Investment to EUR 17 billion across all German TSOs without considering
Plans. These give the regulator (ACM), the ministry, To finance TenneT’s investments until the period that structural the account balance.
governments and market players more insight into their financing solutions are in place for both the Dutch and
investments and projects for the next 10 years. TenneT German investments, TenneT and the Dutch state have agreed Towards a reliable and predictable regulatory framework
expects to carry out around 700 major infrastructure projects. upon a shareholder loan facility of EUR 25 billion and the to support our financial strategy
These include grid extensions, replacement investments, Dutch state has announced a supplementary shareholder The majority of our revenue is driven by the regulatory
offshore wind farm connections and reconstruction projects. loan facility of EUR 19 billion, to finance TenneT’s Dutch framework. Stable, reliable, transparent and predictable
and German investments till the end of 2026. To refinance a regulation plays a critical role in our investments and
In Germany, the four German grid operators, presented EUR 1.1 billion green hybrid bond with a call date in 2024, operations, helping to enable security of supply, while
their Grid Development Plan (NEP) 2037/2045 to the TenneT successfully issued in 2024 a dual tranche green also fostering and incentivising innovation and progress.
Federal Network Agency (BNetzA). The current NEP contains hybrid bond of EUR 550 million with a coupon of 4.625% Regulation also provides the framework we need to attract
scenarios for the years 2037 and 2045 and describes for the and a non-call period of 5.25 years and EUR 550 million equity and debt capital for future investments in grid
first time an electricity transmission grid for a climate-neutral with a coupon of 4.875% and a non-call period of eight expansion, replacement and maintenance. On top of that,
energy system. years, respectively. In line with TenneT’s Green Financing regulation also serves to maintain affordability of grid fees
Framework, proceeds will be used to invest in eligible green and energy prices towards industrial customers and end-
To maintain the pace and scale of our investments and power transmission projects in the Netherlands and Germany. consumers.
safeguard our financial health, TenneT must continue raising These are focused on projects connecting large-scale offshore
external financing. The latter is supported by our financial wind farms to the onshore electricity grid and investments As the nature of our business and the scale of the energy
policy to maintain a credit rating of at least A3/A- as in the onshore transmission grid with the main objective to challenge require us to think decades ahead to determine
formulated by the international rating agencies Moody’s increase the transmission of renewable energy. how and where to invest, we need to rely on a regulatory
and S&P. framework with a long-term focus. While regulatory periods
In Germany, TenneT provided support to secure EEG funding are established for much shorter timeframes of typically five
To realise this objective TenneT maintains a long-term average (German Renewable Energies Act or Erneuerbare- Energien- years or less, the underlying methodologies should provide
funds from operations (FFO) / Net debt (based on adjusted Gesetz) for the EEG payout. Costs of EEG payments are a stable long-term regulatory framework. Grid operators
Underlying financial information) at 8.5% (with individual years financed in full by the federal government and the BMWK need this solid regulatory foundation to earn a risk-adjusted
of at least 8.0%). For the calculation of the adjusted FFO/Net (Federal Ministry for Economic Affairs and Climate Action rate of return on their investments and operational and
debt ratio, which resulted in 8.2% in 2024 (2023: 11.6%), or Bundesministerium für Wirtschaft und Klimaschutz). As ancillary costs.

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Safeguard sustainable financial performance

The allowed income and tariffs of TenneT TSO NL are income are – similar to TenneT TSO NL – sensitive to Dutch government has said it does not want to use Dutch
subject to incentive regulation by the Authority Consumer regulatory changes and decisions of the regulator. Such taxpayers’ money for grid investments in Germany, TenneT
& Market (Autoriteit Consument & Markt, the 'ACM'). Within changes and decisions may impact the revenue levels must meet TenneT Germany’s capital requirements either
this regulatory framework, the ACM sets the methodology of TenneT TSO Germany and may therefore impact its through the potential investment in TenneT Germany by
based on which the transmission system operators’ tariffs cash flows. private investors, or by a potential listing of TenneT Germany
are determined. The current regulatory period will last until to raise equity in the public capital markets. Preparing
2026 and there were no significant changes in the regulatory In this context it is notable that the 4th regulatory period for such an Initial Public Offering is a resource and time-
framework in the current year. in Germany began on 1 January 2024 and will last until consuming undertaking that can involve some risks for
31 December 2028. In this new regulatory period, TenneT will TenneT, regarding the necessary intensive preparation and
The revenues of TenneT TSO Germany are derived from see a reduced regulatory rate of return on equity in Germany. execution, while balancing business continuity.
the development, expansion, replacement, operation as well TenneT together with other TSOs and DSOs appealed against
as maintenance of the transmission grid and are subject the BNetzA determination but the Federal Court of Justice Another important challenge facing TenneT from a financial
to regulation by the German Federal Network Agency rejected this in December 2024. In March 2024 TenneT point of view is rising operating costs, due to external factors
(Bundesnetzagentur, 'BNetzA'). Consequently, TenneT TSO launched two further appeals against BNetzA regarding the such as inflation and market scarcities. Operating cost is
Germany's overall business, financial condition and net rate of return on equity. TenneT also argued that the new growing faster than foreseen for the current regulatory period
regulatory approach is discriminatory in the way it treats as a result of the large growth of TenneT. Operating expenses
different areas of investment. BNetzA is considering the case exceeding the regulatory reimbursement of our operating
put forward by TenneT. A discussion with BNetzA to move costs will result in a lower EBIT.
Grid costs investment projects from the former regulatory refinancing
Target Grid and its back-casting model help us forecast instrument of the Investment Measure (IMA) structure to Furthermore, two risk factors were identified regarding
grid costs and thus manage affordability in the longer the Capital Cost Pass-Through (KKAuf) could result in an the regulatory environment. First risk factor is a too low
term. According to our forecast, annual grid costs will estimated additional revenue for 2024 and future years return on equity (RoE) rate on infrastructure investments
grow substantially from 2024 to 2045 in both Germany and if agreed. in Germany, jeopardising the implementation speed of the
the Netherlands. further energy transition. The second risk factor is related
What could prevent us from reaching our goals? to the announced changes to the regulatory system in
Having assessed our impact on the electricity invoice (retail of To realise the energy transition, TenneT’s investments are Germany by BNetzA. These developments are de facto
electricity, taxes, charges and levies, grid fees) of an average growing year-on-year. In the short to medium-term, our creating regulatory risk in the meaning of not having a stable
household in the Netherlands and in Germany, our share in financing needs will remain high. As such, the financial and reliable regulatory framework in the long-term, which is
Germany was around 10.8% in 2024 (2023: 4.3%). The impact health of TenneT and the continued progress of the energy important for our investors.
of the electricity bill on households in the Netherlands is transition relies on our ability to attract financing to realise our
estimated to be approximately 22.7% in 2024 (2023: 8.7%). investments. It is essential that we continue to raise additional
The share in Germany is increased compared to 2023, mainly equity, while keeping our credit rating stable.
due to the in 2023 obtained federal grant to reduce the grid
fees which is not applicable to 2024. In the Netherlands the In this regard, the decision by the Federal Government of
share increased as our costs roughly doubled, while retail Germany to end negotiations concerning the envisaged sale
costs of electricity were lower in 2024 due to decreasing of TenneT’s German operations, was an important event in
wholesale prices and the taxes were also lower in 2024. 2024. It has created a need to find alternative structural
funding solutions for TenneT’s German activities. As the

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Tobias Goldschmidt, Minister for Energy Transition, Climate Protection,

Environment and Nature, State of Schleswig-Holstein

“There’s good cooperation

based on innovation.”
As the most northern German state, bordering the very closely. Schleswig-Holstein is pioneering Germany’s
North Sea and Baltic Sea, Schleswig-Holstein is at green energy transition with TenneT’s partnership,’’ says
the forefront of Germany’s energy transition. Not only the Minister.
is it an important landing point for offshore wind, it “Schleswig-Holstein is
He says the need for green electricity is strongly recognised
also produces 8.5 GW of its own onshore wind
in Schleswig-Holstein: “Climate change is clearly affecting us. pioneering Germany’s
energy. As a net exporter of green energy, it plays a
key role in distributing green energy to other regions
We have already suffered severe floods and will face more in
the future. So, people here know we must fight the climate
green energy transition
in Germany and elsewhere in Europe. crisis and understand that expanding the grid is essential for with TenneT’s partnership.’’
the energy transition. However, we know this public support
has to be earned every day. In that respect, TenneT has
With responsibilities including the state’s energy transition learned a lot. They are accessible, engage in public dialogues
agenda, Minister Goldschmidt says: ‘We work closely with and listen to people.’’ Speed is critical for Schleswig-Holstein as it aims to be
TenneT as a key partner. On the one hand they provide large climate neutral five years ahead of Germany’s national target
parts of the critical infrastructure we need to transport The Minister says TenneT is open to changing its approach to of 2045. As the Minister says: “We know 2040 is very
electricity, and on the other they are a partner for developing find solutions. ‘’It was one of the first TSOs to install protective ambitious, so the work of TenneT and other TSOs will have
our own energy policy. We have always had a good and fruitful bird markers on high-voltage lines to reduce bird collisions, a big impact on whether we reach our goals or not.’’
exchange on the questions of power grid planning and the for example, and in some circumstances TenneT agreed to
electricity market design. use underground cables rather than overhead lines. In these Looking ahead, the Minister sees four key challenges:
cases, there’s good cooperation based on innovation.’’ “We have to accelerate the creation of renewable energies,
Schleswig-Holstein’s partnership with TenneT began around minimise conflicts that hinder the expansion of the grid,
2010, when AC grid connections linking Germany to Denmark Although TenneT is a valued partner, the Minister says there’s change the energy market, and allow industry to transition
were reinforced or newly planned and the first DC sea-cable always room for improvement. “In Schleswig-Holstein, we are in a way that keeps them here. We will only resolve these
interconnector with Norway was initiated, followed by the first very dynamic in building up renewables. TenneT is a big challenges with co-operation, between infrastructure, energy,
DC connection to southern Germany. “These were the first of organisation, so it’s important they also move fast and don’t politics and industry. There’s no alternative if we want to
many projects that have seen our state and TenneT cooperate lose momentum. Teamwork is key, and together we’re on a be successful.’’
good track to speed up the building of the grid.’’

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Huib van Essen, Dutch Councillor responsible for Spatial Planning and the Environment,
Energy and Climate (Province of Utrecht)

“TenneT and local authorities

need each other.”
At 155,400 hectares, Utrecht is one of the smallest TenneT’s collaboration with the Province of Utrecht has
provinces in the Netherlands. However, with intensified in recent years, which Huib credits to their joint
26 municipalities and a population of 1.36 million, it involvement in regional Energy Boards. These provide a forum
for parties to align on long-term plans and joint projects,
is also one of the country’s most densely populated
regions. As a result, Utrecht’s electricity grid is
working together to identify challenges and find solutions. He “The energy transition calls for
congested – an issue that TenneT works closely with
says that P-MIEK, or the Provincial Multiple Year Infrastructure
Programme for Energy and Climate, is one of the best
a change in mindset – we need
local government authorities to address as part of examples of how the Province works with TenneT, and other unconventional solutions.’’
a wider range of strategic projects focusing on the stakeholders, to map out the region’s future energy needs.
energy transition.
In 2024, the Province, TenneT, and local DSO Stedin worked
together to introduce an unconventional measure for grid
shortages: temporary power generators. Huib says initiatives expansion mean for the people, companies and communities
The Province of Utrecht is one of the key regional like this help to boost people’s awareness of energy impacted by the construction, for example. Good community
stakeholders that TenneT partners with to plan and implement consumption. engagement is becoming increasingly important, and I think
large-scale, long-term infrastructure projects. Huib van Essen TenneT could make this smoother in the future.”
serves on the Provincial Executive for the Province of Utrecht “If we don’t take additional measures, blackouts could
and is responsible for the portfolio Spatial Planning and the become commonplace in the next few years. Rising electricity By working so closely together, Huib says both the Province
Environment, Energy and Climate. usage, especially among households, poses a risk. We need and TenneT are learning a lot. He says he appreciates
to find ways to use the available capacity better and lower TenneT’s openness and thinks the answer to many of the
Huib says that TenneT and local authorities need each other, peak levels,” he explains. challenges both partners face lies in thinking beyond the
as the expansion of the national power grid is a key element in existing regulatory constraints. “Too often the first reaction is,
the energy transition. “We must look forward but also address Reflecting on areas for improvement, Huib says TenneT is still oh that’s impossible. In a crisis however we must think beyond
the needs of constituents today: the electrification of mobility, growing into its role as a network ‘developer’. “I see TenneT how we’ve always done things. It’s a tough message to deliver
the rising energy usage in homes, needs of companies moving from its historical role as a network operator into the to communities, but at the end of the day the energy transition
seeking grid connection, and transition to heat pumps are all driver’s seat as a developer. This means moving from a calls for a change in mindset – we need unconventional
creating a sense of urgency in the region.” technical to a societal company, asking what does grid solutions.”

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Risk
management
Corporate risk management and
internal control 87
Risk appetite 89
Key risks and opportunities 93
Statements of the Executive Board 102
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Corporate risk management and internal control

Corporate risk management and internal control Risk management and internal control framework decisions that support the achievement of objectives set at all
TenneT has implemented a holistic and integrated risk TenneT’s enterprise risk management and internal control organisational levels.
management system designed to ensure the future framework are based on the ISO 31000 Risk Management
achievement of the company's objectives through the early standard, the COSO II Enterprise Risk Management standard At risk management the focus and key objectives are to:
identification, assessment and management of risks. and the German auditing standard IDW PS 340 n.F, and • Create and preserve the value, assets and reputation of
are compliant with the requirements of applicable laws and the company;
Risk management continuously identifies risks, assesses regulations, such as the Dutch Corporate Governance Code, • Promote a level of risk-taking that is socially,
severity of risks, prioritises risks, implements risk responses the German Control and Transparency in Business Act and the environmentally and legally responsible, acceptable to
and maintains a portfolio view. The identified uncertainties, German Accounting Law Reform Act. the public and economically sustainable;
opportunities or control issues are proactively reported on • Comply with legal and regulatory requirements and
a quarterly basis towards the Executive Board, Audit, Risk Risk management the company's rules and values.
& Compliance Committee and Senior Leadership Team. The Risk management facilitates quarterly top-down and bottom-
principles of risk management and internal control are taken up risk dialogues, workshops, detailed analyses and general TenneT’s risk framework is structured into:
into account in all activities performed at and for TenneT. trainings on risk awareness at all levels within TenneT. The • Enterprise Risk Management (ERM);
outcome provides management insights to take risk-based • Operational Risk Management (ORM), including safety risk
management and security risk management;
• Project Risk Management (PRM);
• Internal Control and Process Risk Management.

Unit, Process & Project Level

TenneT regularly optimises its risk management and internal
control systems as part of its continuous monitoring and
improvement process. In this process, TenneT takes into
Purpose, Risk account both internal and external requirements. In this
Promise & Objectives Management Achieve
Principles Process Objectives context, TenneT further improved its risk management system
to meet all the requirements of the German auditing standard
IDW PS 340 (risk early warning system) and introduced a new
risk tool.
Board level Unit, Process & Project Level
Internal Control System
Derive and implement Derive business objectives Achieve objectives supported
by risk management and
TenneT's Internal Control System (ICS) comprises controls
strategic objectives • Unit level
• Project level internal control framework and monitoring activities to ensure the effectiveness and
• Process level (end-to-end)
efficiency of business processes, correct accounting and
compliance with laws and regulations. The ICS is based on
a set of monitoring measures and control activities that is

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Corporate risk management and internal control

integrated in processes and organisational structures aiming The level of sustainability reporting processes and controls is
to ensure the accuracy of external financial and non-financial not mature yet, therefore measures have been developed to
reporting. The ICS covers all relevant business processes and ensure the completeness and integrity of data, the accuracy
also includes controls beyond the accounting process. of estimations, the availability of value chain data and the
timeliness of information.
A standardised, structured control self-assessment process,
which is carried out twice a year, includes statements
on the adequacy and effectiveness of the ICS for what
TenneT considers to be significant business processes.
This self-assessment process is continuously reviewed and
adjusted for efficiency and effectiveness. However, the
effectiveness and reliability of the ICS can be limited by
discretionary decisions, criminal acts, control failures or
other circumstances.

The sustainability reporting process follows a similar risk

management and internal control process as any other
process in the organisation: once the process is defined,
it is subjected to a process risk analysis. These risks are
assessed both qualitatively and quantitatively. Based on the
risk appetite for the area or process, the key risks are
addressed through measures or key controls. Key controls are
subject to the company's regular internal control assessment,
review and reporting process.

Currently, the sustainability reporting process follows the

internal and external reporting procedures, from the
registration of events or transactions through data collection
to consolidation and reporting to internal and external
stakeholders. During this process, the data and information
also undergoes several analyses and verification steps.
These are not specific checks on sustainability information,
but general checkpoints in the process to verify the
appropriateness and accuracy of the information provided.
The effectiveness of these high-level controls is not formally
tracked or reported.

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Risk appetite TenneT maintains a balance between risk and reward, relative
to potential opportunities. In terms of the amount of risk that
TenneT is willing to seek or accept, a differentiation is made
Low Risk Appetite:
Areas in which we avoid risks or act to minimise or
eliminate the likelihood that risks will occur, because we
between high, medium and low risk appetite. have determined that the potential downside aspects are
Risk appetite intolerable. These are areas in which we typically seek to
Risk appetite is the amount of risk TenneT is willing to seek or High Risk Appetite: maintain a very strong control environment.
accept in pursuit of its long-term objectives. Areas in which we have a preference for disciplined risk-
taking, because we have determined that the potential In the sections hereafter we have placed each risk area on
The Risk Appetite Statement 2024 sets the guidance and upsides and benefits outweigh the potential disadvantages. a risk-appetite scale that ranges from 'high' to 'medium'
willingness regarding the risk appetite for the activities to 'low':
conducted by TenneT in pursuit of its strategic objectives. The Medium Risk Appetite:
Executive Board together with the Senior Leadership Team Areas in which TenneT must constantly strike a balance
reviews the Risk Appetite Statement annually to ensure that between potential upsides and benefits and potential
downside aspects.

High risk appetite

Risk area Risk appetite statement Risks that we are willing to take Risks that we are not willing to take

Customer Connections We strive to connect our customers to our grid in a timely Build substations or transformers without a contract in place Connect customers only based on the ‘first come first
manner as required legally and regulatory. TenneT is forced to (risking stranded assets) when it is an appropriate greenfield serve’ principle.
make decisions in areas where capacity constraints arise for location, has a reasonable distance to our current grid and
which we try to find non-linear solutions and innovations. has a reasonable distance to potential new customers.
To take a justifiable risk by signing time-based connection Pursue customer connection projects that could jeopardise
and transmission agreements. the safety and security of supply beyond static or dynamic
system limits.
Invest in partners who are either start-ups or have a start- Act against rules, laws or regulatory decisions.
up mentality.
Overpromise to our stakeholders.
Project execution We use non-linear solutions to design, build and deliver our To take reasonable entrepreneurial decisions to anticipate Continuing with a project that is significantly over budget or
large projects, but also realise that in some occurrences future decisions by regulators. time, without a clear strategy to reduce costs or without a
decisions need to be made in favour of budget, quality clear way forward.
or time.
To be pragmatic in designing assets, implement project and Project budget overruns for the sake of being faster in
asset standardisation and lean project staffing. project delivery.
Decision making based on cost control affecting Unnecessary project scope changes after
project requirements. investment approvals.
Proactive project planning by acquisition of planned Lower quality standards if it negatively affects safety or
equipment or land. security of supply.
Transfer more project responsibility to our partners.

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Risk appetite

Risk area Risk appetite statement Risks that we are willing to take Risks that we are not willing to take

Adaptation of To prepare TenneT for the future, with ‘Target Grid 2045’ or Usage of new technologies that could fail or require more Implement business critical new technology, without being in
new Technology the ‘Control Room Of the Future’, we are willing to make use investments than anticipated to fulfil on their promise. full control or without having a full fallback solution in place.
of technology or software that is either new to the industry
Piloting new technologies with less proven security protocols Usage of technology that could jeopardise data protection or
or to use current technology in a different manner, provided
in a sandboxed environment to provide faster solutions and a cyber security.
that it does not jeopardise safety and the security of supply
quicker implementation.
society expects from us.
Adopt standardisation for non-unique processes and pursue Let the fear or unwillingness of people to use new technology
zero customisation. dictate the strategy.
Apply new technology that is new to TenneT but not to Adapt new technology that would immediately stop and
the industry. change our current projects.

Medium risk appetite

Risk area Risk appetite statement Risks that we are willing to take Risks that we are not willing to take

Security of Supply We ensure the security of supply with grid availability above Facilitate flexibility in operational processes such as co- Facilitate outages, brownouts, blackouts or any operational
99% by taking into account high-voltage line capacities, operation in the GOPACS platform (Grid Operators Platform situation that may cause a supply disruption.
availability of interconnected electricity, dispatching and for AnCillary Services) for congestion management.
the integration of maintenance planning. We are willing to
Replacement of the end-of-life SCADA (Supervisory Control Cloud implementation for mission critical systems
enter into innovative partnerships and apply cutting-edge
and Data Acquisition) system. or applications.
technology to secure supply today and tomorrow.
Risk based maintenance activities. An ‘N-0’ redundancy for residential connections.
Financial Health We maintain at least an A3/A- credit rating. Spatial conditions require us to take additional risk on costs, Pursue lower costs that would have a significant negative
for instance for GIS installations or underground cabling. effect on the security of supply.
Higher expenditures if it justifies an operational gain in A credit rating that is insufficient to raise the necessary
quality, safety or to adhere to binding deadlines. financing to finance our CapEx programme.
Accept that in some cases expenditures are made without Decisions that would impinge financial policies
the guarantee that some or all of the costs are reimbursed by and directives.
the regulatory framework or paid for by customers.
A budget overrun today if it would result in future cost Accepting any price to speed up project delivery.
reduction, secure corporate governance or fostering of
innovative topics.
Affordability TenneT is dedicated to ensure transmission of electricity Invest more today in infrastructure by taking a risk on Uncontrolled project costs or unlimited spending without
remains affordable for all customers, businesses and stranded assets if it would benefit society tomorrow in cost proper reasoning.
regulators, but also realises that we need to balance or secure supply.
affordability with the need for reliable and sustainable energy
Cost reduction if it would negatively affect the strategy
transmission. We prioritise cost-efficient operations and
and requirements of ‘Target Grid 2045’ or our green
investments to maintain affordability without compromising
target ambition.
the quality and reliability of our services, adhere to regulatory
requirements and invest in innovative technologies that Act against regulations, policies and laws
enhance operational efficiency and reduce costs in the long- (e.g. ‘Bundesbedarfsplangesetz’).
term.

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Risk appetite

Risk area Risk appetite statement Risks that we are willing to take Risks that we are not willing to take

Accept new projects that we cannot deliver on time due to

market or operational constraints or if it would negatively
affect our predictability towards the market, stakeholders
and society.
Attraction and retention We will continually assess best practices in the industry A disciplined view on how employees work more effective To hire new employees without the necessary qualification
of personnel for attracting, retaining and developing talent, including and driven based on performance. or security check, as this can lead to significant
seeking flexibilities for hiring and compensating staff, while operational risks.
recognising that growing too rapidly could inhibit the
Hire employees based on soft skills, if hard skills are not To attract and retain employees at any cost.
organisation's agility and responsiveness.
present but trainable.
Utilise more of the legal possibilities (probation period, home To create a knowledge drain within the organisation by
office rules, hiring in different locations or countries). leaning too heavily on externals or contractors for a longer
period of time.
Reassess benefits and rewards based on performance, role
and position of an employee.
Environmental, Social and We take our responsibility of our impact on ESG seriously. We Accept and be transparent that we cannot fully achieve and Not being able to comply with ESG legislation without a
Governance (ESG) align our ESG initiatives with our core values and strategic close the CSRD gaps this year (2024). proper explanation and justification.
objectives, contributing to long-term sustainability and
The impact we have on nature as this is required to build the To lower our green target and ambition.
societal value. We commit to continuous improvement in our
Target Grid, but we compensate for it where and if possible.
ESG practices, actively engage with all our stakeholders and
suppliers about ESG performance, impact and commitment, Continue to use SF6 gas in insulators for stations where there To compromise on socially acceptable behaviour, compliancy
operate with a strong governance structure in place and are is no suitable alternative available. or human rights.
transparent about our ESG performance.
Suppliers & Supplies We will make reasonable efforts to invest in supplier To choose the preferred suitable solution via tender over the Dependency on one key supplier for critical components.
relationships and to secure critical supplies and services lowest cost option.
on time and in agreed quality for large projects while
Dependency on framework contracts to stimulate capacity Purchasing from suppliers or countries that are blacklisted,
balancing supply chain constraints due to overall tight
growth at the supplier's side. such as Russia or Belarus.
market conditions.
To buy assets based on a grouped portfolio level, not only Accept contractors who are not capable or not able to
per project. demonstrate capability of manufacturing the resources for the
sake of speeding up projects or cost reduction.
Balance and to make choices in capacity, affordability, Pay suppliers without having securities or payment
quality, reliability and responsibility. instalments in place.
Reduced scrutiny of new suppliers when it is a well-known
positive supplier that operates on a much bigger scale
than TenneT.

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Risk appetite

Low risk appetite

Risk area Risk appetite statement Risks that we are willing to take Risks that we are not willing to take

Health and Safety Everyone working for TenneT at one of our offices, at onshore Proactive attitude (instead of reactive) by implementing new Build or maintain our assets at the cost of safety without a
or offshore locations or in the field, return home safe in good guidelines and procedures to improve the safety culture. clear operational health and safety plan.
health each and every day. We take reasonable measures
Slightly increased work pressure if it can be balanced with a Pursue dangerous situations that could lead to loss of life or
to prevent operational instability throughout the lifecycle
recovery period. cause severe injuries.
of facilities by maintenance, inspection and anti-corrosion
programmes and by seeking improvements in process and Prolong assets and equipment beyond expected or designed Overload employees beyond reasonable limits affecting
equipment reliability. lifetimes to prioritise building new assets. psychological health.
Accept suppliers without a safety culture level certificate or
with a certificate less than level 3.
Cyber Security and We continually assess best practices and resilience to control We cannot physically protect all of our assets, such as Allow unauthorised or non-registered personnel at our sites
Physical attacks the risk of physical threats and to protect our assets from pylons, for a full 100%, but we remain resilient and alert to or offices.
theft, physical attacks and intruders, while recognising that a all possible threats.
100% protection is not possible.
We take a very cautious approach to cyber risk, Implement general, reasonable or new security measures on Usage of inbuild intelligence, either hardware or software, that
reducing risks as much as possible by proactively and IT or OT adapted to the threat level. could impose a (national) security risk.
continuously mitigating malware and other intrusions,
Any cyber risks that would lead to an assessment higher than
preventing unauthorised disclosure of sensitive data and
extremely low.
mitigating vulnerabilities in our security protocols.
Accepting any deviation from international standards affecting
cyber security.

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Key risks and • Identified corporate risks (strategic, financial and

operational), linked to the focus areas of our strategy
• Identified regulatory risks
Corporate risks
Each quarter risk management conducts risk dialogues with
all risk reporting units and has identified the following risks

opportunities • Identified climate-related risks (transition and physical)

and opportunities
that could potentially have an impact on our short or long-
term strategy. These risks are mapped as either strategic,
financial or operational risks. Furthermore, each risk is linked
Please note that the risks described in these tables are also to a focus area of our strategy.
Key risks and opportunities presented earlier in the paragraphs 'What could prevent us
The following sections provide a structured risk overview of from reaching our goals?' in section 'Our Performance 2024'.
key risks and opportunities identified by TenneT:

Strategic risks

Risk Description Mitigating actions Strategy

Lower public or The risk of losing social, political or general stakeholder • Regular media assessment, reporting on reputation status Deliver together
political acceptance engagement, if for instance TenneT fails to uphold expectations and impact analysis. (for customers)
regarding the affordability of the electricity grid or the security
of supply.
Changes in law, legislation Changed (interpretation of) legislation or regulation could delay • Tool-based monitoring and automated reception of Build the grid Utilise the grid
or regulation our large projects, affect our daily operational tasks or increase information on legal changes. faster better
costs if for instance it would affect the regulatory reimbursement.
Organisational restructuring As TenneT split the organisation into two country-specific TSOs, • Change management project to prepare and execute the Deliver together
the organisational changes may result in a temporary lack functional blueprints to ensure both TSO are properly set-up (for customers)
of organisational alignment or working according to a well- after disentanglement.
defined end-to-end process model, which could impact our • A transitional service agreement (TSA) to ensure business
short-term results. continuity due to cross-border setup and unbalanced
expertise and knowledge.
Delay in delivering on our The energy transition is in full swing and political ambitions are • Implementation of the revised and sharpened strategy. Build the grid
strategic plan high. Failure to deliver on time on our strategic goals, such as • Business Acceleration Team to support business in faster
Target Grid 2045, could raise questions about our license to accelerating strategy execution with focus on results and
operate or affect affordability for society. making choices.
Changing grid planning Uncertainties in assumptions or errors in grid planning could • Perform a study outlining Target Grid 2045 and exchange Build the grid
requirements and assumptions lead to inadequate grid extension projects, incorrect capacity our market data and CGMES-compliant (Common Grid Model faster
assumptions or planned assets not able to be used due to Exchange Standard) grid model with other TSOs to be used
technological constraints. for European grid planning studies.
• Horizon (interOPERA)bility project: standardisation of
converters for multi-vendor solutions under involvement of
European vendors.
• An offshore DC overlay topology (NL&GE) is established.

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Key risks and opportunities

Financial risks

Risk Description Mitigating actions Strategy

Suppliers’ market risk In a market characterised by inflation, price fluctuations and a • Establish supplier relationship management, partnership Build the grid Utilise the grid
strong seller's market, the increase in supply required by TenneT agreements and framework contracts. faster better
and other TSOs due to the energy transition exposes TenneT • Setup of index-based price adjustment clauses in contracts
to situations of abuse of market position, disproportionate cost to reflect market developments.
increases or budget overruns.
Cost overruns External factors such as inflation and market scarcities as well as • Cost conscious behaviour, measuring our objectives and Deliver together
internal factors such as organisational changes and inefficiencies continuous measurement of performance. (for customers)
could induce a rise of operating cost, resulting into budget plan • Implementation plan for deficit reduction measures per unit.
exceedance or a lower score in OpEx benchmarks by regulators.
Lack of investor(s) Due to market conditions, federal elections or political changes, • In alignment with its shareholder TenneT is exploring and Build the grid
we are not able to raise additional equity from investors in a preparing for an alternative way to finance TenneT Germany. faster
timely manner, which is necessary to finance major projects while This alternative focuses on attracting third party investors at
maintaining a stable credit rating. the level of TenneT Germany.
• TenneT and the Dutch state have in January 2024 agreed
upon a shareholder loan facility of EUR 25 billion to
safeguard the financing of TenneT's planned investments
in the Netherlands and Germany for 2024 and 2025.
In February 2025, TenneT and the Dutch state have
agreed upon a supplementary shareholder loan facility of
EUR 19.4 billion, safeguarding TenneT's planned investments
in the Netherlands and Germany for 2025 and 2026.
• New green hybrid bond is issued in 2024.
Lower credit rating or change A lower credit rating or a change in the outlook could • Close alignment with shareholder on shareholder loan facility Build the grid
in outlook affect TenneT’s ability to raise adequate financing to fund for forthcoming years. faster
the investment portfolio and maintain adequate liquidity. It • Align with our regulators to establish a regulatory framework
could lead to postponed investment projects as well as higher that supports our strategy and by delivering a return in line
financing costs. with what capital providers expect.

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Key risks and opportunities

Operational risks

Risk Description Mitigating actions Strategy

Cyber Security and As operator of critical infrastructure TenneT needs to protect • Maintain Information Security Management System (ISMS) Utilise the grid
Physical attacks and secure its network and assets against any major cyber based on ISO 27001. better
or physical attack. An exploitation of a technical vulnerability • Collaboration and information sharing with authorities.
in our IT/OT systems caused by malicious software or by a • Continuation of effective monitoring and action-taking against
deliberate network intrusion or a deliberate attack on our assets physical or cyber security attacks, together with our
such as on our onshore substations, offshore platforms or strategic partners.
undersea cables, could potentially result into disrupting business
operations, affect reliable electricity transmission or loss of grid
oversight in control rooms if TenneT is not sufficiently resilient to
secure a timely backup.
Unavailability of resources TenneT may face market challenges in recruiting new employees • Strategic workforce management. Build the grid Deliver together
and retention due to tight labour market conditions combined with an ageing • Using a competency-based approach for all new hires. faster (for customers)
workforce and internal staff turnover. The need for additional
employees as a result of the split into two national TSOs could
further exacerbate the overall situation.
Fraudulent activities Inherent to our fast-growing company under external pressure • Performance of regular fraud risk assessments. Deliver together
to realise the energy transition by building large infrastructural • Periodic compliance trainings on fraud related matters. (for customers)
projects, there is a risk of corruption (conflicts of interest, bribery, • Half-yearly corporate and unit management
kickbacks and illegal gratuities), misappropriation of assets and representation letter.
incorrect reporting, including greenwashing. • Speak-up portal in place.
• Preventive and detective control measures in place, assessed
half-yearly by management.
Suppliers’ failure TenneT's main suppliers may not be able to deliver already • Regular credit checks and use of bank guarantees. Build the grid
contracted supplies (e.g. DC cables, transformers or platforms) • Regular tactical and strategic supplier meetings with our top faster
or services on time or in the agreed quality and quantity. and focus suppliers.
Suppliers could face capacity, geopolitical or logistical • Sourcing of backup suppliers.
constraints, their own operational disruptions or financial
difficulties. This could result in project delays or interruptions to
our operations.
Unfulfilled demand and scarcities A sellers' market, complex tender processes or insufficient • Establish long-term partnership agreements with suppliers. Build the grid Utilise the grid
of products and services demand planning could lead to unavailability of the required • Prepare joint planning with suppliers for critical categories. faster better
capacity of products, raw materials or services affecting our • Diversification of suppliers and strategic warehousing.
projects or interrupt our operations. This could be aggravated
if multiple TSOs or DSOs are sourcing from the same supplier.
Limitations to Industrial innovation and the growing demand for electrification • New unit ‘Customer Connections & Capacity’ to improve Build the grid Utilise the grid
connecting customers solutions are leading to an increase in customer requests for overall customer connection performance. faster better
connections. In some cases, TenneT will not be able to connect • Priority setting in portfolio with DSOs.
these customers to our grid in a timely manner. This could • Developing the ConnectNow application (by example of
result in negative media coverage and a growing queue of National Grid Ventures) to reduce overall lead time with
waiting customers. 6 months.

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Key risks and opportunities

Risk Description Mitigating actions Strategy

Litigation and lawsuits TenneT could face lawsuits that are either lost or settled, which • Change from state legislation to ‘arbitration proceedings’ to Build the grid Utilise the grid
could result into a negative financial impact for which insufficient reduce costs and cycle time of court proceedings. faster better
financial provisions were recognised. Furthermore, some verdicts • Active contract and claim management.
of lost cases could impose an additional risk that others could
use the legal precedence to file lawsuits on similar grounds.
Voltage control constraints A high level of renewable energy sources or insufficient voltage • ‘Required must run’ contracts until final solution is available. Utilise the grid
control capabilities could cause over- or undershooting voltage • Regular monitoring on voltage. better
limits. It could potentially damage or reduce the lifetime of • Ongoing dialogues with all Dutch DSOs on current issues and
our assets or components, lead to temporary disconnection of suitable solutions.
customers or grid interruptions.
Scarcity of ancillary Limited availability of interconnected electricity in Europe or • Finalisation and implementation of ‘Redispatch+’ project. Utilise the grid
services options significant increases in traded electricity prices could result into • Implementation of the roadmap ‘system stability and better
capacity constraints or have a financial impact on the provision of powerplant strategy’.
ancillary services. This could increase societal costs, result into
complex scheduling and dispatching or an imbalance between
ancillary costs paid and ancillary costs reimbursed.
Psycho-social risk TenneT’s ambition to deliver for society on the climate ambition is • Develop to safety culture ladder 4 (incl. psycho-social safety). Deliver together
intense and the situation could arise that employees are feeling a • Regular leaders training. (for customers)
higher work pressure to deliver. This could affect our employees' • Trusted persons and advisors available as contact persons
resilience and ability to balance their daily work-life hours, which for employees.
could result into decreased health and overall happiness or long-
term absence.
Data breach of privacy data Theft or loss of personal information or data by staff, contractors • Maintenance of a privacy management system. Deliver together
or third parties due to weaknesses in software or applications, • Data privacy champions for each unit. (for customers)
not following up on data privacy policies, security requirements • Periodic trainings and e-learnings.
or measures.
Non-compliance with laws Compliance risk resulting from unintentional or deliberate failure • Usage of legal register software. Deliver together
and regulation to act in accordance with (industry) laws and regulations or • Maintaining a compliance system. (for customers)
internal policies, e.g. antitrust or bribery cases by our contractors • Yearly compliance dialogues with all unit directors.
or partners in countries with lower governance standards. For • Code of Conduct and Supplier Code of Conduct.
reporting reference is made to the next item. • TenneT Legal Academy, including trainings on tender and
construction law.
• E-learnings in relation to compliance, corruption and
REMIT (Regulation on wholesale Energy Market Integrity
and Transparency).

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Key risks and opportunities

Risk Description Mitigating actions Strategy

Reporting TenneT is subject to a variety of laws and regulations related • CSRD readiness project. Deliver together
to reporting. Despite our efforts and pro-active approach, • Continuous development of internal control framework, (for customers)
complex accounting, significant estimates and assumptions and including control self-assessment.
deviations from the common reporting processes and related • Group Accounting Manual.
or missing controls could impair the accuracy of financial • Trainings covering relevant reporting developments
and non-financial reporting. Please refer for more details and requirements.
regarding subjectivity in estimates to note 1 of the consolidated
financial statements.
Major project delays A major delay of large projects’ delivery due to delayed • Standardised engineering and sourcing concepts, such as Build the grid
permitting procedures, scope changes, sourcing issues or 2GW platforms. faster
lacking technical personnel resources could lead to higher • Early initiation and parallel start of project phases.
project costs, penalty payments, negative media coverage or • Regular exchange meetings with regulators, ministries and
redispatch costs. other TSOs to discuss acceleration possibilities.
Environmental incidents The construction and maintenance of some of our facilities could • Implementation of HSE management system (based on Utilise the grid
result in environmental incidents, such as loss of containment ISO 45001). better
of hazardous substances (e.g. oil, SF6, other gases or liquids). • Firm emission reduction goals for 2030.
In addition, the transition to a low carbon economy will require • Environmental Cost Indicator (ECI) to incentivise our suppliers
changes in legislation, regulation and policy, technology and to reduce the environmental impact of the products and
market changes that could result in higher societal costs. services we procure.
Major industrial or Safety incidents and major occupational accidents (e.g. fire, • Implementation of the programme ‘Safety needs our energy’. Build the grid Deliver together
occupational accident explosion, helicopter crash, vessel collision, structural failure or • Implementation of HSE management system (based on faster (for customers)
release of toxic substances) could occur, resulting in severe asset ISO 45001).
damage and multiple fatalities or result into a significant impact • Embedding our safety requirements into our contracts, with
on the environment or on our reputation. follow-up meetings to ensure compliance.
Severe infrastructure failure A serious system interruption or unavailability leading to • Implementation of risk based maintenance scoping. Utilise the grid
power outages due to technical failure, inadequate, delayed or • Standardisation of equipment and assets to accelerate the better
non-executed maintenance or non-compliance with operating speed and efficiency of maintenance.
procedures by TenneT, contractors or third parties. • Introduction of a new ‘Outage Window Optimisation’ project
to increase capabilities for maintenance in the grid.

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Key risks and opportunities

Regulatory risks

Area Regulatory risk Mitigating actions

General The grid fees have increased significantly (mainly due to high energy prices in terms of • TenneT aims to address the affordability issue by 1) being transparent on the financial
ancillary services) and will further increase due to the investments needed to facilitate the implications of the current plans to the relevant stakeholders, 2) ensuring efficient roll-out
energy transition. strategies of assets (i.e. offshore 2GW Program, hybrid assets), 3) working on efficient
ancillary services markets, and 4) limit the operational expenses.
Inability to meet increasing efficiency targets over time as imposed by incentive regulation, • TenneT performs regular reviews of its processes and organisational structure,
especially considering a strongly growing company and the need for significant investments introduced lean management and carries out continuous improvement activities. TenneT
in grid expansion, maintenance, operation as well as innovation. also prepares make-or-buy decisions in its investment process to optimise value for
money to society and conducts strategic dialogues with regulators (ACM, BNetzA,
ACER), policymakers and industry partners and suppliers to co-shape its future
regulatory framework.
Undercoverage of the regulatory CapEx remuneration driven by a non-reasonable return on • TenneT’s strategy is to seek mutually acceptable results with the regulator and other
invested capital and an increasing investment portfolio which could lead to more difficulties stakeholders. However, if needed to protect pivotal strategic positions on solid legal
in financing and raising sufficient funding. grounds, legal action may be taken.
Non-compliance with the current regulatory framework. New regulatory and legal obligations • Onboarding of new employees on relevant topics.
have to be implemented. The flow of information on new regulatory and legal requirements
must be ensured.
Europe The ‘Clean Energy Package’ entered into force. It requires amongst others that TSOs • In Germany TenneT keeps the capacity requirements along the ‘trajectory’ as defined in
provide 70% of the total cross-border transmission capacity to the market, an amount the national ‘action plan’. This means stepping up to full 70% using instruments such as
difficult to achieve without extensive and costly redispatch activities. The German coordinated redispatch and countertrade.
government introduced an action plan to gradually achieve this target by 31 December
• In the Netherlands, TenneT monitors compliance with the action plan, with regard to the
2025. Delays in fulfilment of this plan by TenneT could lead to material financial penalties.
conditions of the derogation. TenneT reports on issues to the ACM and the Ministry of
Similarly, the Dutch Ministry of Climate and Green Growth has issued an action plan to
Climate and Green Growth, if any.
gradually achieve the 70% target by 1 January 2026, which also contains derogations
for TenneT.
The Netherlands ACM has performed a consultation for the new regulatory period starting in 2027. ACM • TenneT appreciates the open vision ACM has taken towards the new regulatory
intends to revise the regulatory method to better account for the implications of the energy period and will support the process by preparing consultation responses that include
transition. The efficiency assessment and future estimations of the OpEx development implementable regulatory improvements to the current challenges. In the consultation
remain challenging topics. process TenneT will address its main concerns with the current method being:
1) regulation of operational & IT expenditure 2) the use of the international TSO
benchmark which does not provide sufficiently robust efficiency incentives 3) regulation
of innovations.
Increasing congestion in the TenneT grid puts pressure on TenneT to open up any remaining • TenneT asserted a pro-active role within the national action plan on grid congestion and
grid capacity and propose regulatory changes if needed. develops new options in co-operation with stakeholders. Early results are a proposed
implementation of time-of-use tariffs and time dependent transmission rights.
Germany Due to the rise of the financing costs on the capital markets since 2022, the BNetzA will • In order to ensure an appropriate return on equity for all investments in line with the
adjust the return on equity (RoE) annually in the 4th regulatory period compared to the initial current capital market, TenneT, together with the other TSOs, has filed an action against
determination of 5.07% (before corporate tax). However, adjustments are only granted for the BNetzA's determination with the Düsseldorf Higher Regional Court. However, a
parts of TenneT’s new investments from 2024. The RoE of 5.07% will be applied to the judgement is expected in 2025 at the earliest.
remaining investments.

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Key risks and opportunities

Area Regulatory risk Mitigating actions

The energy industry act was changed in 2023 to give more decision-making power to • TenneT monitors intensively all BNetzA communication regarding the future regulatory
the BNetzA. The previously relevant legal ordinances, will remain in force for a transitional framework and actively participates in public and expert discussions. TenneT’s goal
period until the end of 2028. However, the BNetzA can already deviate from these. BNetzA is to positions itself as a competent partner and trustful advisor to the regulators
drafted several key element papers on the future regulatory framework and held dialogue and policymakers.
workshops with the grid operators. However, in 2024 BNetzA focused on DSOs and the gas
sector. Nevertheless, these processes give first indications for BNetzA’s ideas for the TSOs.

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Key risks and opportunities

Climate-related risks and opportunities followed up on its recommendations by including climate- be some overlap with risks also being mentioned earlier in
The Task Force on Climate-Related Financial Disclosures related topics in our risk assessment process and have this report, but this is to provide one structured overview in
provides recommendations for companies to improve the identified the following climate-related risks and opportunities, this section.
reporting of climate-related financial information. We have which we clustered hereafter. Please note that there might

Transition risks

Risk Description Mitigating actions

Policy and legal risks are related to our regulatory framework. TenneT could be faced by unexpected but • We mitigate this risk by lobbying on national and European level.
Policy and legal immediate changes in laws and regulations on for instance reporting requirements, regulatory changes
• Run pilot projects and focus on those topics that promise the highest benefit
or usage of f-gas and PFAS.
for society.
Limitations in technological developments could reduce TenneT's ability to source greener technology, • Actively invest in new technology as part of our strategy that contributes
products or materials required to implement effective measures to mitigate greenhouse gas emissions. to reducing our environmental impact. We also challenge the necessity
Technology
This could create an increased reliance on outdated technologies that are unsustainable. of each investment and embrace other solutions, if those promise more
societal value.
Market risk relates to the higher infeed of energy from renewable sources, which impacts how we • TenneT plans and builds DC-grid connections in Germany and
balance our grid. Renewable energy sources are more volatile and cannot easily be increased in case interconnectors within Europe. We investigate the integration of green
Market
of a higher demand. In such situations additional measures are required to balance the grid, such hydrogen and power grids as well as improving the quality of data to predict
as redispatch. electricity production and consumption.
A reputation risk could occur if we are unable to deliver on our strategic goal to drive the energy • We aim to communicate in an open and transparent fashion by inviting
transition. If TenneT would thereby lose the trust of the community, for instance due to lowered stakeholders in the planning and approval process of projects to voice their
Reputation and community trust affordability or living standards, this could result into the loss of trust and may affect our future financing, opinion. We also aim to balance affordability, reliability and sustainability
or result in landowners not co-operating, leading to lawsuits and delays and potentially lower the support in all our investment decisions. Further mitigation takes place through the
from (local) stakeholders. usage of professional planning, project management and cost forecasting.
In some cases there are no suitable alternatives available to replace raw materials in such extent that • We invest in new technologies, innovations and strategic partnerships to find
TenneT might still depend on environmentally harmful raw materials. For instance this is the case for the and utilise options that have less environmental impact. We also incentivise
Supply chain management
mining of rare metals, which could cause an ecological impact in countries of origin. suppliers to reduce the environmental impact of the products offered and
diversify where possible.
Due to the dire need for electrification, the huge demand and the limitations of the currently existing We mitigate this risk by working on speeding up the energy transition,
grid capacity, grid congestions arise. To alleviate the grid of these temporary bottlenecks, ramp-up using accelerating speed of delivery and limiting our negative emissions through
Grid capacity
fossil and gas powered sources will be required on the short-term, thereby contributing to an increase in policies, such as our climate transition plans.
carbon emissions.

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Key risks and opportunities

Physical risks

Risk Description Mitigating actions

Acute or unpredictable extreme Due to climate change, extreme or acute weather events such as storms, heat waves and floods • The effects of acute weather conditions are mitigated during the design,
weather events could become more common. This could lead to business interruption, increased costs for emergency construction and maintenance of our assets, for instance by the choice of
measures or damage to our on- or offshore assets. location and materials.
Chronic transitional Persistent gradual climate change, such as rising temperatures, changing precipitation patterns or rising • We monitor climate developments to gain more experience and insights
climate changes sea levels could cause higher salt corrosion, which can have long-term effects on TenneT's activities, related to the scenarios and effects. TenneT insures all substations
costs and assets. and buildings during construction and operation against risks from
natural catastrophes.
Increasing temperatures and Rising temperatures due to climate change affect the physical properties of high-voltage lines, leading to • The risks of rising temperatures and the effect of heat waves are mitigated
heat waves an increased risk of fire or reduced security of supply. This could affect and damage our infrastructure, during the design, construction and maintenance of our assets and by our
but also lead to outages or induce a safety risk for society. daily grid operation.

Opportunities

Opportunities How might this affect TenneT

Increased decentralised electricity production and storage including self-balancing micro grids as well as correctly located electrolysers, can relieve high-voltage grids. Furthermore,
DC-interconnectors enhance the transmission of electricity over very long distances and connect renewable electricity production and demand in different countries.
Resource efficiency
Solutions related to flexibility help us to make smarter use of our grid. This might have a positive effect as this could lead to less grid expansion and therefore help us reduce the amounts
of resources required to secure supply today and tomorrow.
We are a leading investor in the energy transition and so we have been able to gain a vast amount of experience connecting renewable energy sources, such as offshore wind, to our grid.
Energy source
This experience helps us to further drive the energy transition together with partners and fulfil the future investment portfolio.
Our project portfolio has significantly changed in order to meet national and European climate goals. Key projects are connecting offshore wind energy sources to our grid or ensuring that
Products and Services
our onshore grid is prepared for a new energy future. The gathering and analysis of energy data may lead to new products and services provided by TSOs, such as Equigy.
Strategies and objectives of financial institutes and banks provide opportunities for TenneT to attract sustainable financing at favourable terms and conditions, by issuing green finance
Markets
products to finance and refinance our investments in green infrastructure projects.
Trends in society, like the electrification of mobility, result in higher demand for a stable grid and power supply. To ensure resilience, integration of electricity and gas grids is an important
Resilience
alternative. Digitalisation using technologies like automation, robotics and blockchain will help to optimise grid utilisation, while safeguarding a reliable supply of electricity.

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Statements of the Executive Board

The Executive Board is responsible for designing and operating TenneT's risk management and internal
control system, and for reviewing its effectiveness.

Statement of responsibility The Executive Board periodically reviews and analyses the In control statement
The risk management and internal control system consists of strategic, operational, financial and compliance risks to which We confirm that, to the best of our knowledge, the financial
the following elements: TenneT is exposed. It also regularly assesses the design and statements for the period 1 January to 31 December 2024
• The enterprise risk management system aimed to identify, effectiveness of the risk management and internal control have been prepared in accordance with IFRS as adopted
analyse, define mitigating measures and monitor the system. The results of these assessments are shared with the by the EU, and with Part 9 of Book 2 of the Dutch Civil
development of risks relevant to TenneT; Audit, Risk & Compliance Committee, acting as a committee Code; that the disclosures in the financial statements are
• The internal control framework aimed to manage of the Supervisory Board, the Supervisory Board itself and the a true and fair view of TenneT's assets, liabilities, financial
and control critical processes, including control external auditor. position and results as a whole; and that the disclosures in the
self-assessments to document the effectiveness of Integrated Annual Report give a true and fair view of TenneT's
control processes; In view of the ongoing challenges faced by TenneT in financial performance, results and position, together with a
• Business plans and quarterly reports with information implementing the energy transition and the complexity description of the most significant risks and uncertainties the
on financial and non-financial objectives and of the numerous organisational changes, the Executive company faces. Furthermore, we confirm that to the best of
their achievement; Board strives to continuously adapt the risk priorities to our knowledge, the Group has adequate resources to remain
• Internal audits of key processes and follow-up on audit current circumstances as part of a sound risk and internal in operation during the next 12 months and consequently
findings with relevant management; control management. the financial statements have been prepared on a going
• Actions based on recommendations made in the external concern basis.
auditor’s management letter; The risk management and internal control system does not
• An upwardly cascading internal Letter of Representation provide absolute assurance that all corporate objectives will Arnhem, 3 March 2025
(LOR) process, resulting in a company-wide LOR signed by be fully achieved, nor does it give full assurance that material
the Executive Board; errors, losses, fraud or violations of laws and regulations M.J.J. van Beek
• A compliance management system that enables TenneT will not occur in the operational processes and/or the
to demonstrate its compliance with relevant laws- and financial reporting. T.C. Meyerjürgens
regulations, industry codes and standards, as well as
its commitment to good corporate governance, best Taking the above into account, the Executive Board is of the M.C. Abbenhuis
practices, ethics and stakeholder expectations among opinion that TenneT's risk management and internal control
others risk of internal fraud, bribery or corruption. system provides reasonable assurance that TenneT's financial A.C.H. Freitag
reporting does not contain any errors of material significance
and that the risk management and internal control system has
operated effectively in the year under review.

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Corporate Governance Corporate governance structure

Compliance and integrity
104
107
Executive Board 108
Executive Board biographies 109
Supervisory Board biographies 112
Supervisory Board Report 115
Remuneration report 123
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Corporate governance structure

TenneT's corporate governance structure comprises the Executive Board, the Supervisory Board and the
General Meeting of Shareholders. Additionally, our Audit, Risk & Internal Control and Compliance & Integrity
unit and the external auditor play an important role in this structure.

Executive Board Appointments Committee. The temporary Supervisory Baord organisations within one TenneT group). TenneT has a two-tier
The Executive Board of TenneT Holding B.V. has four statutory Ampere Committee, established in 2023, remained in function board structure, as specified in the Electricity Act.
directors. The Executive Board members have joint authority in the first half year of 2024. It continued in the second
to represent the company. Each board member also holds half year as the Voltura Committee after the negotiations Further information about the Supervisory Board (such
limited individual power of attorney. Three members of with the German government about a full sale of TenneT as its rules and rotation schedule) is available on our
the Executive Board of TenneT Holding B.V. are managing Germany were terminated. This committee prepares decisions corporate website.
directors of TenneT TSO B.V., three members of the Executive on project Voltura (attracting third party investors on the level
Board are managing directors of TenneT TSO GmbH, and of TenneT Germany) and project Samba (two independent
one of these three members is managing director of TenneT
Offshore GmbH. One member of the Executive Board is chair
of the Aufsichtsrat of TenneT TSO GmbH.

The Executive Board is responsible for sustainable long-term Corporate governance structure
value creation by the company, which includes regulated and
non-regulated activities. Shareholder Strategic
Investment Committee

Further information about the Executive Board (such as Remuneration &

its rules and rotation schedule) is available on our External audit Supervisory Board Appointment Committee

corporate website.
Audit, Risk &
Compliance Committee
Executive Board
Supervisory Board
The Supervisory Board of TenneT Holding B.V. supervises
the policies, management and the general affairs. It carries
Risk Management & Audit, Risk & Internal Control, Other central
out its duties in the interests of the company and its Internal Control Compliance & Integrity unit support units
stakeholders, and takes into account the effectiveness of the
company’s internal risk management and control systems and Compliance & Integrity
the integrity and quality of the financial and sustainability Business units & Participating
reporting. Supervisory Board decision-making is supported subsidiaries interests
Internal Audit
by the Strategic Investment Committee, the Audit, Risk
and Compliance Committee and the Remuneration and

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Corporate governance structure

General Meeting of Shareholders In line with the good governance practice of the three lines External auditor
All shares in TenneT's capital are held by the Dutch state, model by the Institute of Internal Auditors, the management The General Meeting of Shareholders has the power to
which is represented by the Ministry of Finance. Under the of the organisation is responsible for directing and leading appoint external auditors to audit the financial statements
Electricity Act, only the Dutch state may hold voting interests activities to achieve the objectives of the organisation. and provide assurance on the Sustainability statements in
in the company. A General Meeting of Shareholders is held It establishes and maintains appropriate structures and the Integrated Annual Report, both as prepared by the
within six months after the end of each financial year. The processes for the management of activities, including Executive Board. These auditors report to the Supervisory
General Meeting of Shareholders discharged the Executive governance, risk management and internal control. The teams Board and the Executive Board and their findings are
Board and Supervisory Board members from liability from Risk Management & Internal Control and Compliance & presented in an independent auditor's report, an assurance
their respective activities in the year 2024. Other shareholder Integrity train, advise and support the organisation in their report, an interim report (management letter) and an audit
meetings are held as and when deemed necessary by the field of expertise. The team of Risk Management & Internal results report. The General Meeting of Shareholders appointed
Executive Board, Supervisory Board or the Shareholder. Control facilitates the company level management systems Deloitte Accountants B.V. as TenneT's external auditor as per
for risks and internal controls. The Compliance & Integrity 1 January 2020. In 2022, the Executive Board, Supervisory
Audit, Risk & Internal Control and Compliance team facilitates the company level management systems Board, shareholder and Deloitte have agreed to prolong the
& Integrity for prevention, detection and responding to risks related to contract of Deloitte for another two year period in accordance
The Audit, Risk & Internal Control and Compliance & Integrity Compliance & Integrity, including data privacy. Compliance with the prolongation options in the contract. The prolongation
(ARC) unit brings together the teams of Internal Audit, Risk & Integrity has representatives in both the Netherlands is for the financial reporting periods 2024 and 2025.
Management & Internal Control and Compliance & Integrity. and Germany.
The integrated team provides benefits in terms of a single The functioning of the external auditor is supervised by the
point of contact and an opportunity for more alignment and Outside the ARC unit, teams have been established to train, Supervisory Board, advised by the Audit, Risk & Compliance
synergy. The resulting limitations to the independence of the advise and support the organisation in the fields of health, Committee, considering observations of the Executive Board.
Internal Audit team are managed through the outsourcing of safety and environment, business continuity management,
periodic audits on the Risk Management & Internal Control information security and quality management (in line with The external auditor attends all meetings of the Audit, Risk
and Compliance & Integrity teams to a third party. The ARC NTA8120, ISO55001 and ISO9001). & Compliance Committee, including the meeting at which the
unit provides an integrated report on a quarterly basis towards independent auditor’s report on the financial statements is
the Executive Board and the Audit, Risk & Compliance The team of Internal Audit strengthens the organisation’s discussed. If required, the external auditor also attends the
Committee, who advises the Supervisory Board. ability to create, protect and sustain value by providing the relevant Supervisory Board meeting. In line with previous year
board and management with independent risk-based and the external auditor attended one meeting of the Strategic
The ARC unit is led by the director ARC, who reports objective assurance, advice, insight and foresight. Internal Investments Committee for information purposes.
hierarchically to the CFO. The management of Risk Audit drafts an audit plan after consultation with the Executive
Management & Internal Control and management of Board, the Audit, Risk & Compliance Committee and the
Compliance & Integrity report to the director ARC, who external auditor. The internal audit plan is submitted to
also manages Internal Audit. Both the director ARC and the the Executive Board, and then to the Supervisory Board,
Head Compliance & Integrity have a dotted reporting line to for approval. The functioning of Internal Audit is annually
the CEO. assessed by the Executive Board after consultation with the
Audit, Risk & Compliance Committee. The performance of
the internal audit function is assessed at least every five
years by an independent third party. The latest independent
assessment was performed in December 2021.

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Corporate governance structure

Deviations from the Dutch Corporate Chapter 3:

Governance Code 3.1.3: Not applicable: no Executive Committee has been
Certain principles and best-practice provisions in the established at TenneT.
Code do not apply to TenneT. The reasons why and to 3.3.2, 3.3.3: Not applicable: these provisions do not apply
what extent TenneT decided not to or could not adopt to TenneT because it has only one shareholder, being the
these particular principles and best practice provisions are Dutch state.
explained hereafter:
Chapter 4:
Chapter 2: Regarding paragraphs 4.1 and 4.4 TenneT complies with
2.1.3: Not applicable: no Executive Committee has been the Code. Paragraphs 4.2, 4.3 and 4.5 are not applicable
established at TenneT. to TenneT because it has only one shareholder, being the
2.2.1: In line with the Dutch policy State Participations 2022, Dutch state.
paragraph 5.2.3, Executive Board members are appointed for
a term of four years and can be re-appointed for a second Chapter 5:
term of four years. Only in exceptional and well-motivated Given TenneT’s two-tier board structure, this chapter is
cases, Executive Board members may subsequently be not applicable.
reappointed twice for a third respectively fourth term of two
years. So, the total maximum period for Executive Board
members is 12 years. With this maximum of 12 years, TenneT
deviates from principle 2.2.1 of the Code.
2.3.2: If the Supervisory Board has more than four members,
the Code stipulates that the board shall appoint from
among its members an Audit Committee, a Remuneration
Committee, and a Selection and Appointments Committee.
The TenneT Supervisory Board has combined the tasks
of the latter two committees into a Remuneration and
Appointments Committee.
2.3.8: Not applicable: no delegated Supervisory Board
member is employed by TenneT.
2.7.5, 2.8.1 – 2.8.3: Not applicable: these provisions do not
apply to TenneT because it has only one shareholder, being
the Dutch state.

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Compliance and integrity

A culture of compliance and integrity is essential for TenneT’s sustainable success. Therefore, we strive
to prevent and - at an early stage - identify and respond to compliance and integrity risks that could
jeopardise the implementation of the company's strategy and objectives, leading to economic and/or legal
consequences, as well as reputational damage.

Especially in view of the high annual investment volume, we TenneT regularly reviews its processes for processing personal
consider the compliance risk becoming more significant. The data and trains its employees to meet data protection
Compliance & Integrity team (ARC-COI) is part of the ARC unit requirements. Also, external service providers are requested
(Audit, Risk & Internal Control and Compliance & Integrity). to sign data protection agreements.
The director of the ARC unit reports to the CFO.
Advice & reporting
Our Code of Conduct with our Guiding Principles 'Ownership', ARC-COI advises the business on various compliance,
'Connection', and 'Courage' and a number of compliance integrity and data protection aspects and regularly reports
directives guide our employees to conduct business ethically to the TenneT Executive Board and the Audit, Risk and
and to comply with the applicable laws and regulations. Compliance Committee of the Supervisory Board regarding
All employees are requested to follow e-learnings on Code such topics.
of Conduct topics and all new employees participate in
compliance trainings as part of their onboarding programme. Various channels exist through which (potential) Code of
Conduct violations, including compliance and data protection
Data privacy issues, can be reported. Moreover, a speak up portal, which
In the course of its business activities, TenneT regularly is operated by an external party, allows for (potential) Code of
processes personal data. We use standardised processes Conduct violations to be (anonymously) reported.
to assess risks and protect the rights of data subjects.
Compliance with external laws and regulations, as well Identified compliance risks are dealt with by the Compliance
as internal rules, is ensured by the responsible specialist and Integrity Committee in its quarterly meetings. In 2024, no
departments, which receive advice from the data protection compliance incidents with a material impact were identified
team. Moreover, in each unit a privacy champion is the for TenneT. Material impact is defined in our risk matrix as
main point of contact for privacy matters. This liaison a breach that has a significant adverse effect on TenneT’s
between the unit and the privacy team furthers two-way reputation or financial position.
communication and to-the-point privacy advice by the privacy
team. The independent function of the data protection officers
“A culture of compliance and
is guaranteed within the ARC unit. integrity is essential for
TenneT’s sustainable success”

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Executive Board

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Executive Board biographies

Manon van Beek Other positions on a personal title: Tim Meyerjürgens

Chair Executive Board / • Member Supervisory Board of the Delft Member Executive Board / • Member Board of Directors FGH
Chief Executive Officer University of Technology Chief Operating Officer (Forschungsgemeinschaft für Elektrische
54, Dutch (f) • Member Supervisory Board DNV 49, German (m) Anlagen und Stromwirtschaft e. V.)
Group AS • Member Board of Trustees FGE
Initial appointment: 1 September 2018 • Chair Board Refugee Talent Hub Initial appointment: 1 March 2019 (Forschungsgesellschaft Energie e. V.)
Expiry second term: 31 August 2026 Foundation (until 3 October 2024) Expiry second term: 29 February 2028 • Member Board of Directors
FfE (Forschungsstelle für
Other positions qualitate qua: Other positions qualitate qua: Energiewirtschaft e.V.)
• Chair of the Aufsichtsrat TenneT • Member Board TenneT TSO B.V. • Member Board of Directors of VBEW
TSO GmbH • Member Board TenneT TSO GmbH (Verband der Bayerischen Energie
• Member Board TenneT • Member Board TenneT und Wasserwirtschaft)
Verwaltungs GmbH Verwaltungs GmbH • Guest BDEW (Bundesverband der
• General Member Board of German-Dutch • Member Board TenneT Offshore GmbH Energie- und Wasserwirtschaft)
Chamber of Commerce DNHK • Chair Supervisory Board of GreenneT • Council of the Thinktank
• Member Executive Board WAB (Wind Agora Energiewende
Energy Association Bremerhaven) (until • Member of the Board of CERRE (Centre
31 December 2024) on Regulation in Europe)
• Member Board of Directors German
Offshore Wind Energy Foundation Other positions on a personal title:
• Member Advisory Board Federal • Supervisory Board Member of
Association of Wind Farms Offshore LITGRID AB

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Executive Board biographies

Maarten Abbenhuis Arina Freitag

Member Executive Board / Chief Operating Officer Member Executive Board / Chief Financial Officer
51, Dutch (m) 54, German (f)

Initial appointment: 1 January 2021 Initial appointment: 1 January 2022

Expiry second term: 31 December 2028 Expiry first term: 31 December 2025

Other positions qualitate qua: Other positions qualitate qua:

• Member Board TenneT TSO B.V. • Member Board TenneT TSO B.V.
• Member Board TenneT TSO GmbH • Member Board TenneT TSO GmbH
• Member Members' Council Netbeheer Nederland • Member Board TenneT Offshore GmbH
• Member Supervisory Board of GreenneT
Other positions on a personal title: • Member Board Flexcess GmbH
• Member Supervisory Board of Royal Swinkels N.V.
Other positions on a personal title:
• Beirat Landesbank Baden-Württemberg

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Supervisory Board

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Supervisory Board biographies

Ab van der Touw Essimari Kairisto

Chair of the Supervisory Board Vice Chair of the Supervisory Board
Member of the Audit, Risk and Compliance Committee Chair of the Audit, Risk and Compliance Committee
Member Remuneration and Appointment Committee 58, German and Finnish (f)
69, Dutch (m)
Initial appointment: 1 May 2019
Initial appointment: 1 June 2018 Expiry second term: 30 April 2027
Expiry second term: 31 May 2026
Principal position:
Principal position: • Former CFO Hochtief Solutions AG
• Former CEO Siemens Nederland (until 1 April 2018)
Other positions:
Other positions: • Member Supervisory Board Fortum Oyj
• Member Board Deutsch-Niederländische Handelskammer • Member Supervisory Board Freudenberg SE
• Chair Supervisory Board Universiteit Leiden (until 1 September 2024) • Member Supervisory Board Applus+ Services SA (until 1July 2024)
• Chair Fonds Slachtofferhulp • Chair Board of Trustees Deutsch Finnische Gesellschaft
• Chair Supervisory Board N.V. NIBA • Member Supervisory Board Iveco Group N.V.
• Member Board stichting GAK • Member Supervisory Board Fugro N.V.
• (External) member Ondernemingskamer Gerechtshof ’s-Gravenhage • Member Supervisory Board MCF Corporate Finance GmbH
• Chair Advisory Council Ministry of Defence
• Chair Board Platform voor Techniek Talent
• Chair Supervisory Board Van Leeuwen Buizen Groep B.V.
• Chair Advisory Committee Nederlands-Indië Monument
• Chair Supervisory Board Van Dorp installaties B.V.
• Member Board United Europe (per 1 December 2024)

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Supervisory Board biographies

Tennet_24_IAR_Images_SB-Bio_Stijn_small

Edna Schöne Stijn van Els

Member of the Supervisory Board Member of the Supervisory Board
Chair of the Remuneration and Appointment Committee Chair of the Strategic Investment Committee
Member of the Strategic Investment Committee Member of the Remuneration and Appointment Committee
53, German (f) 60, Dutch (m)

Initial appointment: 1 May 2019 Initial appointment: 1 May 2019

Expiry second term: 30 April 2027 Expiry second term: 30 April 2027

Principal position: Principal position:

• Member Executive Board Euler Hermes AG • Former CEO Shell Germany
• CEO of HyCC B.V. (the Hydrogen Chemistry Company)
Other positions:
• Member of the Board „Lateinamerikaverein“ Other positions:
• Member of the Executive Committee „Ostausschuss der deutschen Wirtschaft“ • Chair Supervisory Board IDA Foundation
• Member of the Executive Committee International Chamber of Commerce Germany
• Member of Unternehmens-beirat KfW Ipex
• Member of the Board LAVFE-Foundation

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Supervisory Board biographies

Maarten Camps Kuldip Singh

Member of the Supervisory Board Member of the Supervisory Board
Member of the Strategic Investment Committee Member of the Audit, Risk and Compliance Committee
60, Dutch (m) 51, Dutch (m)

Initial appointment: 1 September 2023 Initial appointment: 1 September 2023

Expiry first term: 31 August 2027 Expiry first term: 31 August 2027

Principal position: Principal position:

• Chair UWV, Social Security and Public Employment Agency of the Netherlands • Former Global Head Digital & Business Transformation Customer Solutions with E.on Group

Other positions: Other positions:

• Member of the Supervisory Board at the Reading and Writing Foundation • Member of the Supervisory Board at KPMG
• Member of the Supervisory Board at the Jinc Continuity Foundation • Chair of the Supervisory Board at Whiffle
• Member of the Supervisory Board of Jinc • Member of the Supervisory Board at ROM InWest
• Member of the Advisory Board Stichting GAK • Member of the Supervisory Board lnnosportlab Sport & Beweeg (until 1 October 2024)
• Chair of the Supervisory Board of Kyndryl Nederland B.V.
• Member of the Executive Board Wickey Holding B.V.
• Lecturer at Governance University
• Chair of the Supervisory Board of Skoon Energy B.V.

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Supervisory Board Report

Supervisory Board reflections on 2024 to have one uniform framework for safety rules, creating a in preparing discussions for the full SB regarding Project
unified framework for safety standards. Ampere. The committee was chaired by Ab van der Touw,
Introduction with Essimari Kairisto as a member. After negotiations with
2024 was a year in which the Supervisory Board saw Throughout the year, the SB closely monitored adherence to the German government on the full sale of TenneT Germany
significant progress in the field of safety. Improvements were these rules, including violations. A key focus was maintaining were terminated in June 2024, the Ampere Committee was
evident in both TenneT's safety targets and its overall safety a balance between enforcing consequence management renamed into the Voltura Committee. The new committee is
culture. The company continued to excel in ensuring the for deliberate violations and fostering a safe, open culture chaired by Essimari Kairisto with members including Ab van
security of supply, achieving an impressive onshore grid where employees felt encouraged to speak up about der Touw, Maarten Camps, and Edna Schöne. The Ampere/
availability rate of 99.99988%. safety concerns. Voltura Committee convened ten times.

While TenneT's investments reached more than Financing Throughout the year, the SB carefully monitored potential
EUR 10.6 billion, the topics of affordability of the electricity In the first half year of 2024, Project Ampere, the potential sale conflicts of interest involving EB members. This included
system and congestion management remained key priorities of TenneT Germany to the German State, was a key focus for considerations beyond the transaction itself, such as the
for the Supervisory Board (SB) and Executive Board (EB). TenneT and the SB. However, in June 2024 it was announced potential impact on future roles and career developments. The
that negotiations with the German government regarding the SB also reviewed the overlap of positions between TenneT
The negotiations on the full sale of TenneT Germany were possible full sale of TenneT Germany had been terminated. Holding and TenneT Germany in this context.
terminated on 20 June 2024. Following this, the EB promptly
began developing an alternative structural funding solution Following this development, attention shifted from a full Beyond projects Ampere and Voltura, the SB regularly
for its German activities, exploring options in both private sale to exploring alternative structural funding solutions for discussed preparations for establishing an organisational
and public markets. This marked the start of another TenneT Germany. To reflect this new direction, the project was structure to enable potential investor participation in
intensive process. renamed to Project Voltura. In addition to the Dutch State TenneT Germany.
potentially providing the required capital for TenneT Germany,
Safety two primary options were identified to meet the company’s The SB acknowledges the significant workload involved
The SB welcomed the significant progress achieved in equity need under Project Voltura: in these projects and extends its appreciation to the EB
the area of safety. This progress was evident not only in 1. issuing shares of TenneT Germany through a private and all involved TenneT employees for their dedication
the performance on the targets but also in the noticeable placement; or to these initiatives while continuing to safeguard TenneT’s
improvement in TenneT’s safety culture. A particularly effective 2. issuing shares through an initial public offering (IPO) of core operations.
example highlighted to the SB was the introduction of a TenneT Germany.
language-free movie on the Life-Saving Rules. This innovative
tool greatly enhanced understanding among on-site workers, The preparation for these options was extensively discussed
clearly conveying what actions to take — and what to avoid. by the SB.
The SB was especially pleased when, at the end of 2024, the
German TSOs decided to adopt TenneT’s Life-Saving Rules, In 2024, the Ampere Committee (a temporary committee
of the SB as established in 2023) continued its work

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Affordability Every regular SB meeting included discussions on TenneT’s TenneT’s appointment of a Director of Customer Connections
To the SB, affordability is a key topic. Therefore the SB sharpened strategy and its implementation. and Capacity was recognised in the review as a best practice
was pleased that TenneT published its position paper on for addressing these challenges.
affordability because it makes clear that TenneT needs the
support of its stakeholders in moving Towards a Reliable Within the SB, acceleration measures were discussed in
and Affordable Energy System, which is the title of the several instances.
position paper. In this paper, TenneT emphasises its social
responsibility to The SB greatly appreciated the increased co-operation
1. address the affordability of the energy system, including between TenneT, Netbeheer Nederland and ACM over 2024,
grid tariffs; which is based on mutual trust and transparency, to address
2. propose measures to reduce system costs; the challenges of congestion.
3. illustrate the impact of potential changes; and
4. contribute to sustainable, long-term solutions. CSRD Readiness
The SB devoted considerable attention to TenneT’s readiness
Affordability will remain high on the agenda of the SB in 2025. for the Corporate Sustainability Reporting Directive (CSRD).
Sustainability is deeply linked to TenneT’s role in the energy
Sharpened strategy transition; however, challenges arose in ensuring that relevant
TenneT sharpened its strategy in the beginning of 2024 data was accessible across all units. The EB, in collaboration
in consultation with the shareholder. The shareholder with the Audit, Risk, and Compliance Committee (ARCC) and
was appreciative about the way TenneT conducted the external and internal auditors, identified steps to comply with
consultation process. CSRD guidelines.

The SB appreciates and supports TenneT’s strong focus on

customer needs. Congestion
During a strategy session on 13 November 2024, the SB
Accelerating grid development, optimising grid utilisation emphasised the importance of prioritising customers in
and fostering collaboration to serve customers effectively efforts to address congestion: the key focus point in the
are critical to addressing congestion, which ultimately sharpened strategy.
benefits Dutch society as a whole. Internally, end-to-
end solutions are essential for achieving this strategy, The SB reviewed the findings of a Netbeheer Nederland
while external co-operation with stakeholders – including study on congestion management, which highlighted two
customers, DSOs, local authorities and regulators – is key issues:
equally important. These efforts also positively impact German 1. an excessive focus on individual responsibilities rather than
society, where congestion is yet less prevalent. In 2024, collaboration; and
TenneT concluded flexible customer agreements to maximise 2. insufficient prioritisation of the customer’s perspective.
available grid capacity.

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Supervisory Board Report

SB composition EB composition today and tomorrow; (iii) drive the energy transition and (iv)
The EB consists of a CEO, a CFO and two COOs, with a safeguard TenneT’s financial health.
Diversity 50% female and 50% male ratio. TenneT strives to maintain
The SB consists of six members, with a 33% female and an equal balance in female/male EB members. The performance on these targets was discussed in
67% male ratio. TenneT strives for an equal balance in female/ combination with further measures where necessary.
male representation within the SB towards 2030. Additionally, Two of the EB members are Dutch (the CEO and one Individual performance and further leadership development
three members have international cultural backgrounds: Edna COO); two are German (the CFO and one COO). With their were discussed with the individual EB members. A 360 degree
Schöne (German and Swedish), Essimari Kairisto (German and various expertise, experience and personality the EB is a feedback process for the EB members took place; the results
Finnish) and Kuldip Singh (Dutch and Indian). complementary - and a strong team. Over 2024, the SB and actions were discussed in the RAC and will be a part of
appreciated the close co-operation of the EB as visionary the performance dialogues.
This diversity of cultural perspectives, combined with leaders of TenneT and resilience where the topic of Ampere/
international expertise and executive experience, ensures Voltura is concerned. The overall conclusion on the functioning of the EB as a team
balanced and informed decision-making. The SB effectively was that the EB is a strong, well forged team that acted as
challenged the EB where necessary (e.g., on IT audit findings) In 2024, the SB nominated Maarten Abbenhuis for one with the challenges of ensuring TenneT’s future financing
and acted as a constructive sparring partner (e.g., during the reappointment as statutory director of TenneT Holding B.V. needs in combination with ‘TenneT’s business as unusual’,
Voltura process). and was very content about his reappointment. Maarten has with the ultimate goal of driving energy transition. The tone
played a fundamental role in TenneT's growth agenda in from the EB is open and transparent. Countervailing power,
Ancillary positions SB members; no conflict of interest recent years: since his appointment as COO in 2020, TenneT’s where needed, was used constructively.
The ancillary positions of SB members, as listed on TenneT’s investments tripled from EUR 3.4 billion in 2020 to more
website and in the SB biographies, were monitored during than EUR 10.6 billion in 2024. Security of supply remains at For the EB capabilities reference is made to the Sustainability
2024 for potential (perceived) conflicts of interest. It was world class level with 99.99988% in 2024 under Maarten’s statements section Governance.
concluded that there are currently no potential conflict-of- leadership. Within the SB and EB, Maarten is well respected
interest-situations at hand. More specifically, in this respect it for his knowledgeable contribution, insights and challenges to Set-up of SB- and committee meetings
is noted that both the Chair of the Supervisory Board position all topics at hand, even when not directly related to his own TenneT’s SB consists of four committees: the Audit-, Risk
for Kuldip Singh at Skoon Energy B.V., nor the Supervisory portfolio. The SB appreciates the good working relationship and Compliance Committee (“ARCC”), the Remuneration and
Board position of Essimari Kairisto with Fortum Oyj conflict that Maarten has with the Dutch works council. Appointment Committee (“RAC”), the Strategic Investment
with the unbundling requirements from the Dutch Energy Act. Committee (“SIC”) and the (temporary) Ampere/Voltura
Potential conflicts of interest are considered once again for EB performance Committee. These committees prepare and guide SB decision
each SB meeting when the agenda is set: the company The SB prepared the dialogues with the various EB members making. Each SB member has access to all committee
secretary considers carefully whether there is any topic on about their year-end reflections and performance. These meeting documentation and is welcome to join the respective
the agenda that might lead to a potentially (perceived) conflict dialogues were conducted by the RAC with the individual EB committee meetings. The respective chairs of the committees
of interest. In that case the respective SB member would members and with the CEO about the functioning of the EB as give feedback to the SB about the background of the
not be granted access to the documentation and/or decision a team. requested decisions and content of the committee dialogues.
making, which were to be minuted. In each SB meeting it For detailed information about the roles and responsibilities of
is furthermore discussed at the start of the meeting whether The EB targets 2024 were based on TenneT’s corporate the SB and its committees, reference is made to the ‘Rules
there is a potential conflict of interest. This has not been the objectives for TenneT’s previous strategic pillars (i) energise Governing the Supervisory Board’ on TenneT's website.
case in 2024. TenneT’s people and organisation; (ii) secure of supply

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SB meetings Climate change workforce leads to more innovation and job satisfaction.
The SB met 15 times. The SB held ten specific meetings The energy transition is all about climate change. The SB Therefore, the SB and EB discussed measures taken to
on Ampere/Voltura in addition to the regular SB meetings, discussed Target Grid, TenneT’s vision on the energy system increase inclusion, diversity and equality (which means that
where the topic of Ampere/Voltura was also discussed. SB of the future, which includes sector coupling and innovative people may need to be treated differently to provide an
meetings always start with a ‘SB-only’ part to prepare the SB solutions (multi-hub system) to improve security of supply equality of opportunity). Reference is made to the paragraph
meeting exclusively with SB members present so that open whilst making it possible to realise less converter stations. about Inclusion, Diversity and Equality hereafter.
SB-alignment on the topics on the agenda is ensured. All SB Choices about dilemmas such as whether to choose for SF6
meetings also end with the opportunity for the SB to reflect insulated switchgear installations or use of alternative gases The EB monitored on a quarterly basis to what extent
by themselves. (that are potentially more costly during its development on the the TenneT’s employees feel informed, supported and are
level of 380 kV and higher), or for air insulated switchgear engaged in the “Pulse Surveys”. The SB noted appreciatively
After the SB-only part at the start of each SB meeting, it (needing more m2 space with potentially more costly and that in the challenging times that TenneT had in 2024 in view
is established between the SB members and EB members more time consuming land acquisition) were tested by the of its equity financing and the split between the Dutch and
whether there is a potential or perceived conflict of interest. SB regularly. German organisations, the targets (more than > 75% of the
employees felt informed; more than > 70% supported and
In 2024, there were no potential conflicts of interest at hand. Resource use and circularity more than > 85% were engaged) were achieved. On the other
The Climate Transition Plan was presented in the ARCC. hand, the SB is concerned about long-term sickness rates.
The percentage of independent board members is 100%. It describes TenneT’s performance with respect to these
targets, outlines the challenges that TenneT faces to get there Delivering the energy transition
The SB discussed and approved the following material topics (for instance in greening TenneT’s grid losses) and TenneT’s A large part of this priority is covered by TenneT’s investment
based on the double materiality assessment: outlook with respect to concrete actions TenneT is taking/will portfolio with a value of several billions in investments in
take in the near future to meet these ambitions. the Dutch and German grids – and as such, discussed in
Safe working environment the SIC. Several innovative and sustainable initiatives were
This topic is the first on every SB agenda and extensively Responsible Supply Chain Practices discussed in the SB, such as the innovative Multiterminal
discussed in the SIC. Results and measures taken The SB noted that TenneT reported on its supply chain Hub-Technology. This approach allows for a better and more
were challenged in SIC meetings, where regular updates due diligence in Q2 2024 to the “Bundesamt für Wirtschaft cost-efficient transport of offshore wind energy and provides
were discussed about Life Saving Rules violations and und Ausfuhrkontrolle”. a future-proof concept regarding a future DC “backbone grid”;
consequence management. The SB also paid attention to furthermore, this system requires less converter stations to be
the safety and (mental) health of TenneT's workforce, among The report included elaborations on human rights risks realised than the conventional connections. The SB considers
others in the yearly meeting with the SB, EB and Dutch works for TenneT’s own employees (e.g. safe working conditions, these innovations important because they positively impact
council in November 2024. freedom of association, fair wages), human rights of workers security of supply and the affordability of the energy transition.
in the supply chain (e.g. forced labour, child labour,
Security of supply safe working conditions) and environmental protection (e.g.
This topic is the second topic on every SB agenda and responsible waste management, use of harmful substances).
extensively discussed in the SIC. The SIC requested a
comparison on security of supply data between TenneT and Good employment
other European TSOs and DSOs. The comparison showed With the EB, the SB is of the opinion that the diverse
that in TenneT’s high-voltage grid performed better in 2023 composition of society should be reflected in the composition
than the average Dutch DSOs grids. of the workforce. Furthermore, it believes that diverse

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In 2024, the SB discussed the following updated policy: • special attention was regularly paid to exception reports, ARCC and SB dialogues about these topics. In the current
1. Climate Transition Plan where project progress and price increases were closely geopolitical dynamics, the topic of (cyber) security will remain
monitored and discussed; and high on the agenda of the ARCC and SB. The ARCC will also
In 2024, the SB discussed and approved (the updates of) the • a deep dive on the innovative Multiterminal Hub- closely monitor resolving audit findings in general.
following policies: Technology was done. This approach allows for a better
1. Internal Audit Charter and more cost-efficient transport of offshore wind energy Further topics discussed were quarterly updates on CSRD
2. Integrated Performance Plan and provides a future-proof concept regarding a future readiness, risk management, updates on legal proceedings
3. Financing Plan DC “backbone grid”. The SIC embraces these innovative and legal developments and the yearly evaluation of the audit
4. Rules Governing the Supervisory Board initiatives that contribute to affordability, sustainability function as well as the yearly update on tax developments.
and reliability.
In May, the SB visited the shipyard in Haugesund, Norway, In the ARCC the implementation of a reinsurance captive for
where they experienced the finalisation of the construction The SIC paid a working visit in November to TenneT’s Safety TenneT’s Dutch and German offshore grid connection systems
of the DolWin5 platform (900 MW) from up close. Because Impact Training Centre in Hamburg and to the Elbe crossing. during construction and operation was monitored. The SB is
of among others the sheer size of the platform some of the very pleased that the license has meanwhile been granted by
challenges in realising these platforms became clearer – the The external auditor attended the SIC meeting in November the Dutch Central Bank.
SB found the working visit very insightful. to observe the controls exercised in the SIC; good controls
were confirmed. All ARCC meetings were attended by the internal and
SIC external auditors.
The SIC consists of Stijn van Els (chair), Edna Schöne The shareholder was regularly informed about
and Maarten Camps. The SIC met 5 times. Both COOs cost developments. The findings and recommendations of TenneT’s external
participated in these meetings. Safety and Security of Supply auditor in the management letter were discussed in the ARCC
were always the first topics to be discussed, followed by the ARCC November meeting.
investment proposals to be approved by the SB. 88 projects The ARCC consists of Essimari Kairisto (chair), Ab van der
were discussed and recommended for approval to the SB Touw and Kuldip Singh. The ARCC met 4 times in 2024. The Audit by the External Auditor/ Management Letter 2024
for a total value of EUR 55 billion. The quarterly Safety- and CEO and CFO participated in these meetings. In its management letter, the external auditor was critical
Investment reports were also on the SIC agenda. Both COOs about TenneT's ongoing challenges in addressing fraud risks,
participated in these meetings. Financial reporting was discussed in relation to the Integrated IT-related risks and ESG/CSRD reporting. These topics were
Annual Report (IAR), the Half-year report and the related discussed in the ARCC on a quarterly basis, where progress
The SIC regularly discussed cost control measures; documentation by the external auditor. TenneT’s quarterly was discussed, challenged and monitored together with the
successful examples are TenneT’s increasing standardisation reports on finance were also discussed in the ARCC. Several EB and the internal auditor. The external auditor was able to
and long-term framework agreements. improvements were implemented, such as incorporating a report progress on these three topics over the full year 2024.
five-year liquidity forecast in the quarterly finance report.
Next to the topics reported under CSRD material topics:
• consequences of the investments for the NEP 2037-2045 Other main topics discussed were cyber security, IT
(a climate-neutral energy system in 2045) were discussed; developments and resolving audit findings regarding these
• special attention was paid to the way TenneT monitors topics. Because the unit Business Technology Organisation,
suppliers’ performance management; responsible among others for IT technology, falls within the
portfolio of COO Maarten Abbenhuis, he participated in the

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Integrated reporting and audit; financial statements RAC The RAC noted appreciatively that the ID&E program is further
In 2024, the SB discussed the financial statements for the The RAC consists of Edna Schöne (chair), Ab van der Touw supported by two new ID&E Officers.
financial year 2023 as part of the Integrated Annual Report and Stijn van Els. The RAC met 8 times. The CEO and the
(IAR) 2023, as well as the Green Finance Report 2023, the director of the unit People (as per 1 September the German The RAC also appreciated the way TenneT once again
independent auditor’s report, the assurance report of the and Dutch directors of the units People) participated in the managed to attract and onboard more than 1,350 new
independent auditor related to non-financial information, the meetings and stepped out where appropriate. colleagues in 2024. The RAC noted the target for female hires
interim report, management letter and the audit results report (32%) was met in 2024 32%) and the target for international
issued by TenneT’s external auditor. The ARCC meeting to The RAC prepared and conducted the performance dialogues hires (10%) has been met with 11%. The RAC will keep
prepare the financial statements over 2023 and IAR was with the individual EB members and with the CEO about the monitoring diverse hiring as well as maintaining an inclusive
preceded by the regular meeting between the ARCC and functioning of the EB as a team. culture and the targets set to that end. Furthermore, the
external auditor without EB members nor the company RAC will keep challenging and monitoring the development
secretary being present to ensure an open dialogue on The RAC prepared the reappointment of Maarten Abbenhuis of talented leaders.
matters related to the IAR. The ARCC prepared the SB as COO.
dialogues about these documents and advised on them. As The RAC highly valued initiatives that provide a (temporary or
a result, the SB endorsed the documents and recommended The management review is yearly discussed in the RAC to permanent) workplace for refugee talent.
that the General Shareholder Meeting adopt the financial monitor the development of the Senior Leadership Team and
statements. The SB recommended the General Shareholder of potential future EB successors.
Meeting to discharge the EB members from liability for its
management of the company in 2023 and discharge the SB The RAC carefully considered the composition of the
from liability for its supervision of the management of the future TenneT Holding, TenneT Netherlands and TenneT
company over the year 2023, both of which took place. Germany boards and conducted extensive dialogues with the
shareholder about the remuneration of the future German EB.
As part of quarterly performance cycle, the SB reviewed the The RAC also conducted a careful selection process for the
2024 internal quarterly reports on Integrated Performance, CEO of TenneT Germany. The SB were very pleased that Tim
Finance, Investments, Audit-, Risk and Compliance and Meyerjürgens was appointed as CEO of TenneT Germany per
Safety. Furthermore, the results from internal risk and control 1 January 2025; selection of further EB members for TenneT
assessments, the Integrated Performance Plan 2025-2027, Germany will be continued in 2025.
the 2025 budget and Financing Plan 2025 were approved. The
SB oversees setting targets related to material impacts, risks Inclusion, Diversity and Equity
and opportunities, through the aforementioned Integrated Diversity means to include different perspectives, experiences,
Performance Plan. Monitoring of the progress (actual cultural backgrounds and characteristics among TenneT’s
performance versus the targets) was performed by discussing employees to contribute to TenneT’s results, for instance by
the quarterly Integrated Performance Reports. challenging established ways of thinking and interacting with
different perspectives.

The RAC supported the launch of the Inclusion, Diversity and

Equity (ID&E) Program Office in 2024.

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Attendance SB- and Committee meetings

SB attendance 2024 Supervisory Board Audit, Risk and Remuneration and Strategic SB Ampere/
Compliance committee Appointment Investment Voltura Committee
Committee Committee
A.F. van der Touw 15/15 4/4 8/8 9/10

(Chair)
E. Kairisto 14/15 4/4 10/10
A.C.C. van Els 13/15 7/8 5/5
E.M. Schöne 13/15 8/8 5/5 3/3
M.R.P.M. Camps 13/15 5/5 3/3
K. Singh 13/15 2/4

Dutch Works Council

The SB members with enhanced recommendation rights (Stijn
van Els and Kuldip Singh) met with the Dutch Works Council
(OR) three times. Topics discussed were among others
Ampere/Voltura, the split of TenneT, Maarten Abbenhuis’
reappointment, growth of the organisation and the workload
within TenneT.

The full SB met with the OR and the EB two times,

once in the form of a Permanent Education Session on an
engaged, healthy, diverse and growing workforce and once
in the yearly meeting on the topic of ‘mental health and
resilience’, where an engaging workshop was organised with
an external speaker.

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Capability matrix SB team building session and self evaluation

In March a team building session was organised given the
Competencies A.F. van der Touw E.M. Kairisto A.C.C. van Els E. Schöne K. Singh M.R.P.M. Camps
new composition of the SB team.
(chair) (vice-chair)

General management ● ● ● ● ● ● The SB self-evaluation took place on 13 November 2024; the

Financial management ● ● ● ● ● ● most important outcomes and room for improvement were to
apply more focus on the dialogues with the EB about strategic
Capital market/ investor
● ● ● ● ● ● dilemmas; less on details.
relations

Technology ● ● ● ● ● ●
In the SB self-evaluation the capability matrix was discussed,
IT ● ● ● ● ● ● with the overview of each SB members capabilities as listed
Risk management ● ● ● ● ● ● hereafter. The SB members have kept their knowledge up to
date in their other executive and non-executive roles as well
Project management
● ● ● ● ● ● as by attending TenneT deep dives, dialogues and permanent
(large infrastructure projects)
education sessions.
Human resources ● ● ● ● ● ●

Marketing/Public Affairs/
● ● ● ● ● ● Permanent Education sessions
Brand image
In 2024, Permanent Education sessions were organised about
Regulation ● ● ● ● ● ●
Affordability of the Energy System, on an engaged, healthy,
Public sector/State owned diverse and growing workforce, as well as on management
● ● ● ● ● ●
companies
of mental resilience (together with the Works Council and EB)
Political/managerial and on Congestion.
experience and network ● ● ● ● ● ●
the Netherlands
Appreciation
Political/managerial
experience and network ● ● ● ● ● ● Last, and certainly not least, the SB would like to express its
Germany appreciation for the hard work and dedication to the energy
International background/ transition demonstrated by everyone working at - and for
● ● ● ● ● ●
experience TenneT, whether in the control rooms, in the field, in TenneT’s
Legal ● ● ● ● ● ● company canteen or on the offshore platforms, whether as EB
member, as (sub)supplier or for TenneT’s shareholder: here is
Experience in energy-,
industrial and/or financial ● ● ● ● ● ● a whole-hearted “Thank you!”.
sector
Knowledge of Dutch Corporate
● ● ● ● ● ●
Governance Code
Corporate Social
● ● ● ● ● ●
Responsibility/ CSRD

● high ● medium ● low

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Remuneration report
Remuneration policy Remuneration norm
The remuneration policy of TenneT Holding B.V. mainly aims to offer remuneration at a level The moment the Supervisory Board appoints a new statutory director it applies the
that will attract and retain qualified and capable statutory directors (including those who come remuneration policy as approved by the Shareholder. For 2024, the fixed remuneration is
from within the organisation), being Executive Board members. This also applies to Supervisory capped at the CEO level, excluding pension and other allowances, and was set at EUR 456,504
Board members. The remuneration policy meets the best-practice provisions on remuneration for TenneT's Chief Executive Officer (CEO). The fixed remuneration of the other Executive Board
as defined in the Dutch Corporate Governance Code 2022. Since all of the shares in TenneT members (CFO and both COOs) has been capped at 90% of the remuneration of the CEO.
Holding B.V. are held by the Dutch state, TenneT’s remuneration policy falls within the scope of The Supervisory Board applies the principle of equal pay to the remuneration policy for the
the State Participations Policy 2022 (‘Nota Deelnemingenbeleid Rijksoverheid 2022’, published statutory directors.
1 July 2022).
If, in the opinion of the Supervisory Board, the maximum remuneration as required by the
TenneT’s remuneration policy has been approved by the Shareholder and is effective as of Shareholder leads to unacceptable risks to the organisation because no suitable candidates
January 2020. It is also in line with the State Participations Policy 2022. The most important can be found to fulfil the role of statutory director, the Supervisory Board shall consult
elements of the remuneration policy are described hereafter. the Shareholder.

Employment market reference group The Supervisory Board decides on the annual increase in salary. If the remuneration of a
Remuneration for the statutory board members of TenneT has been set using a benchmark, a statutory director has reached its maximum, further increases will be limited to the structural
comparison with organisations competing in the same business and employment markets as increments as agreed upon in the collective labour agreement which is applicable to all
TenneT. These organisations include: employees of TenneT TSO B.V. including Ms. Freitag and Mr. Meyerjürgens. Whilst being based
• International transmission system operators (TSOs); in Germany, both have a Dutch labour agreement with TenneT.
• Operators of infrastructure;
• Installation/engineering companies; Service agreement and compensation for early termination
• Building companies; In principle, with effect from 2017, service agreements for Executive Board members – with the
• Financial institutions. exception of internal appointments – are concluded for a fixed term of four years. In the event
that the service contract is terminated prior to the expiry date, TenneT pays a maximum of one
The outcome of this benchmark showed a higher remuneration level than TenneT’s current level year's salary as a termination compensation, unless the statutory director resigns voluntarily, or
of remuneration, which has been set by the Shareholder in line with the remuneration policy as the termination is the result of his or her actions. As an exception to our policy, agreed with
of January 2020, and the State Participations Policy 2022, and includes equal pay, regardless of the Shareholder, Ms. Freitag will also receive this termination compensation if she will not be
gender or nationality. appointed and/or employed for a second term at the initiative of TenneT.

The Supervisory Board reviews the remuneration policy for statutory board members once every Pensions
four years. The review process has started during 2024. Together with the Shareholder and Korn The retirement age of statutory directors is based on the statutory pension age for Dutch
Ferry a remuneration level benchmark was conducted. The Supervisory Board will follow up on contracts for statutory directors based in the Netherlands. The retirement age of statutory
the topic with the Shareholder in 2025. directors based in Germany is based on the statutory pension age as applicable in Germany.

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Statutory directors participate in the regular pension scheme of the country in which they are Taxes
covered for social insurance. TenneT and the Dutch Tax Authorities reached a tax settlement on the allocation of wage and
income taxes to the Netherlands and Germany. TenneT shall fully indemnify, hold harmless and
Statutory directors based in the Netherlands participate in a pension arrangement as defined compensate statutory directors against all claims, demands, actions, suits, damages, liabilities,
in the collective labour agreement and as applicable for all employees in the Netherlands. losses, settlements, judgements, costs and expenses (including but not limited to reasonable
The employer and employee contribution for the statutory directors follow the same rules as attorney's fees and costs), which arise out of or relate to any act or omission of TenneT in
applicable to all other employees. Dutch pension regulations define the pensionable salary up to relation to the double taxation claim. As a result, statutory board members will neither have
the fiscal maximum of EUR 137,800 (2024). any disadvantage of the international allocation of their remuneration, nor will there be a gain
advantage from the advancing arrangement with TenneT, since it will be settled afterwards.
The statutory directors based in the Netherlands receive the same compensation as TenneT
employees with an income above the fiscal maximum pension salary. The compensation is In 2022, a Mutual Agreement Procedure was requested on behalf of Ms. Van Beek, Mr. Jager (as
based on the fiscally allowed age dependent premium percentages up to fiscal maximum former statutory board member) and Mr. Voorhorst (as former statutory board member) between
pension salary. the competent Dutch and German authorities based on Article 25 of the bilateral tax treaty
concluded between the Netherlands and Germany (2012) for the tax years 2018 and 2019. This
German based statutory directors participate in the regular pension scheme ('Beitragsplan') or request to remedy double taxation has been formally brought forward to the competent Dutch
any other pension scheme that such statutory director may have already been entitled to. and German tax authorities and parties.

In Germany TenneT currently has two pension schemes. For employees starting after 1 April (Re-)Appointment of Executive Board members and Supervisory Board members
2008 Pension scheme 2008 is applicable. Mr. Meyerjürgens joined TenneT’s TSO GmbH In line with the Dutch policy State Participations 2022, both Executive Board as well as
predecessor E.ON Netz GmbH on 1 March 2003. At that time a company pension based on the Supervisory Board members are appointed for a term of four years and can be re-appointed
pension scheme 2001 was provided to him. Mr. Meyerjürgens kept participating in his pension for a second term of four years. Only in exceptional and well-motivated cases, Executive
scheme. For Ms. Freitag the Pension scheme 2008 is applicable. Further reference is made to Board and Supervisory Board members may subsequently be reappointed twice for a third
note 18 of the consolidated financial statements. respectively fourth term of two years. So, the total maximum period for both Executive Board
and Supervisory Board members is 12 years.
Other allowances and secondary benefits
The total remuneration package for statutory board members includes an allowance for
necessary out-of-pocket expenses, the use of a lease car (of a type comparable to those
provided to statutory board members of similar organisations) including possible private
use, accident and directors’ and officers’ liability insurance, and thirty days paid leave per
annum. Sign-on bonuses and recruitment incentive payments are not applicable for statutory
board members.

Secondary benefits also include a nominal contribution towards health insurance premiums
and the choice of other flexible individualised benefits, such as converting holiday allowance
into extra leave hours. Most of these benefits are applicable to all TenneT employees, working
under the Dutch collective labour agreement. The company does not provide any loans, loan
guarantees or advances against future earnings to any statutory board members.

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Board remuneration
This section specifies the current remuneration for statutory directors as well as members of
the Supervisory Board.

During 2024, the Executive Board of TenneT was composed of the following statutory board
members:

Position Date of first appointment End of 1st term End of 2nd term

M.J.J. van Beek CEO 1 September 2018 31 August 2022 31 August 2026
T.C. Meyerjürgens 1
COO 1 March 2020 29 February 2024 29 February 2028
M.C. Abbenhuis COO 1 January 2021 31 December 20242 31 December 2028
A.C.H. Freitag CFO 1 January 2022 31 December 2025

1 As of 1 March 2019, Mr. Meyerjürgens has been appointed as director; as of 1 March 2020, Mr. Meyerjürgens has been appointed as statutory director.
2 Mr. Abbenhuis has been reappointed for a second four-year term, from 1 January 2025-31 December 2028.

Ms. Van Beek and Ms. Freitag are employed for the duration of a fixed-term. Mr. Abbenhuis and
Mr. Meyerjürgens both have open-ended underlying employment contracts.

Remuneration of the statutory directors

Total remuneration

Fixed Other Total

2024 (in EUR thousand) Gross Pension Net pension Total pension
remuneration allowance1 remuneration

Current board members

M.J.J. van Beek 457 25 49 74 37 568
T.C. Meyerjürgens 411 124 - 124 36 571
M.C. Abbenhuis 411 25 43 68 21 500
A.C.H. Freitag 411 36 - 36 43 490
Total remuneration current board members 1,690 210 92 302 137 2,129

1 The column ‘Other allowance’ includes certain perquisites provided to statutory directors in 2024, such as life-cycle allowance, an employer contribution to the Dutch statutory
health insurance as part of the Collective Labour Agreement. The costs shown in this column are excluding the annual employer contributions to the Dutch and German social
security. For Ms. Van Beek and Mr. Abbenhuis the 2024 employer social contributions amounted to EUR 11 thousand. For Ms. Freitag and Mr. Meyerjürgens the 2024 employer social
contributions amounted to EUR 10 thousand.

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Fixed Other Total

2023 (in EUR thousand) Gross Pension Net pension Total pension
remuneration allowance1 remuneration

Current board members

M.J.J. van Beek 437 25 45 70 33 540
T.C. Meyerjürgens 394 110 - 110 35 539
M.C. Abbenhuis 394 24 39 63 21 478
A.C.H. Freitag 394 31 - 31 45 470
Total remuneration current board members 1,619 190 84 274 134 2,027

1 The column ‘Other allowance’ includes certain perquisites provided to statutory directors in 2023, such as life-cycle allowance, an employer contribution to the Dutch statutory health
insurance and a one-off payment as part of the Collective Labour Agreement. The costs shown in this column are excluding the annual employer contributions to the Dutch and
German social security. For all Executive Board members the 2023 employer social contributions amounted to EUR ten thousand.

Fixed remuneration The total remuneration paid to the statutory directors is reconciled to and further disclosed in
In September 2023 the salaries of all statutory directors have been increased by EUR 270 gross note 25 of the consolidated financial statements.
per month and 6%. This increase is fully applied in the 2024 figures. In line with the Collective
Labour Agreement no remuneration increase in 2024 was applied. Remuneration ratio
The remuneration ratio CEO to employees is measured by comparing the total remuneration,
Pension cost (including fixed salary, pension benefits and other allowances) of the CEO with the median
The pensions of all Dutch statutory board members are administered by the ABP Pension Fund. total remuneration (including fixed salary, pension benefits and other allowances) of all other
The pension accrual is based on an average pay system up to the fiscal maximum (gross employees. The remuneration ratio CEO to senior management is measured by comparing
pension). With respect to the fixed remuneration exceeding the fiscal maximum, the Dutch the total remuneration (including fixed salary, pension benefits and other allowances) of the
statutory board members may participate in a net pension system. CEO with the median total remuneration (including fixed salary, pension benefits and other
allowances) of the Senior Leadership Team (SLT). The SLT consists of 25 directors, all direct
As explained in the remuneration policy the pension of the German statutory directors is based reports to the Executive Board.
on actuarial calculations in line with IAS19. The amount is equal to the yearly service costs.
The remuneration ratio of the highest paid employee to employees is measured by comparing
Other allowances and secondary benefits the annual total compensation, with the median of all other employees. As of 2023 the
All statutory directors have a company car available to them. The value of private use is part remuneration CEO paid employee to average of all other employees is a new ratio calculation.
of the Other allowances as shown in the table. The company does not reimburse its statutory Based on Dutch Corporate Governance Code 2022 it is also required to disclose current year's
directors for any personal income tax consequence resulting from the private use of leased cars. ratio and five previous years. That and the fact that the calculation base changed makes up for
the fact that the remuneration ratio differ to what was reported in the IAR of 2019. The cost
For Dutch statutory directors the secondary benefits as shown in the remuneration table, include components for these years have been reassessed
a contribution to health insurance and a budget for flexible terms of employment. Each statutory
director received an allowance for necessary out-of-pocket expenses, of EUR 2,196 a year. Employees with a part-time employment contract are not recalculated to one full-time
This allowance is not included in the remuneration table as it is a compensation for expenses equivalent. The same is applied to employees joining TenneT during the course of the year,
incurred and hence not considered a remuneration component. their remuneration is not recalculated to twelve months.

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2024 2023 2022 2021 2020 2019

Remuneration ratio CEO to median of employees 5.9 5.6 5.9 5.8 6.2 4.7
Remuneration ratio CEO to average of employees 5.8 5.5 5.7 5.7 6.2 4.6
Remuneration ratio highest paid employee to median of employees1 6.0 5.6 6.8 7.0 7.0 4.7
Remuneration ratio CEO to median of SLT 1.8 1.7 1.5 1.9 1.8 1.7
1 In the years 2019 and 2023 the CEO is the highest paid individual. Mr. Meyerjürgens is in the years 2020 till 2022 and 2024 the highest paid individual, due to pension entitlements.

Remuneration of the Supervisory Board

The remuneration policy for the Supervisory Board defines the remuneration for the different
roles and committees of the Supervisory Board. During 2024 each Supervisory Board member
was serving on one, two or three of a total of four committees. The roles and responsibilities
of members of the Supervisory Board were as follows:

Remuneration and
Audit, Risk and Strategic Ampere/
Supervisory Board Appointments
Compliance Committee Investments Committee Voltura Committee1
Committee

A.F. van der Touw Chair Member Member Member

E. Kairisto Vice chair Chair Chair
A.C.C. van Els Member Member Chair
K. Singh Member Member
M.R.P.M. Camps Member Member Member
E. Schöne Member Chair Member Member

1 Temporary special committee on financing solution for TenneT Germany. In 2024, the Ampere Committee (a temporary committee established in 2023) continued to prepare
discussions in the full Supervisory Board on Ampere. Mr. Van der Touw chaired this committee, MS. Kairisto was a member. After the termination of the negotiations with the German
government on the full sale of TenneT Germany, in June 2024, the Ampere Committee was renamed into the Voltura Committee. Ms. Kairisto chairs this committee, Mr. Van der Touw,
Mr. Camps and Ms. Schöne are members.

In September 2023 the salaries of all statutory directors have been increased by EUR 270 gross
per month and 6%. This increase is fully applied in the 2024 figures. In line with the Collective
Labour Agreement no remuneration increase in 2024 was applied.

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Supervisory Board member remuneration was as follows:

(in EUR)

Chair 37,844 per annum

Vice-chair 31,124 per annum
Member 28,136 per annum
Audit, Risk and Compliance Committee 8,280 per annum
Remuneration and Appointment Committee 6,512 per annum
Strategic Investment Committee 6,512 per annum
Ampere/Voltura Committee 6,512 per annum

The total remuneration received by the Supervisory Board in their capacity as TenneT Holding B.V.
Supervisory Board members during 2024 was as follows:

2024 2023

(in EUR thousand) Fixed remuneration Committee fee Total Fixed remuneration Committee fee Total

A.F. van der Touw 38 21 59 34 21 55

L.J. Griffith - - - 28 6 34
E. Kairisto 31 15 46 25 21 46
A.C.C. van Els 28 13 41 25 13 38
E.M Schöne 28 16 44 25 14 39
K. Singh 28 8 36 9 3 12
M.R.P.M. Camps 28 10 38 9 2 11
Total 181 83 264 155 80 235

The Aufsichtsrat is a governance body for TenneT TSO GmbH; it is therefore not considered a
committee of the Supervisory Board. Ms. Van Beek, CEO of TenneT Holding B.V. and (qualitate
qua) chair of the Aufsichtsrat, waived the remuneration for both 2023 and 2024. There were
in 2024 no Supervisory Board members also member of the Aufsichtsrat (2023: one member
amounting to EUR 15 thousand).

Each Supervisory Board member received an allowance for necessary out-of-pocket expenses,
of 10% of the total remuneration. This allowance is not included in the remuneration table as it is
a compensation for expenses incurred and hence not considered a remuneration component.

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Sustainability statements General

Environmental
130
137
Social 162
Governance 173
Appendix 178
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

General
With the help and support of many colleagues within TenneT, we are humbled and proud to have been
able to present to you our first Integrated Annual Report (IAR) based on the European Sustainability
Reporting Standards (ESRS) to comply to the Corporate Sustainability Reporting Directive (CSRD), which
TenneT is obliged to meet as one of the first companies that are required to report in light of these new
reporting standards.

We acknowledge that as CSRD has not formally been milestone, which we have been able to deliver with the help Basis for preparation
adopted in some member states, including the Netherlands, of many colleagues from almost every unit in our company. Consolidation
we have continued to voluntarily apply these ESRS standards We will continue working on further improving and sharpening The sustainability statements have been prepared on a
in anticipation of this legislation to be finalised. While we data collection processes, definitions and the way we are consolidated basis. The scope of this report is TenneT
prepared these statements based on the first set of ESRS, able to steer on these material impacts. This will help us Holding B.V. and the subsidiaries in which it has a controlling
we acknowledge that the application of these standards in further improving our sustainability performance. Despite interest. Joint ventures and associates are not included in
might evolve over time as new insights and updated all these efforts to develop and report the requirements the sustainability statements as we do not have operational
understanding of the requirements might be developed, e.g. set forth in the ESRS standards, we acknowledge that our control over these entities. They have been considered as
through new Q&As made available by the European Financial processes and methodologies to estimate and measure our part of the IRO identification in the DMA. In line with
Reporting Advisory Group (EFRAG) and in alignment between performance is continuously evolving and improving, and financial reporting, TenneT Holding B.V. started to include
companies that have reported in this first wave of ESRS therefore inherently not having 100% accurate and complete non-regulated subsidiaries, which business activities differ
reporters. This will help evolve reporting in accordance insights and information within a reporting year is an inherent from the core operations of the group in its sustainability
with ESRS and provide improved insights for stakeholders consequence of this. statements. However, they currently still adhere to their own
over time. distinct policies and manage operations in accordance with
In addition, this report is based on a first time preparation their guidelines. Consequently, when referring to policies and
We are at the fortunate circumstance that TenneT has been of the double materiality assessment (DMA). We consider this actions that apply across the entire group, these exclude
reporting on non-financial information for the past decade. analysis to be a starting point as well, as we expect that NOVEC B.V. and Relined B.V. as they have their own policies
However, at the same time, we acknowledge the impressive over time new insights will develop, and differences in the and are not within the scope of our policies. However,
work performed by the EFRAG and many others in developing outcomes of the DMA compared to this first version might performance metrics for both subsidiaries have been included
the ESRS standards, which also required companies with apply. We will conduct a full DMA every two to three years within the reporting scope in relation to topics deemed
experience with sustainability reporting to further improve and and reassess the outcomes of the most recent DMA in the material to their operations. For reference purposes, the
provide more insights. With the knowledge obtained in the years in between to ensure we have collected recent insights relative share of these non-regulated activities compared to
journey to prepare our first ESRS based IAR, we acknowledge into our material impacts, risks and opportunities (IROs). This the overall Holding results were 0.2% and 0.2% of the 2024
that this journey has helped us further sharpen our reporting approach also creates consistency and stability with respect IFRS revenue, 0.9% and 0.7% of the Group FTE figures.
practices and also to identify areas for improvement. Although to managing our IROs and the development in how we
we are not at the end of this reporting journey, we consider manage these more appropriately where applicable. The sustainability statements are prepared alongside the
the preparation and publication of IAR 2024 to be a significant Environmental, Social and Governance topics that are

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
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identified based on the DMA, to disclose how ESRS 2 and uncertainty are reported alongside the metrics disclosures in such, sustainability-related performance and climate-related
topical standards have been applied. The information included the sustainability statements. considerations are not included in the incentive schemes.
in this report is not limited to our organisational boundaries: Despite the board not having a variable remuneration scheme,
• In the Environmental domain, value chain information Changes in preparation or presentation of sustainability their performance is assessed by the Remuneration and
(upstream), related to climate (like our Scope 3 emissions) statements (e.g. due to prior year's errors) Appointment Committee on all strategic pillars over the year
is included and also resource use and circularity, as we We have not identified errors in prior year's reporting. We 2024. The majority of the impacts identified in our DMA are
include information on the material used in the assets do have changes in the presentation of our sustainability also part of the former strategic pillars and our Executive
that contractors build on our behalf and the waste that statements, next to the fact that this is the first year we Board is assessed against their performance regarding
is produced. are reporting based on the ESRS standards. With respect these areas.
• Regarding the Social domain, our scope also includes to the definition of the Total Recordable Incident Rate
upstream value chain information, as with respect to (TRIR), there has been an updated definition which causes Statement on due diligence
human rights (of which we have identified health and safety changes in the presentation / outcome of the TRIR. We have How our due diligence process works at TenneT, is described
separately as a material topic) workers in the value chain refined the methodology of our scope 3 GHG emissions in several sections of our sustainability statements. Hereafter
have been included in reporting on these topics. compared to the methodology applied in our baseline and we have included an overview per topic where we have
• No Governance impacts were deemed material. There are target. We refer to the respective metrics paragraphs in the described the several core elements of due diligence per
elements of human rights that also have certain overlap Social and Environmental chapters for a description of the material topic.
with Governance, such as grievance mechanisms, however change. In preparing information included in the sustainability
these are covered in the Social domain as this is made statements, we also make use of third party information (e.g. Risk management and internal controls over
specific to workers in the value chain. for the scope 3 emission and waste reporting). sustainability reporting
Reference is made to the Risk Management section.
As a company, we aim to inform our stakeholders in a clear Governance
and transparent manner. However, we have made use of the General Strategy
option to omit information in rare occasions. For instance if The role of the administrative, management and supervisory Strategy, business model and value chain
this is sensitive information with respect to innovation. bodies and the information provided to and sustainability TenneT's core tasks and how we create value is included
matters addressed by the undertaking’s administrative, in the How we create value section in this report. No new
Due to ESRS requirements, which we applied for the first time management and supervisory bodies are described in products or services are offered as of this year. The same
in 2024, metrics needed to be adapted accordingly. For the the Governance section of the Sustainability statements applies for the significant markets and/or customer groups
details, please see hereafter. and in the Supervisory Board report for the Supervisory served. The headcount per area we serve is included in the
Board. TenneT does not have variable remuneration and as Social part of the sustainability statements. The breakdown of
Use of estimations
In certain areas, for both the Environmental and Social Core elements of due diligence Section Pages
domain, we make use of (value chain) estimations. Examples
How it is embedded in governance, strategy and business model General, Governance, 129, 130 ,173
include estimating the impact on our carbon footprint
How we engaged with affected stakeholders General, Social, Governance 129, 162, 173
regarding our employee commuting in Germany, due to
data privacy regulation, or estimation on hours worked with How we identified and assessed negative impacts on people and the environment General, Environment, Social, Governance 129, 136, 162,
173
respect to the contractors executing our projects. These
How we took action to address negative impacts on people and the environment Environment, Social 129, 162
estimations, as well as sources of estimation and outcome
How we track effectiveness of these efforts and communicate Environment, Social 129, 162

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our total revenue can be found in the financial statements in TRIR. Environmental goals have been defined as the
note 24. sustainability performance (corporate carbon footprint). For
'Security of supply' group metrics and targets are defined
Our strategy, business model and value chain is described and relate to the availability of our grid.
and depicted in the Our strategy section of the Executive
Board Report. Here, our sharpened strategy, and the strategic The sustainability matters 'Resource use and circularity' and
goal to deliver grid capacity in time for customers, has 'Responsible Supply Chain Practices (Human Rights)' are
been introduced. To achieve our goal, the three strategic mentioned as boundary conditions (within sustainability) in the
focus areas of 'Building the grid faster', 'Deliver together corporate strategy, and are partly steered on corporate level
for customers' and 'Utilising the grid better' were presented. via group KPIs.
To meet this goal, boundary conditions are set regarding
safety, quality, sustainability, financial health and security of Interests and views of stakeholders
supply. Our sustainability matters are as follows related to the How we interact, engage and consider the interests and views
elements of our strategy: of stakeholders is included in the Our stakeholders section.
• The sustainability matter 'Delivering the energy transition' In addition, the interests, views and rights of stakeholders,
is related to the focus area 'Build the grid faster'. For such as our own workforce including human rights and value
'Delivering the energy transition' metrics and targets chain workers, is safeguarded by our business processes
are defined related to the total investments, number of and engagement, such as set out in our Social section
connections realised, connection requests and output KPIs of the sustainability statements. For instance, the way our
regarding the number of kilometres lines and cables and works councils (the Dutch 'Ondernemingsraad' and German
GWs offshore grid capacity. 'Betriebsrat') are engaged with regard to our sharpened
• The social sustainability matter of 'Security of supply' (e.g. strategy, and the views of value chain workers are collected
the negative impacts when we are unable to connect by our Strategy and Partnerships unit, which has also been
customers) relates to both 'Utilising the grid better' and the lead to update our strategy.
'Building the grid faster'. The group metrics and targets
of 'Security of supply' relates to grid availability and
outage reporting.
• As there is a focus on people growth and core
competences to 'work together for end-to-end output',
the impact on our own workforce in the social domain is
a sustainability matter. The topic of 'Good employment'
is related to 'Delivering together for customers'. 'Good
employment' contains the goals related to diverse
workforce and an engaged workforce.
• Sustainability matters 'Safe working environment', 'Climate
change' and partly 'Security of supply', are related to the
boundary conditions in our strategy. The group metric
and target regarding 'Safe working environment' is the

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Double materiality assessment

Introduction
In preparation of our Integrated Annual Report 2024, we
conducted a double materiality assessment (DMA) in 2023,

High
in accordance with the requirements from the European 7
Sustainability Reporting Standards. An update was performed
in 2024, resulting into a slightly changed DMA which was
approved by the Executive Board in November 2024. 2

Financial materiality
3 15 12
Through the DMA we determined the materiality of topics,
8
regarding their impacts, risks, and opportunities (IROs). A

Medium
9
sustainability matter can be material from both an impact 1 13
10
perspective, as well as from a financial perspective or both.
For each material matter, we report on how we manage the
corresponding IROs. On the right-hand side, a visualisation 6 14 11
4
of the IROs and the corresponding sustainability matters
is disclosed.
5

Low
Methodology

Understanding the context

As advised in the EFRAG Materiality Assessment
Implementation Guidance, it starts with the step of
Low Medium High
“Understanding the context” and bearing in mind the
elements described in the respective IRO-1 considerations Impact materiality
such as our business activities and relationships, the context
in which they take place, the environment we are operating Material topics
in as well as the interests and views of our stakeholders.
1 Climate change (E1) 6 Biodiversity (E4) 11 Compliance (G1)
We have performed the assessment for our own operations
2 Delivering the energy transition (E1) 7 Resource use and circularity (E5) 12 Safe and reliable infrastructure (ES)
for the entire consolidated group, which focuses on the
3 Pollution of air (E2) 8 Good employment (S1) 13 Security of supply (ES)
Netherlands and Germany. IROs on the part of our value chain
4 Pollution of soil (E2) 9 Safe working environment (S1) 14 Stakeholder engagement (ES)
related to transmission of electricity, as well as our upstream
5 Water management 10 Responsible supply chain 15 Supplier relations (ES)
and downstream value chain, were taken into account. A
& water pollution (E3) practices (S2)
visualisation of our value chain is disclosed in the Value chain
and impacts section.

As a second step, we identified our actual and potential IROs Non material Material Environment Social Governance Entity Specific
related to sustainability matters.

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Impact materiality (BGD), Financial Governance and Services (FGS), where has become available during 2024, which will help us in
the Integrated Reporting team was involved due to their our next materiality analysis planned for 2025, to specifically
Identification of impacts involvement in ESG reporting, and Strategy and Partnerships mention this. However, our expectation is that this element
In the past years materiality assessments were conducted (STP), as they are responsible for the Sustainability strategy. will not impact our assessment and will not lead to additional
according to guidance provided by GRI in their Universal These units validated the impacts through combined material topics.
Standards. The assessment of our impact on economy, knowledge across the company. Furthermore, we conducted
society and environment, which was reviewed and validated a stakeholder survey with the involvement of our key Assessment of risks and opportunities
by both our Executive Board and Supervisory Board, served stakeholder groups. The questionnaire provided insights on Per topic, we have ranked whether the identified risks and
as a basis for our latest DMA. This basis was extended the significance of TenneT’s impacts for affected stakeholders. opportunities are likely to occur and the potential magnitude
by the outcomes of TenneT's due diligence process and Additional external experts were not consulted. of it. Likelihood was ranked from rare to frequent, while
several additional analyses to broaden the overview of the the magnitude was ranked from very low to extreme, both
(potential) impacts, including for example a review of the The severity, likelihood and irredeemability of an impact in a five-point scale. For the DMA we conducted, a risk-
topics provided by ESRS 1, AR 16, a review of peers and were assessed from low to high, applying qualitative assessment additionally to the general risks identified in the
a media analysis. We have performed a screening of our thresholds. Potential impacts with a high severity, likelihood risk management process. ESG risks in general are part of
activities considering potential GHG emission sources that are and irredeemability were deemed material, as well as actual the risk process and were used as input factors, but deeper
categorised in the Greenhouse Gas Protocol. Before engaging impacts with a high severity and high irredeemability. When integration is sought.
with a wider group of internal stakeholders, a short-list of determining a severity of medium/high, our stakeholder
relevant topics with the corresponding impacts was created perspectives had the deciding vote. In addition, to determine how to weigh and determine these
to analyse and assess the impacts of TenneT. Related to IROs, the respective IRO-1 considerations have been part
the topic circular economy, we identified a selection of key Financial materiality of the collective knowledge that was used in assessing
materials and assets for TenneT in the development of our this during meetings held in this respect. This has led to
Circular Economy Strategy based on criteria such as current Identification of risks and opportunities the outcome of certain sustainability matters deemed to be
cost impacts, future material demand, historic price volatility The identified impacts served as a basis to determine risks material and other that have deemed to be less material.
and environmental and climate impact. A focus was set on and opportunities over the short, medium or long-term.
workshops with key stakeholders; affected communities were To determine the financial materiality, the above-mentioned Validation of the outcomes
not specifically consulted. units, including our risk department, identified the risks The final step in the double materiality assessment was to
and opportunities per sustainability matter. Prior materiality discuss the outcomes, including the stakeholder survey, with
Assessment of impacts assessments according to GRI were focused on impact our Executive Board and Supervisory Board and have it
After drafting the list of potential and actual negative and materiality and therefore needed to be extended by the validated by them. This has resulted in the final overview on
positive impacts, we assessed the materiality of these impacts financial materiality perspective. We specifically considered topics which are considered material from an impact and/or
on the environment or people in the short, medium or long- climate-related risks and opportunities, such as the effect financial materiality perspective.
term. This is determined by assessing the severity of impacts, extreme weather events have on our assets in the short,
and for potential impacts also the likelihood is considered. For medium and long-term under a range of climate scenarios and
actual impacts, the severity is based on the scale, scope and climate-related transition risks and opportunities, including
irremediable character for negative impacts. the transition our business activities need to go through in
a scenario where global warming is limited to 1,5°C. Risks
We conducted a workshop with internal colleagues from the can be identified from either a gross, or a net perspective
units Audit, Risk and Compliance (ARC), Business Guidance and the ESRS aims for gross. Specific guidance on this

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Material IROs

Environmental impacts

Sustainability matter Type of impact Impact description Value chain position Time-horizon

Climate Actual negative Through our daily operations, we have an inevitable impact on the environment around us, including on carbon emissions. Our most Upstream, Short-term, medium-
change mitigation significant emissions relate to SF6 leakages, grid losses and energy use, and emissions from purchasing materials and products own operations term and long-term
(scope 3).
Delivering the Actual positive With our onshore and offshore project portfolio we build the assets needed for society’s future energy needs and help achieve climate Own operations Long-term
energy transition goals of the governments in the areas we serve. TenneT helps delivering the energy transition by being a thought leader, developing
innovative instruments that unlock flexibility and establish a pivotal role in the energy data world.
Resource use Actual negative In the own operations, TenneT procures assets that require, large amounts of different materials with a majority made of virgin materials, Upstream, Long-term
and circularity which in turn contributes to resource depletion and negatively affects resource efficiency. Own operations
Potential TenneT has a potential negative impact on waste. In the own operations the construction of new assets and as well as the Downstream Short-term, medium-
negative decommissioning of assets and the subsequent disposal of end-of-life equipment partially leads to hazardous waste as well as term and long-term
significant amounts of general waste, which can have a negative impact on the environment if it is not disposed of properly.

Environmental risks and opportunities

Sustainability Risk / opportunity description Value chain Time horizon Current financial effects on financial position, financial performance, and
matter position cash flows

Resource use To build our projects, we depend on materials such as aluminium, steel or virgin copper. Materials such as Upstream Long-term There is no significant risk of a material adjustment within
and circularity virgin copper is becoming increasingly scarce, and while we aim to reduce our impact through circularity, the next annual reporting period to the carrying amounts of
the availability of it (or other resources) is limited. It could lead to the situation that TenneT would be assets and liabilities reported in the related financial statements
required to procure resources that would induce a lowered sustainable impact. To partially mitigate the identified, for that reason there is no current financial effect.
unavailability of resources, we pursue the recycling of key materials so they can be re-used for our assets.
These efforts concern copper, steel and oil in particular.
TenneT faces a strong sellers’ market that affects the price, price volatility and availability of circular Upstream Long-term There is no significant risk of a material adjustment within
materials and resources that we need to build our projects in a sustainable manner. We could be faced the next annual reporting period to the carrying amounts of
that we need to procure against a much higher price than initially projected. While we have raised our assets and liabilities reported in the related financial statements
circularity requirements in applicable tenders, however in a seller’s market with scarce materials, it could identified, for that reason there is no current financial effect.
further increase the expected cost.
Delivering As a key player in the energy landscape, we have the opportunity to support the delivery on the energy Upstream, Short-term, The financial effect to deliver the energy transition is disclosed
the energy transition. With the decades of knowledge and experience gained and the opportunity we have to connect own medium-term in our management board report. On the short term, we have
transition more renewable electricity to our grid to unlock the potential of the North Sea as Europe’s green electricity operations and long-term annual investment costs, which amounted to 10.6 EUR billion.
powerhouse, we are working hard to make our electricity grid future-proof and build towards the design of In the medium and long term, we expect to invest around 200
our grid we envision in our Target Grid. EUR billion in the next ten years.

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Transitional provisions we apply the transitional provision to phase-in specific chain for our disclosures regarding workers in the value chain.
TenneT makes use of transitional provision to omit disclosure requirements. For that reason the anticipated Refer to the Social chapter for a description where we explain
comparative figures in the first year of reporting. Performance financial effects of material risks and opportunities on its our efforts to obtain the necessary information. In absence of
indicators that we have published in previous integrated financial position, financial performance and cash flows over ESRS sector-specific standards on the Energy utilities sector,
annual reports have been presented with our performance in the short-, medium- and long-term, including the reasonably the sustainability matter 'Security of Supply' is considered
the prior year(s). We have not included comparative figures expected time horizons for those effects is not disclosed. We an entity-specific disclosure, although we apply the GRI G4
for metrics that are published for the first time. Further, have applied the transitional provision related to the value standards for the Energy utilities sector.

Social impacts

Sustainability matter Type of impact Impact description Value chain position Time-horizon

Safe working Actual negative TenneT has more than 9,600 employees and contractors, many of which are involved in high-risk activities during the construction, Upstream, Own Short-term, medium-
environment maintenance or decommissioning of our grid. operations term and long-term
Responsible supply Potential Considering that our construction sites and supply chain are globalised, TenneT has a potential negative impact on human rights. For Upstream Medium-term, long-term
chain practices negative our activities in building the grid to support the energy transition we use contractors to realise construct and maintain our assets, and
they in turn make use of sub-contractors that operate in a variety of countries.
Security of supply Actual positive By maintaining, operating, designing and building the grid, TenneT ensures the secure supply of electricity to its customers. This Own operations Short-term, medium-
means maintaining the grid to meet reliability targets, operating it to its maximum capability to keep our license to operate and term and long-term
connecting new customers to the grid.
Good employment Actual positive More than 8,300 people are working for TenneT for which we have a responsibility as an employer. To realise our Target Grid, we work Own operations Short-term, medium-
to ensure that we recruit and retain the talent we need to meet our growth objectives. Our people are our most important asset, and we term and long-term
are committed to providing an environment in which they can thrive. TenneT must foster an inclusive and diverse workforce to ensure
that different perspectives and ideas contribute to the energy transition.

Social risks and opportunities

Sustainability Risk / opportunity description Value chain position Time horizon Current financial effects on financial position, financial
matter performance, and cash flows

Good To drive the energy transition and to be able to deliver on a future-proof electricity grid that supports Upstream, own Medium-term On short, medium and long-term, requiring more staff
employment Europe’s goal to become the first climate-neutral continent by 2050 requires a significant amount operations, and long-term will lead to higher cost to employ our workforce. Other
of people working together to achieve this. Therefore, TenneT must ensure its attractiveness as an downstream initiatives to meet our strategic goals in this area have
employer of choice as well as ensuring that the sector as a whole is able to attract sufficient staff to a lower financial effect and are less significant than the
realise the energy transition. This requires us to not only focus on people living in the areas we serve, but increase of these employee costs.
also to be able to attract and retain talent from other parts of the world.

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Environmental
TenneT has a clear impact with respect to the environmental domain: an actual positive impact on the topic
of climate change mitigation and a negative impact with respect to our own carbon footprint and the use of
resources to build and maintain our assets. In the value chain TenneT enables a switch to a climate-neutral
economy by connecting renewable energy sources to the grid and transmitting the produced electricity by
increasing the grid capacity such that more households and businesses have access to green energy and we
meet societal demands, and save greenhouse gas emissions. We do this by using our Target Grid, our vision
of a climate-neutral energy system for 2045, from which our corporate strategy defines the relevant priorities.
The Target Grid should serve as the backbone of a future-proof energy landscape. We aim to reduce our
impact on the natural environment and the materials we need to build, operate and maintain our grid.

Performance tables - environmental topics

2024 2023
% 2024/2023
DE NL Total DE NL Total

Total gross scope 1 GHG emissions (tCO2eq) 5,522 23,127 28,649 5,298 16,204 21,502 133%
Total gross market-based Scope 2 GHG emissions (tCO2eq) 180,421 304 180,725 2,307,990 368 2,308,358 8%
Total gross location-based Scope 2 GHG emissions (tCO2eq) 1,513,544 699,845 2,213,389 1,838,594 731,932 2,570,526 86%
Total significant scope 3 GHG emissions (tCO2eq) 1,391,618 1,068,524 2,460,142 671,132 376,744 1,047,876 235%

Total GHG emissions market based (tCO2eq) 1,577,561 1,091,955 2,669,516 2,984,420 393,316 3,377,736 79%

Total GHG emissions location based (tCO2eq) 2,910,684 1,791,496 4,702,180 2,515,024 1,124,880 3,639,904 129%

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Governance The results of these analyses are included in the designs of the climate. Though facilitating the energy transition is our
The way TenneT governs environmental IROs is described in our investments. primary task as a TSO, this work comes with an adverse
the General section of the sustainability statements. For the impact on the climate through the facilitation of building and
topics regarding E1 Climate change and E5 Resource use Directly related, is the negative impact TenneT has through maintaining the infrastructure required for the transition. Our
and circular economy, the overall accountability resides at the use of resources for our activities. Price volatility and Climate Transition Plan addresses our commitments to
our Executive Board. For each topic, the Executive Board the inability of realising projects due to resource scarcity are international targets, our shareholder requirements and our
delegated accountability to the directors of TenneT's units. particular risks. In the development of our Circular Economy investor interests, collectively framed as our key stakeholders.
This ensures that the right policies and actions are carried out Strategy, we identified a selection of the key materials and
in alignment with strategic company objectives, and assigned assets for TenneT based on criteria such as current cost Our overall climate targets which are science-based address
to owners with responsibility for the results on these topics. impacts, future material demand, historic price volatility and the topic of climate change mitigation across all scopes
For E1 Climate change, this relates to our Strategy and environmental and climate impact. A focus was set on collectively. The Executive Board of TenneT is responsible for
Partnerships (STP) unit, and on decarbonisation levers, the workshops with key stakeholders; affected communities were approving the climate strategy and monitoring the sustainable
responsible units have been appointed. For E5 Resource not consulted. performance and progress of TenneT as described in the
use and circularity this also relates to our STP unit in close Climate Transition Plan. The Climate Transition Plan was
collaboration with our Supply Chain Management (SCM) unit Impact, risk and opportunity management - approved by the Executive Board and Supervisory Board in
and our Health, Safety and Environment (HSE) unit. Climate Change & Resource use and circularity 2024. To ensure internal alignment, several internal teams
Policies were consulted, such as SCM, Large Projects (LP) and Asset
Strategy Our Climate Transition Plan acts as our policy to manage Management (AMT). Once the targets were set, TenneT’s
The impact we have on the planet is twofold. TenneT's role in our material impacts, risks, and opportunities related to investors and shareholders were informed as well.
facilitating the decarbonisation of the European energy system climate change mitigation. This is a roadmap that charts our
as a grid operator is the most significant opportunity we have commitment to a more sustainable and responsible energy We have conducted a qualitative assessment on all relevant
as a TSO, and aligns with the overall European ambition to future. The scope of the Climate Transition Plan covers own potential locked-in GHG emissions from our existing assets
become a climate-neutral society by 2050. On the other hand, operations in the Netherlands and Germany, and the upstream and planned investments. Our main locked-in emissions
we also have a negative impact on the planet as some of our and downstream value chain. The Climate Transition Plan can be attributed to grid losses related to the grid
activities emit CO2 and other GHGs. We aim to reduce this, outlines our policy to mitigate our potential negative impacts infrastructure that needs to be expanded and maintained
and to do so, we have set climate targets. Since 2021 these on climate due to our activities which are addressed in the in the coming decades. The emissions related to our grid
have been in line with the Science Based Targets initiative sections hereafter as actions for every specific scope of losses are depended on our ability to purchase renewable
(SBTi) framework (we are not excluded from the EU Paris- emissions. It also addressed the potential risks we expect electricity through guarantees of origin (marked-based) and
aligned Benchmarks). during our decarbonisation journey which includes a shortage the national grid mix of the countries we operate in (location-
of suppliers and our mitigation measures for addressing this based). Considering our decarbonisation-levers, these locked-
Following our double materiality assessment, we have not risk. We are amidst the energy transition and the role of in emissions do not jeopardise the achievement of our
identified climate change adaptation and the related climate electricity will only increase in the upcoming decade, leading SBTi targets.
change risks and opportunities as material sustainability to an opportunity of accelerating the energy transition and
matters. Nevertheless, we continuously perform climate fulfilling our role as a TSO through projects, such as the ones Regarding delivering the energy transition, the realisation in
resilience analyses to assess the effect that extreme weather relate to the Target Grid. accordance with the Target Grid is a two-step approach.
conditions under different climate scenarios might have on In the first design step the needs for grid developments,
our current and future asset portfolio, taking into account The objective of the Climate Transition Plan is to outline our to ensure a secure and reliable electricity supply, are
the planned investments in our ten year investment plans. targets, actions and metrics which address our impact on determined in collaboration with the respective regulators,

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governments and key stakeholders to be set in the German plan influences our strategy and planning. Examples include is structured along three circular principles inspired by the
Netzentwicklungsplan (NEP) and the Dutch Investment Plan investments into partnerships to develop alternatives to SF6, Circular Transition Indicator (CTI) framework. These principles
(IP). In Germany, projects are thereby confirmed by law – using green energy in own buildings, buying Guarantees of cover designing our assets with circularity in mind (Circular
the Bundesbedarfsplangesetz - and need to be executed by Origin to cover our grid losses and a mobility policy to Design), making sure the inflow of materials needed for our
the TSOs. electrify of our fleet. Certain aspects of the Climate Transition products and services is circular (Circular Procurement), and
Plan, such as the monetary limit for procuring market-based recovering materials during construction, maintenance, and
Secondly, we execute projects to build or enhance the grid instruments to green our grid losses, are taken in our decommissioning (Circular Outflow). The strategy focuses on
to realise Target Grid while maintaining our grid smartly financial planning by imposing a threshold to guarantee our our key materials: steel, copper, aluminium, concrete, plastics,
through a structured and strategic approach. Policies are financial health. Similarly, CapEx investments, such as using gravel, sand, porcelain, lead, insulating liquids, bentonite,
validated by the board and a broader set of key stakeholder alternatives to SF6, are planned for during project investments and (only for outflow) soil. These have been identified as
interested in the policies, such as other TSOs, DSOs, the when such technologies are available in the market. For OpEx the most relevant materials to TenneT regarding volume
shareholders, national ministries, traders, academia, etc. We decisions, such as the electrification of our fleet or increasing and environmental impact. Furthermore, the following focus
have regular audits for our asset management processes in the energy efficiency in our substations and offices, we ensure products were defined: Power transformers & shunt reactors,
the Netherlands, which is part of the process of determining that the financial planning is made every year based on our AC & DC cables (land & sea), latticed steel towers & coating,
the national Investment Plan. This results in a clear plan and OpEx thresholds and maintaining affordable costs to society. primary components (disconnectors & earthing switches),
in Germany even in legislation (Bundesbedarfsplangesetz) on HDD, OHL construction, steel construction stations, civil
what to build in the next years to meet these targets. In The Taxonomy-aligned activity relates to activity 4.9 works cables (AC & DC) & stations, sea cable installation,
both countries, grid expansion to be able to make the grid ‘Transmission and distribution of electricity’ (NACE code offshore platform jacket & topside, HVDC converter stations,
future-proof and being able to integrate larger volumes of D35.12) within the Climate Change Mitigation section of the and OHL conductors. The overall ambition of the Circular
renewable electricity is a key area of focus in these investment EU Taxonomy regulation. Included here are our activities to Procurement strategic pillar is to make our material inflow
plans. Next to grid expansions, the Dutch Investment Plan deliver a future-proof grid that supports the energy transition, more circular. Therefore the strategy aims to directly steer
also entails a plan for reconstructions, customer connections, which cover nearly 100% of our CapEx. on transitioning away from the use of virgin resources,
functionality and asset renewal. mostly through increasing the relative share of secondary
Closely related to our Climate Transition Plan, is our resources. Furthermore, the strategy is directly connected to
When key projects have been defined and approved by the Circular Economy Strategy, as resource use is a key factor sustainable sourcing and the use of renewable resources: the
Future Design Committee, this is then shared with AMT for the in our carbon footprint. TenneT’s common understanding production of secondary materials is usually connected to
selection of alternatives, and subsequently with LP and Grid of the topic of resource use and circular economy and more sustainable production processes and the use of higher
Field Operations (GFO) for the execution part of delivering the our main strategic ambitions are set out in our Circular shares of renewable energy, compared to primary materials.
energy transition. The Corporate Investment Manual describes Economy Strategy, which was adopted in 2023. In 2024, The Circular Economy Strategy covers TenneT's own activities
the governance process of translating design into execution we moved into the implementation phase of this strategy. as well as the upstream and downstream value chain in
and linking the decisions of the Future Design Committee to Our mission is to optimise the use of materials and reduce both Germany and the Netherlands, onshore and offshore.
the executing units. our dependency on virgin materials by embedding Circular It mainly affects TenneT's suppliers and sub-suppliers,
Design, Circular Procurement and Circular Outflow in our own employees and disposal/recovery contractors, but also
To realise our Target Grid, our vision of a climate-neutral activities, while expanding our grid to ensure a stable and society as a whole. The most senior level accountable for the
energy system for 2045, significant capital investments are renewable energy infrastructure connecting everyone with implementation of the policy is the Executive Board with the
required. Our capital investments thus focus on decarbonising a brighter energy future. With this strategic objective, our director of Strategy and Partnerships being responsible. Our
the energy system and for each of our material emission strategy directly addresses all identified IROs for resource Circular Economy Strategy is shared internally via TenneT’s
categories there are actions we take where our transition use and circular economy. Our Circular Economy Strategy

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intranet and externally via e-mail with affected suppliers Policy is published internally and made available to all define action plans. 2024 will serve as the baseline year for
and contractors. affected internal stakeholders. Colleagues from SCM will be target setting as it is the first year with full TenneT scope data
trained in several aspects of this policy. collection and reporting.
Inflow
Resource inflow relates to our aim to reduce our dependency Outflow Actions
on virgin materials. Our Supply Chain Management (SCM) In 2024, the Functional Directive Waste Management was In order to reduce TenneT’s carbon footprint, several GHG
department has an important role as the concept of ‘circular introduced at TenneT. This defines mandatory requirements to decarbonisation levers have been identified for scope 1, 2
procurement’ is essential in achieving our strategic ambitions ensure compliance with waste regulations, and to ensure the and 3. For each scope of our emissions, we have a series of
on this. The TenneT Sustainable Procurement Policy was efficient and environmentally responsible handling, disposal, climate mitigation actions clustered under the decarbonisation
adopted in December 2024, and defines how we aim to reduction, and recovery (through reuse and recycling) of levers. The actions focus on limiting our climate emissions,
implement our sustainability ambitions into our procurement waste generated by TenneT’s operations. Its objective thereby helping us achieve the objectives and targets of our
processes. As part of this, it specifically defines how we is to establish a comprehensive and sustainable waste Climate Transition Plan. Information related to GHG emissions
aim to implement resource use and circular economy into management framework for TenneT’s premises and activities. reduced is reported hereafter. The expected reductions per
our procurement and thus builds upon our ambition to make The top priority is reducing waste through preventive decarbonisation lever towards the near-term target is not
our material inflow more circular. The policy formalises the measures, emphasising a proactive approach in line with available within TenneT.
overarching ambition to make our material inflow more circular TenneT’s Circular Economy Strategy, to address all necessary
and the specific target of reaching 40% circular inflow for aspects of waste management and the circular economy. For TenneT, the implementation of climate change mitigation
copper in 2025. It also formalises a number of overarching This also aligns with our environmental ambition, to operate actions depends on financial capital, market developments
actions and guidelines, which are aimed at making our within planetary boundaries, and goes hand in hand and technological feasibility. Many of these actions require
sustainability practices more sustainable and, in particular, with our commitment, as outlined in our HSE Policy, to significant investments, often amounting to millions of
more circular. Also it defines the governance (roles and minimise the environmental impact of our operations. Beyond euros, while balancing societal affordability. Consequently, we
responsibilities) through a RACI table. It addresses our climate environmental regulatory compliance, TenneT has committed implement these actions incrementally rather than on a large
ambition and our scope 3 target, outlining concrete actions to setting up an environmental management system as part scale. For example, our strategic SF6 policy addresses current
for reducing emissions and therefore directly addresses of the HSE management system (ISO 45001 & 14001). This market trends and the innovation required for alternatives to
sustainable sourcing and the use of renewable resources directive applies to all departments, employees, contractors scale up. In some cases, such as the 150 kV GIS switchgear,
throughout our procurement portfolio and all lifecycle stages. and sub-contractors, and facilities operated by TenneT and no alternatives exist, and we collaborate with suppliers
The scope of this policy refers to TenneT's procurement/ covers the entire lifecycle of waste from generation through to to develop solutions through innovative partnerships. Our
supply chain management across the complete portfolio in reuse, recycling, or final disposal. The document is accessible sustainability performance is linked to our rotating credit
both Germany and the Netherlands, onshore and offshore. Its to all TenneT employees through the intranet. facility and our term facility, thus relates directly to the
focus is on the upstream value chain, but own activities (e.g., allocation of resources to implement the actions. The access
installation and maintenance services) and the downstream The most senior person accountable for the implementation to finance at affordable cost supports our financial health and
value chain (e.g., dismantling and recovery/disposal services) of the policy is the director of Health, Safety and enables us to participate in these innovative partnerships.
are also included. Affected stakeholder groups include Environment. The document will be accessible to all TenneT
suppliers and sub-suppliers, TenneT employees and workers employees through the HSE management system page on Our main scope 1, 2 and 3 impacts and actions are explained
in the value chain as well as society as a whole. The most the intranet. For 2024, we did not have sufficient insights into in the following paragraphs. Thereafter, is a summarising
senior level accountable for the implementation of the policy outflow data in order to already set clear targets and actions. table. Information related to the GHG emissions reduced and
is the Executive Board, with the director of Supply Chain Clear roles and responsibilities are outlined in this directive, expected to reduce per action is available to very limited
Management being responsible. Our Sustainable Procurement and with the waste data obtained, we will set targets and extend within TenneT. Moreover, the significant monetary

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amounts of CapEx and OpEx that are required to implement In addition to this action in the near term of replacing the term action under ‘Electrification’, we resort to the action of
the identified actions for environmental topics, including the assets with alternative technology, we engage in innovative installing charging stations at our substations and offices. Our
current and future financial resources allocated to the action partnerships with our suppliers to develop alternative fleet currently consist for 40% of fully electrical vehicles.
plan per action, are not in place as of 31 December 2024. technologies for a particular use case. The resources
TenneT is working on a solution and has the aim to have both allocated to this are funded by our innovation portfolio. For Energy efficiency:
topics formalised in the course of 2025 and will report on it instance in 2024, we developed the technical requirements for In line with our science-based targets, we aim to reduce
accordingly in our Integrated Annual Report 2025. a 420 kV H-GIS alternative with two of our suppliers. emissions from natural gas consumption as much as possible.
Our office spaces are leased and contracted, and the
Scope 1 Ont top of the action on reducing our banked volume of this procurement of energy for use is monitored under a regulatory
Our main scope 1 GHG emissions, relating to GHG emissions gas, we focus on actions such as preventive maintenance landscape. We therefore have limited flexibility in choosing
from assets that are owned or controlled by TenneT, are those and leakage detection mechanisms on the long-term to limit our suppliers in this category. An action we undertake on
resulting from SF6 leakages, mobility and gas usage (in offices the leakage of our ageing SF6 assets. Our assets remain in the near term is to limit the emissions from this gas is by
and stations). The EU ETS trading scheme is not applicable to service throughout the lifetime which varies due to regulatory procuring green gas contracts where possible and purchasing
TenneT as TSO. and legal limits. Though the banked volume of SF6 remains guarantees of origin if green gas contracts are not an option.
in the asset and is prone to leakage after a certain period of We offset the emissions from gas consumption of our offices
Use of alternative insulation gas: usage, the assets are replaced with new ones when they no in the Netherlands through the purchase of carbon credits.
Our scope 1 GHG emissions include the emissions associated longer can guarantee security of supply and reliability. In 2024 The resources allocated for this action are sourced from
with sulphur hexafluoride (SF6), a gas classified as a potent we launched a new initiative to resolve complex leakages by our yearly OpEx allocation. On the long-term, we resort to
greenhouse gas with a global warming potential of around using non-invasive solution that allow us to treat the leakage standardising our technical requirements to ensure energy
24,300 times that of CO2. SF6 has been, and largely continues withough dismantling the installation. The resources allocated efficient design for our substations categorised in our energy
to be, the ideal insulation gas for high-voltage and extra to maintaining the leakage rate of our assets are funded efficiency lever.
high-voltage electricity equipment. This remains essential through our OpEx investments and are evaluated based on
for operations where safety and reliability of the grid are a risk-based health index. Scope 2
fundamental to guaranteeing security of supply. With the use Our main categories of scope 2, the indirect GHG emissions
of alternative insulation gases that are currently available Electrification: from purchasing electricity, heating or cooling, are the energy
for certain voltage levels in the market, we commit to As an action pursuant to our decarbonisation lever of losses from our lines and cable, and electricity used in offices
have at least two-thirds of the newly installed assets to ‘Electrification’, we have chosen to move to a diesel-free fleet and stations. The decarbonisation levers for this category
be SF6 free by 2030. These categories of assets include in 2024 in the Netherlands. We aim to move to a fully electrical predominantly include renewable energy deployment, energy
instrument transformers, circuit breakers and gas insulated fleet in 2025, with an exception to our on-call crisis fleet. This efficiency and use of market-based instruments for renewable
metal enclosed switchgear (GIS), which make up the majority fleet caters to our security of supply and will still remain to energy. With the actions clustered under these levers, we
of our SF6 banked assets. By having alternative gases in our ensure timely and prompt response to guarantee reliability of foresee to reduce our scope 2 emissions in line with our
asset base, we aim to reduce the amount of banked SF6 in the grid. The resources allocated to this action are sourced targets until 2030.
our assets, thereby tackling the fundamental issues of having from our yearly OpEx allocation.
banked volumes of this gas which is prone for leakages over Use of market-based instruments for renewable energy:
a period of 50 years. In 2024 we managed to reduce the The challenge of switching completely to an electrical fleet Grid losses or electricity losses occur when power is being
banked SF6 in our assets with 51.000 kg to 443.670 kg. With remains due to the unavailability of wide scale charging transmitted across transmission and distribution systems.
an average leakage rate in 2024 of 0.19%, this reduction in facilities in our substations and at a national level in the They are measured as the difference between electricity fed
banked SF6 has saved 2.346 tCO2eq. geographies we operate. In order to tackle this, as a near- into the grid and electricity delivered. They depend on things

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such as the current, voltage and distance that electricity is Weert, as well as project locations) and in Germany (mainly in and services and capital goods and are a result of our
transmitted over, and they are – to a certain extent – inevitable Bayreuth and Lehrte, and project locations). (upstream) supply chain practices.
during electricity transmission. To compensate for these
energy losses, we purchase a significant amount of electricity. One of the predominant actions under renewable energy Incentivisation and supply chain engagement:
deployment is the installation of solar panels on our In order to facilitate the energy transition by building,
Because of the energy transition and the increased substations. However, this action is not standardised and operating and maintaining the transmission grid of the
electrification of society, more electricity is transmitted, and decided on a case-case basis due to the limitations of future, it is necessary for us to procure large amounts of
the corresponding grid losses are expected to increase the EU unbundling act and the role of a transmission products and services. A spend-based analysis of our 2019
proportionally as well. Eventually, when more renewables are system operator. We therefore implement this action on a baseline already showed that the production and execution
connected to the grid, the environmental impact of grid losses scale where the generation does not exceed consumption of these products and services along our upstream value
would significantly go down. Assuming that the grid mix in the Netherlands. In Germany there are federal regulations chain contributes a significant part to our overall emissions.
consists fully out of renewables, the environmental impact is that make it mandatory for commercial buildings to have Based on this 2019 baseline, TenneT has set the target to
approximately zero. We are still in the midst of the energy solar panels. The resources allocated for the installation are reduce its absolute scope 3 emissions by 30% by 2030 in
transition. We aim to stimulate the generation of renewable assigned as a part of the project CapEx costs. the categories of purchased goods and services and capital
energy and therefore purchase Guarantees of Origin (GoO) to goods. This target is in line with the Paris Agreement’s ‘well
green the impact of our grid losses. In addition to this action, we only procure renewable energy below 2°C scenario’. Our scope 3 target is aligned with a
for our substations and offices where the regulation and laws ‘well below 2 degree’ scenario and is ambitious, because our
Our action for the near term is to continue doing so and at the allow us the flexibility to choose specific suppliers. This action project portfolio and the required investments in the coming
same time also optimise our grid design to minimise losses. therefore applies to the Netherlands. The resources allocated decade are growing, which will require procuring more of
The resource allocated to this action is set as a monetary limit to this action are funded through our OpEx costs. our purchased goods and services, leading to an exponential
for our German operations at EUR 2 million and for our Dutch increase in emissions in the short-term.
operations no limit is predefined and costs are part of OpEx. To optimise the use of electricity, we also resort to actions
on energy efficiency and choose LED lighting for the lighting Our scope 3 emissions are spread across our procurement
In 2024, we did this for 100% of our Dutch and 87% of installations in our new substations which is a standard categories. The majority of these emissions, however, lie in a
our German grid losses. The monetary limit on the German requirement for our substations. limited number of categories. Based on our latest analysis we
part was imposed to ensure a balance between our financial estimate that more than 80% of our total scope 3 emissions
health, our Climate goals and affordability to society. Every year we identify some short-term actions to improve our are caused by the production, transport and installation of our
energy efficiency on substation equipment such as replacing biggest assets, such as cables, overhead lines, steel towers,
Renewable energy deployment: old transformers with new ones, identifying energy intense offshore platforms, transformers and stations.
Electricity use in our offices and (sub) stations relates, as switching installations and including their replacement in our
the name suggests, to the electricity procured and used in maintenance plans etc. These actions are also identified on a In the production of our assets, the biggest contribution to
and around our offices and (sub) stations. This electricity case-case basis every year and the corresponding actions are our scope 3 emissions lies in the upstream production of
is used, for example, for keeping our onshore and offshore inventorised as improvement measures in line with our energy materials, in line with our baseline calculations during the SBTi
(sub) stations operational. Electricity use in offices relates to audit certifications. target setting phase. The majority of emissions caused by
the use of electricity for lighting, cooling and other purposes material production stem from a small number of materials,
within our office locations. These locations are situated in Scope 3 primarily steel, aluminium, copper, plastics and concrete.
the Netherlands (mainly in Arnhem, Gouda, Hoogeveen and Our main scope 3 emissions – those resulting from our
activities in the value chain – relate to our purchased goods

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In order to achieve our target of reducing our scope 3 into a strategic partnership on decarbonising the grid supply
emissions by 30% by 2030, a committed but also targeted chain and for the upcoming years will continue to work on
and structured approach is necessary. TenneT has established identifying opportunities to reduce emissions in our assets.
an internal programme called ‘Decarbonising Supply Chain’ to
develop and implement this approach. Another action we have undertaken is to incentivise suppliers
for their measures to reduce emissions. This is implemented in
The ‘Decarbonising Supply Chain’ programme aims at our tender procedures with the help of the environmental cost
developing and implementing sustainable sourcing strategies. indicator tool (ECI). The added benefit of this also being the
These strategies seek to promote committed action for use of a life cycle analysis approach to gain better insights
reducing emissions along our supply chains while ensuring in the lifecycle of our assets. These collective actions are
to avoid major impacts on the availability, affordability and categorised under our lever of supply chain incentivisation
quality of our procured products and services. In order to and engagement. With each of the measures identified either
take into account the specificity of our different products and through engagement, pilots or the ECI, we measure the
services and the different supplier markets in our procurement possibility of reduction and add it to our estimated projected
categories, we develop and implement a separate sustainable absolute reduction goals.
sourcing strategy for each of our procurement categories.

To address our reduction of scope 3 emissions in our

indirect value chain upstream through purchased goods, we
have allocated 0.2% of our CapEx in our offshore 2GW
Program projects for sustainability measures (which also
include climate mitigation, among others). These are aligned
with the climate change mitigation actions aimed at reducing
our indirect emissions.

To be able to achieve our highly ambitious target, we rely on

our suppliers and contractors and the innovations they can
offer to the goods we procure from them.

To make further progress on our target of reducing scope 3

emissions by 30% by 2030, in 2024 we entered a new phase
of our implementing pilot initiatives in the main procurement
categories. Given the sheer number of suppliers, the next
five years will be focused on moving from these pilot
decarbonisation actions to standardising them and further
engaging with our suppliers to maximise our joint efforts to
decarbonise. We signed a memorandum of understanding
with one of our key suppliers, Siemens Energy to enter

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(Decarbonisation) Lever What is the action? (taken in the reporting year or planned What are the expected outcomes [of the action] and, where relevant, how What is the scope of the What is the time horizon under which we intend to
for the future)? [does] their implementation contribute […] to the achievement of policy actions (activities, upstream complete the action?
objectives and targets? and/or downstream value
chain, geographies and,
where applicable, affected
stakeholder groups)?

Scope 1 – Switch to SF6 alternatives By having alternative gases in our asset base, we aim to reduce the Own operations & TenneT is committed to having at least
Use of alternative amount of banked SF6 in our assets over a period of time, thereby upstream value chain, two-thirds of our newly installed assets to
insulation gases Innovative partnerships with suppliers tackling the fundamental issue of having banked volumes of a GHG categories of assets be SF6 -free by 2030. These categories
gas that is susceptible to leakage during the lifetime of an asset. include instrument of assets include instrument transformers,
transformers, circuit circuit breakers and gas insulated metal
Preventive maintenance of ageing assets
breakers and gas enclosed switchgear (GIS) which make up
insulated metal enclosed the majority of our SF6 -banked assets.
switchgear (GIS) which Moreover, we have committed to keep our
make up the majority of leakages below 0.28% per year until 2030.
our SF6 -banked assets The action on procuring SF6 free alternatives
is based on the near term subject to market
availability. The preventive maintenance and
innovative partnerships are actions that we
envision both on a near term and long-
term horizon.
Scope 1 – NL: Transitioning to a diesel-free fleet NL: reduce emissions while ensuring security of supply Own operations, our NL: fully electric fleet from 2025, with an
Electrification leased vehicle fleet exception to our on-call crisis fleet.
Installation of charging infrastructure DE: due to longer travel distances, by now no concrete action
was defined DE: Not determined
DE: Not determined
Scope 1 – For new (sub-)stations, build in accordance with Reduce emissions from gas usage as much as possible Own operations, our Not determined
Energy efficiency the latest technical standards and standardising the offices and stations
design for energy efficiency

For existing stations, estimate where most

energy-intensive areas are and use measures to
improve efficiency

Procure market-based green gas contracts for all

our operations, where possible.
Scope 2 – Incentivising suppliers to reduce grid losses Integrating the use phase of assets in our scope for sustainability Own operations Continuous action, based on specific tender
Use of market-based through design criteria in tenders, which leads to optimisation of design and a for relevant procurement category and
instruments for potential reduction of grid losses. demand forecasts
renewable energy
Purchase Guarantees of Origin (GoOs) in the Reduction of the impact of grid losses while stimulating the Own operations Every year
Netherlands and Germany renewable electricity market

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(Decarbonisation) Lever What is the action? (taken in the reporting year or planned What are the expected outcomes [of the action] and, where relevant, how What is the scope of the What is the time horizon under which we intend to
for the future)? [does] their implementation contribute […] to the achievement of policy actions (activities, upstream complete the action?
objectives and targets? and/or downstream value
chain, geographies and,
where applicable, affected
stakeholder groups)?

Scope 2 – Installation of solar panels on our substations Use self-generated renewable energy for our own consumption at Own operations, our Near-term, but case-case action due to
Renewable substations restricted to the conditions of the EU Unbundling act offices and stations regulatory restrictions
energy deployment Procure renewable energy for our offices
and substations We procure 100% renewable energy contracts for the electricity Every year based on tender procurements
used in our offices and substations, where possible and electricity market purchases
Scope 3 – Decarbonising the Supply Chain programme - For Reducing emissions in different categories of scope 3 emissions in Upstream and The scope 3 actions are planned in phases
Incentivisation achieving our scope 3 upstream CO2eq reduction different waves, prioritising the procurement categories regarding downstream value chain or ‘waves’, with annual reduction goals
and supply goals, we are committed to a number of different their potential to reduce scope 3 emissions. In order to work per category, leading to the end-goal of
chain engagement actions. The following actions have been identified towards our ambitious scope 3 CO2eq reduction goal, new and achieving the 30% reduction by the end
in several procurement categories: joint approaches with the key players in our supply chain will of 2030.
be required. Depending on the supply market situation, this can
1. Use the environmental cost indicator in our vary from collaboration with suppliers along the supply chain to
framework tenders that considers alternatives coopetition with competitors to reshape the supply chain. For this
which lead to lower emissions considering the purpose, we are investigating two potential approaches to reduce
whole lifecycle of the asset from cradle to grave; CO2eq in our supply chain:
2. Set up partnership agreements with our
prequalified suppliers on using recycled • Reduction of raw/virgin materials within the current supply chain,
materials, which lead to a lower carbon footprint e.g. the reduction of the demand, replacing products with green
when compared to virgin materials; products or the use of raw materials with a lower CO2eq
3. Engage suppliers to understand innovations footprint, such as recycled raw materials.
and measures required to facilitate less carbon- • Shaping the value chain jointly with suppliers, e.g. the redesign
intensive options. of the supply chain, such as onshoring suppliers and raw
materials through supplier partnerships.

Delivering the energy transition Strategic Asset Management Plan is applicable to both the include the projects to execute, including the current CapEx
For the execution of delivering the energy transition, Netherlands, Germany and Offshore (North sea). The Asset investment in Euros to be spend, as well as expected projects
aggregated key actions derived from the NEP/IP are grid Investment Plans (AIP) are applicable on a national level, including estimated future financial resources allocated to
expansions & reinforcements onshore, ensuring onshore i.e. there are two AIPs, one for the Netherlands and one these projects.
HVDC, and also DC offshore grid connections. The Strategic for Germany. After approval by the Asset Committee, the
Asset Management Plan sets the framework and priorities for AIP is handed over to the executing units, who create a Refer to the NEP and IP documents online, which outline
the portfolio, focusing on reducing asset risks and balancing detailed planning based on the given targets, ensuring that information on their expected outcomes in terms of CapEx
grid expansion with existing grid maintenance, ensuring that projects are executed according to the approved timelines investments and total build output, the location of the project
projects are aligned with the company's strategic goals and that progress is tracked effectively. The execution of and the expected completion date per project (not available
and that resources are allocated effectively. The Asset projects through these plans contributes towards the switch for every project). Note that all projects relate to our upstream
Investment Plan optimises the portfolio for maximum value, to a climate-neutral society by 2050 in line with our Target and own operations.
thus determining which projects to undertake and when. The Grid, in line with the target dates per project. The plans

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Resource use and circularity Furthermore, a pilot for green steel in latticed steel towers was HDPE in production of cable protection pipes is planned
As a result of the implementation of the Circular Economy initiated in Q4 of 2024 in the upstream value chain for one for 2025. This action relates to our upstream value chain
Strategy, several actions were initiated which all aim to make project in northern Germany, and a pilot for green steel in steel and the procurement of cable protection pipes in the
our material inflow more circular and reduce scope 3 CO2eq construction stations will begin in 2025. Both pilots facilitate SuedOstLink project.
emissions. An agreement with Siemens Energy was formalised the highest-possible value retention of steel scrap, whereas in
in 2024 to use 100% recycled copper in all German power conventional situations mostly primary steel is used with low For all these actions, we were able to use the same
transformers and shunt reactor units. This action facilitates shares of recycled content. type of financing as we do for our general procurement.
the highest-possible value retention of copper scrap and These actions lead to a higher CapEx cost but are deemed
represents a large improvement in rates of use of secondary In order to support the shift towards the circular economy appropriate for the environmental benefits they bring.
raw materials. in plastics production, a pilot for renewable granules for

Topic What is the action? (taken in the reporting year or planned What are the expected outcomes [of the action] and, where relevant, What is the scope of the actions (activities, upstream What is the time horizon under
for the future)? how [does] their implementation contribute[…] to the achievement of and/or downstream value chain, geographies and, where which we intend to complete
policy objectives and targets? applicable, affected stakeholder groups)? the action?

Delivering the energy Delivering grid capacity and ensuring that our Enable the switch to a climate-neutral society by 2050 in line Upstream and downstream value chain Time horizon is determined
transition – realising projects are inline to realise our Target grid with our Target Grid per action
our Target Grid goals 2045.
Resource use Agreed with Siemens Energy to use 100% Reduction of impact on virgin copper and reduction of CO2 Upstream; Procurement of power transformers Agreement formalised in
and circularity recycled copper in all German power transformer emissions; contributes to targets of 40% circular copper and shunt reactors of one supplier (Siemens 2024; execution over
and shunt reactor units inflow and scope 3 emission target Energy); Only German units; course of framework
agreement (2024-2026)
Pilot for green steel in latticed steel towers Reduction of impact on virgin materials and reduction of Upstream; Procurement of 4 latticed steel towers Q4 2024
CO2eq emissions for one project in northern Germany.
Pilot for green steel in steel construction stations Reduction of impact on virgin materials and reduction of Upstream; Procurement of steel construction Q1 2025
CO2eq emissions stations in one specific pilot project
Pilot for renewable granules for HDPE in Reduction of impact on virgin materials and reduction of Upstream; Procurement of cable protection pipes Q2 2025
production of cable protection pipes CO2eq emissions in SuedOstLink project

Targets The Corporate Investment Manual and Strategic Asset right projects prioritised and executed efficiently, balancing
During our target-setting process, we identified actions to Management Plan provide guidelines for prioritising projects the need for grid expansion with the maintenance of the
reduce emissions from significant emission categories (refer and setting targets. The executing units report on their existing grid. This structured process, guided by the corporate
to full overview of (decarbonisation) levers and key actions in progress quarterly, and the Asset Committee oversees the investment manual and strategic asset management plan,
previous chapter). Given that a large share of our emissions overall progress and dependencies. Overall progress on helps TenneT manage the material opportunity of building
stemmed from grid losses, we took into account our role in performance of the projects and investments in line with more grid while maintaining it smartly. Progress is tracked
aiding the energy transition, thereby facilitating the integration the NEP/IP is monitored and reported through quarterly through the total build output, connections realised and
of renewable energy in our grid and decarbonising the energy performance reports. We set yearly targets in the annual CapEx investment spend. The target for each metric is defined
mix to a large extent. Building a robust grid with sufficient planning process and monitor progress in the quarterly based on backcasting from the Target Grid. For performance
infrastructure to support decarbonisation is crucial for performance dialogues, which consists of the Executive Board against quantitative targets, refer to metrics section hereafter.
eventually achieving a green grid mix with minimal emissions. and senior leaders. TenneT's approach aims to have the

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We have assessed our global greenhouse gas (GHG) footprint, approach with an activity-based analysis. This activity based CO2 equivalents. Refer to General section of the Sustainability
including scope 1, 2, and 3 emissions, and have developed analysis was executed for our procurement portfolio of over statements: Consolidation for the inventory boundary. Our
a plan to reduce our GHG emissions based on these. TenneT 35 categories of assets both in the Netherlands and Germany GHG emission reduction targets are absolute emission
previously communicated a carbon neutrality target for 2025, and also accounted for the forecasted increase in demand reduction targets and we do not include GHG removals,
including our scope 1 and 2 emissions, as well as scope 3 until 2030. We intend to evaluate the impact this methodology carbon credits or avoided emissions as a means of achieving
emissions from employee commuting and business travel. As change has on our scope 3 target in 2025. The journey the GHG emission reduction targets.
part of the target-setting journey, we chose to transition to of moving from abstract high-level spend based volume to
a near-term SBTi target, and therefore moving to a robust an activity based emission have made it possible for us to The baseline year assessment covered the entire activities
target-setting reflecting climate science. We set a baseline realistically define specific measures and actions targeted at of TenneT, which included both upstream and downstream
year and analysed in detail the impact of the different emission specific categories to drive down emissions. activities for scope 3. Our activities as a grid operator include
categories in the respective scopes, including an emissions transmitting electricity, and all activities which are either
forecast for each year up until the target year. The significant The boundary coverage for our scope 3 target is 76.7% of our core to this purpose or support in this process have been
emission categories were then deemed material and analysed. total scope 3 emissions, taking into account the categories covered. In addition, the GHG protocol was used extensively
The SBTi validated our GHG emissions reduction targets in of purchased goods and services and capital goods. Based to identify every emission possibility though insignificant and
2021. This validation by SBTi ensures the targets are in line on our latest analysis we estimate that more than 80% of minute (such as refrigerants) to enable a full scope coverage
with the Paris Agreement. Our direct (Scope 1) and indirect our total scope 3 emissions are caused by the production, of activities. However, influence of external factors, such as
(Scope 2) emission targets are validated as compatible to the transport and installation of our biggest assets, such as temperature anomalies, were not considered in this scoping.
1.5°C scenario. The absolute reduction target for our value cables, overhead lines, steel towers, offshore platforms, The baseline value and base year has not undergone any
chain (Scope 3) emissions is validated as compatible to the transformers and stations. In the production of our assets, significant changes as mentioned. The decarbonisation levers
well below 2.0°C scenario. we estimate that the biggest contribution to our scope 3 for scope 1 and 2 are determined with the 1.5˚C target
emissions lies in the upstream production of materials which scenario, and all decarbonisation levers involve technological,
Our ambition is to reduce our absolute emissions in scope these assets are made off. The majority of emissions caused market and policy- related developments.
1 & 2 by 95% in 2030 when compared to a 2019 baseline by material production stem from a small number of materials,
and reduce our absolute emissions in scope 3 in the category primarily steel, aluminium, copper, plastics and concrete. For TenneT, 2019 has been a representative reference value in
of purchased goods and services & capital goods by 30% in capturing the emissions. Due to the effects of the pandemic
2030 with the same baseline (the target addresses 76.7% of TenneT has documented the significant assumptions on which in 2020, the carbon emissions in certain scopes were not
total 2019 baseline scope 3 GHG emissions). For our baseline the target is based. As part of the critical assumptions for an accurate representation. Also, there were not enough
year of 2019, scope 1 and 2 represents 54.4% (where scope setting GHG emission reduction targets, we have considered ambitious actions taken before 2019 that could attest to
1 is 0.5% and scope 2 is 53.9%) of total emissions and scope future developments and how these will potentially impact our progress towards 2030 targets. If there is a need to
3 represents 45.6%. The target was set using gross market- both our GHG emissions and emissions reductions. Hereafter reassess our targets in line with SBTi latest climate scenarios
based scope 2 GHG emissions. is an overview of the significant assumptions for scope 1, 2 in the future, we will consider the year which can be most
and 3 which were used for the calculation of the target and representative of our activities. There have not been any
Related to scope 3, our baseline inventory for 2019 was TenneT’s carbon footprint. changes in the target in the past year. Refer to General
done with a spend-based approach. The need to move to a section of the Sustainability statements: Consolidation for the
more robust understanding of our supply chain emissions in The targets align with our GHG inventory boundaries applied inventory boundary.
order to progress towards realising our scope 3 targets led to our GHG emissions performance reporting, as the baseline
us to move to a hybrid method, combining the spend-based setting and the carbon footprint are calculated and reported in

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Scope category Assumptions

Scope 1 1. Stationary combustion • Emission factors adjusted from kgCO2e/m3 to kgCO2e/GWh using BEIS fuel properties
• An extrapolation was made for heating oil consumption in NL for emergency power stations based on the consumption in GE and the number
of stations in each location
2. Mobile combustion • Passenger vehicle emission factor adjusted to only include combustion (Tank To Wheel) emissions accounted for in scope 3)
3. Refrigerants • Emission factor sourced from BEIS instead of GHG Protocol GWPs
Scope 2 1. Electricity • No change in emission factors
Scope 3 1. Purchased goods & services • Economic emission factors were assigned to each spend category.
2. Capital Goods • Emission factors were adjusted with inflation.

3. Fuel and Energy related activities • Emission factors Well-to-Tank (WTT) applied
4. Business Travel • Rail and air travel emission factors adjusted to include Well-to-Tank (WTT)
5. Employee commuting • Passenger vehicle emission factor adjusted to include Well-to-Tank (WTT)

Due to the relative novelty of the topic of resource use and the potential recovery of our assets, it is vital we improve the Reuse, Recycling and Recovery of our focus categories
circularity for TenneT, the overarching targets are future-based these insights. A deep understanding of the potential recovery and materials for TenneT Netherlands and Germany. Making
and relate to Circular Design, Circular Inflow and Circular of our assets is the only way we can set actionable targets our material inflow more circular can reduce the environmental
Outflow. All targets were developed with internal stakeholders and identify areas for improvement and concrete measures. and societal impact of material use as well as risks concerning
from different units and are voluntary, as we are not subject to supply chain disruptions, such as an increase in costs or a
specific mandatory targets by laws or regulations. Another target, which refers to all layers of the waste decrease in resource availability. Currently, in this area there is
hierarchy, is to review the first six focus categories for no defined target level to be achieved, nor is there a baseline
Regarding Circular Design, we strive to improve the potential circular design principles in 2025. The aim of reviewing value to measure progress against. In 2024, we measured the
recovery of our assets until 2030 and will therefore define six for circular design principles is to identify improvement circularity of our overall inflow for the first time, which is an
focus categories for 2025 onwards. Improving the potential potentials in designing our assets in a more circular way, assumption-based figure.
recovery of our assets is directly connected to (and achieved to ultimately reduce barriers for circular inflow and circular
by) a more circular product design (e.g., by better dismantling, outflow. Consequently, we can identify ways to make our For the material copper, we were already able to gather more
reusability, recyclability) and relates to Reuse, Recycling and assets more circular. Our circular design principles include insights and aim to achieve a circular inflow for copper of
Recovery (waste hierarchy). Improving the potential recovery ‘design for reduction, circular material use and prevention’, 40% in 2025 (compared to 36% in 2023 as a baseline). The
of our assets is considered a fundamental long-term lever which means designing assets in a way that minimises scope applied for this target is our upstream value chain
to ultimately making our material inflows and outflows more material demand and removes barriers for the use of circular regarding our focus categories and it relates to the layer of
circular and therefore to optimising our use of materials and materials. The focus categories and materials of our Circular recycling. Through this target we strive to increase the relative
reducing our dependency on virgin materials. Only if our Economy Strategy for TenneT Netherlands and Germany are share of non-virgin inflow for copper, which consequently
assets are designed in a circular way can we close and shrink in scope for these overarching targets. minimises our impact on primary copper. The most relevant
their material loops at the end of their lives. Currently, in this categories concerning copper inflow are transformers, cables
area there is no defined target level to be achieved, nor is Regarding Circular Inflow, our overarching target is to make and HVDC stations. Our data sources to define our target
there a baseline value to measure progress against. Today we our material inflow more circular until 2030 and consequently were LCA reports and Raw Material Passports. The target
have too few insights on the potential recovery of our assets minimise our impact on primary raw materials (alongside directly connects to TenneT’s scope 3 emissions target of a
and their respective materials. In order to be able to improve minimising the demand for materials in general). It relates to 30% reduction by 2030, which is based on SBTi.

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In 2025, we will look to further improve our data maturity. geography, since the nature of our activities remains the same for reach of the greenhouse gases and multiplies it with the
We aim to bring four focus materials to the same level as in both countries. relevant emission factor obtained from verified sources such
copper in 2025 (measuring their circular inflow based on as IPCC AR6 and CO2emissiefactoren.nl and disclosed in
supplier-specific data and setting quantitative targets), namely The assumptions we make in disclosing in accordance our footprint.
steel, aluminium, concrete and plastics. The scope applied for with the GHG protocol corporate standard are limiting
this target is our upstream value chain regarding our focus our emissions to our material categories in every scope. Scope 2
categories and it relates to the layer of Reuse, Recycling and Estimations have been used, where measured data was TenneT follows all the methodologies applicable to contractual
Recovery. By improving our data maturity and insights into not available (yet), for instance to determine the kilometres instruments, and we also report both location- and market-
our supply chains for further materials, we lay the foundation travelled by our German colleagues when commuting. The based emissions (considered under contractual instruments).
for increasing the use rate of circular materials, as well as emission factors are sourced from credible online sources This also includes the purchasing of renewable energy for
the minimisation of primary raw materials. Only by gathering such as the emission factors databases IPCC AR6, EcoInvent energy consumption. Due to different material categories
information about the sourcing of these materials across our or CO2emissiefactoren.nl. Refer to Targets section for an relating to different emissions, we avoid double counting.
supply chains can we set actionable targets and identify areas overview of the significant assumptions for scope 1, 2 and Regarding the share and types of contractual instruments
to improve and concrete measures. 3 which were used for the calculation of the target and used for the sale and purchase of energy bundled with
TenneT’s carbon footprint. For market-based reporting, the attributes about the energy generation or for unbundled
Metrics actual emission factors mentioned in our purchase contracts energy attribute claims, in the Netherlands grid losses, offices
To gain a deeper insight in our inflow and outflow at TenneT, provided by energy suppliers are used. Each activity is and (sub) stations are bundled, cable losses are unbundled;
having an appropriate basis is a prerequisite to obtaining the multiplied by the relevant emission factor. An Excel-based in Germany all are unbundled. TenneT will continue to report
proper insights to steer on. In general, the measurement of calculation is then used for our footprint and is disclosed on gross emissions and net emissions, as in our gross
these metrics is not validated by an external body other than along with the emission factors in our additional data calculations, removals and offsets are not included.
the assurance provider, unless stated otherwise. document in the respective scopes.
Scope 3
Greenhouse gas emissions - Methodology For TenneT, the most relevant categories of gases from this list TenneT follows the GHG protocol corporate standard and
TenneT's carbon emissions are reported in accordance with are CO2 and SF6 emissions. These are included in our carbon follows all the methodologies applicable to scope 3 reporting.
the GHG protocol corporate standard along with scope footprint as respective emissions under every scope. All the We report only on our significant scope 3 categories that
definitions, boundaries and geographies in which we operate. required emissions are accounted for, as the remainder of the either represent more than 5% of our scope 3 emissions
This is presented in a tabular format with clear indications gases, such as CH4, N2O, HFCs, PFCs and NF3 are accounted baseline (categories purchased goods and services, capital
of using either market-based/location-based or both types of for by reporting in CO2 equivalents. All the required emissions goods and fuel and energy related activities) or are considered
disclosures where applicable and desirable. Refer to General are accounted for. TenneT does not have emissions related significant due to our commitments as our carbon neutrality
Consolidation section of the Sustainability statements: for to biomass. target for 2025 and to initiatives such as ‘Anders Reizen’
the inventory boundary. Throughout the reporting period, (categories business travel and employee commuting). Our
no significant changes have occurred within our reporting Scope 1 downstream emissions are not accounted for since we are
entity and our upstream and downstream value chain. TenneT Our standard reporting structure uses the specified not a product-based organisation and therefore do no sell
reports its carbon footprint in every scope on a country categories. For process emissions, we have identified SF6 (completed) products to customers. Our upstream categories
and consolidated level. This disaggregation is due to the - related leakages. For mobile combustion and stationary in scope 3 are material to us and in line with our targets,
nature of our operations. We report uniformly on our scopes combustions, we have identified our gas use and lease we report on the aforementioned categories. TenneT does not
in every category of our material emissions, aside from vehicles. Fugitive emissions result from our use of refrigerants. use GHG removals or credits to compensate our scope 3
Each of these emission categories measures activity data GHG emissions.

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The reporting boundaries of our scope 3 GHG emissions emissions from the modes of transport used and includes the
depend on the scope 3 category. The emissions from scope 3 emissions where available.
purchased goods and services and capital goods contain
the upstream emissions of the products procured. The spend- We hope to increase the granularity of our scope 3 reporting
based emission factors used in our calculations are sourced gradually over the years. There has not been a significant
from Exiobase and include full cradle to gate emissions. For change in TenneT’s activities, but this will be considered
specific materials we calculated emissions using factors from for the future where and if applicable. The percentage of
standard LCA databases or supplier-specific emission factors. emissions from primary data is 84% and secondary data
Emissions from fuel and energy related activities also include is 16%, where we consider activity data obtained from
all upstream emissions and are calculated using the TTW our suppliers to be primary data and scope 3 emissions
emission factors of the fuels and electricity we consume. calculated through a spend-based method to be based on
The reporting boundary of the categories business travel and secondary data.
employee commuting covers at least the scope 1 and 2 GHG

Retrospective data Milestones and targets

Base year (2019) 2024 2023 Annual %
%
target/base
DE NL Total DE NL Total DE NL Total 2024/2023 2025 2030
year
Scope 1 GHG emissions
Emergency power unit 67 328 395 244 2,226 2,470 240 240 1029%
Sulphur hexafluoride (SF6) leakages 2,750 20,257 23,007 2,565 17,843 20,408 1,957 12,738 14,695 139%
Lease vehicles 75 2,268 2,343 2,675 2,397 5,072 3,063 2,784 5,847 87%
Gas consumption 601 240 841 - 562 562 - 583 583 96%
Refrigerants 37 94 131 38 99 137 38 99 137 100%
Total gross scope 1 GHG emissions (tCO2eq) 3,530 23,187 26,717 5,522 23,127 28,649 5,298 16,204 21,502 133%

Scope 2 GHG emissions 145,787 -95%

Scope 2 GHG emissions (tCO2eq) market based
Grid losses 2,759,265 - 2,759,265 179,827 - 179,827 2,307,310 - 2,307,310 96%
Lease vehicles - - - 594 304 898 680 368 1,048 86%
Electricity use technical locations 129,762 - 129,762 - - - - - - -
Electricity use non-technical locations - - - - - - - - - -
Total gross market-based Scope 2 GHG emissions (tCO2eq) 2,889,027 - 2,889,027 180,421 304 180,725 2,307,990 368 2,308,358 8%

Scope 2 GHG emissions (tCO2eq) location based

Grid losses - - - 1,427,665 672,488 2,100,153 1,749,522 719,030 2,468,552 85%
Lease vehicles - - 594 304 898 680 368 1,048 86%
Electricity use technical locations - - - 84,830 23,379 108,209 86,874 9,101 95,975 113%
Electricity use non-technical locations - - - 455 3,674 4,129 1,518 3,433 4,951 83%
Total gross location-based Scope 2 GHG emissions (tCO2eq)1 - - - 1,513,544 699,845 2,213,389 1,838,594 731,932 2,570,526 86%

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Retrospective data Milestones and targets

Base year (2019) 2024 2023 Annual %
%
target/base
DE NL Total DE NL Total DE NL Total 2024/2023 2025 2030
year

Significant scope 3 GHG emissions

C1 Purchased goods and services2 - - 333,926 508,000 382,000 890,000 186,300 124,200 310,500 287%
1,311,056 -30%
C2 Capital Goods2 - - 1,539,011 648,000 551,000 1,199,000 227,700 151,800 379,500 316%
C3 Fuel- and energy-related emissions not included in scope 1 or
484,096 29,929 514,025 225,414 131,378 356,792 254,341 98,094 352,435
scope 22 101%
C6 Business travel 1,291 1,685 2,976 5,155 2,493 7,648 1,293 1,539 2,832 270%
C7 Employee commuting 2,967 1,685 5,841 5,049 1,653 6,702 1,498 1,111 2,609 257%
Total significant scope 3 GHG emissions (tCO2eq) 488,354 33,299 2,395,779 1,391,618 1,068,524 2,460,142 671,132 376,744 1,047,876 235%

Total GHG emissions market based (tCO2eq) 3,380,911 56,486 5,311,523 1,577,561 1,091,955 2,669,516 2,984,420 393,316 3,377,736 79%

Total GHG emissions location based (tCO2eq)3 - - - 2,910,684 1,791,496 4,702,180 2,515,024 1,124,880 3,639,904 129%

Net revenue in EUR million (note 2) 8,430 9,222 91%

Total GHG emissions (market-based) per net revenue (tCO2eq/EUR million) 317 366 86%

Total GHG emissions (location-based) per net revenue (tCO2eq/EUR million) 558 395 141%

1 Location-based data not available for base year

2 Data was not available in 2019
3 Location-based data limited available for base year

Refer to the table above for the full overview of scope attributable to an expansion in the scope of expenses and The table above excludes the GHG emissions of our non-
1, scope 2 and scope 3 GHG emissions for TenneT investments, coupled with an enhancement in data quality, regulated entities NOVEC and Relined. Their total scope 1,
(consolidated, and separate for the Netherlands and although a portion of the growth can also be attributed to 2 and 3 GHG emissions total to 10,316 tCO2eq (Scope 1: 23
Germany). We reduced our total scope 1 and scope 2 market- rising expenses and investments. The progress made in 2023 tCO2eq, Scope 2: 453 tCO2eq, Scope 3: 9,841 tCO2eq).
based GHG emissions significantly in 2024 compared to prior and 2024, compared to the 2019 baseline, for the categories
year and our emissions are approaching our scope 1 and 2 of purchased goods and services and capital goods should
SBTi target. The reduction is mainly due to the volatility of be interpreted with consideration that these figures were
prices of guarantees of origin that in 2024 were not as drastic calculated using a hybrid method. In contrast, both the 2019
as in 2024, allowing us to opt for more of these market- baseline and the 2030 target were derived using a spend-
based instruments to reduce the emissions of the electricity based method.
consumption from German grid losses. Our scope 3 GHG
emissions increased compared to prior year, mainly driven
by an increase in the largest categories purchased goods
and services and capital goods. The increase is primarily

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The table shows TenneT's GHG emissions intensity (total GHG The table shows the reconciliation of the net revenue used to No 1893/2006 of the European Parliament - transmission of
emissions per net revenue): calculate GHG intensity to the relevant line item or notes in the electricity (D35.1.2) and distribution of electricity (D35.1.3).
financial statements: The table hereafter excludes the consumption of our non-
% regulated entities NOVEC and Relined. Their total estimated
GHG intensity per net revenue 2024 2023 2024/2023 GHG intensity per net revenue 2024 2023 consumption MWh from fossil fuel are 2,348 and 21,998 from
Total GHG emissions (location based) per net Net revenue used to calculate GHG intensity 8,430 9,222 renewable energy.
558 395 141%
revenue (tCO2eq/EUR million)
Net other revenue (other) - -
Total GHG emissions (market based) per net
317 366 86% Total net revenue (note 2) 8,430 9,222
revenue (tCO2eq/EUR million)

Energy consumption and mix

TenneT’s operations fall under the following high-climate
impact sectors of Annex I section C to Regulation (EC)

2024
Energy consumption and mix in megawatt hours (MWh)
DE NL Total
Fuel consumption from coal and coal products - - -
Fuel consumption from crude oil and petroleum products 12,986 17,872 30,858
Fuel consumption from natural gas 1,760 3,090 4,850
Fuel consumption from other fossil sources - - -
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources 549,784 1,568 551,352
Total fossil energy consumption 564,530 22,530 587,060

Consumption from nuclear sources - - -

Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) - - -
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources 3,351,172 1,561,388 4,912,560
Total consumption of self-generated non-fuel renewable energy - - -
Total renewable energy consumption 3,351,172 1,561,388 4,912,560

Total energy consumption 3,915,702 1,583,918 5,499,620

Net revenue in EUR million (note 2) 8,430

Operational energy efficiency in MWh/EUR million revenue 652

Share of fossil sources in total energy consumption 14% 1% 11%

Share of renewable sources in total energy consumption 86% 99% 89%
Share of nuclear sources in total energy consumption 0% 0% 0%

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GHG removals and GHG mitigation projects financed through goals. The challenge therefore remains to reduce grid losses reduction 2030 target, we treat the climate-neutrality target as
carbon credits sufficiently and therefore achieving our climate-neutrality 2025 an intermediate step.
TenneT has an absolute emission reduction target and does goal. This does not interfere with our 2030 SBTi targets, since
not have a net-zero, long-term target yet. We therefore do these are an absolute reduction target with reference to a The quantity of total carbon credits cancelled in 2024
not currently consider GHG removals as part of our climate 2019 baseline. were 31,122 tonnes of CO2eq. Refer to the table hereafter
mitigation strategy to reach our targets in our own operations, for detailed information. The share of carbon credits that
nor in our upstream and downstream value chain, and we are Our Gold Standard and VCS carbon credits are purchased qualifies as a corresponding adjustment under Article 6
not investigating technical carbon removal solutions. through the voluntary carbon market. Certification of the of the Paris Agreement is not relevant for TenneT, since
credits are a minimum requirement and are subjected we do not participate in voluntary carbon market projects
We resort to buying Gold Standard and VCS carbon credits to availability in the voluntary carbon market. We opt as a collaborative partnership for national goals. TenneT
from the voluntary carbon markets for meeting our rotating for renewable energy projects in developing countries. All does not purchase carbon credits in advance to enable
credit facilities performance targets and our 2025 climate- Gold Standard and VCS-certified activities follow a Gs4GG future cancellation. Refer to the targets methodology for the
neutrality goals. How many credits we purchase is dictated certification process. Activities must deliver impact on a significant assumptions taken into account.
by our rotating credit facility performance targets and our minimum of three UN Sustainable Development Goals
actual performance with respect to SF6 leakages and mobility. (SDGs) and ensure that climate initiatives also work for Carbon credits cancelled in the reporting year 2024 2023

Refer to the paragraph “TenneT’s sustainable Revolving climate justice, by delivering benefits to SDGs such as Total (tCO2eq) 31,122 7,461
Credit Facility: linking climate performance to finance” in no poverty, good health and wellbeing, gender equality, Share from removal projects (%) 0% 0%
section Transition to a brighter energy future within social water and sanitation, affordable clean energy, ecosystem and Share from reduction projects (%) 0% 0%
and planetary boundaries. We also purchase Gold Standard biodiversity conservation, and of course climate action. In line
Gold Standard and VCS certificates (%) 100% 100%
carbon credits to offset part of the emissions from the with the gender-sensitive design principles, all Gold Standard
Share from projects within the EU (%) 0% 100%
consumption of natural gas of our non-technical locations, and VCS-certified activities must take into account the overall
Share of carbon credits that qualifies as a
relating to the natural gas consumption in our offices. societal context from a gender perspective and comply with 0% 0%
corresponding adjustments (%)
gender equality and women’s empowerments requirements.
TenneT follows a three-step approach for both our 2025 Given the developments within the voluntary carbon markets,
climate-neutrality and 2030 targets. We aim to reduce our we choose our credits carefully but are limited to the market Internal carbon pricing
direct and indirect emissions, and where this is not possible, options available. We also consider our societal role and keep TenneT applies an internal carbon pricing scheme in
to green our emissions by using market-based instruments. affordability as a key element when purchasing credits. Our accordance with the sector agreement among the TSOs and
Where our efforts in reducing and greening do not succeed Gold Standard credits to compensate for our natural gas DSOs in the Netherlands. Annually, the Net Beheer Nederland
due to the nature of our operations, we purchase carbon emissions are obtained through our supplier of natural gas. Domeinraad decides the pricing scheme, in alignment with the
credits to fulfil our term facility-linked performance metrics regulator ACM. For 2024, the current price is 150 euros/ton
and our 2025 climate-neutrality target. For our 2030 SBTi TenneT has a climate-neutrality 2025 target which covers and an analysis is being executed along with other grid
targets, offsetting using carbon credits is not a consideration our material emissions for scope 1, 2 and the mobility part operators in the Netherlands to analyse the impact of different
since our targets relate to absolute emission reductions. Like of our scope 3 emissions which was approved in 2018. In use cases for carbon pricing.
any neutrality claim, we direct our focus to reducing our 2019, we embarked on a more robust climate target setting
emissions in line with our absolute emission reduction targets accredited to a recognised science-based framework. Since We use the Incentive Compensation Plan scheme to
and for the parts which we absolutely cannot avoid given our short-term target for 2025 is still a part of our approved incentivise the use of SF6 alternatives. We use it to calculate
our role as a critical infrastructure operator, we resort to strategy and we transition from that towards our absolute fictive penalties in our tender processes. The penalties
buying carbon offsets only to meet our 2025 climate-neutrality are in line with public procurement regulations and add a

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certain weighing factor to gases which have a greater GWP investments. Since it only applies a penalty, the internal
than 1. When tenders are running and offers from multiple carbon price rather acts as an instrument to incentivise
manufacturers have been received, the ones with the lowest alternatives for SF6. As this scheme applies only to the SF6-
GWP have a better chance of winning the tender (among related scope 1 emissions, the approximate gross emissions it
other criteria such as safety and quality). Through this pricing relates to are less then 1%. The methodology and significant
mechanism we penalise the CO2eq of the gas. assumptions behind the metric, including limitations, is not
currently documented.
Our internal carbon pricing system is applicable for both
the Netherlands and Germany. It covers the activities of
procurement decisions if there are tenders involving SF6 GIS,
asset designs for cables where cable losses are calculated
using operational costs, and in business cases for solar
panels where internal carbon pricing is used to calculate
the return of investment when considering installation of
the solar panels within the limited scope of applicability,
in accordance with the EU Unbundling Law for renewable
energy deployment.

To decide the carbon price, the societal costs such a pricing

instrument would bring are the main critical assumption, given
that it was adopted in a sector-wide pricing agreement of
national and regional grid operators. It started at a price
of 50 euros per ton in 2020, in line with the then EU ETS
price, to analyse the impact such a pricing instrument could
have and increased slowly to the current 150 euros per
ton, again to represent the EU ETS pricing schemes and
the PBL recommendations in the Netherlands. The prices
may not necessarily be relevant for every application, but
in TenneT's case, we did see an impact with incentivising
SF6 alternatives with 150 euros per ton. The calculation
methodologies cannot be disclosed since these are protected
through our procurement procedures and confidentialities,
which govern public procurement.

TenneT uses the pricing scheme only for fictive penalties

during the procurement of SF6 assets. This cannot be
reflected in financial statements because we do not use
the internal carbon pricing scheme to identify low carbon

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Delivering the energy transition

We track progress of several KPIs.

2024 actuals 2023 actuals Target 2024

Metric
NL DE Total NL DE Total NL DE Total
New KM line & cables 59 km 186 km 245 km 44 km 151 km 195 km 66 km 195 km 261 km
Newly installed GW offshore 0.0 GW 0.0 GW 0.0 GW 1.4 GW 0.9 GW 2.3 GW 0.0 GW 0.0 GW 0.0 GW
Connections realised in # bays 40 0 40 Information not available 36 0 36
CapEx investment spend in EUR million 3,783 6,852 10,637 (incl. 2 non regulated) 2,948 4,779 7,730 (incl. 3 non regulated) N/A N/A 10,919

We track the total build output in lines or cables in kilometres, (refer to note 3 Tangible fixed assets and note 5 Intangible The basis to calculate the respective metrics relates to the
and in gigawatts of offshore wind energy capacity. This assets in the financial statements) to expand our grid capacity, product volume and the weight of the respective materials
directly relates to our Target Grid, NEP and IP, as they define nearly reaching our target level of investments. Refer to and products.
the electricity grid supporting a decarbonised energy system, the Grid map in the section Building the electricity grid of
and what projects need to be finalised to fulfil that target as tomorrow for information in which area the investments have Volumes of purchased product units are obtained, whereas for
it provides insights on project progress for the year. The total increased the capacity of our grid. Part of the investments is copper, the volumes are reported on a more granular level,
build output is the sum of total amount of new kilometres line related to utilising the grid, reference is made to the section the product level (e.g. per type of power transformer). For the
and cables, throughout the year for all projects. Although there Utilise the grid to empower society. other materials, volumes are provided on a more aggregated
has been an increase compared to 2023, the set target was level, the category level (mostly average units), as part of an
not met in 2024. For more details regarding the progress that has been established demand planning process.
realised, reference is made to section Building the electricity
The in 2024 newly installed offshore capacity was 0.0 GW. grid of tomorrow. Subsequently, weight to use in the calculation is determined,
The projects where we have invested in are still under based on Raw Material Passports or LCA reports, directly
construction. The year to date offshore capacity is 12.2 GW. Resource use and circularity provided by our suppliers. If such are not available, the
Resource inflows source of information is qualified estimates of internal asset
We also measure through the number of customer All inflow metrics reported in the following section refer to specialists, mostly based on data sheets or project drawings
connections, counted as bays or equivalent functionality. We the products and materials that have our primary focus, and provided in data collection interviews as part of the DSC
monitor newly realised customer connections as an indication mentioned in the Policies section. As copper has been portfolio analysis in 2023. For copper, weight information is
of how well TenneT is able to connect the customers to our defined as the pilot material to develop more mature data obtained on a product level, while for other materials the
grid compared to the demand. We have been able to meet our management, the underlying processes and data sources information is obtained on a category level.
target of 2024. for copper differ partly from those for the other focus
materials. We disclose inflow metrics for all our focus To determine the percentage of secondary material for copper,
Next to that, we also keep track of the total amount of CapEx materials for the first time in 2024, whereas the data collection this is also provided on product level and is based on
investment in Euros spend (refer to note 2 Segment reporting process regarding copper is more mature with regards to raw material passports or LCA reports, directly provided by
in financial statements for total CapEx investment in Euros). available data. our suppliers.
This is the sum of all capital expenditures invested in the year
of target for all projects. In 2024, we invested EUR 10,637

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For all other reported materials other than copper, as well as percentage and weight of biological material is not included in In the future, the accuracy of measurement will be improved
on biological material and recyclable content for all materials the table for 2024, as the percentage for all focus materials by applying the same processes that have been established
(including copper), this is based on informed assumptions. is currently 0 as most materials do not contain biological for copper for further focus materials, by increasing the
These assumptions were collected on a material level by materials, such as metals or minerals. Concrete, plastics availability of supplier specific data through raw material
internal sustainability experts, supported by external expert and insulating liquids in TenneT assets currently also do passports and LCA reports, and by improving insights into our
advice, and are aligned with the business units Supply not contain biological materials due to technical and market supply chains and asset designs.
Chain Management and Asset Management. Depending limitations, which we are aiming to resolve in the future.
on the availability and applicability, the assumptions are Resource outflows
based on raw material passports and LCA reports from The fact that many data points are largely based on Products and materials
suppliers, sectoral average values (e.g. from databases such assumptions, and that these assumptions are largely based Please note that due to the nature of our business, we do
as ecoinvent or the Nationale Milieudatabase), and internal on sectoral averages and estimates, leads to comparatively not sell products but provide a utility service. As a result,
and external expert judgement. low levels of accuracy and high levels of measurement ESRS E5 requirements 35 and 36 are addressed in a different
uncertainty, which is mitigated as much as possible by using manner as we focus on the construction of the assets we
As all metrics for the focus materials other than copper are the most accurate source of information that is available, and use to transmit electricity. TenneT does not produce and sell
reported for the first time, no comparative figures are shown. by applying averages and estimates that are representative for products. TenneT only procures assets to be installed in our
The only exemption is copper, where we reported 5,100 our products and supply chains. grid as well as related products and services for installation,
tons of copper with a circular inflow of 36% for 2023. The operation, maintenance and end-of-life treatment of these

% Percentage
Weight of secondary
of secondary
reused or recycled
Overall total weight reused or recycled
components, % Potential
Material of products and DE NL NR components, DE NL NR
intermediary recovery rate
materials (in t) intermediary
products and
products
materials (in t)
and materials

Copper 8,345 7,837 491 17 35% 2,927 2,705 216 6 95%

Steel 210,273 107,238 102,615 420 39% 82,007 41,823 40,020 164 95%
Aluminium 38,131 16,044 22,011 76 0% - - - - 97%
Concrete 220,873 143,375 77,057 441 2.5% 5,521 3,584 1,926 11 99%
Plastics 41,311 25,659 15,570 82 0% - - - - 90%
Gravel 821,481 362,626 457,215 1,640 0% - - - - 99%
Sand 2,543,985 732,612 1,806,294 5,078 0% - - - - 99%
Porcelain 43 43 - - 0% - - - - 100%
Lead 9,982 1,850 8,132 - 54% 5,390 999 4,391 - 95%
Insulating liquids 3,495 2,567 929 - 0% - - - - 99%
Bentonite 49,827 49,728 - 99 0% - - - - 100%
Total 3,947,747 1,449,580 2,490,314 7,853 2% 95,845 49,111 46,553 181 99%

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assets. However, through defining the technical specifications All our assets are designed to be repaired according to project execution, 2) high-voltage substations and platforms
for the procured products, as well as through evaluating the requirements set in the before mentioned specifications and 3) offices and warehouses.
different offers also on technical functionalities, TenneT does and within the therefore set lifetime. The repairability is also
have a direct influence on the design and thus the durability ensured by the respective maintenance frameworks. Our A large part of the relevant waste data to report relates to
of these products. For the useful lives of the key products maintenance frameworks prioritise repair of existing assets the first category and is being generated outside of TenneT’s
built in TenneT’s asset please refer to the key estimates over replacement and are constantly implemented by our GFO organisational boundaries, by our contractors that realise the
and assumptions of the tangible fixed assets. The specified service groups in co-operation with AMT. assets they deliver to us. The fact that others generate this
lifetimes are a hard requirement in TenneT’s procurement waste, doesn’t change for us that we should also report on
process, and our suppliers are bound by contract to design Waste the waste produced in this part of our supply chain. As this
and manufacture the products in such a way that the specified The reporting year 2024 shall serve as a baseline year for needs to be collected outside of our organisation, this is
lifetimes are met. The lifetimes are specified to the current cumulative waste data figures, as TenneT started to gain more challenging. In preparation of the first time application
technically feasible maximum while considering other crucial deeper insights into its material outflows and is reporting on of the ESRS standards, much effort was put in collecting
factors such as risk (esp. reliability of the grid), cost, and waste metrics for the first time in its Integrated Annual Report this from the many contractors we are working together with.
performance. During the life cycle of our assets, we take against a more detailed level of measurement and estimation. These efforts have resulted in much greater insights into our
different measures to achieve the specified lifetimes, as The same scope of materials is applied as for inflow metrics waste performance, however we were unable to obtain all
long as grid reliability is ensured and it is justified from an with the addition of soil being only an outflow material. data. We therefore made use of the best estimations at hand,
economical and performance perspective. Lifetime realisation performed by our HSE advisors to come to more complete
is achieved e.g. through maintenance frameworks and our so- The waste definitions applied are in line with the Waste data, however we are aware of the inherent risk completeness
called Health Index. The Health Index allows us to constantly Framework Directive 2008/98/EC while waste generated by and accuracy of the data we currently have. Estimations
monitor the health of our assets which ultimately enables TenneT’s own activities or on own premises is included. Given also apply for the treatment of waste, where a conservative
predictive maintenance measures to maximise lifetimes. the business of TenneT, this includes three main categories: 1) approach was applied in using the legal minimum.

Hazardous waste Non-hazardous waste

Total waste
In kilograms DE NL NR Total DE NL NR Total
Diverted from disposal
Preparation for reuse 0 3,024 12 3,036 0 6,594,893 26,380 6,621,273 6,624,309
Recycling 153,688 830,268 3,936 987,892 305,533,975 275,456,805 2,323,963 583,314,743 584,302,635
Other recovery operations 5,384,417 377,868 23,049 5,785,334 412,741,567 25,849,472 1,754,364 440,345,403 446,130,737
Total diverted from disposal 5,538,105 1,211,160 26,997 6,776,262 718,275,542 307,901,170 4,104,707 1,030,281,419 1,037,057,681

Directed to disposal
Incineration 79,062 888 320 80,270 248,923 1,013,772 5,051 1,267,746 1,348,016
Landfill 1,761,346 280 7,047 1,768,673 18,474,008 50,000 74,096 18,598,104 20,366,777
Other disposal 0 0 0 0 0 157,240 629 157,869 157,869
Total directed to disposal 1,840,408 1,168 7,366 1,848,942 18,722,931 1,221,012 79,776 20,023,719 21,872,661
Total 7,378,513 1,212,328 34,363 8,625,204 736,998,473 309,122,182 4,184,483 1,050,305,138 1,058,930,342

Diverted from disposal 75% 100% 79% 97% 100% 98% 98%
Directed to disposal 25% 0% 21% 3% 0% 2% 2%

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More information and examples on how we manage these 2022, and in accordance with these requirements, TenneT For reporting year 2024, we leveraged on the 2022
impacts are included in the chapters 'Building the electricity reported on its eligible contribution to the European Union’s assessments and updated them where required.
grid of tomorrow', 'Utilise the grid to empower society', environmental objectives of climate change mitigation (CCM)
'Deliver more grid capacity together for our customers and according to the guidelines laid down in the EU Taxonomy. Basis for preparation
to serve society' and 'Transition to a brighter energy future We reported the share of turnover, capital expenditure (CapEx) As indicated in Annex I to the Commission Delegated
within social and planetary boundaries' of the Executive Board and operating expenditure (OpEx) that we have deemed Regulation, article 1.2, the basis of how the KPIs are prepared,
Report section of this report. ‘Taxonomy-eligible’ - irrespective of whether these activities is included in our Integrated Annual Report 2024. This relates
met any or all the technical screening criteria stated in to the accounting policy (1.2.1), where is explained how
Taxonomy-aligned KPIs the Taxonomy. As of 2022, and in accordance with these these KPIs were determined and how the allocation has been
Introduction requirements, TenneT reported on its eligible contribution to performed. As nearly all of our activities are related to EU
The EU Taxonomy constitutes one of the cornerstones for the European Union’s environmental objectives of climate Taxonomy 4.9 ‘Transmission and distribution of electricity’,
both the European Green Deal as well as the EU Action Plan change mitigation (CCM) according to the guidelines laid allocation to different economic activities is not applicable.
on Sustainable Finance. It aims to facilitate the flow of capital down in the EU Taxonomy. This is because our primary tasks are to provide electricity
towards more sustainable investments in the EU. However, to transmission services and system services and to facilitate
do so, a clear definition of what constitutes as “sustainable” In reporting year 2024, TenneT determined whether its the energy market. Those economic activities are linked
is needed. And this is what the EU Taxonomy is aimed at – activities are taxonomy ‘eligible’ and ‘aligned’ for the to NACE code D35.12 and are concluded to substantially
providing clear guidance on when an activity can be deemed environmental goal climate change mitigation. This builds on contribute to climate change mitigation, since TenneT is
sustainable. In 2023, additional guidance has been published the 2021 ‘EU Taxonomy eligibility’ by requiring the activities to transmitting and distributing renewable energy in line with
with respect to the remaining four environmental goals: meet additional criteria for: Directive (EU) 2018/2001, including necessary reinforcement
• The sustainable use and protection of water and • Substantial contribution to climate change mitigation; or extension of the grid in line with technical screening
marine resources; • Do no significant harm (DNSH) to any other environmental criterium 4.9 ’Transmission and distribution of electricity’ on
• The transition to a circular economy objectives for those activities; and climate mitigation, as per Commission Delegated Regulation
• Pollution prevention and control; • Minimum safeguards at the organisational level. (EU) 2021/2139 of 4 June 2021 Annex I. In this Integrated
• The protection and restoration of biodiversity Annual Report, we have reported that by connecting offshore
and ecosystems. To this end, we analysed whether we met the requirements operations and a selection of renewable energy sources
for these elements, based on the assessment performed directly to our grid, we have been able to provide 14.5 million
Considering that nearly all of our activities already relate to in 2022 and updated this on certain elements. This relates equivalent households to switch to 100% renewable energy.
EU Taxonomy 4.9 ‘Transmission and distribution of electricity’ to reviewing and assessing the technical screening criteria Furthermore, we reported that we together with our partners
(NACE code D35.12), we have nevertheless assessed related to this economic activity, next to the review of the in the energy sector, such as generating companies and
the eligibility on the remaining four environmental goals. respective DNSH as included in the respective annex as distribution system operations, avoided 18 million tonnes of
Inspecting the list of other activities, we concluded that no well as the minimum safeguards to which the European CO2 equivalents. The regulated activities are as such EU
additional relevant activity for TenneT was identified. Commission provided additional guidance in their final report Taxonomy eligible activities (in the table known as activity A)
of October 2022. Furthermore, we comprehensively analysed and the non-regulated activities are EU Taxonomy non-eligible
Reporting requirements and screened our eligible economic activities and the turnover activities (in the table known as activity B).
TenneT, subject to the Corporate Sustainability Reporting they generate, as well as our CapEx and OpEx, and
Directive (CSRD) via Part 9 of Book 2 of the Dutch Civil Code, determined the share that qualifies as Taxonomy-aligned. The subsequent phase involves demonstrating 'alignment with
is required to apply the EU Taxonomy Regulation 2020/852 the EU Taxonomy'. This requires, in addition to the eligibility
in its corporate reporting as of reporting year 2021. As of assessment, an evaluation of compliance with DNSH criteria

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Environmental

as outlined in technical screening criterion 4.9. This criterion framework”. Secondly, it is a mandatory part of the EIA to innovation activities are mentioned in the ‘Our performance in
belongs to environmental objectives such as 'climate change determine whether any negative impacts could be mitigated 2024’ section of this report.
adaptation', 'transition to a circular economy', 'pollution or prevented by acting appropriately. More information on
prevention and control', and 'protection and restoration of biodiversity can be found in 'Our performance 2024' chapter. Our additional disclosures are therefore related to how
biodiversity and ecosystems'. The environmental objective these KPIs were determined and how the allocation has
of 'water and marine resources' is deemed inapplicable In the absence of further guidance from the European been performed.
according to the guidance provided in criterion 4.9. Commission, the TenneT’s minimum safeguards assessment
was based on the “Final Report on Minimum Safeguards” Scope of sustainability reporting
We assessed the DNSH criteria for climate adaptation, published by the Platform on Sustainable Finance (PSF). For sustainability reporting purposes, TenneT consolidates
circular economy, pollution prevention and biodiversity and TenneT meets the minimum safeguards criteria through data in line with the scope of our report as set out in
concluded that our activities meet the do no significant harm its existing internal processes and guidelines, referring to About this report. The EU Taxonomy includes reporting of
criteria for the other environmental objectives. In terms of human rights, corruption, taxation and fair competition. entities that are consolidated in the Group’s consolidated
climate adaptation, for instance a screening of which physical For more information please refer to the 'Our performance financial statements, in line with the requirements of IFRS
climate risks may potentially affect the economic activity 2024' chapter or the governance and social section of the 10 ‘Consolidated financial statements’. As such the EU
(‘transmission and distribution of electricity’) was performed. sustainability statements. Taxonomy reporting scope is limited to our subsidiaries. Joint
Ensuring that the electricity grid can perform under a variety ventures and associates are not included for EU Taxonomy
of different circumstances is a standard procedure when Both turnover and operational expenditures are based purposes as no turnover, OpEx and CapEx are recognised in
designing- and building our grid. Information on circular on underlying financial information as disclosed in note the consolidated financial statements, because of accounting
economy can be found in the 'Our performance 2024' 2 ‘Segment information’ of the consolidated financial under the equity method for these types of investments.
chapter and the environmental section of our sustainability statements and as used in the director’s report. Capital
statements. TenneT not only transmit electricity, but also is expenditures are based on IFRS financial information as they
responsible for building and maintaining the high voltage do not differ with underlying financial information.
electricity grid in the Netherlands and Germany. The
legislation referred to in the pollution prevention DNSH There were no changes to the application of calculations
is international legislation, which is the basis for national compared to the previous reporting period, nor material
legislation. When we as TenneT build or maintain our grid changes to the implementation of the CapEx plans. We
and we need to do construction work, we must comply with consider Annex 1, articles 1.2.2.1c, 1.2.2.2., 1.2.2.3 and 1.2.3
the national, regional and local rules and regulations at all to be not applicable to our situation, with the exception
times. TenneT respects the norms and regulations to limit of the key information about our CapEx plans related to
the impact of electromagnetic radiation on human health our Taxonomy eligible and aligned activities. Please note
in the Netherlands and Germany. Regarding polychlorinated that we deem the risk of double counting not applicable
biphenyls (PCBs), we have internal policies to address our eligible economic activities only relates to one activity
this, such as performing tests related to relevant parts (the aforementioned NACE code D35.12). More information
of our assets. Furthermore, it is a standard procedure on our investments, can be found in the chapter ‘Building
for projects in the Netherlands and Germany, that an the electricity grid of tomorrow’ of the director’s report.
environmental impact assessment (EIA) is conducted, referring These investments contribute to a future green energy
to DNSH on biodiversity. The first step is to identify the system, related to the EU’s environmental goal of climate
impacts of alternative routes through a so-called “assessment change mitigation. Significant research and development and

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%
Data point Unit 2024 2023 2024/2023

Taxonomy-aligned revenue % 97.4% 97.8% 100%

Taxonomy-eligible revenue (not Taxonomy-aligned revenue) % 2.1% 1.7% 124%
Turnover of Taxonomy- non-eligible activities % 0.5% 0.5% 100%
Total revenue (Turnover) EUR million 8,430 9,222 91%

Taxonomy-aligned CapEx % 100.0% 99.8% 100%

CapEx of Taxonomy- non-eligible activities % 0.0% 0.2% 0%
Total CapEx EUR million 10,919 8,151 134%

Taxonomy-aligned OpEx % 99.9% 99.4% 101%

Taxonomy-eligible turnover activities (not Taxonomy-aligned activities) % 0.1% 0.6% 17%
OpEx of Taxonomy- non-eligible activities % 0.0% 0.0% 0%
Total OpEx EUR million 4,436 5,477 81%

Taxonomy-aligned turnover Taxonomy-aligned CapEx Taxonomy-aligned OpEx

Proportion of turnover / Total turnover Proportion of CapEx / Total CapEx Proportion of OpEx / Total OpEx

Taxonomy-aligned Taxonomy-eligible Taxonomy-aligned Taxonomy-eligible Taxonomy-aligned Taxonomy-eligible

per objective per objective per objective per objective per objective per objective

CCM 97.4% 99.5% CCM 100% 100% CCM 99.9% 100%

CCA 0% 0% CCA 0% 0% CCA 0% 0%
WTR 0% 0% WTR 0% 0% WTR 0% 0%
CE 0% 0% CE 0% 0% CE 0% 0%
PPC 0% 0% PPC 0% 0% PPC 0% 0%
BIO 0% 0% BIO 0% 0% BIO 0% 0%

Further details can be found in Additional EU

Taxonomy disclosures.

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Accounting policy Since we do not have any investments related to fossil power Determination of numerator for taxonomy - aligned
EU Taxonomy Turnover plants we have no CapEx disclosed under A.2. Taxonomy activities OpEx
Turnover for taxonomy-eligible activities (A. Taxonomy - eligible but not environmentally sustainable activities. All regulated grid expenses are aligned to EU Taxonomy,
eligible activities) except the total share of the direct connections between our
All regulated revenues are eligible to the EU Taxonomy EU Taxonomy OpEx substation or grid and the network and a power production
turnover. OpEx for taxonomy-eligible activities (A. Taxonomy - eligible plant that is more greenhouse gas intensive than 100
activities) Based on the frequently asked questions from gCO2e/ kWh measured on a life cycle basis. These OpEx
Determination of numerator for taxonomy – aligned turnover October 2022 (Commission Notice on the interpretation of the are excluded from the final calculation to determine the
All regulated revenues are aligned to EU Taxonomy, except Disclosures Delegated Act from October 2022) and December reporting metrics related to this regulation and are disclosed
the other revenues stream and the total share of the direct 2022 (Second Draft Commission Notice on interpretation as OpEx under A.2. Taxonomy-eligible but not environmentally
connections between our substation or grid and the network and implementation EU Taxonomy Climate Delegated Act sustainable activities.
and a power production plant that is more greenhouse gas from December 2022), the OpEx category is closely related
intensive than 100 gCO2e/kWh measured on a life cycle basis. to maintenance and repair and can include the following Determination of denominator for taxonomy - aligned
This turnover is excluded from the final calculation to costs for: maintenance material, cost of employee repairing a activities OpEx
determine the reporting metrics related to this regulation and machine, cost of employee cleaning a factory, IT dedicated to All grid expenses as included in note 2 'Segment information'.
this turnover is disclosed under A.2. Taxonomy-eligible but not maintenance. In view of the above, TenneT has included grid
environmentally sustainable activities. related expenses in calculating the OpEx. This methodology
has not been changed compared to our Integrated Annual
Determination of denominator for taxonomy-aligned turnover Report 2022.
Total turnover as included in note 2 ‘Segment information’.
All regulated grid expenses are eligible to the EU
EU Taxonomy CapEx Taxonomy OpEx.
CapEx for taxonomy-eligible activities (A. Taxonomy - eligible
activities)
All regulated investments are eligible to the EU Taxonomy
CapEx.

Determination of numerator for taxonomy - aligned activities

All investments are related to new connections to green
electricity producers or other parts of the grid that are needed
to transmit green electricity. The amount is based on
the regulated investments and additions to the right of use
assets, reference is made to the table hereafter.
(EUR million) Notes TSO NL TSO DE Regulated Non-regulated Total
Determination of denominator for taxonomy - aligned
Investments 2 3,783 6,852 10,635 2 10,637
activities
Right of use assets 4 88 194 282 - 282
Total of the investments and the right of use assets additions,
reference is made to the next table. Total EU Taxonomy CapEx 3,871 7,046 10,917 2 10,919

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Social
Our impacts, risks and opportunities in the social domain stretch beyond TenneT’s borders. Alongside the
impacts we have on our own workforce, we also have impacts upstream in our value chain. That’s especially
true for our activities in building the grid to support the energy transition, as we use contractors to construct
and maintain our assets and they in turn make use of sub-contractors, and so on. We aim to ensure that
everyone who works for and with us, especially those involved in ensuring our assets are properly designed,
built, maintained and operated, can execute their work in a way that meets our standards and those of
international conventions, such as the International Labour Organisation and the UN Guiding Principles on
Business and Human Rights. Next to this, in fulfilling our core tasks and securing supply of electricity to power
and empower society, together with all our value chain partners, we create societal impact for (large) industries
and end-users in the areas we serve.

Performance tables - social topics

2024 2023

DE NL NR Total DE NL

Headcount Own workforce - Employees 4,966 3,383 134 8,483 4,132 2,805
Headcount Own workforce - Non-employees 346 998 12 1,356 370 1,029
TRIR 5.7 1.9 N/A 4.0 6.1 2.3
% of supplier visits meeting our standards 77%
Grid availability 100.00000% 99.99988% N/A 99.99988% 99.99993% 100.00000%

Governance right policies and actions are carried out in alignment with of a human rights policy require the attention and efforts
The way TenneT governs social impacts, risks and strategic company objectives, and assigned to owners with of several units within the organisation (such as risk, supply
opportunities is described in the General section of the responsibility for the results on these topics. For S1 Own chain management, legal and compliance), multiple teams
Sustainability Statements. For the topics regarding S1 Own Workforce, this relates to our People (PPL) department; for are responsible for parts of its implementation. However, the
Workforce (including Health and Safety), S2 Workers in the Health and Safety this relates to our Health, Safety and overall accountability of the topic lies with the director of
Value Chain and the entity specific topic ‘Security of supply’, Environment (HSE) department. Human rights is governed Strategy and Partnerships (STP). For the topic of Security of
the overall accountability resides with our Executive Board. as part of our sustainability framework. Our Executive Board Supply, our System Operations (SOP) unit has the assigned
For each topic, the Executive Board delegates accountability is accountable for this topic and on a daily basis this is accountability, with the exception of the topic of customer
to the directors of TenneT’s units. This ensures that the shared with our Strategy and Partnerships unit. As elements connection topic, which is delegated to the Customer

NR = non-regulated

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Social

Connection & Capacity unit. Note that for the topic of Health, of them if something occurs. For instance via periodic The energy transition is a significant challenge society is
this is currently split over two units as the vitality part is campaigns and upon onboarding of our own workforce. We facing which requires significant recruitment by TenneT, and
assigned to the PPL department and occupational health is also provide for remedy when a matter is flagged. For instance others in the energy sector. It is expected that in the
assigned to HSE. when an unsafe working environment matter is flagged, this Netherlands alone, the industry will require several thousands
issue is addressed by the respective unit and investigated. more additional people to meet this challenge. That is why
Managing our own workforce to us means also engaging Where measures are taken, this is communicated on to the the ability to attract new employees for us and others in
properly with them. That is why meetings with worker respective colleague. For more information on this, refer to our value chain is a very important factor in our ability
representatives are held at least 3 - 4 times a year. More our Compliance and integrity section. We also continue our to deliver. Working further towards being an inclusive and
meetings are held for specific occasions. In the Netherlands efforts to gain insights and engage with workers in our diverse organisation will enhance TenneT's image as employer
our 'Ondernemingsraad' and in Germany our 'Betriebsrat' value chain. Through multistakeholder initiatives, such as the of choice. Given the amount of talent required to deliver
are involved. Our policy is to involve them prior to the Worker welfare group, our International Responsible Business the energy transition and to ensure we are delivering grid
decision making of important matters, such as with respect Conduct partnership and on certain projects we also had capacity in time for our customers, we cannot simply focus
to organisational changes, updates to our company strategy engagement lunches with workers. on recruiting future employees just within the borders of the
and new collective labour agreements. Representatives of our Netherlands and Germany but also need to be welcoming to
Executive Board are also involved in these meetings. The Strategy talent from other parts of the world as well to work in our
rights of the people that work for and with us are important TenneT’s own workforce consists of 9,693 people (of which offices, in the fields or other places our assets are located.
to us. In our human rights policy, we have included our 4,381 are in the Netherlands and 5,312 in Germany). Many But attracting talent isn’t enough; employee retention and
commitments on this, which are championed by international others, who work for our contractors, also help us build especially the safety of our workforce and workers in the
human rights standards and conventions like the international the electricity grid of tomorrow. The social elements that value chain is also a very important topic to us. We need
bill of human rights and the ILO declaration on fundamental affect them and impact us are related to their working to ensure that all our people return home safely from work
principles and rights at work. An example of this is how conditions (including safety) and the availability of sufficient every day. Safety is one of the most salient rights for people
we are committed to respect the rights of our own workers talent in the energy sector to realise the energy transition. in our workforce and in the value chain. However, we have
and those working in our value chain as a signatory member These impacts, risks and opportunities have been identified in identified other salient rights related to labour rights (decent
of UN Global Compact, where we report on our progress our double materiality assessment. For more information on wages, working hours, collective bargaining and prohibition of
on an annual basis. We are working hard to fulfil our how they originate from or are connected to the company forced labour) and social rights (adequate housing).
commitments with respect to the environmental, social (e.g strategy and business model, please refer to the General
to respect human rights and labour rights, such as elimination section of our sustainability statements and in the Our Another part of our updated company strategy is related to
of discrimination and the inclusion of vulnerable groups of purpose, promise and principles and our strategy section the requirements on securing supply of electricity for our
employees) and governance domain. of our Executive Board report. IROs like Sustainable supply customers. The impact we have is twofold, as it means
chain practices (Human Rights) is included in the updated that we aim to be able to transmit electricity to power and
Furthermore, we have processes in place to provide for or Sustainability Framework 2030, which is a further refinement empower our customers and via DSOs also their end-users.
co-operate in the remediation of negative impacts of our of the boundary condition sustainability. In addition we are This is part of the boundary condition on being able to ensure
own workforce, as well as channels available for our own steering upon the sustainability topic in 2024 starting with reliability of the electricity grid of the connected customers.
workforce to raise concerns and to address them if applicable. metrics related to Climate, which is included in our quarterly
Through various channels our own workforce is able to group KPIs in the Integrated Performance Report process. Next to this, it also relates to the ability to connect customers
voice them. Examples include our Speak Up portal and our The sharpened company strategy has been discussed with to our high-voltage electricity grid. This is a central part of our
incident reporting portal Zenya. These are communicated the works council before it has been finalised to obtain the strategy as to deliver grid capacity in time for our customers
to our employees and we encourage them to make use views from the employee representatives. is the strategic goal we are aiming for. This is translated

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into strategic priorities such as ‘Build the grid faster’ to build improve the corporate HSE management system and as effective as it can be or needs any improvements. This
more customer connections and 'Utilise the grid better' by for HSE performance. In addition, the HSE policy provides is also present in our supplier code of conduct and ensures
instance unlocking new flexible customer agreements. a framework for defining our company’s HSE objectives, that our suppliers and contractors are aware of it. In the 2GW
directives, and processes. This mitigates the negative impact Program framework agreements, we have specific criteria that
Impact, risk and opportunity management of our activities should we fail to create a safe working require the supplier to have a robust due diligence process
To appropriately manage the impacts we have in the social environment. The scope of this policy applies to the entire in place including a grievance mechanism. In addition, during
domain, we describe the policies and actions we have set up TenneT organisation, across all business segments and the qualification audits for suppliers, we look at mechanisms
as well as the targets and metrics to measure our progress on business units. Our Executive Board is accountable for this where stakeholders concerns can be raised/addressed. As a
these items to ensure we are meeting our strategic goals. topic and on a daily basis this is shared with our HSE unit. To part of our strategic roadmap, we aim to work on building
ensure we are able to create this safe working environment, a robust due diligence process and embed processes to
Policies all employees and units are expected to take responsibility for reflect remedial policies by 2030. Due to the novelty of this
S1 Own workforce the day-to-day application of the policies set out by our HSE topic, TenneT does not yet have a robust process in place to
The policies that impact our own workforce and workers unit, especially considering the aforementioned increased risk test the effectiveness of our grievance mechanisms. However,
in the value chain relate to the policies of our PPL unit related to the working environment, with the operating units we currently include this topic during site visits to better
and specifically those related to safety of our HSE unit. related to our large projects and grid field operations. understand reporting of grievances and intend to develop a
With respect to the impact of human rights, these policies more mature grievance process in the coming years.
are developed and maintained by our STP unit. Our people S2 Workers in the value chain
policies, have been set out in our PPL plan 2024, where With respect to the impact on the workers in the value TenneT remains committed to engaging with value chain
we have identified our strategic goals, objectives and key chain, our human rights policy applies to all our operations workers, as well as other relevant stakeholders, to improve
deliverables on how we aim to manage our own workforce. which includes our own activities and our upstream activities our management of human rights within the supply
Next to this, there are other policy documents, such as (products being constructed by our business relationships). chain. Our approach, however, and the development of a
our Inclusion, Diversity and Equity policy and the Workforce It also applies to our suppliers and contractors, in addition structured process around this, is not yet formalised in our
Plan 2025-2030 where we have set out our focus areas for to our own employees, wherever they are. Our salient rights policy document. Our engagement occurs through multiple
the years after. The focus of our plan is on achieving the such as forced labour and social rights are addressed in our channels. We engage directly during our site audits, yard
desired growth targets, planning ahead and managing our policy. This is also part of our supplier code of conduct, visits and worker engagement lunches. This has led us, for
talents in a diverse, inclusive and safety oriented culture, next which is publicly available on our corporate website. As example, to validate the accuracy of salient human rights
to achieving operational excellence with respect to our HR we develop our human rights policies further and pursue issues in our supply chain. Through worker engagement,
services to our colleagues. the right course of action, we recognise that we’re on a we have gained more informed insights into how certain
long-term pathway, so we have focused our attention on issues could impact workers in our supply chain. Additionally,
S1-14: Health and Safety the salient rights of workers in the value chain. Our human TenneT's participation in Multi Stakeholder Initiatives also
Regarding our safe working environment, workplace safety is rights policy is publicly available via our corporate website, helps us engage with credible stakeholders, such as
an important element for TenneT. Our corporate Health, Safety either in English, Dutch or German. We also embed this NGOs. For example, in 2024 we jointly worked together
and Environment (HSE) policy is established, implemented policy in our supplier code of conduct and our sustainability in the Singapore Worker Welfare group. Together with BP,
and aims to provide safe and healthy working conditions, documentation. Our remedial process starts with a platform Equinor, Ørsted, Shell, TenneT and Petrobras, this partnership
to prevent work-related injuries and illnesses, to minimise where grievances can be raised. At TenneT, we have our focused on labour rights and worker welfare requirements
the environmental impact of operational activities, to comply Speak Up portal which acts as our grievance mechanism and within the marine construction sector in Singapore. We
with applicable legal and other HSE-related requirements, to is open to everyone, including those outside of TenneT. It is have developed a set of principles and guidelines to
eliminate hazards and reduce HSE risks, and to continuously now available in three languages and we will evaluate if it is support the Singapore marine construction sector to meet

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international standards for worker rights and worker welfare, a framework of policies that guide us in meeting our societal S1-14: Health and Safety
particularly focusing on responsible recruitment, improved task. The scope of these policies relate to specifically TenneT With respect to a safe working environment, we have several
accommodation, better transport, and improved access TSO entities, as this impact is driven by these parts of the key actions. These are included in our HSE Roadmap that
to grievance mechanisms. We have engaged with key company and describe how our operators have to run our focus on achieving a fully implemented HSE management
stakeholders to advocate for systemic improvements and are internal systems/tools and processes to make our contribution system, improving safety leadership by ensuring all leaders
also working with local organisations to facilitate access to to the European energy system and security of supply. In are trained on Safety Needs our Energy, on ‘life saving
remedy for workers who have suffered harms. We aspire setting or implementing these policies, we are committed to rules’ with the aim to reduce them in comparison to 2023,
to extending these endeavours working closely with relevant the standards set by third parties, such as our regulators and Safety Tops engagement at executive management level with
stakeholders to affect system change fostering equitable technical institutions such as VDE (indicating the relationship our contractors, Safety weeks, Safety Project Start-ups and
treatment regardless of supply chain location. A lot of direct and procedures between TSO and DSO), BDEW with MaBis various other activities performed in our daily operations to
engagement occurred during our process of identifying salient regulation, which indicates the standards and procedures ensure a safer work environment.
rights and drafting our strategic roadmap, with impacts with respect to data exchange and accounting between
on the outcomes of both. For example, it led to a more Business Responsible Parties (BRPs) and TSOs. Our external These actions with respect to our own workforce are part of
thorough understanding of addressing modern slavery, which stakeholders are deeply involved, via consultations and our annual business plan and do not require significant OpEx
is currently one of the main focus points in our human workshops, in the development of European and national or CapEx.
rights strategy. legislations, methodologies and processes, which results in
the relevant policies. S2 Workers in the value chain
For the topic of security of supply, ensuring that society is Also regarding our workers in the value chain, actions
able to have a secure supply of electricity at any point in With respect to connecting our customers to the electricity were planned and executed to create a more robust due
time is of vital essence for the people living in the areas grid, our newly set up Customer Connections & Capacity diligence processes in line with international human rights
we serve and the respective economies to flourish. This is (CCC) unit has defined the following directions for our policies standards. For example, we have conducted a country-based
not just the task of a transmission system operator (TSO) to accelerate this. The focus is to strengthen and expand the risk assessment, mapped our salient human rights, and
in the Netherlands or Germany, but the common task of existing grid, maximise the utilisation of the existing capacity further developed an automated tool to assess the human
all TSOs in Europe. The impact to provide a secure supply (by means of flexibility) and to increase ‘self-reliance’. These rights risks among our suppliers and business partners.
of electricity the policies are related to policies set on concepts are the basis of the approach that transcends unit This helps us to better understand our own human rights
multiple levels. It starts with European legislation, such as lines in our aim to accelerate the number of customers that is impacts, risks and dependencies. These are just some of the
the System Operation Guideline (SOGL), or European energy being able to be connected to the high-voltage grid. actions we have taken regarding due diligence, rather than
law, which has to be transferred to national legislations, a comprehensive overview of all of them. These actions are
like the energy laws. Besides that, European TSOs have to Actions examples of how we make progress on the topic of human
fulfil also European contracts such as the Synchronous Area Own workforce rights. A more systematic approach, including how we track
Framework Agreement (SAFA). These policies set out the way To make progress, we have focused our attention on key the effectiveness of our actions, is a next step. Also for the
how we need to fulfil our core tasks in co-operation with actions that we defined as a result of the aforementioned actions taken with respect to the workers in the value chain
the other European TSOs. Those legislations and contracts policies. Regarding policies related to our own workforce, are part of our annual business plan and do not require
define the key objectives and processes of our daily work. the actions are focused on the realisation of the growth significant CapEx or OpEx.
Those are internally translated into several policies such as targets, planning ahead, obtaining feedback within our own
business directives, corporate policies and work instructions organisation on Inclusion, Diversity and Equity in our company Entity specific: Security of supply
to ensure that we are compliant to these European and culture and further support our leaders at all management The actions that have been defined to address the impact
national laws. In both Germany as in the Netherlands we have levels in their leadership development. related to security of supply relate to maintain the frequency

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at 50 hertz with our balancing services – dimensioning, example is the progress we made in respect to the hybrid TRIR performance and establish a TRIR target, the HSE unit
procurement and activation of balancing reserves, keep interconnector LionLink. collects and analyses data from the previous 12 months.
n-1 security, facilitate the electricity markets by operational Based on the data analysis, the HSE unit formulates a
planning, capacity calculation and congestion management, Actions planned and taken in light of strengthening and recommendation for a new TRIR target. This target reflects
maintain voltage levels on all our connections and to find expanding the grid relate to shortening the contract process the desired level of safety performance for the upcoming
solutions to build more customer connections. Examples of and setting up decentral coordination teams. With respect to period. The proposed TRIR target is then presented to the
this relate to the activities we need to do on a daily basis such utilising the grid better, actions are related to the utilisation Executive Board for review and approval. This step ensures
as by forecasting supply and demand of electricity accurately of existing grid capacity by means of flexibility. Examples that the target aligns with the organisation's safety and
and ensuring reserves are appropriately managed reserves of this include setting up decentral flexibility contracts and business objectives. This target is used to track TenneT’s
such as the FCR, aFRR, mRR. Also, actions related to voltage working on grid enhancing technologies (power flow control) safety performance on a monthly basis. It is discussed at unit
control and facilitating the electricity market by initiatives such to increase self-reliance. The costs incurred with these actions level and within management unit performance dialogues with
as having TenneT involved with (European) projects such as are related to our grid expenses, such as our redispatch costs. EB members to identify any lessons or improvement based
PICASSO or GOPACS and MARI or having an active role More information is disclosed on this in Note 25 Operating on the performance. Targets have been defined with a time
in capacity calculation for regions like CORE and HANSA or expenses, where we provide more detailed information on our horizon longer than one year, however progress is mainly
market related processes like SDAC and SIDC. Besides that, grid expenses on page 236. managed in relation to the annual target on a corporate level.
TenneT runs initiatives like GOPACS or Control Room of the We have not set a baseline year, against which we can track
future to improve our own processes and tools to secure Targets our progress over time. No stakeholders have been involved in
energy supply today and tomorrow. S1 Own workforce setting the target. The status and trend analysis of TenneT’s
HSE KPI performance is documented in our monthly and
The scope of these key actions are predominantly related to The targets set to meet our strategic objectives related to our quarterly HSE reports. This is reviewed by the management
our own operations, however there is a strong connection to own workforce relate to ensuring that our attrition rate aligns teams in the respective units every month and quarter.
up- and downstream parts of the value chain related to the with industry standards and that we have all key positions The HSE management team and the Executive Board and
transmission of electricity, especially in actions taking in light identified for succession planning. To monitor whether we are Supervisory Board review on a quarterly basis. Note that in
of facilitating the markets and balancing supply and demand. on track of our inclusion, diversity and equity ambitions, we comparison to 2023, we now have a new definition of medical
Most actions relate to tasks we need to fulfil every day, monitor the percentage of female inflow and non-Dutch / non- treatment cases which applies from 2024. This also aligns with
however actions defined to secure supply not only today but German inflow. Our aim for 2024 was that 32% of all our industry best practice. Human rights issues or incidents we
also tomorrow stretch to the years ahead of us. The results new hires is female and that at least 10% is non-Dutch / non- experienced in 2024 has been disclosed in our Management
of these actions are visible on a daily basis as they have an German. Board report. For more information on this, please refer to the
effect on both customers, end-users and others affected. In human rights section in the 'Transition to a brighter energy
securing supply, the more accurate we are able to perform S2 Workers in the value chain future within social and planetary boundaries' chapter
our actions, the less measures we need to take we did not We track the effectiveness of our actions regarding safety
foresee, such as curtailment or redispatch. This also aims to via the outcome of our TRIR metric. It relates to the policy
reduce costs for all customers related to grid fees, due less objective of providing safe and healthy working conditions In 2024, we have been working on developing a metric that
mitigation measures to keep operational security. Or by having for the prevention of work-related injuries and illnesses. A provides us with deeper insights in the progress regarding
a positive effect on energy prices due to facilitating markets lower TRIR reflects a safer environment. The target is set by our efforts to manage the salient rights of workers in our
across Europe, creating a basis for competition between the HSE unit which sets an annual target for the upcoming value chain, but this is still under construction. That is why
market parties. With respect to facilitating the market, an year. The corporate target for 2024 is 3.7, which is the rate the number of supplier visits remain the current metric we
of TRI per 1 million hours worked. To assess the current report on. The target we have set on this is 0% of all new

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suppliers that have been accepted fail to meet our criteria in total the system to be interrupted which we assess our evaluated against the target on a quarterly basis as part of our
such as regarding quality and sustainability related aspects performance against. Integrated Performance Reporting process, which the relevant
(which also includes human rights related topics such as a units, the Executive Board and Supervisory Board review the
safe working environment). Considering the new energy world we currently encounter, group KPIs where this is included in. Once we identify any
including the tremendous amounts of connection requests, violation, we immediately analyse the root cause and initiate
Entity specific: Security of supply we are currently setting improved targets. This relates to the countermeasures to meet the target again.
With respect to security of supply, we have set targets on number of customer connections realised, as a target on the
an annual basis for the amount of time we deem to be number of customer requests does not make sense as we Metrics
acceptable of interruption on an annual basis. To us, we do not aim to have a certain amount of requests. The current In the tables hereafter the metrics related to S1.6, S1.7 and
feel that every minute security of supply is interrupted is target is to connect 36 customers in 2024. S1.9 are disclosed. The diversity metrics related to S1.9
a minute we want to prevent, however we are aware that gender distribution at top level consist of the Executive Board,
unfortunately circumstances can occur that this does happen. For all targets, the scope applies to our service area in the the Supervisory Board and the Senior Leadership Team of
For both the SAIDI as the ASIDI the target is 0 minutes for Netherlands and in large parts of Germany. We currently TenneT. The Executive Board consists of four members, two
our onshore operations, with the exception of 2 minutes for do not have a baseline value to which we evaluate our male (50%) and two female (50%). The Supervisory Board
the Dutch 110/150 kV grid. For our offshore operations, we current year performance against, and not for all metrics consists of six members, four male (67%) and two female
have a different target as we understand that the grid is we have a target we work towards on the medium or long- (33%). The Senior Leadership Team consists of 25 directors,
secured differently (not N-1 redundancy secured), which has term, like e.g. the TRIR. Stakeholders were not involved 17 male (68%) and 8 female (32%).
an impact on the extent to which we are able to secure in setting these target and there were no changes to the
supply. The target for offshore grid availability is 432 hours methodology in setting these targets. The performance is

2024
Number of employees Unit Female Male Other Not disclosed Total
DE NL NR Total DE NL NR Total DE NL NR Total DE NL NR Total DE NL NR Total
Permanent Headcount 1,207 837 34 2,078 3,211 2,442 88 5,741 - - - - - - - - 4,418 3,279 122 7,819
Temporary Headcount 238 26 5 269 309 78 7 394 1 - - 1 - - - - 548 104 12 664
Non-guaranteed employees Headcount - - - - - - - - - - - - - - - - - - - -
Total 1,445 863 39 2,347 3,520 2,520 95 6,135 1 - - 1 - - - - 4,966 3,383 134 8,483

2023

Number of employees Unit Female Male Other Not disclosed Total

DE NL Total DE NL Total DE NL Total DE NL Total DE NL Total

Permanent Headcount 938 663 1,601 2,674 2,059 4,733 - - - - - - 3,612 2,722 6,334
Temporary Headcount 229 28 257 291 55 346 - - - - - - 520 83 603
Non-guaranteed employees Headcount - - - - - - - - - - - - - - -
Total 1,167 691 1,858 2,965 2,114 5,079 - - - - - - 4,132 2,805 6,937

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2024

Number of employees Unit Female Male Other Not disclosed Total

DE NL NR Total DE NL NR Total DE NL NR Total DE NL NR Total DE NL NR Total

Full-time Headcount 988 415 23 1,426 3,268 2,217 73 5,558 1 - 1 - - - 4,257 2,632 96 6,985
Part-time Headcount 457 448 26 931 252 303 12 567 - - - - - - 709 751 38 1,498
Total 1,445 863 49 2,357 3,520 2,520 85 6,125 1 - - 1 - - - - 4,966 3,383 134 8,483

2023

Number of employees Unit Female Male Other Not disclosed Total

DE NL Total DE NL Total DE NL Total DE NL Total DE NL Total

Full-time Headcount 801 309 1,110 2,750 1,883 4,633 - - - - - - 3,551 2,192 5,743
Part-time Headcount 366 382 748 215 231 446 - - - - - - 581 613 1,194
Total 1,167 691 1,858 2,965 2,114 5,079 - - - - - - 4,132 2,805 6,937

2024 2023
Number of employees Unit
DE NL NR Total DE NL Total

Employees under 30 years old Headcount 1,082 340 16 1,438 915 241 1,156
Employees between 30 and 50 years old Headcount 3,069 1,861 79 5,009 2,499 1,550 4,049
Employees over 50 years old Headcount 815 1,182 39 2,036 718 1,014 1,732
Total 4,966 3,383 134 8,483 4,132 2,805 6,937

Employees under 30 years old % 22% 10% 12% 17% 22% 9% 17%
Employees between 30 and 50 years old % 62% 55% 59% 59% 60% 55% 58%
Employees over 50 years old % 16% 35% 29% 24% 17% 36% 25%
Total 100% 100% 100% 100% 100% 100% 100%

NR = non-regulated

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2024 2023
Unit Target DE NL Total Target DE NL Total

Recordable incidents (TRIs)

Own workforce - Employees Number
N/A 24 6 30 N/A 33 5 38
Own workforce - Non-employees Number
Other workers on TenneT sites Number N/A 93 24 117 N/A 82 26 108
Total recordable incidents (TRIs) Number N/A 117 30 147 N/A 115 31 146

Lost-time injuries (LTIs)

Own workforce - Employees Number
N/A 13 4 17 N/A 15 1 16
Own workforce - Non-employees Number
Other workers on TenneT sites Number N/A 70 10 80 N/A 40 10 50
Total lost-time injuries (LTIs) Number N/A 83 14 97 N/A 55 11 66

Hours worked
Own workforce - Employees Million hours worked
N/A 7.2 6.4 13.6 N/A 6.1 5.6 11.7
Own workforce - Non-employees Million hours worked
Other workers on TenneT sites Million hours worked N/A 13.3 9.8 23.1 N/A 12.7 8.1 20.8
Total hours worked Million hours worked N/A 20.5 16.2 36.7 N/A 18.8 13.7 32.5

TRIR
Own workforce - Employees Incidents per million hours worked
N/A 3.3 0.9 2.2 N/A 5.4 0.9 6.3
Own workforce - Non-employees Incidents per million hours worked
Other workers on TenneT sites Incidents per million hours worked N/A 7.0 2.5 5.1 N/A 6.5 3.2 0.0
Total recordable incident rate (TRIR) Incidents per million hours worked 3.7 5.7 1.9 4.0 4.3 6.1 2.3 4.5

Fatalities 0 0 0 0 0 0

Healthy workforce Absentee rate1 3.0 3.3 3.6 3.9 3.9 3.9

The definition of Total Recordable Incidents has been updated

in 2024. More information on this is disclosed in the section
Create a safe and inspiring workplace.

1 No target value for absentee rates, however a value TenneT strives for.

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Details relating S1.14 for non-regulated companies are

disclosed hereafter:

Unit Non-Regulated

Recordable incidents (TRIs) Own workforce - Employees Number 0

Lost-time injuries (LTIs) Own workforce - Employees Number 0
Hours worked Own workforce - Employees Million hours worked 0.2
TRIR Own workforce - Employees Incidents per million hours worked 0

Fatalities 0

Average FTEs 2024 2023 For the data reported on the number of supplier visits and monitored but not included in our group performance metrics
2,978 2,523
the amount of visits that resulted in a potential supplier that on a quarterly basis. They are included in the quarterly Internal
The Netherlands
doesn’t meet our requirements, the data is reported by our Performance Report as of 2025. Based on the collected data
Germany 4,306 3,625
Supply Chain Management (SCM) department. The reported over 2024, there were 40 customer connections realised and
NR 210 129
data relates to actual data based on the registration of visits we have 728 number of customer requests outstanding as of
Total 7,494 6,277 performed in the reporting year and the respective reports on the end of 2024.
Average FTEs according to the financial the back of these visits to determine the amount of suppliers
7,494 6,277
statements (note 26)
that have been visited and passed the supplier visit, the ones For more information and examples on how we manage
Difference - - that required a revisit and the ones that were not accepted as these impacts, refer to the chapters 'Utilise the grid to
a supplier. empower society', 'Create a safe and inspiring workplace'
To measure our progress and performance regarding our and 'Transition to a brighter energy future within social and
safety strategy and policies, we measure the Total Recordable The metrics that enable us to monitor whether our policies planetary boundaries' in the Executive Board Report section
Incident Rate (TRIR) and the Lost Time Injury Frequency and actions are effective with regards to securing supply of of this report.
Rate (LTIF). Note that on our quarterly corporate internal electricity are related to the so-called SAIDI (System Average
dashboard, we focus on the TRIR. Both the TRIR and the Interruption Duration Index) and the ASIDI (Average System
LTIF are safety KPIs representing the number of accidents Interruption Duration Index). Both indicators provide the value
per million hours worked. Next to this, we disclose the to of to which extent we were unable to supply electricity to
mandatory metrics as described in ESRS S1-14. These are our customers and therefore our efforts and actions did not
included in the aforementioned tables. The reporting entity of have the intended result. To evaluate whether our policies and
this KPI is TenneT and applies to the TenneT organisation as actions to connect our customers faster to our electricity grid
described in the scope on page 129, with the exception of are effective, we have introduced two KPIs in 2024, which we
BritNed (STP-BRN). The reporting frequency is quarterly and have included in our corporate Integrated Performance Report
monthly. Note that in the aforementioned tables, we present for quarterly monitoring by the respective units as well as the
the safety performance of our employees and non-employees Executive Board and supervisory Board as of Q1 2025 This
in a combined manner due to unavailability of data. As of the relates to the number of customer requests and the number of
reporting year 2025, we aim to present this separately. customer connections realised. For 2024 these metrics were

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Methodology determining the number of HSE events and 3) consolidating asset construction, but can also include migrant workers
data and calculating TRIR/LTIF. The methodology is aligned working in the Netherlands or Germany on our project sites.
S1 Own workforce with industry best practices. The rate (and target) measures
The data reported in light of S1 own workforce in the the number of incidents where our HSE management system As with many companies, to determine an appropriate metric
aforementioned tables relates to actual data based on our applies, or where contractors execute work under the in this area and develop the quality of the data collection
employee records accounted for in our local HR systems instruction and supervision based on our HSE management process is something that we are currently working on. This
as reported by our PPL department. Our employee data is system, so called Mode 1 and 2 contractors. This aligns with also applies to us and for the percentage of suppliers we
treated with care and in line with national and European our sector standards. visited that meet our standards. This metric will be updated
data privacy information is used for the appropriate ends. in the next years to provide even more relevant information
Data collected in our HR systems is reported on a quarterly S2 Workers in the value chain to us to provide insights on how we are progressing and is
basis for the respective metrics. For our metrics to determine We define a value chain worker as "an individual performing based on the records of our supplier visits of our Supply
whether we meet our inflow and the ID&E (inclusiveness, work in TenneT’s value chain to help us deliver the energy Chain Management unit. Due to the manual nature of the
diversity and equity) targets, we make use of data obtained transition, regardless of their contractual relationship with data collection process in this area, we report this as a
upon hiring of our staff. This relates to all staff which we have TenneT. This includes all workers in our upstream and best estimate.
an employment relationship with, in line with the definition downstream value chain who are or can be materially
as defined by the ESRS standards. For our non-regulated impacted by TenneT and includes impacts resulting from Entity specific impact: Security of supply
activities, we have included the total amount of employees TenneT's own operations, our value chain, and through our The metrics that enable us to monitor whether our policies
of these respective companies and extrapolated certain data business relationships." and actions are effective with regards to securing supply of
points. These entities together constitute less than 1% of our electricity are related to the so-called SAIDI (System Average
total workforce. Within this scope, the groups of value chain workers that Interruption Duration Index) and the ASIDI (Average System
are likely to be materially impacted by TenneT are those Interruption Duration Index). Both indicators provide the value
The TRIR is calculated by taking the number of ((TRI x 1 000 working on our construction sites but who are not part of our of to which extent we were unable to supply electricity to
000)/(total worked hours) ). The total of recordable incidents own workforce (as they are, for example, employed by our our customers and therefore our efforts and actions did
(TRI), in this context, represents the combined count of FAT contractors). It also includes workers in our upstream value not have the intended result. The grid availability definition
(Fatalities), LWC (Lost Work Cases), RWC (Restricted Work chain who work on the products and services procured by includes both planned and unplanned outages, with the
Cases), and MTC (Medical Treatment Cases) that occurred us or for business partners contracted by us. This includes exception of our German onshore operations. The nature of
over the defined period. workers outside of Europe, such as in Singapore, India or our onshore and offshore grids differ, as our onshore grid
Malaysia, who are working on assets required for the Dutch are n-1 secured. This is why almost no planned outages are
Regarding the worked hours that include hours of TenneT and German energy transition. Finally, it includes any workers occurring on onshore-grids.
staff as well as contractor staff we apply the following in our downstream value chain who are working on TenneT
methodology. Worked hours of TenneT employees are activities but who are not employed by us. We currently focus The SAIDI is calculated as a outcome of the number of
determined monthly by the human resource department on the workers up to this part in our value chain. interrupted customers/end-users (including GEN, DSO and
(PPL) and reported to the Health, Safety and Environment HVC) multiplied against the duration of the interruption
department. Contractor employee hours are either estimated Within our group of potentially affected value chain workers, in minutes. That outcome is divided by the number of
or based on actuals depending on the project. Contractor a particularly vulnerable group are migrant workers. This all connected customers/end-users. This calculation is in
employee hours are determined quarterly by the contracting includes, for example, migrant workers who are employed by accordance with the 'handleiding Nestor elektriciteit' from
department and reported to the HSE department. The process third parties to work for our sub-contractors on (upstream) Netbeheer Nederland, the association of system operators in
consists of 1) determining the number of hours worked, 2) the Netherlands.

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Social

The ASIDI is calculated by taking the measured power in MW

just before the interruption, multiplied against the duration of
the interruption in minutes. The outcome is divided by the
installed apparent power in MVA of the DSO transformers
plus the installed capacity of the high-voltage costumers and
generators connected to TenneT’s 220/380 kV grid, which is
measured as of the 1st of January of each year.

The number of customer connections realised are based on

project (milestone) data, where planning reports and progress
reported in SAP is the basis. The customer connections
are expressed in so-called "bays", which contain both new
customer bays as well as capacity created by upgrading
existing bays. For the number of customer requests, this is
recorded by our Customer and Markets (CMT) unit, where
each request is recorded in our internal CRM systems. These
requests are done via our external website and can relate
to a capacity request which requires either one or multiple
fields. The data regarding the number of kilometres of new
lines and cables is based on the milestone planning of
individual projects, which is reported based on progress of
the construction.

These metrics are used for internal reporting purposes

and not validated by an external body other than the
assurance provider.

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Governance
Business Conduct management of impacts, risks and opportunities. They are In general, decisions are taken at the lowest possible level
Although Business Conduct was not deemed as a material integrated with other internal functions in the way the EB within TenneT, where the necessary competence and authority
CSRD topic, TenneT has several policies in place, for portfolios are structured. The EB Board portfolios were for the is available. Therefore also the portfolio and initiative steering
example the Code of Conduct which sets clear guidelines greater part of 2024 as shown in the table at the bottom of tasks are distributed across all levels of the organisation, from
for fair, integer and responsible behaviour. For more details, the page. teams to units, over programs and sub-portfolio boards up to
please refer to our Corporate Governance section. As we these four committees.
are committed to conducting our business activities with Furthermore, the impacts, risks and opportunities are
integrity, social and environmental responsibility, while acting structured in TenneT’s transformation to End-to-End (E2E) All committees report to the EB in the Committee UPDs.
in accordance with applicable laws, rules and regulations, we steering of TenneT's core processes. This is done in the
expect our suppliers to do the same. More insights in our following committees: the Asset Committee, the Future Systems & Markets Committee (“SMC”)
Supplier Code of Conduct are outlined in the Social chapter of Design Committee, the System and Markets Committee The SMC is the internal platform for TenneT for all
the Sustainability statements. Both documents can be found and the Business Enabling Foundation Committee. These topics concerning, amongst others, market facilitation,
online on our website. committees are responsible for the (sub)portfolio of system operations development, regional coordination and
improvement initiatives which relate to one or more E2E- positioning on forthcoming regulatory issues within a period
Due diligence process Executive Board processes, covering the entire TenneT process landscape and of 1 to 5 years. The SMC fosters TenneT's strategic ambitions
are described in more detail later in this report: to drive the energy transition, to ensure security of supply
Roles and responsibilities • Systems & Markets Committee: Operate the Electricity and to safeguard TenneT’s financial health, by steering on
The law, Corporate Governance Code, the Companies Articles System & Enable the Energy Market; harmonised positioning and representation towards external
of Association, the Rules Governing the Supervisory Board • Future Design Committee: Design the Energy System; stakeholders. The SMC takes strategic decisions with impact
and the Rules Governing the Executive Board (in conjunction • Asset Committee: Build the Electricity Grid & Maintain the on the topics within its scope.
with the Terms of Reference Executive Board) lay down the Electricity Grid;
roles and responsibilities of SB, SB committees and EB • Business Enabling Foundation Committee: all
regarding dedicated controls and procedures applied to the enabling processes.

CEO Manon van Beek COO Tim Meyerjürgens COO Maarten Abbenhuis CFO Arina Freitag

PPL: People LPG: Large Projects AC-GE AMT: Asset Management ARC: Audit, Risk Management & Internal Control
and Compliance & Integrity
STP: Strategy & Partnerships LPN: Large Projects AC-NL BTO: Business Technology Organisation BGD: Business Guidance
LEG: Legal Affairs LPD: Large Projects DC CCC: Customer Connections & Capacity FGS: Financial Governance Services
PUC: Public Affairs & Communications LPO: Large Projects Offshore CMT: Customers and Markets REG: Regulatory Affairs
GFO: Grid Field Operations, Maintenance ESP: Energy System Planning SCM: Supply Chain Management
and (Baseload) Projects
HSE: Health, Safety and Environment SOP: System Operations

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Future Design Committee (“FDC”) Target setting and monitoring In more detail the following topics are considered by the EB
The FDC develops and communicates perspectives and The EB oversees setting targets related to material impacts, with respect to impacts, risks and opportunities:
scenarios as well as grid- and non-grid solutions on the risks and opportunities, through the Integrated Performance
future energy system to challenge conventional thinking. Plan that is related to TenneT’s Strategy and has been Safe working environment
It appraises new energy concepts, proposes strategic approved by the EB. Relevant safety developments are discussed as the first
partnerships and provides ideas for a fact-based dialogue topic in every EB meeting. The monthly safety reports are
with government, regulators, industry, academia and other TenneT’s corporate targets are yearly discussed by the EB discussed together with a report about a specific incident
stakeholders and can, for this purpose, establish working and the RAC and approved by the SB. They are reported where the EB focuses with the respective experts on the
groups and nominate experts. on to the EB members in the unit performance dialogues, lessons learned and measures taken. The number of Life
to the EB in the quarterly Committee Chairs updates (Asset Saving Rules violations were discussed in every monthly
Asset Committee (“AC”) Committee, Future Design Committee, System and Markets safety report in combination with (negative and positive)
The AC decides and advises the EB on TenneT's grid Committee and Business Enabling Foundation Committee). consequence management. Psychological safety as well as
investments and related maintenance to ensure the balance Progress is reported to the SB in the quarterly Integrated the topic of mental health have been discussed, a.o. in
between security of supply, affordability and sustainability Performance Report, the Finance Report, the Quarterly relation to results of the targets in the quarterly reports
for the grid asset portfolio in relation to the organisation's Investment Report and the Audit-, Risk-and-Control and (a.o. absenteeism) and the outcomes of the Pulse Surveys
strategic objectives. The AC is accountable for the Compliance-and-Integrity Report. When targets have not been amongst TenneT employees. The topic of ‘psychological
management of the overall integrated grid asset portfolio met, the cause, as well as mitigating measures are discussed. safety’, in the sense of feeling safe/ supported to speak up
both onshore and offshore. Its responsibilities range from Where needed targets are sharpened for the following year when certain project execution circumstances seem unsafe to
solving the identified grid constraints to the realisation to keep improving. Where needed, policies are updated to progress, has also been discussed during one of the monthly
of both projects and strategic maintenance plans. In reflect (new) targets and actions to be taken, that will then be incident dialogues. The ‘Safety Needs Our Energy’ training
addition, the AC decides on all grid asset-related projects reported on and monitored as described before. will for that matter be cascaded down to TenneT’s tier 2
and strategic maintenance plans. It ensures a feasible subcontractors (and further).
and reliable integrated grid asset portfolio within the Besides the targets, the EB has various periodic updates
boundaries of the NEP (Netzentwicklungsplan) and FEP on the impacts, risks and opportunities in the EB meetings. Security of supply
(Flächenentwicklungsplan), IP (Investeringsplan), strategic EB members discussed impacts, risks and opportunities This topic is the second topic on the EBM agenda; it is
maintenance plans and availability of resources. with their direct reports in their regular meetings and unit reported upon every week. Incidents are discussed; lessons
performance dialogues. The EB discusses the monthly safety learned are shared, internally and externally, f.i. in the ENTSO-
Business Enabling Foundation Committee (“BEFC”) report and a safety incident report, including measures taken. E meetings. TenneT published the yearly report Monitoring
The BEFC covers all initiatives to change and improve both There are also ‘targeted’ weekly meetings, such as the weekly Security of Supply: this was discussed in the EB. The
existing business processes and IT systems as well as safety meeting with COO Tim Meyerjürgens. conclusions are:
the introduction of (innovative) new processes and systems, • Compared to the previous edition of the Monitor, there is
which relates to the Enabling processes, as long as they In the various quarterly reports (the Integrated Performance an improvement in security of supply in the years to 2030.
do not have a direct impact on one of the core processes Report, the Quarterly Investment Report and the Integrated Nationally, we see higher electricity demand and reductions
(and are therefore covered by another committee). A key Audit, Risk and Compliance report, the EB and SB in regulable capacity. Nevertheless, there is an improved
priority of TenneT’s enabling units is to provide a solid are informed by the respective directors/ TenneT-experts security of supply, as production capacity in surrounding
foundation. The BEFC shall amplify this focus and function about the material impacts, risks, mitigating measures countries remains at the same level.
as a decisive committee. and opportunities. • After 2030, there is a marked deterioration in security
of supply. This is mainly due to increasing demand for

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electricity, while the supply from controllable coal and gas Responsible Supply Chain Practices avoid major impacts on the availability, affordability and
plants actually decreases. This, combined with lagging quality of TenneT's procured products and services. TenneT's
growth of flexibility in the form of demand response, Supply Chain Due Diligence assets are produced along complex global supply chains. The
batteries and new CO2-free controllable capacity, leads Human rights are an important part of a responsible supply majority of emissions in these supply chains does therefore
to the reliability (expectation) standard of 4 hours being chain topic of TenneT’s sustainability strategy. TenneT has an mainly not occur at TenneT's tier 1 suppliers but even further
exceeded to more than 14 hours in base year 2033. impact both upstream and downstream TenneT’s value chain, down the supply chain, e.g. in extraction and refining of
These developments manifest themselves not only in ranging from procurement to asset construction, primarily raw materials or in the production of semi-finished products.
the Netherlands, also in other countries this leads to across Europe, Asia and the Middle East. TenneT’s biggest Stimulating TenneT's supply chains to reduce these emissions
increased interdependence. impact lies upstream and relates to our value chain workers. while not having direct control adds to the challenge of
• The importance of interconnectors to the United Kingdom It’s within TenneT’s responsibilities to promote labour rights reducing TenneT's scope 3 emissions by 30%. This target
or Norway, for example, will continue to be high after 2030. among our suppliers, and the most salient of these for TenneT becomes particularly challenging, taken into account the rapid
• The EB discussed smart strategic choices include forced labour, decent wages, collective bargaining, growth in grid expansion and investments in the upcoming
for both the Dutch and German investment occupational health and safety, working hours and social years. In order to facilitate the energy transition, an immense
plans (Netzentwicklungsplan 2025 (2037-2045) and rights. This is especially critical as TenneT’s project portfolio expansion of the high-voltage grid is necessary.
Investeringsplan 2026) in view of TenneT's increasing increases and we enter into more business relationships with
investment portfolio. The choices to be made will be partners in the Far and Middle East, where the risk of human Good employment
aligned further with all relevant stakeholders (EZK, ACM, rights infringements is higher. The topic of human rights is Every quarter the EB discussed the outcomes of the Pulse
German TSOs, BSH and BNetzA). part of the Supplier Code of Conduct, which together with Surveys. Further to the topics mentioned in the SB report
• Climate change: This topic has been addressed several our Corporate Human Rights Policy forms the basis for our about ‘Good Employment’, the EB discussed the finding that
times, in the Climate transition plan, in the sustainability actions in this area. When we work with suppliers, we include where the sharpened strategy is concerned, (i) cascading
update as well as when discussing certain project choices, human rights within TenneT’s auditing and prequalification it down needs more emphasis, (ii) the need for End-to-
such as pilots for applying alternative gases for SF6 processes. If TenneT sees that a supplier falls short in any End steering is seen and (iii) the value of the performance
gas in switchgear installations on substations, in relation regard, they must submit an improvement plan before they management framework is recognised.
to affordability of the electricity system and security of can be shortlisted as a qualified supplier. Alongside this policy
supply. Further reference is made to the topic of Emission is our commitment to partnering with others to push for Surveys have been conducted and measures have been taken
Reductions hereafter. greater respect for human rights and leverage the power of regarding mental health. Despite that, the topic recurs. The
collective action. CEO has taken action upon this topic.
Resource use and circularity
In the dialogue about the Sustainability update, the EB noted Emission Reductions The EB noted appreciatively that at the same time,
appreciatively that TenneT started a co-operation to use 100% In order to facilitate the energy transition by building, employee motivation remains unwaveringly high. People felt
recycled copper in transformers; has applied ‘Sustainability’ operating and maintaining the transmission grid of the future, more informed, supported and motivated compared to last
as award criterium in its Overhead Line Conductors tender TenneT needs to procure large amounts of products and year. The EB also picked up that there are significant
and has increased its target for the use of circular copper. services. In order to achieve TenneT's target of reducing differences between units; these were discussed in the Unit
Improving on circularity will remain an important focus point TenneT's scope 3 emissions by 30% by 2030, an internal Performance Dialogues.
for the years to come. programme called “Decarbonising Supply Chain” has been
set up. The aims at developing and implementing sustainable TenneT managed to attract 1,350 colleagues in 2024. Further
sourcing strategies to promote committed action for reducing awareness and attention for international hires and related
emissions along TenneT's supply chains while ensuring to ID&E targets and topics remain high on the EB agenda.

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Of equal importance is retaining talent, which TenneT discussed in the SMC. The topic CCC fits both in the FDC (which choice impacts affordability and security of supply),
ensures by stimulating job rotation, a very good learning and SMC. locations of substations, applications of installations (Air
and development programme as well as a very competitive Insulated Switchgear if possible) and choices related to safety
remuneration package. The goals, objectives and key results of the committee and physical security. The various causes for project price
take the strategy into account when selecting topics and increases (scope changes, general price increases, supplier’s
Delivering the energy transition prioritising. Having the objectives defined, and due to the market) were discussed with the EB and SB in various
The EB was closely involved in the update of TenneT's Target fact that there is no infinite budget nor capabilities, therefore meetings, next to the earlier mentioned topics.
Grid, launched in April 2023. It is a strategic vision for high- the SMC takes security of supply and compliance as pre-
voltage infrastructure in the Netherlands and Germany to condition, when deciding on the priorities. Priorities are Material impacts, risks and opportunities reporting is part of
achieve carbon neutrality by 2045. In 2024, the vision was discussed in detailed in the portfolio board under the SMC the KPI reporting of the AC. As data quality has been low for
updated to include higher grid granularity at the 110/150 kV objectives guidance. certain KPIs, there has not yet been a regular reporting in the
level and expanded with two new components: Target Market AC on the KPIs. Regular quarterly reporting will commence in
and Target Operations, ensuring a more comprehensive The committees monitor the execution of key-results, and 2025. Individual units in charge of specific material impacts,
and integrated approach to the energy transition. Using there are E2E processes KPIs (at this moment in the unit risks and opportunities will develop relevant policies etc. for
backcasting, Target Grid enables the development of a UPD). In addition, SMC also deals with strategic topics, such these topics. For example, procurement strategies for SF6-free
strategic course and the establishment of strategic KPIs to as international positioning and representation. assets or regarding circularity requirements for our suppliers
keep the organisation on track for its 2045 goals. are defined by AMT and SCM. The AC is involved when
Future Design Committee (“FDC”) defining objectives (as part of the PMP process) for the next
Position Paper AC and DC Overhead lines versus cables "Delivering the energy transition" (for example NEP and IP year. These newly defined objectives consider the company
Because the energy transition is also about affordability, approval) is the main material topic for the FDC besides strategy and the newly revised asset chain strategy. Especially
security of supply and political/ public acceptance, TenneT others like "Climate change". In practically all discussions and the new asset chain strategy provides guidance in case of
established a position paper on the various disadvantages decisions, their impact on this strategic target were monitored. applicable trade-offs. If applicable – as mentioned mostly with
of cabling versus overhead lines (cables are more expensive Individual units in charge of specific CSRD topics will develop regard to the objectives for improvement measures – the AC
in installation and maintenance and less secure than relevant policies etc. for these topics. The FDC is defining closely monitors progress. Monitoring of the KPIs is mostly
overhead lines). and setting the objectives for the end-to-end process "design done at unit level.
the energy transition" yearly. Therefore the strategic goals of
The EB discussed the duration of land acquisitions for TenneT as well as of the strategic asset management plan are Business Enabling Foundation Committee (“BEFC”)
substations and agreed to start the use of coercive measures considered. If applicable – as mentioned mostly with regard In 2024, the BEFC informed the EB/ SB/ committees on an
in an earlier stage, in parallel to amicable acquisition. By to the objectives for improvement measures – the FDC closely ad-hoc basis about material impacts, risks and opportunities.
doing this TenneT projects will not unnecessarily be delayed monitors progress. Monitoring of the KPIs will be established Regular quarterly reporting will start in 2025. Individual
by unwilling land owners. in 2025. units in charge of specific material impacts, risks and
opportunities develop relevant policies etc. for these topics.
Systems & Markets Committee (“SMC”) Asset Committee (“AC”) The BEFC is involved when defining objectives (as part of
In 2024, the SMC discussed the topics of Operate the In 2024, the AC prepared EB decision making for projects the Portfolio Management Process) for the next year. These
Electricity grid and the Enable the Electricity Market. Both with a value of > EUR 50 million and in the SB with a newly defined objectives consider the company strategy and
topics are part of the material topic security of supply. project value of > EUR 200 million. The AC discussed project the newly revised Enabling Function strategy. Especially the
The Electricity Market Desing Reform, big disturbances, choices, such as the routing of high-voltage connections, new Enabling Function strategy provides guidance in case of
international strategy and alignment and the PMP portfolio are the default choice for overhead lines instead of cables applicable trade-offs. The Enabling Foundation closely

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Capability matrix monitors progress mostly with regard to the objectives for
improvement measures. Furthermore, monitoring of the KPIs
Competencies M.J.J. van Beek T.C. Meyerjürgens M.C. Abbenhuis A.C.H. Freitag
is mostly done at unit level.
(CEO) (COO) (COO) (CFO)

General management ● ● ● ● Skills and expertise

Financial management ● ● ● ● The EB members have kept their knowledge up to date in
their other executive- and non-executive roles as well as by
Capital market/ investor
● ● ● ● attending external trainings and TenneT deep dives, dialogues
relations
and permanent education sessions. For the capability matrix
Technology ● ● ● ●
of the EB, reference is made to next table
IT ● ● ● ●

Risk management ● ● ● ● The impacts, risks and opportunities resort mainly within the
following EB roles because of the on the first page of this
Project management
● ● ● ● section disclosed reporting lines:
(large infrastructure projects)

Human resources ● ● ● ●
Impacts, risks and opportunities Main EB role and units
Marketing/Public Affairs/
● ● ● ● Safe working environment COOs and CFO (LPG, LPN, LPD,
Brand image
LPO, GFO, HSE, AMT, ESP, SOP
Regulation ● ● ● ● and SCM)

Public sector/State owned Climate change CEO (STP)

● ● ● ●
companies CFO (SCM)
COOs (ESP, AMT)
Political/managerial
experience and network ● ● ● ● Resource use and circularity CEO (STP)
the Netherlands CFO (SCM)
Political/managerial Responsible Supply CEO (STP)
experience and network ● ● ● ● Chain Practices CFO (SCM)
Germany Good employment CEO (PPL)
International background/
● ● ● ● Delivering the COOs
experience
energy transition
Legal ● ● ● ●
Security of supply COO Maarten Abbenhuis
Experience in energy-,
industrial and/or financial ● ● ● ●
sector Appropriate skills and expertise are sufficiently available
Knowledge of Dutch Corporate within TenneT’s workforce. By working on impacts, risks and
● ● ● ●
Governance Code opportunities in a cross-unit way, TenneT’s internal expertise
Corporate Social is growing further. Where needed, there is sufficient access to
● ● ● ●
Responsibility/ CSRD external advisors through framework contracts.

● high ● medium ● low

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Appendix
ESRS Reference table
General Section/report Page

Disclosure requirement
ESRS 2 · General disclosures
BP-1 General basis for preparation of the sustainability statements General - Basis for preparation 129
BP-2 Disclosures in relation to specific circumstances Environmental - Metrics 148
Social - Metrics 167
Appendix 178
GOV-1 The role of the administrative, management and supervisory bodies Governance 173
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies Governance 173
GOV-3 Integration of sustainability-related performance in incentive schemes Governance 173
GOV-4 Statement on due diligence Governance 173
GOV-5 Risk management and internal controls over sustainability reporting Governance 173
SBM-1 Strategy, business model and value chain (value-creation process) General 129
SBM-2 Interests and views of stakeholders General - Double materiality assessment 132
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model General - Double materiality assessment 132
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities General - Double materiality assessment 132
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement General - Double materiality assessment 132
MDR-P Policies adopted to manage material sustainability matters
MDR-A Actions and resources in relation to material sustainability matters Environmental 136
Social 162
MDR-M Metrics in relation to material sustainability matters Governance 173
MDR-T Tracking effectiveness of policies and actions through targets

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Appendix

Environmental standards Section/report Page

Disclosure requirement
ESRS E1 · Climate change
ESRS 2, GOV-3 Integration of sustainability-related performance in incentive schemes General - Governance 130
E1-1 Transition plan for climate change mitigation Environmental 136
Material impacts, risks and opportunities, and their interaction with strategy and business model General - Double materiality assessment 132
ESRS 2, SBM-3 Environmental - Strategy 137
General - Double materiality assessment 132
ESRS 2, IRO-1 Description of the processes to identify and assess material climate related impacts, risks and opportunities Environmental - Strategy 137
E1-2 Policies related to climate change mitigation and adaptation Environmental - Policies 137
E1-3 Actions and resources in relation to climate change policies Environmental - Actions 139
E1-4 Targets related to climate change mitigation and adaptation Environmental - Targets 145
E1-5 Energy consumption and mix Environmental - Metrics 152
E1-6 Gross Scopes 1, 2, 3 and total GHG emissions Environmental - Metrics 150
E1-7 GHG removals and GHG mitigation projects financed through carbon credits Environmental - Metrics 153
E1-8 Internal carbon pricing Environmental - Metrics 153
TenneT makes use of the phase-in option,
E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities not disclosed in 2024 N/A
ESRS E5 · Resource use and circular economy
General - Double materiality assessment 132
ESRS 2, SBM-3 Material impacts, risks and opportunities, and their interaction with strategy and business model Environmental - Strategy 137
General - Double materiality assessment 132
ESRS 2, IRO-1 Description of the processes to identify and assess material climate related impacts, risks and opportunities Environmental - Strategy 137
E5-1 Policies related to resource use and circular economy Environmental - Policies 137
E5-2 Actions and resources in relation to resource use and circular economy Environmental - Actions 145
E5-3 Targets related to resource use and circular economy Environmental - Targets 145
E5-4 Resource inflows Environmental - Metrics 155
E5-5 Resource outflows Environmental - Metrics 156
TenneT makes use of the phase-in option,
E5-6 Anticipated financial effects from resource use and circular economy-related risks and opportunities not disclosed in 2024 N/A

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Appendix

Social standards Section/report Page

Disclosure requirement
ESRS S1 · Own workforce
General - Double materiality assessment 132
ESRS 2, SBM-2 Interests and views of stakeholders Social - Strategy 163
General - Double materiality assessment
Social - Strategy 132
ESRS 2, SBM-3 Material impacts, risks and opportunities, and their interaction with strategy and business model Value chain and impacts 164
Social - Policies 164
S1-1 Policies related to own workforce Create a safe and inspiring workplace 60
S1-2 Processes for engaging with own workforce and workers’ representatives about impacts Our stakeholders 24
S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns Social - Policies 164
taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to
S1-4 own workforce, and effectiveness of those actions Social- Actions 165
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Social - Targets 166
S1-6 Characteristics of the undertaking’s employees Social - Metrics 167
S1-7 Characteristics of non-employees in the undertaking’s own workforce Social - Metrics 167
S1-8 Collective bargaining coverage and social dialogue N/A
S1-9 Diversity metrics Social - Metrics 167
S1-10 Adequate wages N/A
S1-11 Social protection N/A
S1-12 Persons with disabilities N/A
S1-13 Training and skills development metrics N/A
S1-14 Health and safety metrics Social - Metrics 167
S1-15 Work-life balance metrics N/A
S1-16 Remuneration metrics (pay gap and total remuneration) N/A
S1-17 Incidents, complaints and severe human rights impacts N/A
ESRS S2 · Workers in the value chain
General - Double materiality assessment 132
ESRS 2, SBM-2 Interests and views of stakeholders Social - Strategy 163
ESRS 2, SBM-3 Material impacts, risks and opportunities, and their interaction with strategy and business model Social - Strategy 163
S2-1 Policies related to value chain workers Social - Policies 164
S2-2 Processes for engaging with value chain workers about impacts Social - Policies 164
S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns Social - Policies 164

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Social standards Section/report Page

Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related
S2-4 to value chain workers, and effectiveness of those actions Social- Actions 165
S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Social - Targets 166

Entity Specific Disclosure: Security of Supply Section/report Page

Disclosure requirement
ESRS 2, SBM 3 Material impacts, risks and opportunities, and their interaction with strategy and business model Social - Strategy 163
MDR-P Policies adopted to manage material sustainability matters Social - Policies 164
MDR-A Actions and resources in relation to material sustainability matters Social- Actions 165
MDR-M Metrics in relation to material sustainability matters Social - Metrics 167
MDR-T Tracking effectiveness of policies and actions through targets Social - Targets 166

Incorporation by reference
Disclosure
Datapoint Section/report Page
requirement

ESRS 1, 8.2 113 Financial statements - Note 2 Segment information 198

21(a)
21(b)
Corporate governance - Executive Board 107
21(d) Corporate governance - Executive Board biographies 108
ESRS 2, GOV-1
21(e) Corporate governance - Supervisory Board biographies 111
Corporate governance - Supervisory Board Report 114
22(d)
23(a)
26(a)
ESRS 2, GOV-2 26(b) Corporate governance - Supervisory Board Report 114
26(c)
40(a) Our profile 14
40(b) Financial statements - Note 24 Revenue 233
ESRS 2, SBM-1 42(a) How we create value 26
42(b) How we create value 26
42(c) Value chain and impacts 29
ESRS 2, SBM-2 45 Our stakeholders 24
ESRS 2, SBM-3 48(f) Our strategy 23

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Disclosure
Datapoint Section/report Page
requirement

ESRS 2, MDR-P 63, 64, 65 Building the electricity grid of tomorrow 35

Utilise the grid to empower society 44
ESRS 2, MDR-A 66, 67, 68, 69
Deliver more grid capacity together for our customers and to serve society 51
ESRS 2, MDR-M 73, 74, 75, 76, 77 Create a safe and inspiring workspace 60
Transition to a brighter energy future within social and planetary boundaries 68
ESRS 2, MDR-T 78, 79, 80, 81 Financial statements - Note 25 Operating expenses 236
Financial statements - Note 2 Segment information 198
Financial statements - Note 3 Tangible fixed assets 203
Financial statements - Note 2 Intangible assets 208
ESRS E1, E1-3 29(c)
27(a) Our stakeholders 24
ESRS S1, S1-2 27(b) Our stakeholders 24
27(c) Our stakeholders 24
ESRS S1, S1-6 50(c) Create a safe and inspiring workspace 60

Datapoints that are derived from other EU legislation

Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference

ESRS 2 GOV-1 21(d) Not material Not material

ESRS 2 GOV-1 21(e) Not material
ESRS 2 GOV-4 30 Not material
ESRS 2 SBM-1 40(d)i Not material Not material Not material
ESRS 2 SBM-1 40(d)iii Not material Not material
ESRS 2 SBM-1 40(d)iii Not material Not material
ESRS 2 SBM-1 40(d)iv Not material
ESRS E1-1 14 Environmental
ESRS E1-1 16(g) Not material Not material
ESRS E1-4 34 Not material Not material Not material
ESRS E1-5 37 Not material
ESRS E1-5 38 Not material
ESRS E1-5 40 to 43 Not material
ESRS E1-6 44 Not material Not material Not material
ESRS E1-6 53 to 55 Not material Not material Not material
ESRS E1-7 56 Environmental

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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference

ESRS E1-9 66 Not material

ESRS E1-9 66(a) Not material
ESRS E1-9 66(c) Not material
ESRS E1-9 67(c) Not material
ESRS E1-9 69 Not material
ESRS E2-4 28 Not material
ESRS E3-1 9 Not material
ESRS E3-1 13 Not material
ESRS E3-1 14 Not material
ESRS E3-4 28(c) Not material
ESRS E3-4 29 Not material
ESRS 2- SBM 3 - E4 16(a)i Not material
ESRS 2- SBM 3 - E4 16(b) Not material
ESRS 2- SBM 3 - E4 16(c) Not material
ESRS E4-2 24(b) Not material
ESRS E4-2 24(c) Not material
ESRS E4-2 24(d) Not material
ESRS E5-5 37(d) Not material
ESRS E5-5 39 Not material
ESRS 2- SBM3 - S1 14(f) Not material
ESRS 2- SBM3 - S1 (14g) Not material
ESRS S1-1 20 Not material
ESRS S1-1 21 Not material
ESRS S1-1 22 Not material
ESRS S1-1 23 Not material
ESRS S1-3 32(c) Not material
ESRS S1-14 88(b) and (c) Not material Not material
ESRS S1-14 (e) Not material
ESRS S1-16 97(a) Not material Not material
ESRS S1-16 97(b) Not material
ESRS S1-17 103(a) Not material
ESRS S1-17 104(a) Not material Not material

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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference

ESRS 2- SBM3 – S2 11(b) Not material

ESRS S2-1 17 Not material
ESRS S2-1 18 Not material
ESRS S2-1 19 Not material Not material
ESRS S2-4 36 Not material
ESRS S3-1 16 Not material
ESRS S3-1 17 Not material Not material
ESRS S3-4 36 Not material
ESRS S4-1 16 Not material
ESRS S4-1 17 Not material Not material
ESRS S4-4 35 Not material
ESRS G1-1 10(b) Not material
ESRS G1-1 10(d) Not material
ESRS G1-4 24(a) Not material Not material
ESRS G1-4 24(d) Not material

Policies and other items • Functional Description Strategy & Partnerships • Terms of Reference Future Design Committee Netherlands
EB discussed and approved policies • Mobility Policy and Germany
In 2024, the EB discussed and approved (the updates of) the • Functional Description Customer Connections • Terms of Reference Systems and Markets Committee
following policies: and Capacity Netherlands and Germany
• Corporate Policy External Power of Attorney and Internal • Functional Description Legal Affairs Germany
Authorisation Rules Netherlands and Germany • Functional Description Large Projects DC
• Climate transition plan • Functional Description Grid Field Operations Netherlands
• Integrated Performance Plan and Germany
• Internal Audit Charter • Functional Description Grid Field Operations
• Corporate Policy Security Offshore Germany
• Business Directive Life Saving Rules and Fair Approach • Functional Description Energy System Planning
• Sustainability at TenneT Netherlands and Germany
• Functional Description Customer & Markets Netherlands • Functional Description Energy System Planning
and Germany Netherlands and Germany
• Functional Description Large Projects Offshore Netherlands • Terms of Reference Asset Committee Netherlands
and Germany and Germany
• Functional Description System Operation Netherlands • Terms of Reference Business Enabling Foundation
and Germany Committee Netherlands and Germany

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Appendix

Additional EU Taxonomy disclosures

Taxonomy-aligned turnover

Substantial contribution criteria DNSH criteria (‘Does Not Significantly Harm’)

Turnover Proportion Proportion Category Category
Climate Climate Climate Climate Minimum
Code (in of Turnover, Circular Bio- Bio- of Turnover, enabling transitional
change change Water Pollution change change Water Pollution safeguards
(2) EUR million) year 2024 economy diversity diversity year 2023 activity (E) activity (T)
mitigation adaptation (7) (8) mitigation adaptation (13) (14) (17)
(3) (%) (4) (9) (10) (16) (%) (18) (19) (20)
Economic activity (1) (5) (6) (11) (12)
A.TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Transmission of
CCM
electricity in 2,486 29.5% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 29.4% E
35.12
the Netherlands
Transmission of CCM
5,721 67.9% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 68.4% E
electricity in Germany 35.12
Turnover of environmentally
sustainable activities 8,207 97.4% 97% 0% 0% 0% 0% 0% Y Y Y Y Y Y 97.8%
(Taxonomy-aligned) (A.1)
Of which enabling 8,207 97.4% 97% 0% 0% 0% 0% 0% 97.8% E
Of which transitional - 0.0% T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-
aligned activities)
Transmission of electricity in
the Netherlands last mile to 20 0.2% Y N/EL N/EL N/EL N/EL N/EL 0.3%
fossil power plant
Transmission of electricity in
Germany last mile to fossil 159 1.9% Y N/EL N/EL N/EL N/EL N/EL 1.4%
power plant
Turnover of Taxonomy-
eligible but not
environmentally sustainable 179 2.1% 2.1% 0% 0% 0% 0% 0% 1.7%
activities (not Taxonomy-
aligned activities) (A.2)

A. Turnover of Taxonomy-
8,386 99.5% 100% 0% 0% 0% 0% 0% 99.5%
eligible activities (A.1+A.2)
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy- non-
44 0.5%
eligible activities
Total (A+B) 8,430 100%

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with N: No, Taxonomy-eligible but not Taxonomy-aligned activity N/EL: not eligible, Taxonomy-non-eligible activity for the
the relevant environmental objective. with the relevant environmental objective. relevant environmental objective.

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Appendix

Taxonomy-aligned CapEx

Substantial contribution criteria DNSH criteria (‘Does Not Significantly Harm’)

Proportion Proportion Category Category
CapEx (in Climate Climate Climate Climate Minimum
of CapEx, Circular Bio- Bio- of CapEx, enabling transitional
Code (2) EUR million) change change Water Pollution change change Water Pollution safeguards
year 2024 economy diversity diversity year 2023 activity (E) activity (T)
(3) mitigation adaptation (7) (8) mitigation adaptation (13) (14) (17)
(%) (4) (9) (10) (16) (%) (18) (19) (20)
Economic activity (1) (5) (6) (11) (12)
A.TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Transmission of electricity CCM
3,871 35.5% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 33.8% E
in the Netherlands 35.12
Transmission of electricity CCM
7,046 64.5% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 66.0% E
in Germany 35.12
CapEx of environmentally
sustainable activities (Taxonomy- 10,917 100.0% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 99.8%
aligned) (A.1)
Of which enabling 10,917 100.0% 100% 0% 0% 0% 0% 0% 99.8% E
Of which transitional - 0.0% T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
Transmission of electricity in the
Netherlands last mile to fossil - 0.0% Y N/EL N/EL N/EL N/EL N/EL 0.0%
power plant
Transmission of electricity in Germany
- 0.0% Y N/EL N/EL N/EL N/EL N/EL 0.0%
last mile to fossil power plant
CapEx of Taxonomy- eligible but
not environmentally sustainable
- 0.0% 0.0% 0% 0% 0% 0% 0% 0.0%
activities (not Taxonomy-aligned
activities) (A.2)

A. CapEx of Taxonomy-eligible
10,917 100% 100% 0% 0% 0% 0% 0% 99.8%
activities (A.1+A.2)
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy- non-
2 0.0%
eligible activities
Total (A+B) 10,919 100%

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with N/EL: not eligible, Taxonomy-non-eligible activity for the
the relevant environmental objective. relevant environmental objective.

N: No, Taxonomy-eligible but not Taxonomy-aligned activity

with the relevant environmental objective.

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Appendix

Taxonomy-aligned OpEx

Substantial contribution criteria DNSH criteria (‘Does Not Significantly Harm’)

Proportion Proportion Category Category
OpEx (in Climate Climate Climate Climate Minimum
of OpEx Circular Bio- Bio- of OpEx enabling transitional
Code (2) EUR million) change change Water Pollution change change Water Pollution safeguards
year 2024 economy diversity diversity year 2023 activity (E) activity (T)
(3) mitigation adaptation (7) (8) mitigation adaptation (13) (14) (17)
(%) (4) (9) (10) (16) (%) (18) (19) (20)
Economic activity (1) (5) (6) (11) (12)
A.TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Transmission of electricity CCM
1,118 25.2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 26.9% E
in the Netherlands 35.12
Transmission of electricity CCM
3,313 74.7% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 67.9% E
in Germany 35.12
OpEx of environmentally sustainable
4,431 99.9% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 99.4%
activities (Taxonomy-aligned) (A.1)
Of which enabling 4,431 99.9% 100% 0% 0% 0% 0% 0% 99.4% E
Of which transitional - 0.0% T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
Transmission of electricity in the
Netherlands last mile to fossil 1 0.2% Y N/EL N/EL N/EL N/EL N/EL 0.2%
power plant
Transmission of electricity in Germany
3 0.1% Y N/EL N/EL N/EL N/EL N/EL 0.4%
last mile to fossil power plant
OpEx of Taxonomy- eligible but
not environmentally sustainable
4 0.1% 0.1% 0% 0% 0% 0% 0% 0.6%
activities (not Taxonomy-aligned
activities) (A.2)

A. OpEx of Taxonomy-eligible
4,435 100% 100% 0% 0% 0% 0% 0% 100%
activities (A.1+A.2)
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy- non-
1 0.0%
eligible activities
Total (A+B) 4,436 100%

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with N: No, Taxonomy-eligible but not Taxonomy-aligned activity N/EL: not eligible, Taxonomy-non-eligible activity for the
the relevant environmental objective. with the relevant environmental objective. relevant environmental objective.

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Appendix

Template 1a Nuclear related activities

Activity Yes/No

The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with No
minimal waste from the fuel cycle.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or No
industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial No
processes such as hydrogen production from nuclear energy, as well as their safety upgrades.

Template 1b Fossil gas related activities

Activity Yes/No

The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. No
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. No
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. No

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Consolidated financial statements 190 Company financial statements 241

Notes to the consolidated financial statements 194 Notes to the company financial statements 243
1. Basis for reporting 194 32. Company accounting policies 243
2. Segment information 198 33. Investments in subsidiaries 243

Financial 3. Tangible fixed assets

4. Right of use assets and lease liabilities
5. Intangible assets
203
205
208
34. Investments in associates
35. Other financial assets
36. Account- and other receivables
243
243
243

statements 6. Investments in joint ventures and associates

7. Other financial assets
8. Inventories
209
212
213
37. Equity
38. Financial liabilities
39. Account- and other payables
244
244
244
9. Account- and other receivables 213 40. Personnel expenses 244
10. Cash and cash equivalents 214 41. Other operating expenses 245
11. Capital management 215 42. Finance income 245
12. Equity 216 43. Finance expenses 245
13. Non-controlling interests 217 44. Commitments and contingencies 245
14. Borrowings 218 45. Events after the reporting period 245
15. Contract liabilities 221
16. Provisions 222
17. Net employee defined benefit liabilities 223
18. Other financial liabilities 226
19. Account- and other payables 227
20. Financial risk management 227
21. Fair values 231
22. ⓘ Accounting policies for financial instruments 231
23. Commitments and contingencies 232
24. Revenue 233
25. Operating expenses 235
26. Finance income and expenses 237
27. Corporate income tax 237
28. Earnings per share 239
Accounting policies are indicated
29. Related parties 240 with ⓘ, while key assumptions
30. Consolidated subsidiaries 240 and estimates are identified by
31. Events after the reporting period 240 using ✪ in front of the header
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Consolidated statement of financial position

(EUR million) Notes 2024 20231 (EUR million) Notes 2024 20231
Assets Equity and liabilities
Non-current assets Equity
Tangible fixed assets 3 42,798 33,644 Equity attributable to ordinary shares 12 8,727 5,516
Right of use assets 4 1,257 977 Hybrid securities 12 2,140 2,125
Intangible assets 5 434 373 Equity attributable to owners of the company 10,867 7,641
Investments in joint ventures 6 569 595 Non-controlling interests 13 354 400
Investments in associates 6 33 33 Total equity 11,221 8,041
Deferred tax assets 27 521 852
Other financial assets 7 56 42 Non-current liabilities
Total non-current assets 45,668 36,516 Borrowings 14 31,366 18,871
Contract liabilities 15 759 612
Current assets Deferred tax liabilities 27 3 3
Inventories 8 145 153 Provisions 16 1,726 1,726
Account- and other receivables 9 2,630 3,941 Lease liabilities 4 1,029 784
Income tax receivables 27 30 38 Net employee defined benefit liabilities 17 240 217
Cash and cash equivalents 10 4,393 1,056 Other financial liabilities 18 170 169
Total current assets 7,198 5,188 Other liabilities 36 37
Total non-current liabilities 35,329 22,419
Assets of disposal group classified as held for sale 1 26 19
Current liabilities
Borrowings 14 568 3,640
Contract liabilities 15 14 15
Income tax payables 27 177 153
Provisions 16 564 111
Lease liabilities 4 210 184
Other financial liabilities 18 364 1,975
Account- and other payables 19 4,428 5,172
Total current liabilities 6,325 11,250

Liabilities of disposal group classified as held for sale 1 17 13

Total assets 52,892 41,723 Total equity and liabilities 52,892 41,723

1 TenneT classified TenneT Germany as held for sale per 31 December 2023. This classification has been ceased as at 30 June 2024, and as such the comparative figures are voluntarily restated to achieve comparability with the current period (refer to note 1 for further information).

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Consolidated statement of income and other comprehensive income

For the year ended 31 December

(EUR million) Notes 2024 20231 (EUR million) Notes 2024 2023
Revenue 24 9,999 9,298 Result for the year 1,827 711
Grid expenses 25 -4,564 -5,967
Personnel expenses 25 -353 -335 Other comprehensive income
Depreciation, amortisation and impairment of assets 3, 4, 5 -1,466 -1,350 Items not to be reclassified to profit or loss in subsequent years:
Other operating expenses 25 -449 -377 Remeasurement of defined benefit pensions 12, 17 8 -29
Other (gains)/losses -12 5 Taxation on remeasurement of defined benefit pensions 12, 27 -2 9
Total operating expenses -6,844 -8,024 Net other comprehensive income/(loss) that will not be reclassified to
6 -20
Share in profit of joint ventures and associates 6 49 150 profit or loss in subsequent periods
Operating result 3,204 1,424
Finance income 26 63 42 Total comprehensive income for the year, net of tax 1,833 691
Finance expenses 26 -739 -495
Finance result -676 -453 Attributable to:
Owners of the company
Result before income tax 2,528 971 Equity holders of the parent 1,750 575
Income tax expense 27 -701 -260 Hybrid securities 78 57
Result for the year 1,827 711 Owners of the company 1,828 632
Non-controlling interests 5 59
Result attributable to: Total comprehensive income for the year, net of tax 1,833 691
Owners of the company
Equity holders of ordinary shares 12 1,744 595
Hybrid securities 12 78 57
Owners of the company 1,822 652
Non-controlling interests 13 5 59
Result for the year 1,827 711

1 TenneT classified TenneT Germany as held for sale per 31 December 2023. This classification has been ceased as at 30 June 2024,
and as such the comparative figures are voluntarily restated to achieve comparability with the current period (refer to note 1 for
further information).

Earning per share attributable to the equity holders of ordinary shares

For the year ended 31 December

EUR per share Note 2024 2023

Basic and diluted earnings per share 28 8,720 2,975

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Consolidated statement of changes in equity

For the year ended 31 December

Attributable to equity holders of the company

Non-
(EUR million) Equity Equity attributable controlling Total equity
Paid-up and Share premium Retained Unappropriated
Notes attributable to Hybrid securities to owners of interest
called-up capital reserve earnings result
ordinary shares the company

At 1 January 2023 100 3,020 2,980 -967 5,133 2,125 7,258 455 7,713

Result for the year - - - 595 595 57 652 59 711

Total other comprehensive income - - -20 - -20 - -20 - -20
Total comprehensive income - - -20 595 575 57 632 59 691
Capital repayments 13 - - - - - - - -97 -97
Dividends paid 12, 13 - - - -207 -207 - -207 -17 -224
Distribution on hybrid securities 12 - - - - - -57 -57 - -57
Tax on distribution on hybrid securities 12 - - 15 - 15 - 15 - 15
Appropriation remaining prior year result - - -1,174 1,174 - - - - -
At 31 December 2023 100 3,020 1,801 595 5,516 2,125 7,641 400 8,041

Result for the year - - - 1,744 1,744 78 1,822 5 1,827

Total other comprehensive income - - 6 - 6 - 6 - 6
Total comprehensive income - - 6 1,744 1,750 78 1,828 5 1,833
Capital contribution 12 - 1,602 - - 1,602 - 1,602 25 1,627
Capital repayments 13 - - - - - -1,100 -1,100 -50 -1,150
Dividends paid 12, 13 - - - -150 -150 - -150 -26 -176
Issue of hybrid securities 12 - - -7 - -7 1,100 1,093 - 1,093
Distribution on hybrid securities 12 - - - - - -63 -63 - -63
Tax on distribution on hybrid securities 12 - - 16 - 16 - 16 - 16
Appropriation remaining prior year result - - 445 -445 - - - - -
At 31 December 2024 100 4,622 2,261 1,744 8,727 2,140 10,867 354 11,221

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Consolidated statement of cash flows

For the year ended 31 December

(EUR million) Notes 2024 2023 (EUR million) Notes 2024 2023
Operating activities
Operating result 3,204 1,424 Financing activities
Non-cash adjustments to reconcile result to net cash flows: Net borrowings
Depreciation, amortisation and impairment of assets 3, 4, 5 1,466 1,350 Proceeds from borrowings 14 13,350 3,787
Result on disposal of assets 26 1 Repayments of borrowings 14 -3,941 -1,004
Share in result of joint ventures and associates 6 -49 -150 Total net borrowings 9,409 2,783
Dividends received from joint ventures and associates 6 39 155
Movements in provisions and other (financial) assets and liabilities 440 12 Other financing activities
Total non-cash adjustments 1,922 1,368 Payments of lease liabilities 4 -246 -177
Interest paid -568 -417
Working capital adjustments excluding EEG working capital: Contributions by ordinary shareholder of the company 12, 18 - 1,602
(Increase)/decrease in account- and other receivables 9 33 -342 Dividends paid to ordinary shareholders of the company 12 -150 -207
(Increase)/decrease in inventories -2 -21 Proceeds from issue of hybrid securities 12 1,093 -
Increase/(decrease) in contract liabilities 15 147 81 Repayment of hybrid securities 12 -1,100 -
Increase/(decrease) in current other financial liabilities 18 -9 -177 Distribution on hybrid securities 12 -63 -57
Increase/(decrease) in account- and other payables 19 222 596 Repayments of other financial liabilities 18 -9 -37
Cash generated from operating activities 391 137 Dividends paid and capital repayments to non-controlling interests 13 -76 -114
Income taxes paid, (net) -321 -140 Proceeds from capital contributions to non-controlling interests 13 25 -
Total other financing activities -1,094 593
Net cash flows from operating activities excluding EEG working capital 5,196 2,789
EEG working capital adjustments: Net cash flows from financing activities 8,315 3,376
(Increase)/decrease in EEG receivables 9 1,270 -1,250
(Increase)/decrease EEG deposits > 3 months 9 - - Net change in cash and cash equivalents 3,337 -5,491
Increase/(decrease) in EEG payables 9 -1,275 -3,193 Cash and cash equivalents at 31 December 10 4,393 1,056
Total EEG working capital adjustments -5 -4,443 Cash and cash equivalents at 1 January 10 1,056 6,547
Net change in cash and cash equivalents 3,337 -5,491
Net cash flows from operating activities 5,191 -1,654

Investing activities
Purchases of tangible and intangible fixed assets 3, 5, 19 -10,261 -7,319
Proceeds from sale of tangible and intangible fixed assets 4 4
Proceeds from sale of subsidiaries 6 - 33
Interest received 26 53 35
Capital repayments from joint ventures 6 35 34
Capital contributions to joint ventures and associates 6 - -
Net cash flows used in investing activities -10,169 -7,213

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Notes to the consolidated financial statements

TenneT is continuously improving its financial reporting to make it more relevant The registered office of TenneT Holding B.V. is located at Utrechtseweg 310, Arnhem, the
Netherlands, with its statutory seat in Arnhem and a registration with the Dutch Commercial
and understandable to its stakeholders. These financial statements focus on
Register under number 09083317.
the material (financial) topics for 2024. Accounting policies are indicated with
ⓘ, while key assumptions and estimates are identified by using ✪ in front of These consolidated financial statements for the year ended 31 December 2024 were prepared
the header. by the Executive Board and authorised for issuance in accordance with a resolution of the
Supervisory Board on 3 March 2025. The financial statements will be submitted for adoption
1. Basis for reporting at the General Meeting of Shareholders. These consolidated financial statements have been
The accounting policies describes TenneT's approach to recognise and measure transactions audited by Deloitte Accountants B.V.
and balance sheet items in the financial statements. Accounting policies, including new
European Union (EU) endorsed accounting standards, amendments and interpretations, relating Basis for preparation
to the consolidated financial statements as a whole are described hereafter. This section These consolidated financial statements are prepared in accordance with International Financial
also provides general guidance regarding assumptions, estimates and judgements used in the Reporting Standards (IFRS Accounting Standards) as adopted by the European Union and Part
preparation of the financial statements. A more detailed description of accounting policies and 9 of Book 2 of the Dutch Civil Code. The company financial statements for TenneT Holding B.V.
material estimates related to specific reported amounts is presented in the respective notes. are prepared in accordance with the provisions of Part 9 of Book 2 of the Dutch Civil Code.
Only accounting policies that are deemed material are presented in these financial statements.
TenneT considers an item material if, in TenneT's view, it is likely to have an impact on the The consolidated financial statements are prepared on a going concern basis. The going
economic decisions of primary users of these financial statements. concern basis presumes that the Group has adequate resources to remain in operation and
that the Executive Board intends it to do so, for at least one year from the date of the end of the
General reporting period.
TenneT Holding B.V. and its subsidiaries (hereafter referred to as 'TenneT’, ‘the Company’ or
‘the Group’) are a leading electricity transmission system operator ('TSO') with activities in the The consolidated financial statements are prepared on a historical cost basis, unless described
Netherlands and large parts of Germany. In the Netherlands, TenneT's activities are conducted otherwise in the accounting policy of a balance sheet position. They are presented in euros and
by TenneT TSO B.V. and its subsidiaries. In Germany, TenneT's work is performed by TenneT all values are rounded to the nearest million (EUR 000,000), except when otherwise indicated.
GmbH & Co. KG and its subsidiaries.
Earnings per share are disclosed on voluntary basis, please refer to note 28.
As a TSO, the principal tasks are to (1) ensure a secure and continuous supply of electricity,
(2) provide transmission services by transporting electricity along the high-voltage grid from Basis for consolidation
where it is produced to where it is consumed, (3) provide system services to balance supply The consolidated financial statements incorporate the financial statements of TenneT Holding
and demand of electricity and (4) facilitate a liquid and stable electricity market to support the B.V. and its subsidiaries at 31 December 2024. A list of the legal entities included in the
large-scale energy transition to renewables. consolidation is included in note 30. Subsidiaries are consolidated from the date of acquisition,
constituting the date on which control is obtained and continue to be consolidated until the date
The Dutch state owns the entire issued share capital of TenneT Holding B.V. Furthermore, when such control ceases. The financial statements of subsidiaries are prepared for the same
TenneT Holding B.V. has issued hybrid securities which are subordinated and accounted for as reporting period as the parent company, using consistent accounting policies. All inter-company
part of equity attributable to equity holders of the Company. balances, transactions, unrealised gains and losses resulting from inter-company transactions
and dividends are eliminated in full in consolidation.

Integrated Annual Report 2024 TenneT Holding B.V. 194

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as Changes in accounting estimates
an equity transaction. If TenneT ceases to have control over a subsidiary, TenneT derecognises The Group has reassessed its assumptions for the decommissioning provision and the
the subsidiary's assets (including goodwill), liabilities and any non-controlling interest in the corresponding asset retirement cost as included in the tangible fixed assets per 31 December
former subsidiary at the date control is lost (including the cumulative translation differences). 2024. Based on that assessment, the Group concluded that, based on new information,
Furthermore, the fair value of the consideration received, the fair value of any investment several assumptions and estimates in the determination of the total estimated decommissioning
retained and any surplus or deficit in statement of income are recognised. Acquisitions are costs needed to be updated. The updated assumptions resulted in a decrease in the
accounted for using the acquisition method, where the purchase price is allocated to the decommissioning provision and the corresponding asset retirement cost per 31 December
identifiable assets acquired and liabilities assumed on a fair value basis and the remainder is 2024 amounting to EUR 159 million. Please, refer to note 16 for further details on the
recognised as goodwill. decommissioning provision.

Material accounting judgements, estimates and assumptions Annually, the Group reassesses its estimate for the useful lives of tangible fixed assets. Based
The preparation of financial statements requires to make estimates and assumptions that affect on that review, the Group concluded that the useful lives of several onshore assets needed to
the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and be extended prospectively as per 1 January 2024. The corresponding decreased depreciation,
the reported amounts of revenue and expenses during the reporting period. Such estimates based on the asset base as of 31 December 2023, is approximately EUR 45 million on an annual
are assessed continuously on the basis of previous results and experience, consultations basis, impacting both the Dutch operating segment (EUR 22 million) as well as the German
with experts, trends, prognoses and other methods which TenneT deems appropriate in each operating segment (EUR 23 million). Please, refer to note 3 for further details on the useful lives
individual case. Actual results could differ from these estimates. Accounting topics containing of tangible fixed assets.
material estimates and assumptions are as follows:
Grid related accruals recognised in prior periods and its underlying estimation assumptions,
Item Notes Estimate/assumptions
are reassessed on a regular basis. During 2024, this reassessment resulted in updated figures
Assets and liabilities held
1 Estimate of probable date of sale and estimate of sale price caused by better available information, and as a result the accruals could be estimated more
for sale
Estimate of identification of cash-generating units (CGU) for impairment
reliable. The impact of the prospectively recognised adjustment amounts to EUR 535 million,
testing, the remaining useful life and of the recoverable amount resulting in decreased revenue and account- and other receivables.
Tangible fixed assets 3 In both the assessment of the useful lives of TenneT's assets and in the
design phase of new assets, climate related risks are considered. Climate Changes in EU-endorsed published IFRS Accounting Standards and interpretations
related risks are reduced by adjusting design or taking mitigating measures.
effective in 2024
Right of use assets and Estimates of discount rate and expected extension or accelerated
4 Material new and amended IFRS Accounting Standards adopted by the Group
lease liabilities termination date
Estimate of identification of CGUs for impairment testing, the remaining • Amendments to IAS 1 Presentation of Financial Statements
Intangible assets 5
useful life and of the recoverable amount • Amendments to IFRS 16 Leases
Impairment test of goodwill 5 Estimate of cash flow projections and pre-tax discount rate • Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosure
Decommissioning Estimate of decommissioning costs, decommissioning dates, discount rates
16
provision and inflation rates in the period until removal
Net employee
The issued changes to IFRS Accounting Standards do not have a material impact.
17 Financial, actuarial and demographic assumptions
benefit obligations
Other provisions 16 Mainly estimate of probability and realisation date
Grid expense payables 19 Mainly estimate of electricity volumes and prices

A more detailed disclosure of these accounting judgements, estimates and assumptions is

included in the disclosure notes as referenced before.

Integrated Annual Report 2024 TenneT Holding B.V. 195

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

IFRS Accounting Standards issued but not yet effective and adopted by the Group The major classes of assets and liabilities of TenneT Germany classified as held for sale at
• Amendments to IAS 21 The effect of changes in foreign exchange rates 31 December were as follows:
• Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosure
• IFRS 18 Presentation and Disclosure in Financial Instruments (EUR million) Notes 2023

• IFRS 19 Subsidiaries without Public Accountability: Disclosures Assets

Tangible fixed assets 3 21,880
TenneT has not early adopted any accounting standard, interpretation or amendment that has Right of use assets 4 872
been issued but is not yet effective. It is anticipated that any issued changes to IFRS Accounting Intangible assets 5 119
Standards that are not yet effective and adopted by TenneT will not have a material impact. Investments in joint ventures 6 384
Investments in associates 6 1
Functional currency Deferred tax assets 27 272
These consolidated financial statements are presented in euros, which is also the parent Other financial assets 7 18
company's and all subsidiaries` functional currency. Inventories 8 138
Account- and other receivables 9 3,489
Assets held for sale Income tax receivable 27 38
TenneT Germany Cash and cash equivalents 10 383
In February 2023, TenneT started to explore the potential sale of German activities to the Assets held for sale 27,594
German state. Over the past year, discussions took place between TenneT and KfW, acting on Liabilities
behalf of the German state, with close involvement of the German state and the Dutch state Contract liabilities 15 85
as TenneT's sole shareholder. As announced on 20 June 2024, the negotiations with KfW have Deferred tax liabilities 27 2
been terminated. Provisions 16 1,293
Lease liabilities 4 862
Due to these circumstances, TenneT considers that it is as per 30 June 2024 no longer Net employee defined benefit liabilities 17 217
highly probable that all its shares in TenneT Germany will be sold to KfW. In the consolidated Other financial liabilities 18 169
financial statements, the IFRS 5 ‘Non current assets held for sale and discontinued operations' Income tax payable 27 81
Accounting Standard is not applied, which implies that the German activities are presented Account- and other payables 19 4,532
as continued operations. No longer classifying the German activities as held for sale has an Other liabilities 27
impact on the 31 December 2024 figures. As a result, comparative figures are, in contrast to the Liabilities held for sale 7,268
Company’s half-year report, voluntarily adjusted because of the significance of the affected
balances and the related impact in understanding the changes in the balance sheet from Net assets directly associated with disposal group 20,326
31 December 2023 to 31 December 2024. The assets and liabilities of TenneT Germany per
31 December 2023, as disclosed in the next table, are incorporated to achieve the intended
comparability with the current period.

In addition, the depreciation that would have been recognised had the German activities not
been classified as held for sale, amounting to EUR 516 million for the first half year of 2024, are
recognised as per 30 June 2024. There is no effect on the result of last year.

Integrated Annual Report 2024 TenneT Holding B.V. 196

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

NOVEC B.V. The major classes of assets and liabilities of NOVEC classified as held for sale at 31 December
NOVEC B.V. is a 100% subsidiary of TenneT Holding B.V. The activities of NOVEC are part of were as follows:
the segment non-regulated activities. Following a strategic review, considering TenneT’s focus
on the energy transition, it was concluded that TenneT Holding B.V. no longer needs to remain (EUR million) Notes 2024 2023

100% shareholder of NOVEC. Assets

Tangible fixed assets 3 11 7
On 5 June 2024, KPN and ABP announced that they signed an agreement to create a new tower Right of use assets 4 10 7
company. The company will hold the passive mobile infrastructure assets of KPN, as well as
Intangible assets 5 3 3
those of NOVEC and OTC, with TenneT selling its stake in NOVEC as part of this transaction by
Investments in associates 6 1 1
means of a legal demerger. The transaction is, after approval by the works council of KPN and
Account- and other receivables 9 1 1
the Dutch competition authorities (‘ACM’), completed in February 2025.
Assets held for sale 26 19
Additionally, on 1 November 2024, NOVEC announced that a share purchase agreement has Liabilities
been signed where it will sell its stake in WL Winet to BAM. The transaction is not subject to Provisions 16 5 1
approval by the ACM, and has been completed in February 2025. Lease liabilities 4 7 6
Account- and other payables 19 5 6
Total assets held for sale relating to NOVEC B.V. amounts to EUR 26 million (31 December 2023:
Liabilities held for sale 17 13
EUR 19 million) and the liabilities held for sale amounts to EUR 17 million (31 December 2023:
EUR 13 million).
Net assets directly associated with disposal group 9 6

Integrated Annual Report 2024 TenneT Holding B.V. 197

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

2. Segment information Underlying financial information is based on the principle of recognising regulatory assets and
This section sets out the financial performance for the year in accordance with the way in liabilities for all of TenneT's regulated activities. This implies that amounts resulting from past
which TenneT manages its business (operating segments). TenneT measures and assesses its events and which are allowed to be received or are required to be returned through future tariffs
performance based on underlying financial information, which is explained further hereafter. are recorded as an asset or liability, respectively. The Executive Board holds the opinion that the
presentation of underlying financial information provides additional relevant insight in the actual
TenneT generates substantially all of its revenue from its regulated operating segments in the business, financial performance, and as such economic reality.
Netherlands and Germany. Therefore, close collaboration with its respective regulators to obtain
regulations and agreements that provide reasonable compensation for the risks TenneT faces, Hereafter an overview of the Company's key metrics is disclosed:
is key. TenneT's involvement in certain limited non-regulated activities is closely related and
ancillary to its core tasks. (EUR million) 2024 2023

Operating Operating
Underlying information Assets Liabilities Investments Assets Liabilities Investments
Segment analysis result result

TenneT's operating segments consist of: TSO Netherlands 18,487 11,624 625 3,783 15,586 9,020 548 2,948
• TSO Netherlands; TSO Germany 33,221 27,759 1,087 6,852 28,830 23,786 1,141 4,779
• TSO Germany; and Non-
3,843 357 27 2 629 1,837 105 3
• Non-regulated activities (partly part of held for sale). regulated companies
Total continued
55,551 39,740 1,739 10,637 45,045 34,643 1,794 7,730
For management information purposes, the performance of TenneT's regulated activities in the segments
Netherlands and in Germany is considered separately into two geographical segments. This NOVEC B.V. (held
46 20 8 - 110 16 23 -
segmentation, based on separately applicable regulatory frameworks, is the key determinant for sale)
for financial management of the business and for decision-making on budgets, allocation of Total segments 55,597 39,760 1,747 10,637 45,155 34,659 1,817 7,730
resources and financing. Eliminations
-326 3,108 -2 - -409 -99 - -
and adjustments
Financing activities (including finance income and expenses) are managed on a Group basis Consolidated
and amounts related thereto are not allocated to the segments. Transfer prices between underlying 55,271 42,868 1,745 10,637 44,746 34,560 1,817 7,730
information
the Netherlands and Germany are set at arm's length in a manner similar to transactions
with third parties. These intercompany transactions are eliminated in the consolidated
financial statements. The ROIC and FFO to Net debt are measured at group level, and amount to respectively 4.7%
(2023: 5.8%) and 8.2% (2023: 11.6%). Please, refer to note 11 for further information about
The Executive Board is the chief operating decision-making body of the Company (as defined the FFO to Net debt, and to Safeguard sustainable financial performance for further information
by IFRS 8 ‘Operating segments’). Periodically, it monitors the performance of the respective about the ROIC as well as the FFO to Ned debt.
operating segments for the purpose of performance management and decision making about
resource allocation. The segment performance is based on underlying financial information,
where earnings before interest and taxes ('EBIT'), investments, funds from operations ('FFO') to
Net debt and return on invested capital ('ROIC') are key metrics. The definition of EBIT equals
operating result as used in the consolidated statement of income. Performance of non-regulated
activities is evaluated based on EBIT and ROIC of these activities.

Integrated Annual Report 2024 TenneT Holding B.V. 198

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Reconciliation of underlying figures with IFRS figures Underlying net assets and liabilities can be reconciled to reported IFRS figures as follows:
In the IFRS figures, revenue from contracts with customers is recognised when control of the
goods or services is transferred to the customer at an amount that reflects the consideration to (EUR million) 2024 2023

which TenneT expects to be entitled in exchange for those goods or services. In the underlying Consolidated underlying information
financial information revenue is recognised according to the allowed revenue as determined Assets 55,271 44,746
by the regulator. Consequently, differences between IFRS revenue and the underlying allowed Liabilities -42,868 -34,560
revenue are recognised in underlying financial information as regulatory assets or liabilities. By
Total net assets and liabilities 12,403 10,186
doing so, post calculation differences are directly matched to the related costs and therefore
provide additional relevant insight for managing TenneT’s business.
To be settled in tariffs -2,589 -3,565

Following this methodology, the main differences between IFRS figures and underlying financial Auction receipts 664 592
information, as presented in this disclosure note as well as in the Executive Board Report, are Valuation differences tangible fixed assets -180 -198
related to the recognition of: Other regulatory receivables and payables 454 193
• regulatory assets and liabilities to be settled in future tariffs related to differences between Tax impact 469 833
actual and allowed revenue or (pass-through) expenses from connection and transmission
Total underlying items -1,182 -2,145
services and offshore activities;
• revenue from operation of energy exchanges (auction receipts);
Consolidated IFRS information 11,221 8,041
• revenue from maintenance of the energy balance;
• valuation differences in tangible fixed assets and related depreciation expenses;
• finance income and expenses related to interest on the regulatory assets and liabilities; and Consolidated IFRS information
• the income tax effect of the aforementioned adjustments. Assets 52,892 41,723
Liabilities -41,671 -33,682
These main differences are disclosed in the tables hereafter, followed by a further disclosure. Total net assets and liabilities 11,221 8,041
Please, note the investment amounts recognised under IFRS equal underlying investments.
Investments consists of additions to tangible fixed assets, relate to note 3, and additions to
intangible assets, relate to note 5.

Integrated Annual Report 2024 TenneT Holding B.V. 199

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Underlying financial information can be reconciled to reported IFRS figures as follows:

2024 2023

TSO Non- Total TSO Non- Total

(EUR million) (EUR million)
TSO NL Germany regulated segments Eliminations Total TSO NL Germany regulated segments Eliminations Total

Connection and Connection and

1,774 4,077 - 5,851 - 5,851 2,094 4,516 - 6,610 - 6,610
transmission services transmission services
Maintaining the energy balance 134 321 - 455 - 455 Maintaining the energy balance 139 384 - 523 - 523
Operation of energy exchanges 1 - - 1 - 1 Operation of energy exchanges 1 - - 1 - 1
Offshore (balancing) 565 1,354 - 1,919 - 1,919 Offshore (balancing) 465 1,452 - 1,917 - 1,917
Other 32 128 44 204 - 204 Other 34 89 48 171 - 171
Inter-segment 50 22 5 77 -77 - Inter-segment 53 24 5 82 -82 -
Total underlying revenue 2,556 5,902 49 8,507 -77 8,430 Total underlying revenue 2,786 6,465 53 9,304 -82 9,222
Grid expenses -1,125 -3,324 - -4,449 13 -4,436 Grid expenses -1,487 -4,003 -1 -5,491 14 -5,477
Other operating expenses -807 -1,505 -48 -2,360 62 -2,298 Other operating expenses -753 -1,339 -54 -2,146 68 -2,078
Share in result of joint ventures Share in result of joint ventures
1 14 34 49 - 49 2 18 130 150 - 150
and associates and associates
Underlying operating result 625 1,087 35 1,747 -2 1,745 Underlying operating result 548 1,141 128 1,817 - 1,817
Revenue adjustments to IFRS 993 576 - 1,569 - 1,569 Revenue adjustments to IFRS -484 560 - 76 - 76
Cost adjustments to IFRS 5 -115 - -110 - -110 Cost adjustments to IFRS 7 -476 - -469 - -469
IFRS operating result 1,623 1,548 35 3,206 -2 3,204 IFRS operating result 71 1,225 128 1,424 - 1,424
Finance result -676 Finance result -453
Result before income tax 2,528 Result before income tax 971
Income tax expenses -701 Income tax expenses -260
Result for the period 1,827 Result for the period 711

Integrated Annual Report 2024 TenneT Holding B.V. 200

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Reconciliation IFRS to underlying figures In the following table the underlying adjustments in revenue are matched with the variance in the
2024 2023 related underlying balance sheet accounts:
IFRS Underlying Underlying IFRS Underlying Underlying
(EUR million)
figures items figures figures items figures Reconciliation IFRS to underlying figures

Connection and transmission services 6,903 -1,052 5,851 5,868 742 6,610 2024 2023
Maintenance of the energy balance 698 -243 455 693 -170 523 IFRS Underlying Underlying IFRS Underlying Underlying
(EUR million)
Operation of energy exchanges 588 -587 1 750 -749 1 figures items figures figures items figures

Offshore (balancing) 1,609 310 1,919 1,818 99 1,917 Underlying items

Other 201 3 204 169 2 171 To be settled in tariffs -744 829
Total revenue 9,999 -1,569 8,430 9,298 -76 9,222 Auction receipts -586 -748
Grid expenses -4,564 129 -4,435 -5,967 490 -5,477
Investment contributions 4 4
Personnel expenses -353 - -353 -335 -1 -336
Maintenance of the energy balance -243 -161
Depreciation and amortisation of assets -1,466 -19 -1,485 -1,350 -19 -1,369
Total underlying adjustments
Other operating expenses -449 - -449 -377 -1 -378 -1,569 -76
in revenue
Other (gains)/losses -12 - -12 5 - 5
Total operating expenses -6,844 110 -6,734 -8,024 469 -7,555
Share in profit of joint ventures The decrease in the underlying revenue can mainly be explained by lower costs for ancillary
49 - 49 150 - 150
and associates services resulting in lower underlying revenue, as it includes a reimbursement for ancillary
Operating result 3,204 -1,459 1,745 1,424 393 1,817 services, in combination with lower regulatory rates in Germany, partly offset by increased
Finance income 63 158 221 42 102 144 revenue due to ongoing and increasing investments, resulting in a growing regulatory asset base
Finance expenses -739 -22 -761 -495 -15 -510 and higher onshore and offshore revenue which are based upon these asset base values.
Finance result -676 136 -540 -453 87 -366
In 2024, TenneT had three (2023: one) individual customers which invoiced more than 10%
Result before income tax 2,528 -1,323 1,205 971 480 1,451 of its total group underlying revenue. For the segment TSO Germany the revenue from these
Income tax expenses -701 363 -338 -260 -120 -380 customers amounted to EUR 3,688 million (2023: EUR 1,335 million).
Result for the year 1,827 -960 867 711 360 1,071
For further analysis of underlying results please refer to the ‘Safeguard sustainable financial
Result attributable to: performance’ section of the Integrated Annual Report.
Owners of the company
Equity holders of ordinary shares 1,744 -960 784 595 360 955 The material differences between underlying financial information and IFRS are further
Hybrid securities 78 - 78 57 - 57 disclosed hereafter.
Owners of the company 1,822 -960 862 652 360 1,012
Non-controlling interests 5 - 5 59 - 59 To be settled in tariffs
Result for the year 1,827 -960 867 711 360 1,071 Revenue surpluses and deficits resulting from variances related to actual costs or transmission
volumes (ex post) and estimates used to set tariffs (ex ante) are incorporated in the tariffs of
Basic and diluted earnings per share 8,720 3,920 2,975 4,775
subsequent years in both Germany and the Netherlands. In underlying financial information,
these surpluses and deficits are recorded as assets and liabilities, respectively, under ‘to be
settled in tariffs’.

Integrated Annual Report 2024 TenneT Holding B.V. 201

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

The underlying item 'to be settled in tariffs' is related to the revenue stream 'connection and Maintaining the energy balance
transmission services' and 'offshore' and concerns an underlying adjustment of EUR 744 million As transmission system operator of the high-voltage grid in the Netherlands, TenneT receives
(2023: EUR 829 million). funds for performing certain statutory duties, such as the maintenance of the energy balance.
The proceeds from these activities (i.e. imbalance settlements) may only be used after approval
Auction receipts and investment contributions by the ACM. Imbalance settlements collected during the year are to be offset in transmission
Auction receipts result from auctioning the available electricity transmission capacity on cross- tariffs in the subsequent year. Consequently, these amounts are recorded as a liability and
border interconnections. These receipts are not at TenneT's free disposal. In accordance with released in the subsequent year in the underlying financial information.
Regulation (EU) 2019/943, auction receipts shall be used to fulfil the following priority objectives:
1. guaranteeing the actual availability of the allocated capacity including firmness Furthermore, as the balancing group coordinator, TenneT TSO GmbH is responsible for
compensation; or balancing the balancing groups in terms of energy. TenneT TSO GmbH balances surplus or
2. maintaining or increasing cross-zonal capacities through optimisation of the usage of shortfall balancing groups by means of control energy and bills the balancing group managers
existing inter-connectors by means of coordinated remedial actions, where applicable, for the resulting costs. For this billing of balance imbalances, the so-called 'Uniform balancing
or covering costs resulting from network investments that are relevant to reduce inter- energy price across control zones' (reBAP) is used. As a result, TenneT TSO GmbH receives
connector congestion. higher payments from the balancing group managers than TenneT TSO GmbH pays to the
power plant operators. The resulting additional revenue from the balancing energy billing system
In Germany, auction receipts are recognised as interest-free capital on investments and are are to be deducted from the grid charges. Analogously, revenue shortages will increase future
released over 20 years. The reversal amounts are applied in the revenue cap of TenneT TSO grid fees.
GmbH with t-2 offset. Thus, the reversal amount offsets the depreciation of the investments.
When these priority objectives have been adequately fulfilled, auction receipts may be used as The underlying item 'maintenance of the energy balance' is related to the revenue stream
income to be taken into account by the regulatory authorities when approving the methodology 'maintenance of the energy balance' an underlying adjustment of to EUR 243 million (2023:
for calculating network tariffs or fixing network tariffs, or both. In the Netherlands, the current EUR 161 million).
outstanding balance of auction receipts will be used in accordance with the aforementioned
objectives. Investments in previous years financed by using auction receipts are classified as Depreciation and amortisation of assets
investment contributions and are reported under ‘liabilities’. A periodic amount equal to the Differences in depreciation and amortisation of assets occur due to the difference in accounting
depreciation charges, plus a portion of the operating expenses, is released to the statement of treatment of the regulatory deferral accounts and the related cash flows in order to determine
income, following the release scheme as described above the economic useful life and recoverable amount of the assets as used for impairment analysis.
Between underlying and IFRS there is no difference in depreciation method and depreciation
The underlying item 'auction receipts' is related to the revenue stream 'operations of energy terms, but the amount of depreciation deviates due to
exchanges' and concerns an underlying adjustment of EUR 586 million (2023: EUR 748 million). 1. an impairment under IFRS of the NorNed cable of EUR 232 million in 2015, which is not
Furthermore, the underlying item 'auction receipts' is also related to the grid expenses, recognised in underlying figures. Therefore, each year, a difference exists in the depreciation
amounting to an underlying adjustment of EUR 124 million (2023: EUR 490 million). The expense between IFRS and underlying financial information until the end of the useful life of
underlying item 'investment contribution' is related to the revenue stream 'other' and concerns the NorNed cable; and
an underlying adjustment of to EUR 4 million (2023: EUR 4 million). 2. higher acquisition costs resulting from an adjustment in connection with the Purchase Price
Allocation ('PPA') relating to the acquisition of TenneT Germany in 2010.

The underlying account 'valuation differences in tangible fixed assets' is related to the
expense 'depreciation and amortisation of assets' and concerns an underlying adjustment of
EUR -19 million for 2024 (2023: EUR -19 million).

Integrated Annual Report 2024 TenneT Holding B.V. 202

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Finance income and expenses 3. Tangible fixed assets

As the recognised asset 'to be settled in tariffs' will be settled in subsequent years, interest High-voltage High-voltage Assets under
(EUR million) Other assets Total
is calculated on this outstanding balance that is recognised as finance income in underlying substations connections construction

financial information. Consequently, the underlying finance expenses consist of interest on the Cost
recognised liabilities related to auction receipts and proceeds from maintenance of the energy At 1 January 2023 12,718 11,416 1,291 9,153 34,578
balance. For 2024, an underlying adjustment in finance result of EUR 136 million is recognised Additions 242 174 201 6,986 7,603
(2023: EUR 87 million). Transfers 2,144 1,464 45 -3,653 -
Changes in estimations -23 399 - 14 390
Corporate income tax Deconsolidation of subsidiaries - - -13 - -13
Resulting from the aforementioned differences between underlying financial information and Acquisition of a subsidiary - - 3 - 3
IFRS figures, the result before income tax also deviates. Therefore, this has implications for Disposals -23 -40 -8 -2 -73
the income tax expense as well. For 2024, an underlying adjustment in income tax expense of Transfer to held for sale (note 1) - - -14 - -14
EUR 363 million is recognised (2023: EUR -120 million). At 31 December 2023 15,058 13,413 1,505 12,498 42,474

ⓘ Accounting policies applied for underlying financial information Additions 107 239 202 9,955 10,503
Underlying financial information matches regulatory revenue and expenses in a corresponding Transfers 833 995 58 -1,868 18
reporting period and defers certain income items until used for investments or tariff reductions. Changes in estimations 21 -157 - -11 -147
Disposals -73 -48 -4 -17 -142
At 31 December 2024 15,946 14,442 1,761 20,557 52,706
Depreciation and impairment
At 1 January 2023 3,971 3,276 508 - 7,755
Depreciation 628 441 67 - 1,136
Deconsolidation - - -2 - -2
Acquisition of a subsidiary - - 4 - 4
Disposals -16 -38 -2 - -56
Transfer to held for sale (note 1) - - -7 - -7
At 31 December 2023 4,583 3,679 568 - 8,830
Matching of revenue and expenses to the years in which these are settled in tariffs is
achieved through recognition of regulatory deferral accounts in the underlying figures. The key
Depreciation 661 462 70 - 1,193
requirement for such recognition is that an existing regulatory framework is in place that permits
Disposals -65 -47 -3 - -115
the future reimbursement or requires the future settlement of regulatory assets or liabilities,
At 31 December 2024 5,179 4,094 635 - 9,908
respectively. Consequently, a regulatory asset is recognised in underlying financial information
in respect of permitted reimbursements of current year expenses in future year’s tariffs. Vice
Net book value
versa, a regulatory liability is recognised in underlying financial information in respect of required
At 1 January 2023 8,747 8,140 783 9,153 26,823
settlements (i.e. repayments) of current year revenue through future tariffs.
At 31 December 2023 10,475 9,734 937 12,498 33,644
At 31 December 2024 10,767 10,348 1,126 20,557 42,798

Integrated Annual Report 2024 TenneT Holding B.V. 203

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

High-voltage substations include onshore and offshore transformer and converter stations. For TenneT's three operating segments this consists of:
High-voltage connections consist of overhead lines, sub-sea cables and underground onshore • TSO Netherlands (one large CGU consisting of regulated on- and offshore assets, and the
connections. Unlike lands for substations, lands surrounding high-voltage pylons and cables are NorNed cable, considered for impairment (triggers), on individual level);
generally not owned by TenneT. Other tangible fixed assets consist of office buildings, office ICT • TSO Germany (one large CGU consisting of regulated on- and offshore assets); and
equipment and other company assets. Assets under construction include investments related • Non-regulated companies (several small CGUs as well as individual assets).
to new build onshore and offshore transformers, converter stations, onshore lines, offshore
platforms and (sub-sea) cables. Please, refer to the Company's website for more details. The non-regulated companies also include the joint venture investment in the BritNed cable,
tested, for impairment (triggers), on individual level.
During 2024, the Company adjusted the classification of work in progress to better reflect
the way in which economic benefits are derived from its use. As a result, EUR 18 million is Off balance commitments related to tangible fixed assets are disclosed in note 23.
reclassified from inventories to assets under construction. Comparative figures have not been
adjusted for this reclassification. Also, several replacement investment projects from the same ✪ Key estimates and assumptions
portfolio, as recorded within the assets under construction, amounting to EUR 17 million have To calculate depreciation amounts, the following useful lives of various asset categories
been disposed of during 2024, as a better replacement solution was chosen. were assumed:

For all of the offshore assets (mainly offshore platforms and sub-sea cables) included in the 2024 2023

categories of high-voltage substations and high-voltage connections legal and constructive Substations
asset retirement obligations exist for decommissioning these assets at the end of the useful Primary gear, including switches, and offshore converter stations 20-40 20-35
lives or at the end date of the related permits. Therefore, a decommissioning provision is Offshore platforms 20-35 20-35
recognised, for which the estimated total asset removal costs are capitalised as part of the
Security and control equipment 10-20 10-20
carrying value of the related assets and depreciated until retirement of the assets. Changes
Power transformers 35-50 20-35
in discount and inflation rates, if any, directly impact this carrying value. The discount rate
Capacitor banks 20-40 20-35
and inflation rate were adjusted in 2024 to reflect current market assessments of the time
value of money and the specific risks related to the provision. Besides the adjustment of Telecommunications equipment 10-20 10-20
the discount rate and inflation rate, also changes in underlying assumptions in the estimated Buildings 40-50 40-50
decommissioning costs and updated price levels are included in the line item 'changes in
estimates'. For more details on the changed assumptions of the decommissioning provision, Connections
please refer to note 16.
Pylons/lines 35-50 35-40
Cables (subsea and underground) 20-50 20-40
The amount of borrowing costs capitalised as part of assets under construction during 2024
is disclosed in note 26. The effective interest rate used to determine the amount of borrowing
costs capitalised was 2.95% (2023: 1.86%). Other
Office buildings 40-50 40-50
Annual impairment trigger analyses on tangible assets, and where applicable testing for Office IT equipment 5 5
impairment, is done at the individual asset level, or smallest identifiable group of assets that Process automation facilities 5 5
generates cash inflows that are largely independent of the cash inflows from other assets or Other company assets 5-10 5-10
groups of assets (cash generating units ('CGUs')).

Integrated Annual Report 2024 TenneT Holding B.V. 204

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Estimated residual values, useful lives and methods of depreciation of assets are reassessed The recoverable amount is the higher end of an asset's or CGU’s fair value less costs of
annually and are adjusted prospectively, if appropriate. The useful lives of power transformers disposal and its value in use. If the carrying amount of an asset or CGU exceeds its recoverable
and connections have been extended with respectively 15 years and 10 years, from 1 January amount, the asset is considered impaired and is written down to its recoverable amount. Any
2024 onwards, resulting in a decrease of the depreciation. The change of the useful life of gain or loss arising on derecognition of the asset (calculated as the difference between the net
power transformers relates to the Netherlands only. Please, refer to note 1 for the impact on the disposal proceeds and the carrying amount of the asset) is included in the statement of income
depreciation expense on an annual basis. when the asset is impaired or disposed.

Climate-related risks concerning the construction and operation of tangible fixed assets have 4. Right of use assets and lease liabilities
been considered, not resulting in material adjustments in the valuation of these tangible Right of use assets
fixed assets. These risks are already mitigated by adjusting the design or taking other (EUR million)
Land &
Power plants
NordLink Other right
Total
buildings cable of use assets
specific measures.
At 1 January 2023 141 109 441 57 748
ⓘ Accounting policies Additions 9 397 - 16 422
Tangible fixed assets are valued at cost, net of accumulated depreciation and accumulated Disposals -2 - - 3 1
impairment losses, if any. Such costs include the cost of replacing part of the asset and Remeasurement 9 -14 -10 2 -13
borrowing costs for long-term construction projects if the recognition criteria are met. When
Depreciation -23 -64 -71 -18 -176
material parts of the asset are required to be replaced at intervals, such parts are recognised
Transfer to held for sale (note 1) -5 - - - -5
as individual assets with specific useful lives and depreciated accordingly. Likewise, when major
At 31 December 2023 129 428 360 60 977
maintenance is performed, its cost is recognised in the carrying amount of the asset as a
replacement, if the recognition criteria are met. All other repair and maintenance costs are
recognised in the statement of income as incurred. The present value of the expected cost for Additions 18 230 - 34 282
the decommissioning of an asset after its use is included in the cost of the respective asset if Disposal - - - - -
the recognition criteria for a provision are met. Transfer from intangible assets 19 - - - 19
Remeasurement 4 190 6 6 206
Cost also includes borrowing costs for long-term construction projects, if the recognition
Depreciation -26 -107 -73 -21 -227
criteria are met. General and specific borrowing costs directly attributable to the acquisition,
At 31 December 2024 144 741 293 79 1,257
construction or production of the tangible fixed assets, are added to the cost, until such time
that the assets are substantially ready for their intended use or sale. No borrowing costs are
capitalised if and to the extent such borrowing costs are directly compensated in the year of Leased land & buildings
construction. The present value of the expected cost for the decommissioning of an asset after Land is mainly leased to set up pylons for electricity transmission lines and for constructed
its use is included in the cost of the respective asset as well, if the recognition criteria for a substations. These contracts run for a period of 1-142 years (2023: 8-142 years). In addition,
provision are met. buildings are leased mainly as office space and for storage space. These contracts run for a
period of 1-15 years (2023: 1-15 years), and are negotiated individually and include a range
Depreciation is calculated on a straight line basis, as this best reflects the use of the assets. of different terms and conditions, including extension options. These extension options are
At each reporting date, TenneT assesses whether there is an indication that an asset may be accounted for insofar it is probable that these options will be exercised. Lease payment terms
impaired. If any indication exists (i.e. no future economic benefits are expected from its use), the are in substance fixed, only a minority of the lease contracts contain clauses with reference to
asset's recoverable amount is estimated. the consumer price index (CPI).

Integrated Annual Report 2024 TenneT Holding B.V. 205

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

During 2024, the Company adjusted the classification of ground lands to better reflect the way Short-term leases and leases of low value
of its contractual terms. As a result, EUR 19 million is reclassified from other intangible assets to The aggregate total of lease expenses for low value assets and short-term leases, with a
right of use assets. Comparative figures have not been adjusted for this reclassification. duration between one and twelve months, amounted to EUR 1 million (2023: EUR 2 million).

Leased power plants Lease liabilities

TenneT is committed to the use of grid reserve power plants representing lease commitments. 2024 2023

The commitments have a maturity of 1-9 years (2023: 1-10 years) and could be prolonged (EUR million) Non- Non-
Current Total Current Total
depending on the decision of regulatory authorities. current current

Lease liabilities land & buildings 103 22 125 108 21 129

In 2024, TenneT agreed upon two contracts, which contains lease elements, to keep power Lease liabilities power plants 653 99 752 359 83 442
plants operational in the Netherlands as well as in Germany, to ensure the security and reliability Lease liability NordLink 212 67 279 272 64 336
of the electricity supply system, in particular for the management of grid congestion and voltage
Lease liabilities other leases 61 22 83 45 16 61
support. Furthermore, multiple power plants have been prolonged in current year resulting in a
Total 1,029 210 1,239 784 184 968
remeasurement of the right of use assets for an amount of EUR 190 million.

Lease
Lease payments are in substance fixed, but TenneT has one power plant lease which contains Lease liabilities Lease liability Lease liabilities
(EUR million) liabilities Total
one-off payments which comply with IFRS 16. No other variable lease payments are applicable. land & buildings NordLink other leases
power plants
The lease contracts do not include any clauses with reference to an index or contractual rate.
At 1 January 2023 141 115 415 58 729
Additions 9 397 - 16 422
Leased NordLink cable
Interest 2 4 11 1 18
TenneT leases the NordLink submarine cable from NOKA to transport electricity between
Germany and Norway. It has a remaining maturity of 4 years without an extension option Disposals - -4 - -1 -5

according to IFRS 16. Lease payments are in substance fixed. Remeasurement 9 -14 -10 2 -13
Repayments -26 -56 -80 -15 -177
Leased others Transfer to held for sale (note 1) -6 - - - -6
Telecom lease contracts (including fibreglass cables) run for a period between 1 and 30 years At 31 December 2023 129 442 336 61 968
(2023: 5 and 30 years). For qualifying employees TenneT leases cars with a lease term between
1 and 8 years (2023: 1 and 8 years). TenneT does not purchase nor does it guarantee the value
Additions 18 220 - 35 273
of leased telecom assets or leased cars. Several of these lease contracts contain termination
Interest 2 22 11 2 37
and/or extension options. In determining the lease term all relevant facts and circumstances that
create a significant economic incentive to exercise those options are taken into consideration. Remeasurement 3 190 6 8 207
Lease payments are in substance fixed, only some of the lease contracts have pre-determined Repayments -27 -122 -74 -23 -246
lease payment changes. At 31 December 2024 125 752 279 83 1,239

TenneT has no material 'sub lease' contracts in 2024 and 2023 and therefore no material
income from subleasing right of use assets. TenneT has not entered into any sale and The total cash outflow, including low value items and short-term leases, in 2024 was
leaseback contracts. No lease contracts with residual value guarantees are entered into. No EUR 255 million (2023: EUR 179 million). There are no material future cash outflows of leases
lease contracts have been concluded that contain restrictions or covenants. not yet commenced, but to which TenneT is committed.

Integrated Annual Report 2024 TenneT Holding B.V. 206

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

In the table hereafter the total lease expense as recognised in the statement of income Several lease contracts contain extension or termination options for which it is uncertain
is disclosed: whether these will be exercised in the future. These options are accounted for insofar it is
probable that these will be exercised. In determining the lease term all relevant facts and
(EUR million) 2024 2023 circumstances that create a significant economic incentive to exercise these options are taken
Depreciation expense of right of use assets 227 176 into consideration. The estimated probability of exercising these options is reassessed annually.
Short-term lease expenses - -
Interest expense on lease liabilities 37 18 ⓘ Accounting policies
At inception of a contract, TenneT assesses whether a contract conveys the right to control the
Capitalised costs for (in)tangible fixed assets -8 -8
use of an identified asset for a period in exchange for consideration, in which case it is classified
Total amount recognised in profit and loss 256 186
as a lease.

The undiscounted maturity analysis of lease liabilities is disclosed in note 20. Hereafter the TenneT recognises a right of use asset and a lease liability at the lease commencement date.
discounted maturity of the lease liabilities is presented: The asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date, plus any initial
(EUR million) 2024 2023 direct costs incurred and an estimate of costs to restore the underlying asset, less any lease
<1 month 18 15 incentives received. The lease asset is subsequently depreciated using the straight-line method
1 to 3 months 34 28 from the commencement date to the earlier of the end of the useful life of the right of use asset
3 to 12 months 159 142 or the end of the lease term, considered to be indicated by the lease term. The lease asset
is periodically adjusted for certain remeasurements of the lease liability and impairment losses,
1 to 5 years 707 518
if any.
More than 5 years 321 265
Total maturity 1,239 968
The lease liability is initially measured at the present value of outstanding lease payments,
discounted using the interest rate implicit in the lease (e.g. for car leases) or, if that rate cannot
✪ Key estimates and assumptions be readily determined, TenneT’s incremental borrowing rate. After initial recognition, the lease
To determine the total amount of lease liabilities, the present value of outstanding lease liability is measured at the present value of the remaining lease payments using the effective
payments is calculated, using the interest rate implicit in the lease. If the interest implicit in interest method and is remeasured when there is a change in future lease payments arising from
the lease is not available, TenneT's incremental borrowing rate is used as discount rate, as this a change in an index or rate or if TenneT changes its assessment of whether it will exercise a
is assumed to be the best estimate of the implicit interest rate. The incremental borrowing rate purchase, extension or termination option. A corresponding adjustment is made to the carrying
used is shown in the table hereafter: amount of the right of use asset with any excess over the carrying amount of the asset being
recognised as profit or loss.
2024 2023

Under 5 years 3.8% 2.6% TenneT has elected not to recognise right of use assets and lease liabilities for short-term
5-10 years 3.7% 3.2% leases (leases with a term of 12 months or less) and leases of low-value assets. TenneT
10-15 years 3.9% 3.5% recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term or another systematic basis if that basis is more representative of the
15-25 years 4.1% 3.7%
pattern of the lessee's benefit. Furthermore, TenneT has elected not to recognise the lease of
Above 25 years 4.5% 3.9%
intangible assets.

Integrated Annual Report 2024 TenneT Holding B.V. 207

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

5. Intangible assets At 31 December 2024, goodwill was allocated to the cash generating units ('CGUs') in the
Customer
Other Intangible following operating segments: TSO Netherlands (EUR 3 million), TSO Germany (EUR 24 million)
(EUR million) Goodwill Software intangible assets under Total
contracts and non-regulated activities (EUR 1 million).
assets construction

Cost
Additions to intangible assets under constructions mainly relate to customising activities of a
At 1 January 2023 34 406 64 47 115 666 new software systems. During 2024, EUR 66 million (2023: EUR 39 million) of software was
Additions - 12 - 1 114 127 internally developed. Reference is made to note 37 relating to the legal reserve relating to
Transfers - 117 - - -117 - internally generated assets.
Impairment - - - - -2 -2
Deconsolidation of subsidiaries -3 - - -6 - -9
In addition, a net book value of EUR 19 million relating to ground land has been reclassified from
other intangible assets to right of use assets. Comparative figures have not been adjusted for
Transfer to held for sale (note 1) -3 - - -1 - -4
this reclassification.
At 31 December 2023 28 535 64 41 110 778

✪ Key estimates and assumptions

Additions - 8 - - 126 134 The useful lives of assets are uncertain and subject to judgement. To calculate amortisation
Transfers - 91 - -26 -91 -26 amounts, the following useful lives of various asset categories were assumed:
Disposals - -3 - - - -3
Years
At 31 December 2024 28 631 64 15 145 883
Goodwill Indefinite
Amortisation and impairment
Software 3-12
At 1 January 2023 - 277 64 19 - 360
Other 5-15
Amortisation - 45 - 1 - 46
Transfer to held for sale (note 1) - - - -1 - -1
At 31 December 2023 - 322 64 19 - 405 Intangible assets, with the exception of goodwill, are assumed to have a fixed useful life within
the ranges outlined above and are amortised over this useful life. The useful life is reassessed
Amortisation - 53 - 1 - 54 each reporting period. Intangible assets are amortised on a straight line basis, as this best
Transfers - - - -7 - -7
reflects the use of the asset.

Disposals - -3 - - - -3
Goodwill is assumed to have an indefinite useful life and is therefore not amortised, but it
At 31 December 2024 - 372 64 13 - 449
is tested for impairment annually or more frequently, if events or changes in circumstances
indicate a triggering event, either individually or at CGU level.
Net book value
At 1 January 2023 34 129 - 28 115 306 Impairment testing of goodwill
At 31 December 2023 28 213 - 22 110 373 For the purpose of annual impairment testing, goodwill acquired in a business combination is
At 31 December 2024 28 259 - 2 145 434 allocated to each of the CGUs. For TenneT's three operating segments this consists of:
• TSO Netherlands (one large CGU consisting of regulated on- and offshore assets);
• TSO Germany (one large CGU consisting of regulated on- and offshore assets); and
• Non-regulated companies (several small CGU's).

Integrated Annual Report 2024 TenneT Holding B.V. 208

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

In assessing value in use, the estimated future cash flows are discounted to their present value At each reporting date, TenneT assesses whether there is an indication that an asset may be
using a pre-tax discount rate that reflects TenneT's assessment of current market conditions in impaired. If any indication exists (i.e. no future economic benefits are expected from its use),
respect of the time value of money and the risks specific to the asset. In determining fair value or when annual impairment testing for an asset is required, the asset's recoverable amount is
less costs of disposal, an appropriate valuation model is used, if no recent market transactions estimated. The recoverable amount is the higher end of an asset's or CGU’s fair value less
can be identified. costs of disposal and its value in use. If the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable
The impairment calculation is based on detailed projections, which are prepared separately amount. Any gain or loss arising on derecognition of the asset (calculated as the difference
for each of the CGUs to which the individual assets are allocated. The projections take into between the net disposal proceeds and the carrying amount of the asset) is included in the
account current regulatory parameters, considering expected future regulatory developments. statement of income when the asset is impaired or disposed.
Management believes that the resulting cash flows can be determined reliably and that they give
an appropriate reflection of the CGU's cash flow generating potential. 6. Investments in joint ventures and associates
Joint ventures
The recoverable amount of the CGU TSO Germany was determined based on a value-in-use TenneT has, directly or indirectly, equity stakes in the following entities that qualify as
calculation using cash flow projections following TenneT's investment portfolio. The pre-tax joint ventures:
discount rate applied to cash flow projections was 6.2% (2023: 6.0%). The cash flows were
estimated on the basis of regulatory allowed returns and invested capital, based on TenneT’s Joint Venture Legal seat Country 2024 2023

business plan and a transition period to reach a steady state. The terminal value is determined BritNed Development Ltd ('BritNed') Arnhem Netherlands 50% 50%
by the invested capital (adjusted for regulatory minus IFRS net book value ('NBV') of tangible DC Nordseekabel GmbH & Co. KG ('NOKA') Bayreuth Germany 50% 50%
fixed assets). TenneT concluded that the recoverable amount was significantly in excess of the Reddyn B.V. Arnhem Netherlands 50% 50%
carrying value and as such no impairment loss needed to be recognised.
VertiCer B.V. Groningen Netherlands 50% 50%
Flexcess GmbH Bayreuth Germany 50% 50%
ⓘ Accounting policies
National Energy Information Services B.V. Groningen Netherlands 50% 50%
Intangible assets are measured at acquisition cost on initial recognition. The cost of intangible
assets acquired in a business combination is recognised at fair value at the date of acquisition. TensZ B.V. Rotterdam Netherlands 50% 50%
Following initial recognition, intangible assets are carried at cost less any accumulated Equigy B.V. Arnhem Netherlands 20% 20%
amortisation and accumulated impairment losses. Intangible assets are amortised on a straight Open Tower Company ('OTC')1 Vianen Netherlands 25% 25%
line basis, as this best reflects the use of the assets. Except for capitalised development costs,
internally generated intangible assets are not capitalised and expenses are reflected in the 1 For this investment, joint control was exercised, despite unequal stakes. TenneT's share in OTC is considered as an investment of
material value and it has been classified as held for sale as at 31 December 2024 and 31 December 2023, refer to note 1.
statement of income in the period in which they are incurred.

Goodwill is initially measured at cost and represents the excess of (i) the consideration For all joint ventures equal equity stakes are applicable, except for Equigy B.V., for which joint
transferred over and (ii) TenneT's interest in the value of the net identifiable assets, liabilities control is exercised despite unequal equity stakes. Therefore, this investment is classified as
and contingent liabilities of the acquiree and the amount of the non-controlling interest in joint venture as well.
the acquiree. After initial recognition, goodwill is measured at cost less any accumulated
impairment losses.

Integrated Annual Report 2024 TenneT Holding B.V. 209

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

The investments in BritNed and NOKA are each considered as an investment of material Summarised financial information in respect of material joint ventures and reconciliation with
value. The other joint ventures, amounting to EUR 3 million at 31 December 2024 (2023: their respective carrying amounts, of the investment in the consolidated financial statements is
EUR 3 million), are considered immaterial per 31 December 2024 and are therefore not further as follows:
disclosed. TenneT's share in result of these immaterial joint ventures amounted to EUR 2 million
in 2024 (2023: EUR 1 million). In 2024, TenneT received EUR 2 million from other interests in Statement of financial position
joint ventures (2023: nil).
2024 2023
(EUR million)
BritNed BritNed NOKA BritNed NOKA
BritNed is a joint venture with National Grid International Ltd (National Grid), the British TSO. Non-current assets 430 728 446 780
It owns and operates a 1,000 MW 'Direct Current'(DC) inter-connector between the United Cash and cash equivalents 117 55 99 62
Kingdom and the Netherlands. Operating costs and trading revenue are shared equally between
Other current assets 18 13 20 8
TenneT and National Grid. BritNed had nil contingent liabilities (2023: EUR 2 million) mainly
Non-current liabilities -46 -70 -45 -76
related to comfort letters issued. In 2024, EUR 31 million dividend was received from BritNed
Current liabilities -112 -4 -106 -8
(2023: EUR 142 million).
Equity 407 722 414 766
TenneT Holding B.V. has, together with the other shareholder, National Grid Holding One plc, Ownership TenneT 50% 50% 50% 50%
provided a parent company guarantee on the liabilities of BritNed. Carrying amount of the investment 204 362 207 383

NOKA
NordLink is an inter-connector between Norway and Germany, jointly owned by Statnett SF, Statement of income
TenneT and KfW IPEX-Bank GmbH (KfW) to establish an inter-connector between Norway and
Germany under the project name ‘NordLink’. Ownership of the inter-connector is equally split, 2024 2023
(EUR million)
with TenneT and KfW owning the southern part through NOKA, a jointly owned company, and BritNed NOKA BritNed NOKA
Statnett owning the northern part. Operating costs and trading revenue are shared equally Revenue 133 79 374 85
between NOKA and Statnett. Depreciation and amortisation -19 -42 -18 -40
Other costs -37 -8 -32 -7
At 31 December 2024, NOKA had contingent liabilities of EUR 3 million (2023: EUR 2 million)
Operating result 77 29 324 38
mainly related to purchase obligations. During 2024, TenneT has withdrawn EUR 35 million from
Finance income and expenses -2 - -2 1
NOKA's capital (2023: EUR 34 million).
Income tax expenses -20 -2 -78 -3
None of TenneT's joint ventures are permitted to distribute profits without the consent from all Result for the year1 55 27 244 36
shareholders or partners. Ownership TenneT 50% 50% 50% 50%
Group's share in result 28 14 122 18

1 Result for the year equals total comprehensive income

Integrated Annual Report 2024 TenneT Holding B.V. 210

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Associates Summarised financial information in respect of material associates and reconciliation with their
TenneT has, directly or indirectly, equity stakes in the following entities that qualify respective carrying amounts, of the investment in the consolidated financial statements is
as associates: as follows:

Associates Legal seat Country 2024 2023 Statement of financial position

Holding des Gestionaires de Réseaux de Transport
Paris France 34.0% 34.0%
d'Electricité S.A.S. ('HGRT') 2024 2023
(EUR million)
Energie Data Services Nederland B.V. ('EDSN') Amersfoort Netherlands 12.5% 12.5% HGRT HGRT

WL Winet B.V.1 Eindhoven Netherlands 40.0% 40.0% Non-current assets 91 91

Beheerder Afsprakenstelsel B.V. ('BAS') Amersfoort Netherlands 25.0% 25.0% Current assets - 1
LINK Digital GmbH Würzburg Germany 33.3% 0.0% Non-current liabilities - -
Luxembourg- Current liabilities - -
Joint Allocation Office ('JAO') Luxembourg 8.0% 8.0%
Hamm
Equity 91 92
TSCNET Services GmbH ('TSC') Munich Germany 12.5% 12.5%
Ownership TenneT 34% 34%
1 WL Winet B.V. is classified as assets held for sale as at 31 December 2024 and 31 December 2023, refer to note 1.
Carrying amount of the investment 31 31

The investment in HGRT is considered as an investment of material value. The other associates, Statement of income
amounting to EUR 2 million at 31 December 2024 (2023: EUR 1 million), are considered
immaterial per 31 December 2024 and are therefore not further disclosed. Both TenneT TSO 2024 2023
(EUR million)
B.V. and TenneT TSO GmbH, have a share of 6.25% and 4% in respectively TSC and JAO. HGRT HGRT
TenneT's share in result of these immaterial associates amounted to nil in 2024 (2023: nil). In Revenue - -
2024, TenneT received no dividend from the immaterial associates (2023: nil). Depreciation and amortisation - -
Other costs - -
HGRT
Operating result - -
HGRT holds a 49% stake in EPEX. EPEX is the exchange for the power spot markets for the
Finance income and expenses 15 13
'North West Europe' region and the United Kingdom. At 31 December 2024, HGRT had no
contingent liabilities outstanding (2023: nil). In 2024, EUR 5 million dividend was received (2023: Income tax expenses - -
EUR 4 million). Result for the year1 15 13
Ownership TenneT 34% 34%
Group's share in result 5 4

1 Result for the year equals total comprehensive income

Integrated Annual Report 2024 TenneT Holding B.V. 211

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

ⓘ Accounting policies Upon loss of significant influence over the joint venture or associate, any retained investment is
A joint venture is an arrangement whereby the parties in the arrangement have joint control valued at fair value. Any difference between the carrying amount of the investment upon loss of
over the net assets of the joint arrangement. Joint control is the contractually agreed sharing of significant influence and the fair value of the retained investment and proceeds from disposal is
control of an arrangement, which exists only when decisions about the relevant activities require recognised in the statement of income.
unanimous consent of the parties sharing control. An associate is an entity in which TenneT
has significant influence, but no control. Significant influence is the power to participate in the 7. Other financial assets
financial and operating policy decisions of the investor. (EUR million) 2024 2023

Fees for credit facilities available 1 2

Investments in joint ventures and associates are accounted for using the equity method. Under Financial assets through profit or loss 13 15
the equity method, the investment in the joint venture or associate is initially recognised at cost. Pension assets 27 14
The carrying amount of the investment is adjusted to recognise changes in the Group's share
Other 15 11
of net assets of the investment since the acquisition date. Goodwill relating to the investment
Total 56 42
is included in the carrying amount of the investment and is neither amortised nor individually
tested for impairment.
Financial assets through profit and loss
The statement of income reflects TenneT's share in the results of operations of investments. Any The fees for credit facilities available relate to the sign-off fee for the RCF and the shareholder
change in other comprehensive income of these investments is presented as part of the other facility. The current part amounts to EUR 10 million, and is classified as part of account- and
comprehensive income. In addition, when there is a change recognised directly in the equity other receivables.
of the investment, TenneT's share of any change is recognised in the statement of changes
in equity. Unrealised gains and losses resulting from transactions between TenneT and any Financial assets through profit and loss
investment are eliminated to the extent of the interest in such investment. When a joint venture Financial assets through profit and loss includes investments in Westley Fund 3 and 4, located
or associate distributes dividend to TenneT in excess of TenneT's carrying amount, a liability is in Menlo Park, California, USA, with a fair value of EUR 6 million (2023: EUR 7 million),
recognised if TenneT: and in Set Ventures 2, 3 and 4 located in Amsterdam, for a fair value of EUR 7 million
• Is obliged to refund the dividend; (2023: EUR 8 million). TenneT contributed EUR 1 million in capital for these minorities (2023:
• Has incurred a legal or constructive obligation; or EUR 2 million), and recognised EUR 1 million (2023: EUR 2 million fair value loss) fair value loss.
• Made payments on behalf of the associate. In addition, an amount of EUR 2 million (2023: nil) has been disposed in 2024.

In the absence of such obligations, the excess in net result for the period is recognised. When Pension assets
the joint venture or associate subsequently generates results, this is only recognised if and Please, refer to note 17 for pension assets.
to the extent they exceed the excess cash distributions recognised in net results plus any
previously unrecognised losses. Other
Per 31 December 2024, the non-current part of a prepaid amount on a contract related to a
After application of the equity method, TenneT determines whether it is necessary to recognise recovery facility with a duration until 2032 is recognised as other. This amount will be partially
an impairment loss on its investment in the joint venture or associate. At each reporting date, released each period until maturity of the contract.
TenneT determines whether there is objective evidence that the investment is impaired. If such
evidence exists, the amount of impairment is calculated as the excess of the carrying value of ⓘ Accounting policies
the investment over its recoverable amount and recognised in the statement of income. Please, refer to note 22 accounting policies for financial instruments.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

8. Inventories EEG trade receivables and amounts to be invoiced to EEG trade debtors
Inventories primarily consist of strategic stock of EUR 186 million (2023: EUR 134 million). The In accordance with the Renewable Energy Sources Act (EEG) TenneT TSO GmbH is required to
allowance for obsolete inventory is EUR -48 million (2023: EUR -7 million). The increase of the purchase electricity from producers of renewable energy at fixed feed-in tariffs. Subsequently,
allowance for obsolete inventory is relating to the coal stock, which is reclassified from other such renewable energy is sold on power exchanges at spot prices.
receivables to inventories as the power plant went into the grid reserve, as the market price is
lower than the purchase price. The fair value of inventory was not materially different from the EEG revenue and expenses are legally required to be administrated separately and are legally
carrying value. designated to be equal, except for certain potential bonus amounts payable to TenneT TSO
GmbH for marketing the energy on the power exchange. The EEG surcharge was set to zero by
In addition, during 2024, the Company adjusted the classification of work in progress to better law on 1 July 2022 and abolished with effect from 1 January 2023. Since then, the promotion
reflect the way in which economic benefits are derived from its use. As a result, EUR 18 million of renewable energies has been financed by the federal budget. TenneT TSO GmbH acts as an
is reclassified from inventories to tangible fixed assets under construction. Comparative figures agent with respect to these EEG services.
have not been adjusted for this reclassification. The remaining work in progress, amounting to
EUR 7 million (2023: EUR 16 million), relate to construction activities for third parties. EEG trade receivables and amounts to be invoiced to EEG trade debtors relate to the
outstanding invoices for the EEG levy, the accrual for the unbilled EEG levy, mainly over the
ⓘ Accounting policies month December, the accrual for horizontal balancing amounts (i.e. unsettled charges to the
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct other German TSOs) and energy trading revenue. EEG trade receivables were not at TenneT's
purchase costs and associated costs incurred in bringing inventories to their present condition free disposal. Please, refer to note 19 for the EEG accounts payable, and to note 10 for
and location. The net realisable value is the estimated selling price in the ordinary course of EEG deposits.
business less the estimated costs of completion and the estimated costs necessary to make
a sale. Trade receivables
At 31 December, the ageing of trade receivables were as follows:
9. Account- and other receivables
(EUR million) 2024 2023 (EUR million) 2024 2023

EEG trade receivables 83 1,183 Not past due 579 495

Amounts to be invoiced to EEG trade debtors 116 286 Past due
Trade receivables 622 562 0-30 days 37 27
Amounts to be invoiced 1,381 1,415 31-60 days 4 25
VAT receivables 252 262 More than 60 days 2 15
Subsidies to be received 59 131 Total past due 43 67
Receivables from relates parties 28 11
Other 89 91 Total 622 562
Total 2,630 3,941

A list of all related parties is included in note 29 of the consolidated financial statements.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Changes in the allowance for expected credit losses ('ECLs') were as follows: 10. Cash and cash equivalents
Cash and cash equivalents consisted of the following items:
(EUR million) 2024 2023

At 1 January 15 28 2024 2023

Charge for the year 7 2 At free Not at free At free Not at free
(EUR million) Total Total
disposal disposal disposal disposal
Utilisation of provision - -14
Collateral securities - 364 364 - 373 373
Unused amounts reversed - -1
EEG funds - 116 116 - 270 270
At 31 December 22 15
EEG deposits < 3 months - 150 150 - - -
KWK funds - 153 153 - 91 91
At 31 December 2024, receivables with an initial value of EUR 11 million (2023: EUR 5 million)
Strompreisbremse funds - 75 75 - 20 20
were fully provided for.
Deposits < 3 months - 2,050 2,050 - - -

Amounts to be invoiced Cash at bank 1,483 2 1,485 300 2 302

The majority of the amounts to be invoiced relates to unbilled fees related to connection and Total cash and cash equivalents
1,483 2,910 4,393 300 756 1,056
used in cash flow statement
transmission services, operation of energy exchanges and maintenance of the energy balance.
The assessment of amounts to be invoiced between the date of the last information available
from meter readings and year-end is primarily based on expected consumption and weather Funds related to EEG activities have been legally separated as required by BNetzA. EEG funds,
patterns. When the actual information is available (mostly within a month after year-end), including EEG deposits, are not at TenneT's free disposal. The same applies for funds related
the amounts to be invoiced are adjusted accordingly to reflect the latest information. The to KWK-G and Electricity Revenue Cap Act (‘Strompreisbremse’). Reference is made to note 9
decrease is mainly because of the reassessment of the grid related accruals and its underlying for more information about EEG. Furthermore, the deposits, excluding EEG, are at free disposal
estimation assumptions, refer to note 1 for more information, partly offset by higher tariffs in the upon maturity date. Cash at bank carries interest at floating rates based on daily bank deposit
Netherlands compared to 2023. rates. Collateral securities are related to other financial liabilities, please refer to note 18.

Subsidies to be received ⓘ Accounting policies

The decrease of subsidies to be received is mainly due to the capped subsidies from 2025 In the consolidated statement of cash flows, cash and cash equivalents include cash at bank,
onwards, and therefore a large part of the current year expenses that would be compensated deposits held at call with banks and other short-term highly liquid investments with remaining
through post-calculation in the offshore subsidy have now shifted to regular settlement in maturities of three months or less and are presented net of outstanding bank overdrafts.
future tariffs. Securities are deposits on collaterals that serve as financial security for transactions relating
to auction, energy exchange and balancing responsibilities. A matching obligation is recognised
ⓘ Accounting policies towards the party that deposited the funds as collateral. Securities are stated at fair value upon
Please, refer to note 22 accounting policies for financial instruments. receipt and subsequently at amortised cost.

The Group presents its cash flows in the consolidated statement of cash flows using the
indirect method. The Group has elected to classify interest received as cash flows from
investing activities and interest paid, including interest on lease liabilities, as cash flows from
financing activities.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

11. Capital management A reconciliation of the adjusted FFO and net debt is provided in the following table. Please,
The primary objective of TenneT's capital structure is to ensure a sustainable financial position refer to the chapter 'Secure a sustainable financial performance and investor rating' for detailed
to absorb adverse changes in the regulatory environment and to enable TenneT to execute its information about the adjusted FFO.
extensive investment programme which is essential for the success of the energy transition in
the Netherlands and Germany. The majority of the funding for TenneT's investment programme Based on underlying information (EUR million) Notes 2024 2023

is sourced from the debt capital markets, commercial banks, shareholder loans and international Net result for the year 868 1,071
financial institutions (e.g. the European Investment Bank ('EIB')). + amortisation, depreciation and impairments 1,485 1,369
+ other (gains)/losses (non-cash) 12 -5
To maintain broad access to financial markets at favourable conditions, TenneT has defined
+ result on disposal of assets (non-cash) - -
capital management objectives, policies and processes which include:
Total FFO 2,365 2,435
• To maintain a credit rating of at least A3/A-;
Capitalised interest on assets under construction 26 -39 -25
• To maintain a long-term average adjusted Funds From Operations (FFO) to Net debt based
on ‘underlying’ financial information of at least 8.5% (with individual years of at least 8.0%); Interest on provisions 26 49 32
• To diversify the maturities of long-term funding instruments to limit refinancing risk; 50% Hybrid interest 12 -39 -28
• To maintain liquidity through cash and undrawn committed credit lines covering at least Adjusted FFO 2,336 2,414
TenneT's net cash requirement on a rolling 12-month forward-looking basis.
Net debt
Capital consists of equity and debt.
+ Long-term borrowings 14 31,366 18,871
+ Short-term borrowings 14 568 3,640
1. Maintain a credit rating of at least A3/A-
As of 31 December 2024, TenneT has the following senior unsecured long-term credit - Cash and cash equivalents at free disposal plus deposits < 3 months
10 -3,533 -300
(excluding EEG)
ratings from Standard & Poor’s and Moody's Investor Service, which comply with TenneT's
- To be settled in tariffs 2 -2,589 -3,565
financial policy.
Lease liabilities 4 1,239 974
Unsecured credit rating at 31 December 2023 and 31 December 2024 Long-term rating Short-term rating Net employee defined benefit liabilities 17 240 217
Standard & Poor's A– (stable outlook) A-2 50% Hybrid loan 12 1,070 1,062
Moody's Investor Service A3 (stable outlook) P-2 Net debt 28,361 20,899

Adjusted FFO/net debt 8.2% 11.6%

2. Maintain a long-term average adjusted FFO/Net debt ratio based on underlying financial
information of at least 8.5%
TenneT has the objective to maintain a credit rating of at least A3/A-. To realise this objective,
TenneT maintains a long-term average FFO to net debt ratio of at least 8.5% (with individual
years of at least 8.0%) based on underlying financial information (refer to note 2). Such ratio
meets the minimum requirements for an A3/A- credit rating as formulated by the credit rating
agencies Standard & Poor's and Moody's Investor Service. Individual years have a FFO/Net
debt of at least 8.0%.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

3. Diversify maturities of long-term funding instruments to limit refinancing risk Share premium reserve
To minimise refinancing risk, TenneT diversifies the maturity profile of its senior debt. As of The share premium reserve consists of the capital contributions, made by the Shareholder
31 December 2024, TenneT's interest bearing debt (excluding bank overdrafts) had the following of ordinary shares, the Dutch state represented by the Ministry of Finance. Furthermore, the
annual redemption profile: contribution received from the Shareholder for an amount of EUR 1.6 billion last year has been
reclassified from current financial liability to equity as the shares in TenneT Germany will not be
Year Maturities Year Maturities Year Maturities transferred for 100% to KfW. The latter was a condition for distribution of the EUR 1.6 billion to
2025 568 2033 2,561 2041 698 the Shareholder and that condition is not met as the negotiations were terminated (refer also to
2026 1,973 2034 2,356 2042 1,738 note 1).
2027 1,225 2035 2,311 2043 28
Retained earnings
2028 1,282 2036 2,391 2044 28
Part of the retained earnings has been presented as legal reserve. For more details refer to
2029 1,749 2037 1,461 2045 21
note 37.
2030 1,546 2038 1,554 2046 14
2031 2,779 2039 1,548 2047 10 Hybrid securities
2032 2,196 2040 1,998 Hybrid securities are subordinated securities and are, with the exception of common equity,
the most junior instruments in the capital structure of the Company. The hybrid securities are
4. Maintaining liquidity through cash and undrawn committed credit lines covering at least undated and do not default on non-payment of coupons (unless such payment was mandatory
TenneT's net cash requirement on a rolling 12-month forward-looking basis following a resolution or payment of a dividend to common shareholders, i.e. as so called
TenneT monitors the liquidity of the Group on a rolling 12-month forward-looking basis. This ‘dividend pusher’).
means that the sum of (i) cash and cash equivalents, (ii) undrawn committed credit facilities and
(iii) 12-month expected net cash flow from operating activities should be sufficient to meet the The holders of the hybrid securities have limited ability to influence the outcome of a bankruptcy
expected aggregate of scheduled debt repayments, investments in fixed assets and dividend proceeding or a restructuring outside bankruptcy. Consequently, the hybrid security holders
payments over the subsequent 12 months. The 12-month liquidity requirement was met on cannot oblige TenneT to pay distributions or redeem the securities in part or in full. Payment of
31 December 2024 and 31 December 2023. distributions on and redemption of the securities is at TenneT's sole discretion. As a result, the
hybrid securities are classified as part of the equity attributable to the company's owners.
12. Equity
Paid-up and called-up capital The hybrid security issued in April 2017 of EUR 1 billion and the hybrid security issued in August
The Company's authorised share capital amounted to EUR 500 million (2023: EUR 500 million), 2018 of EUR 100 million were redeemed in May 2024.
divided into one million shares of EUR 500 each. Of these shares, two hundred thousand shares
have been issued and paid-up. On 31 December 2024, TenneT had EUR 2.1 billion of green hybrid securities outstanding
divided in issued hybrid securities.

The first hybrid security consisted of EUR 1 billion green hybrid securities that bear an optional,
cumulative coupon of 2.374%, payable at TenneT's discretion annually on 22 October of each
year. At 31 December 2024, the unpaid cumulative dividend for this tranche amounted to
EUR 7 million (2023: EUR 7 million) for the period 23 October till 31 December.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

The second hybrid security relates to the issued dual tranche hybrid security of each (EUR million) TO2 TO8 Total
EUR 550 million in March 2024. The first tranche bears an optional, cumulative coupon of At 1 January 2023 242 213 455
4.625%, payable at TenneT's discretion annually on 21 June of each year. The second tranche
Result attributable to non-controlling interests 41 18 59
bears an optional, cumulative coupon of 4.875%, payable at TenneT's discretion annually on
Dividends paid -16 -1 -17
21 March of each year. At 31 December 2024, the unpaid cumulative dividend for this dual
tranche amounted to respectively EUR 13 million for the period 23 March till 31 December and Capital repayment -53 -44 -97

EUR 20 million for the period 22 June till 31 December. At 31 December 2023 214 186 400

Dividend distribution Result attributable to non-controlling interests -2 7 5

In 2024, a common full-year dividend of EUR 150 million (EUR 750 per share) to TenneT's Capital contribution 20 5 25
ordinary shareholder was distributed (2023: EUR 207 million; EUR 1,035 per share). In
Dividends paid -16 -10 -26
agreement with our shareholder, the Dutch state of the Netherlands, TenneT will not pay
Capital repayment -32 -18 -50
dividend over the year 2024 to the shareholder in 2025. TenneT made aggregate distributions
At 31 December 2024 184 170 354
to the holders of hybrid securities of EUR 63 million during 2024 (2023: EUR 57 million). The
appropriation of the 2024 result is at the free disposal of the General Meeting of Shareholders.
Financial information of these subsidiaries, to the extent material, is summarised hereafter
13. Non-controlling interests on a consolidated basis before inter-company eliminations and in conformity with TenneT's
The proportion of economic interests held by non-controlling interests in the Group's accounting principles.
subsidiaries is as follows:
Statement of financial position
% Non-Controlling Interests Country 2024 2023

TenneT Offshore 2. Beteiligungsgesellschaft mbH ('TO2') Germany 69% 69% 2024 2023

TenneT Offshore 8. Beteiligungsgesellschaft mbH ('TO8') Germany 63% 63% (EUR million) TO2 TO8 Total TO2 TO8 Total

Non-current assets 722 1,066 1,788 817 1,155 1,972

Current assets 152 107 259 153 122 275
The non-controlling interests in TO2 and TO8 are held by Copenhagen Infrastructure Partners
('CIP'; legal seat: Copenhagen, Denmark), which owns an economic interest of 69% for TO2 and
Non-current liabilities -550 -826 -1,376 -594 -880 -1,474
63% for TO8 in the adjusted (for certain regulatory effects) profits of these companies and 49%
Current liabilities -60 -74 -134 -69 -99 -168
of the voting rights.
Equity 264 273 537 307 298 605
The Group has the power to control TO2 and TO8, and holds 51% of the voting rights in these
entities. Movements in the non-controlling interest, to the extent material, are summarised in the Attributable to owners of the parent 82 101 183 93 112 205
table hereafter. Attributable to non-controlling interests 182 172 354 214 186 400

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Statement of income 14. Borrowings

(EUR million)
2024 2023 Effective
Year Nominal Redemption
% interest rate Maturity 2024 2023
(EUR million) TO2 TO8 Total TO2 TO8 Total of issuance value of loan schedule
2024
Revenue 160 195 355 222 222 444
Non-current loans
Depreciation and amortisation -90 -100 -190 -78 -100 -178 1.750% 2015 500 1.84% Jun-27 At maturity 499 499
Other expenses -68 -64 -132 -52 -62 -114 1.000% 2016 500 1.05% Jun-26 At maturity 500 499
Operating result 2 31 33 92 60 152 1.250% 2016 500 1.37% Oct-33 At maturity 496 495
1.875% 2016 500 2.00% Jun-36 At maturity 494 494

Finance income and expenses -7 -14 -21 -8 -18 -26 0.750% 2017 500 - Jun-25 At maturity - 499
1.375% 2017 500 1.42% Jun-29 At maturity 499 499
Income tax expense 1 -5 -4 -25 -13 -38
1.375% 2018 500 1.50% Jun-28 At maturity 498 497
Result for the year1 -4 12 8 59 29 88
2.000% 2018 750 2.06% Jun-34 At maturity 747 747
0.875% 2019 500 0.99% Jun-30 At maturity 497 497
Attributable to owners of the parent -2 5 3 18 11 29
1.500% 2019 750 1.60% Jun-39 At maturity 742 741
Attributable to non-controlling interests -2 7 5 41 18 59 0.125% 2020 600 0.21% Nov-32 At maturity 596 596
1 Result for the year equals total comprehensive income 0.500% 2020 750 0.54% Nov-40 At maturity 745 745
0.125% 2021 650 0.17% Dec-27 At maturity 649 649

Statement of cash flows 0.500% 2021 500 0.61% Jun-31 At maturity 497 496
0.875% 2021 1,000 0.93% Jun-35 At maturity 995 994
2024 2023 1.125% 2021 650 1.17% Jun-41 At maturity 646 646

(EUR million) TO2 TO8 Total TO2 TO8 Total 1.625% 2022 1,250 1.79% Nov-26 At maturity 1,246 1,244
3.875% 2022 650 3.95% Oct-28 At maturity 649 648
Net cash flows from operating activities 68 57 125 150 107 257
2.125% 2022 1,000 2.25% Nov-29 At maturity 995 994
Net cash flows used in investing activities 2 2 4 3 6 9
4.250% 2022 500 4.35% Apr-32 At maturity 498 497
Net cash flows from financing activities -70 -59 -129 -153 -113 -266
2.375% 2022 750 2.51% May-33 At maturity 743 742
Change in cash and cash equivalents - - - - - -
4.500% 2022 1,000 4.60% Oct-34 At maturity 994 994
2.750% 2022 850 2.91% May-42 At maturity 835 835
4.750% 2022 850 4.85% Oct-42 At maturity 843 842
Total green bonds 15,903 16,389

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

(EUR million) (EUR million)

Effective Nominal Effective
Year Nominal Redemption Year Redemption
% interest rate Maturity 2024 2023 % value interest Maturity 2024 2023
of issuance value of loan schedule of issuance schedule
2024 of loan rate 2024

4.750% 2010 200 4.99% Jun-30 At maturity 198 198 3.236% 2024 750 2.37% Dec-30 At maturity 750 -
Total bonds 198 198 3.378% 2024 1,750 2.70% Nov-31 At maturity 1,750 -
Non-current interest-bearing bonds 16,101 16,587 3.416% 2024 1,000 2.22% Nov-32 At maturity 1,000 -
3.292% 2024 1,250 1.03% Dec-33 At maturity 1,250 -
0.717% 2015 500 0.72% 2018-2032 Linear 241 276 3.289% 2024 500 0.76% Nov-34 At maturity 500 -
0.766% 2015 150 0.77% 2018-2037 Linear 90 97 3.379% 2024 750 0.51% Nov-35 At maturity 750 -
0.813% 2016 125 0.81% 2019-2038 Linear 81 88 3.713% 2024 500 1.48% Nov-35 At maturity 500 -
0.050% 2020 100 0.05% Sep-26 At maturity 100 100 3.617% 2024 750 2.90% Apr-36 At maturity 750 -
0.436% 2020 150 0.44% 2025-2042 Linear 330 350 3.551% 2024 1,000 2.60% Nov-36 At maturity 1,000 -
0.562% 2022 250 0.56% 2025-2045 Linear 250 250 3.574% 2024 750 2.62% Apr-37 At maturity 750 -
Floating rate 2024 250 1.17% 2024-2047 Linear 250 - 3.494% 2024 650 0.26% Dec-37 At maturity 650 -
Floating rate 2022-2024 300 - Aug-24 At maturity - 300 3.783% 2024 1,000 2.16% Jun-38 At maturity 1,000 -
Non-current interest-bearing loans 1,342 1,461 3.594% 2024 500 0.54% Nov-38 At maturity 500 -
3.649% 2024 750 0.85% Nov-39 At maturity 750 -
1.310% 2016 55 1.33% May-26 At maturity 55 55 4.049% 2024 500 1.96% Jun-40 At maturity 500 -
1.500% 2016 50 1.52% May-28 At maturity 50 50 3.638% 2024 700 0.27% Nov-40 At maturity 700 -
1.750% 2016 43 1.77% May-31 At maturity 43 43 Total non-current interest-bearing Shareholder loans 13,100 -
1.750% 2016 95 1.77% May-31 At maturity 95 95
2.000% 2016 80 2.02% May-36 At maturity 80 80 Total non-current interest-bearing borrowings 31,366 18,871
Non-current interest-bearing Schuldschein 323 323
Current loans
1.610% 2019 160 1.64% Jan-29 At maturity 160 160 0.750% 2017 500 0.88% Jun-25 At maturity 500 -
1.830% 2019 295 1.86% Jan-31 At maturity 295 295 Current interest-bearing bonds 500 -
2.010% 2019 45 2.03% Jan-34 At maturity 45 45
Total non-current interest-bearing USPP 500 500 0.989% 2016 100 May-24 At maturity - 100
Current interest-bearing Schuldschein - 100

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

(EUR million) Changes in borrowings arising from financing activities are as follows:
Effective
Year Nominal value Redemption (Non) - (Non) - Non-current
% interest rate Maturity 2024 2023 (Non)-current Non-current
of issuance of loan schedule current current interest-
2024 interest- interest-
(EUR million) interest- interest- bearing Total
0.717% 2015 500 0.72% Oct-25 Linear 34 34 bearing bearing
bearing bearing Shareholder
Schuldschein USPP
0.766% 2015 150 0.77% Apr-25 Linear 8 8 bonds loans loans

0.813% 2016 125 0.81% Oct-25 Linear 6 6 At 1 January 2023 17,074 1,718 - 423 500 19,715

0.436% 2020 350 0.44% Oct-25 Linear 20 - Cash inflow from

- 3,787 - - - 3,787
new borrowings
Cash loans At maturity - 540
Cash outflow
Commercial papers At maturity - 2,372 -500 -504 - - - -1,004
from redemptions
Borrowings under committed
At maturity Amortisation (non-cash) 13 - - - 13
bilateral bank credit facilities - 380
At 31 December 2023 16,587 5,001 - 423 500 22,511
Borrowings under uncommitted
At maturity
bilateral bank credit facilities - 200
Current interest-bearing loans 68 3,540 Cash inflow from
- 250 13,100 - - 13,350
new borrowings
Cash outflow
Total current interest-bearing borrowings 568 3,640 - -3,841 - -100 - -3,941
from redemptions
Amortisation (non-cash) 14 - - - - 14
Total borrowings 31,934 22,511
At 31 December 2024 16,601 1,410 13,100 323 500 31,934

TenneT has developed a Green Financing Framework to finance its renewable energy activities. TenneT has a Revolving Credit Facility ('RCF') of EUR 3.3 billion at 31 December 2024, which is
The Green Financing Framework is aligned to the 2021 ICMA Green Bond Principles ('GBP') and available till November 2026. At 31 December 2024, this facility was undrawn. Furthermore,
the 2021 LMA Green Loan Principles ('GLP') and addresses their four pillars; (i) Use of Proceeds, TenneT has also EUR 450 million of undrawn long-term loan commitments from the EIB
(ii) Process for Project Evaluation and Selection, (iii) Management of Proceeds and (iv) Reporting. available at 31 December 2024.
Under this framework TenneT has issued across different formats (senior bonds, hybrid bonds,
US Private Placement and Schuldschein). In addition, TenneT has EUR 250 million of committed bilateral RCFs (nil drawn), bank overdraft
facilities of EUR 450 million (nil drawn) and uncommitted bank facilities of EUR 500 million (nil
drawn) at its disposal at 31 December 2024.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

At 12 January 2024, TenneT and the Dutch state have agreed upon a shareholder loan The maturities of the contract liabilities are disclosed in the following table:
facility of EUR 25.0 billion to safeguard the financing of TenneT's planned investments in the
Netherlands and Germany for 2024 and 2025. The loan facility relating to 2024, amounting to (EUR million) 2024 2023

EUR 13.1 billion, is fully drawn. The undrawn facility for the year 2025 related to the current < 1 year 14 15
facility is EUR 11.9 billion. At 21 February 2025, TenneT and the Dutch state have agreed upon 1-5 years 54 52
a supplementary shareholder loan facility of EUR 19.4 billion, safeguarding TenneT's planned > 5 years 705 560
investments in the Netherlands and Germany for 2025 and 2026. The shareholder loan facility
Total 773 627
for the years 2025 and 2026 amount to respectively EUR 2.3 billion and EUR 17.1 billion. The
loans drawn from the facility will be granted at market conditions.
ⓘ Accounting policies
The amount of capitalised borrowing costs, including fair value adjustments, decreased to Contract liabilities are recognised when payments are received or when the payments are due
EUR 99 million compared to previous year because of the increased interest rates and shorter (whichever is earlier) before a related performance obligation is satisfied. Contract liabilities are
maturity leading to lower fair value for bonds (2023: minus EUR 116 million). recognised in accordance with the related contract. At initial recognition, contributions received
from third parties are measured at transaction price, presented as contract liabilities (‘investment
For more information about the fair value, refer to note 21. contributions’) and are subsequently amortised and recognised as revenue over the related
assets useful life.
ⓘ Accounting policies
Please, refer to note 22 accounting policies for financial instruments.

15. Contract liabilities

The movements in the contract liabilities are as follows:

(EUR million) 2024 2023

At 1 January 627 548

Addition 160 94
Amortisation -14 -15
At 31 December 773 627

Contract liabilities are related to investment contributions from customers for specific tangible
fixed assets of TenneT. Additions in contract liabilities mainly relate to investment contributions
from customers intended for new grid connections to be connected to the high-voltage grid,
which need to be paid by the concerning customers.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

16. Provisions In 2024, EUR 107 million was added (2023: EUR 101 million) for expected future
2024 2023 decommissioning costs for projects constructed during 2024. Changes in estimates amounting
Non- Non- to EUR -159 million (2023: EUR -380 million), are mainly coming from the Netherlands due
(EUR million) current Current Total current Current Total to changes in the estimated future removal costs (EUR -106 million), the used inflation
Decommissioning 1,607 5 1,612 1,613 5 1,618 rate (EUR -31 million), the used discount rate (EUR -23 million) and updated price levels
Other 119 559 678 113 106 219 (EUR 6 million). The imputed interest for 2024 is recognised in the statement of income
Total 1,726 564 2,290 1,726 111 1,837 as a finance expense of EUR 46 million (2023: EUR 28 million). No offshore assets have
been decommissioned in 2024 or 2023. In line with current regulation and permits, the first
decommissioning of offshore assets is expected to be finalised in 2029.
The movements in the provisions are as follows:
Other provisions
(EUR million) Decommissioning Other Total The other provisions as per 31 December 2024 mainly consists of legal claims of
At 1 January 2023 1,110 202 1,312 EUR 553 million (2023: EUR 105 million), environmental obligations of EUR 64 million (2023:
Additions 101 95 196 EUR 66 million) and provision for long-term service bonuses of EUR 46 million (2023:
Utilisation -1 -46 -47 EUR 36 million).

Changes in estimates 380 5 385

The legal claims mainly relate to project claims concerning assets under construction, for
Unused amounts reversed - -38 -38
which the estimated additional payments are capitalised. Where compensation claims will be
Imputed interest 28 2 30
reimbursed through regulation, a receivable has been recognised. The increase mainly coming
Transfer to held for sale (note 1) - -1 -1 from the delay in completing a grid connection system, resulting in a low triple-digit million
At 31 December 2023 1,618 219 1,837 amount being recognised as a provision, and corresponding claims for reimbursement were
recognised accordingly. The key parameters for the provision are the expected duration of the
Additions 107 493 600 delay, the energy market prices and the wind profile at sea.

Utilisation - -25 -25

Regarding long-term service bonuses TenneT has future obligations under the collective labour
Changes in estimates -159 - -159
agreement involving the payment of bonuses to long-serving and retiring employees on their
Unused amounts reversed - -12 -12
retirement date. The associated provision has been calculated on the basis of actuarial
Imputed interest 46 3 49 principles, including the main assumptions of future salary increases, leave chances and age-
At 31 December 2024 1,612 678 2,290 dependent retention rates.

Decommissioning provision ✪ Key estimates and assumptions

The decommissioning provision is mainly related to TenneT's offshore assets, i.e. offshore The provision for environmental management and decommissioning involves:
platforms and sub-sea cables, including the interconnectors. For all of the offshore assets legal 1. estimating the future decommissioning costs;
and constructive asset retirement obligations exist for decommissioning these assets at the 2. estimating the expected remaining useful life including the start of the decommissioning of
end of the useful lives or at the end date of the related permits. Therefore, a decommissioning the relevant asset;
provision is recognised, for which the estimated total asset removal costs are capitalised as part 3. estimating the applicable discount rate and (future) inflation rate.
of the carrying value of the related assets and depreciated until retirement of the assets.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

The main uncertainties related to the estimated future decommissioning costs are the required required to settle the obligation and (iii) when the amount can be reliably estimated. Provisions
removal procedures and techniques, the future availability of equipment and vessels, market are measured at the present value of estimated cash flows to settle obligations, based on
rates at expected time of decommissioning and possible changes in legislation, policies and expected price levels. Cash flows are discounted at a pre-tax rate that reflects the risks specific
permits applicable to offshore assets and their removal. As of 31 December 2024, new to the liability. The unwinding of interest components associated with provisions is recognised in
information was available regarding updated underlying assumptions. Based on this new the statement of income as a finance expense.
information, the Group concluded that several assumptions and estimates in the determination
of the total estimated decommissioning costs needed to be updated. For the impact of these Estimated future costs are reviewed annually and adjusted as appropriate. Changes in
changes in estimates on the decommissioning provision and the corresponding asset retirement estimated future costs and discount rates for decommissioning costs are recognised as
cost, please refer to note 1. changes in estimations and recorded in tangible fixed assets. All other provisions changes in
estimated future costs and discount rates are recognised in the statement of income.
Decommissioning costs are provided for at the net present value of estimated future costs to
settle the obligation. The useful life of the offshore assets is estimated at 20 till 35 years and 17. Net employee defined benefit liabilities
for interconnector cables the useful life is estimated at 40 years, in accordance with the useful Pension plans Germany
lives as disclosed in note 3. Decommissioning will commence at the end of the useful life of TenneT has defined benefit plans for the majority of its German personnel. Said personnel are
the offshore assets, also taking into account the end of the permit period for operating the mainly employed based on the collective labour agreement of 'Tarifgruppe Energie' and thus
offshore assets. enjoy benefits in the form of old-age, disability and surviving dependents' pensions. The large
majority of the benefit obligations are based on pension schemes that define annual pension
The discount rate and inflation rate were adjusted in 2024 to reflect current market claims based on respective employees' pensionable income of a particular year. Furthermore,
assessments of the time value of money and the specific risks related to the provision. For each employee is allowed to defer a certain amount of their compensation to raise his pension
the decommissioning provision a discount rate between 2.290% and 2.750% (2023: between claim within defined bounds.
2.476% and 2.509%) and an expected future inflation rate between 1.840% and 2.208% (2023:
between 2.254% and 2.443%) was assumed. A change in the discount rate of 1 percent point The Group contributes to two post-employment defined benefit plans in Germany, pursuant to a
would have a maximum impact of EUR 222 million on the asset value and liability value. works council agreement called 'Betriebliche Alterssicherung' (hereafter referred to as 'pension
scheme 2001') and a works council agreement called 'Beitragsplan' (hereafter referred to as
The provision for legal claims is subject to significant judgement and reflects TenneT's best 'pension scheme 2008'), as well as to a small number of individual pension commitments. The
estimate of the probable outflow of resources for each individual case. The provisions for long- pension obligations related to these plans are partly covered by assets held in two Contractual
term service and retirement bonuses have been calculated on the basis of actuarial principles. A Trust Arrangements (CTA) administrated by ‘Helaba Pension Trust e.V.’ (Helaba). According to
discount rate of 2.6% was applied for other provisions (2023: 3.0%). A change in discount rate German law, TenneT remains ultimately liable for fulfilling these pension obligations.
of 1 percent point would have a maximum impact of EUR 5 million on the related book value.
Pension scheme 2001
TenneT is of the opinion that the recognised provisions reflect the best estimate of the probable This scheme covers employees who started their employment with TenneT TSO GmbH on or
outflow of resources. However, uncertainty about the assumptions and estimates could result in before 31 December 2007 (or later if the individual employment contract was agreed on or
outcomes that require a material adjustment to the carrying amount of these provisions in future before 1 April 2008). The scheme became effective on 1 January 2001 and absorbed older plans
periods. For disclosure of contingent liabilities please refer to note 23. at the time. As part of the transition in 2001 to the new plan, employees were guaranteed a
vested pension claim based on the old plan for their years of service prior to the transition date.
ⓘ Accounting policies The plan offers benefits in the form of old-age, disability and surviving dependents' pensions
Provisions are recognised when there is (i) a legal or constructive obligation as a result of past and is composed of an employer-funded basic level based on the respective employee's yearly
events, (ii) it is probable that an outflow of resources embodying economic benefits will be pensionable income, an employer-funded top-up level based on the respective company's

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

performance and an employee-funded supplementary level which allows employees to increase The defined benefit liabilities at 31 December are presented in the table hereafter. The short-
their pension entitlement through deferred compensation. Yearly fixed pension claims are term part of the benefit liability is presented as provisions.
calculated with a fixed internal interest rate that sum up to the total earned pension benefits
of the respective employee. (EUR million) 2024 2023

Defined benefit liability long-term 240 217

Pension scheme 2008 Defined benefit liability short-term 3 2
This scheme covers employees who started their employment with TenneT TSO GmbH after Total defined benefit liability 243 219
31 December 2007 (unless the individual employment contract was agreed before 1 April 2008,
in which case the pension scheme 2001 applies). This scheme offers benefits in the form of
old-age, disability and surviving dependents’ pensions. Changes in the present value of the long-term defined benefit obligation ('DBO') over the year
were as follows:
Pension cost is composed on the employer-funded basic level based on the respective
employee's yearly pensionable income, an employer funded top-up level based on the (EUR million) 2024 2023

respective company's performance and an employee-funded supplementary level which Defined benefit obligation at 1 January 314 265
allows employees to increase their pension entitlement through deferred compensation. If the Current service costs 15 11
employee contribution to the supplementary level reaches a certain level, the company pays an Interest costs 10 10
additional contribution of one-third of the respective basic level contribution.
Contributions by plan participants 3 3
Benefits paid -5 -6
Annually, for each year a contribution to the pension claims is increased with an interest rate
Remeasurements -4 31
that is recalculated based on the weighted average current yield of German Federal Government
Bonds (Bundesanleihen), with an effective floor of 3.0% and with different maturities (10, 20 and Defined benefit obligation at 31 December 333 314
30 years) reflecting the average duration of the plan. The annual pension claim contributions for
all years of service sum up to the total earned pension benefits of the respective employee. Remeasurements are mainly due to the change of the discount rate from 3.45% to 3.5%.

Differences between the plans are limited and refer mainly to the way internal interest rates Changes in the fair value of plan assets at 31 December of the year were as follows:
and the pensionable income are determined. Therefore, the disclosure in the notes hereafter
comprises the combined plans. (EUR million) 2024 2023

Fair value of plan assets at 1 January 109 103

The funded status of the plans and the amounts recognised in the statement of financial Actual return on plan assets 7 6
position were as follows: Contributions by employer 5 5
Benefits paid -5 -5
(EUR million) 2024 2023
Fair value of plan assets at 31 December 116 109
Defined benefit obligation 333 314
Fair value of plan assets -116 -109
Funded status 217 205
Benefit asset included in other financial assets 26 14
Defined benefit liability 243 219

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Major categories of plan assets as a percentage of the fair value of the total plan assets were State plans
as follows: Contributions to state plans amounted to EUR 32 million in 2024 (2023: EUR 26 million).

2024 2023 ✪ Key estimates and assumptions

Quoted in active markets: Pension obligations and pension entitlements that are known on the reporting date are valued
Equity instruments 33% 32% using economic trend assumptions including, among others, salary growth rates and pension
Debt securities 43% 44% increase rates, which are intended to reflect realistic expectations, as well as variables specific
to reporting dates such as discount rates. The principal assumptions used in determining the
Other 5% 5%
pension obligation were as follows:
Unquoted investments:
Debt securities 0% 0% 2024 2023
Real estate 12% 13% Discount rate 3.50% 3.45%
Cash 5% 4% Future salary increases 2.50% 2.50%
Other 2% 2% Future pension increases 1.00% 1.00%

Remeasurements, including actuarial gains and losses arising from experience adjustments and The vast majority of TenneT's pension plans include a fixed annual pension increase of 1%
changes in actuarial assumptions, recognised in the statement of comprehensive income were after retirement. For pension agreements that do not foresee this fixed increase, a future
as follows: pension increase of 2.3% per year (2023: 2.3% per year) was used in the calculation of defined
benefit obligations.
(EUR million) 2024 2023

Accumulated balance at 1 January 15 -14 Assumptions regarding future mortality experience are set based on actuarial advice in
Remeasurements during the year -8 29 accordance with published statistics and actuarial experience. An increase in each of the main
Accumulated balance at 31 December 7 15 assumptions would have had the followings effects:

(EUR million) 2024 2023

Remeasurements of the year originate from the following items: 0.25% change of discount rate -15 -14
0.5% change of salary increase rate 1 1
(EUR million) 2024 2023
0.5% change of pension increase rate 1 1
Remeasurements from actuarial (gains)/losses in DBO -4 31
Change of 1 year in life expectancy 8 8
Exceeding return on plan assets (over net interest included in net liability) -4 -2
Accumulated balance at 31 December -8 29
The sensitivities indicated are computed based on the same methods and assumptions used
Thereof:
to determine the present value of the defined benefit obligations and are based on variations in
actuarial (gains)/losses from experience -1 5
a single variable only. Note that the sensitivity analyses may not be representative of an actual
actuarial (gains)/losses from changes in actuarial assumptions -3 26
change in the defined benefit obligation, as it is unlikely that changes in assumptions would
occur in isolation.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Due to the development of plan assets and the change in (statutory) discount rates, TenneT The policy funding ratio is the 12-month moving average of the nominal funding ratio. ABP’s
expects to have no obligation to contribute to plan assets in 2025. TenneT expects the policy funding ratio at 31 December 2024 was 111.9% (2023: 113.9%) which is above the
following, undiscounted, benefit payments from the plan: critical regulatory coverage rate level under which pensions would have to be reduced.

(EUR million) 2024 2023

ⓘ Accounting policies
Within the next 12 months 8 7
Payments to defined contribution plans are charged as an expense in the period to which
Within 1-5 years 39 35
they relate.
Within 5-10 years 62 57
More than 10 years 572 529
Total 681 628 18. Other financial liabilities
The other financial liabilities consists of shares held by CIP in TOD3 for 67% in combination
ⓘ Accounting policies with a contribution from the Shareholder of EUR 1.6 billion in June 2023. The movement of is
For defined benefit plans, pension costs are determined using the projected unit credit method. disclosed in the table hereafter:
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling
(excluding net interest) and the return on plan assets (excluding net interest), are recognised (EUR million) 2024 2023

in other comprehensive income in the period in which they occur. Remeasurements are not At 1 January 1,771 185
reclassified to the statement of income in subsequent periods. Profit share current year 9 21
Contribution by ordinary shareholder - 1,602
Service costs comprising current service costs and, if applicable, past-service costs, gains and
Reclassification to equity -1,602 -
losses on curtailments and non-routine settlements are recognised as personnel expenses in
Capital repaid -8 -37
the consolidated statement of income. Interest is calculated by applying the discount rate to
At 31 December 170 1,771
the net defined benefit liability or asset and is recognised as part of the finance result in the
statement of income.
The contribution from the Shareholder was made under the condition that TenneT would
Prepaid pension costs relating to defined benefit plans are capitalised only if they lead to distribute the same amount to the Shareholder when the shares in TenneT Germany are
refunds to the employer or to reductions in future contributions to the plan by the employer. transferred for 100% to KfW. Given the conditions precedent, the contribution is reclassified
to equity as the negotiations were terminated (refer also to note 1 and note 12).
Pension plan the Netherlands
For the majority of the Dutch personnel TenneT has a multi-employer scheme offered by ABP The remaining short-term other financial liabilities of EUR 363 million (2023: EUR 373 million),
Pension Fund ('ABP'). The pension contribution rate for 2024 was 19.5% (2023: 20.1%) of which is not included in the movement schedule, relate mainly to collateral securities given
the pensionable salary. In 2025, TenneT expects to contribute EUR 52 million, based on 2024 by third parties to underwrite trading on energy exchanges and the auctioning of cross-border
number of employees, to the ABP scheme. Compared to the total participants in the ABP interconnection capacity as disclosed in note 10.
pension fund, TenneT's share in ABP is limited. The Company is not liable for any deficits in the
multi-employer plan. ⓘ Accounting policies
Please, refer to note 22 accounting policies for financial instruments.
ABP has indicated that it is unable to provide the kind of company-specific information required
by IFRS for defined-benefit pension schemes. Consequently, this scheme is treated as if it were
a defined contribution scheme.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

19. Account- and other payables Other payables

(EUR million) 2024 2023 Other payables mainly comprised accruals for which invoices had not yet been received. The
EEG accounts payable 466 1,741 amount of other payables increased mainly because of accruals for which invoices had not
Accounts payable 406 427 yet been received from construction suppliers in combination with an agreed upon settlement
Accruals for tangible fixed assets 564 588
agreement with a supplier.

Grid expenses payable 2,016 1,948

✪ Key estimates and assumptions
Interest payable 220 148
Accrued grid expenses for measures taken to restore the imbalance of the electricity grid, relate
Personnel payables 96 76 to balancing services provided by various electricity generating parties. At year-end, TenneT
Wage tax and social securities payable 34 32 records a pass-through accrual for all balancing costs. The accrual is based on actual volumes
VAT payable 96 14 or, if not available, forecast volumes derived from models. Several assumptions are made in
Payables to related parties 56 84 these models such as weather conditions, requested volumes and capacity power plant. Prices
Other payables 474 114 are based on underlying contracts and/or historical data.

Total 4,428 5,172

ⓘ Accounting policies
Please, refer to note 22 accounting policies for financial instruments.
A list of all related parties is included in note 29 of the consolidated financial statements.
20. Financial risk management
EEG accounts payable TenneT's business activities are exposed to a number of financial risks such as interest rate
Please, refer to note 9. risk, credit risk, liquidity risk and refinancing risk, which are described in detail in this note. The
financial risk management strategy primarily focuses on protecting liquidity, equity capital and
Accruals for tangible fixed assets net result in order to safeguard TenneT's ability to continue active operations while providing
Payables in connection with tangible fixed assets purchases are related to unbilled services and an adequate return to its shareholders. TenneT's approach to manage financial risks, including
deliveries for onshore and offshore investment projects. a number of specific disclosures (such as a maturity analysis of contractual undiscounted
financial obligations) required by accounting standards, are set out in this note. For details
Grid expenses payable about regulatory risks a reference is made to the 'risk management' section of the Integrated
The grid expenses payable mainly consist of accrued expenses relating to balancing energy and Annual report.
capacity, congestion management (redispatch), grid losses and reactive power.
Risk management related to financing activities is done by TenneT's treasury department under
Interest payable policies included in the Treasury Statute approved by the Executive Board. Their objective is
Interest payable increased because of higher outstanding borrowings in combination with an to facilitate the realisation of TenneT's financial and strategic objectives from a funding and
increase of the interest rates. financial risk perspective. The Treasury Statute includes principles covering specific areas such
as interest rate risk, liquidity risk, the use of derivatives and the investment of excess liquidity.
Personnel payables The use of all ordinary course financial instruments is permitted, provided these are used
Personnel payables mainly relate to accruals for paid leave and holiday allowance, which solely to cover open positions of the Company. Any speculative use of financial instruments is
increased because of the increased workforce. explicitly not authorised.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Interest rate risk For certain situations, securities in the form of bank guarantees and collaterals are held
TenneT is exposed to interest rate risk on its debt portfolio. To limit this risk, the policy is to base as protection against the default risk of parties with balance responsibility. With respect to
the majority of the loan portfolio on fixed interest rates. As of 31 December 2024, the senior investment projects, TenneT requires counterparties to deliver bank guarantees or collaterals as
debt portfolio was for more than 99% (2023: 83%) based on fixed interest rates. An increase a protection against defaults.
or decrease in interest rates of 2 percentage points would result in an increase or decrease of
EUR 5 million in TenneT's interest cost (2023: EUR 70 million). The decrease of the exposure is The management of energy exchanges, the execution of the Renewable Energy Act in Germany
mainly related to the shareholder loan facility compared to 31 December 2023. and the maintenance of the energy balance between supply and demand requires transfer of
significant cash amounts. TenneT's policies are aimed at minimising the risks associated with
Furthermore, there is a risk that interest payable on borrowings exceeds the interest the clearing transactions in connection with these cash flows.
compensation received by TenneT under the prevailing regulatory systems in the Netherlands
and Germany. In 2022, a new regulatory period started in the Netherlands. The risk that the Credit risk on trade and other receivables is limited because most of TenneT's trade and other
interest payable on borrowings exceeds the interest compensation received by TenneT is largely debtors have a low risk of default. Consequently, TenneT requires no material collateral as
mitigated with the ex-post settlement of the interest rates which is part of the new regulatory security and no insurance for credit risk. The maximum exposure to credit risk at the reporting
period as of 2022. date is the carrying value of each class of financial assets disclosed in note 7 and note 9. The
movement of the allowance for expected credit losses ('ECLs') of trade receivables is disclosed
In Germany, actual interest costs are compensated up to a level customary to the market. in note 9.
The BNetzA determines the market rate on basis of reference interest rates published by the
Deutsche Bundesbank. The provision rates for ECLs are based on groupings of various customer segments with similar
loss patterns (such as customer type and arrears in payments). Any ECLs for financial guarantee
Currently TenneT expects that actual costs of debt for the Company are below the predefined contracts and commitment letters, if any, are also provided for. The calculation reflects the
maximum reference rates, in which case ACM has decided to ex-post settle the interest rate for probability-weighted outcome, the time value of money and reasonable and supportable
interest rates actually measured in the applicable year of the regulatory period. information that is available at the reporting date about past events, current conditions and
forecasts of future economic conditions. Generally, trade receivables and other financial assets
Credit risk are written-off if there is no reasonable expectation of recovering the contractual cash flows.
TenneT is exposed to the risk of loss resulting from counterparties’ defaulting on their The Group considers a financial asset in default when contractual payments are 90 days
commitments including failure to pay or make a delivery on a contract. TenneT's exposure to past due. However, in certain cases, TenneT may also consider a financial asset to be in
credit risk from operating activities and treasury activities is inherent to its business activities. default when internal or external information indicates that the Group is unlikely to receive the
outstanding contractual amounts in full before taking into account any credit enhancements
Operational credit risk held by the Group.
In respect of TenneT's operating activities, TenneT has a credit policy in place, which takes into
account the risk profiles of TenneT's counterparties. The Company also has policies in place to Financial credit risk
monitor the financial viability of counterparties. In 2024, financial credit risk arose mainly from TenneT's transactions and positions with
several financial institutions. At 31 December 2024, the maximum credit risk amounted to
In the Netherlands and Germany, TenneT is responsible for maintaining the balance between EUR 2.2 billion (2023: nil).
supply and demand of energy. The associated costs are covered by income from parties with
balance responsibility, which are charged for any imbalances attributable to them. Any surplus is
deducted from subsequent tariffs for system services.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Counterparty risk may be defined as the risk that a party that has entered into a contract with 1 to 3 3 to 12 More than
(EUR million) Notes <1 month 1 to 5 years Total
the Group is unable to fulfil its financial obligations towards the Group. In accordance with months months 5 years
TenneT's treasury policies, counterparty credit exposure is monitored frequently against the At 31 December 2023
counterparty credit limits. Exposure per counterparty is calculated for the group as a whole, Account- and other payables 19 1,621 997 2,406 - - 5,024
excluding the positions for EEG, KWK-G and ASK. TenneT has concentration limits in place
Other financial liabilities 18 373 - 1,602 - 171 2,146
for the Group EEG, KWK-G and ASK current account balances, when funds are placed on
Lease liabilities 4 18 32 159 578 299 1,086
deposit and financial derivatives, money market loans and other products are entered into. At
Borrowings 14 1,611 1,918 491 6,658 15,626 26,304
31 December 2024, TenneT had EUR 2,050 million on deposits. These deposits had a maturity
of less than 3 months (2023: nil), refer to note 10. Total 3,623 2,947 4,658 7,236 16,096 34,560

At 31 December 2024, TenneT had EUR 150 million deposits with third parties relating to EEG TenneT's borrowings have a diversified maturity profile, which reduces refinancing risks (refer to
(2023: nil) and no financial derivatives were outstanding. At 31 December 2024, there were no note 14).
deposits with a maturity of more than 3 months (2023: nil), refer to note 9 and note 17.
The settlement of the EEG potentially has a significant impact on the Group's working capital
Management does not expect any significant losses from non-performance by position. Even though EEG expenses for payments to renewable energy producers are generally
treasury counterparties. financed in full out of the federal budget, temporary liquidity risks may arise for the four German
TSOs including TenneT, which may require interim financing to bridge liquidity gaps in the
Liquidity risk short-term. In principle, the German Federal Ministry of Finance and the Federal Ministry for
Liquidity risk is defined as the risk that the Group cannot meet its short-term financial Economic Affairs and Climate Action have confirmed in a letter that the financing of the EEG by
obligations. Liquidity is monitored every quarter on a rolling 12-month forward-looking basis. the German state is secured.
TenneT's 12-month liquidity objective was met on 31 December 2024 and 31 December 2023.
At 12 January 2024, TenneT and the Dutch state have agreed upon a shareholder loan
The following maturity schedule presents TenneT's financial obligations on a contractual, non- facility of EUR 25.0 billion to safeguard the financing of TenneT's planned investments in the
discounted basis. Netherlands and Germany for 2024 and 2025. The loan facility relating to 2024, amounting to
EUR 13.1 billion, is fully drawn. The undrawn facility for the year 2025 related to the current
(EUR million) Notes <1 month
1 to 3 3 to 12
1 to 5 years
More than
Total facility is EUR 11.9 billion. At 21 February 2025, TenneT and the Dutch state have agreed
months months 5 years
upon a supplementary shareholder loan facility of EUR 19.4 billion, safeguarding TenneT's
At 31 December 2024 planned investments in the Netherlands and Germany for 2025 and 2026. The supplementary
Account- and other payables 19 1,778 875 1,555 - - 4,208 shareholder loan facility for the years 2025 and 2026 amount to respectively EUR 2.3 billion and
Other financial liabilities 18 364 - - - 170 534 EUR 17.1 billion. The loans drawn from the facility will be granted at market conditions.
Lease liabilities 4 22 41 188 801 359 1,411
Borrowings 14 111 3 1,258 9,331 29,873 40,576
Total 2,275 919 3,001 10,132 30,402 46,729

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Next to shareholder loan facility, TenneT has EUR 3.3 billion committed RCFs at its Actions taken in order to mitigate this risk are: (i) an active financing strategy to create and
disposal for general corporate purposes. At 31 December 2024, this facility was undrawn. maintain an optimal capital structure as well as to diversify funding sources and manage
Furthermore, TenneT had EUR 450 million of undrawn long-term loan commitments from the financial risks, (ii) a proactive approach of potential investors and active discussion with
EIB available at 31 December 2024 and EUR 250 billion committed bilateral RCFs (nil drawn at the Shareholder to contribute additional equity and (iii) actively engaging in dialogue with
31 December 2024). Next to that, TenneT had EUR 500 million of uncommitted bank facilities its regulators to ensure that regulatory frameworks remain adequate to safeguard regulators
(nil drawn at 31 December 2024) and EUR 450 million bank overdraft facilities (nil drawn at income and returns to investors. Furthermore, the Company prepares tapping into public or
31 December 2024). private capital markets for a structural funding solution for its German operations.

The size of TenneT's credit facilities is such that the Company expects that all substantial Commodity price risk
adverse financial developments and events can reasonably be expected to be accommodated TenneT's energy procurement risk management policy and delegations of authority govern its
and that continuation of day-to-day operations is ensured for at least 12 months. The terms commodity trading activities for energy transactions. The purpose of this policy is to ensure
and conditions of TenneT's credit facilities include negative pledge and pari passu clauses. No TenneT transacts within pre-defined risk parameters and only in the physical and financial
security interest over any of the Group's assets has been provided. All credit facilities have markets where TenneT or its customers have a physical market requirement. In addition, state
floating-rate interest conditions. regulators require TenneT to manage commodity risk and cost volatility prudently through
diversified pricing strategies.
TenneT also has access to diversified funding sources through its medium-term note (EMTN)
programme and TenneT's commercial paper (CP) programme. Both programmes significantly Energy purchase contracts for the forward purchase of electricity that are used to satisfy
reduce its dependency on bank financing. physical delivery requirements to customers, or for energy that the Group uses itself, meet the
expected purchase or usage requirements of IFRS 9. They are, therefore, not recognised in the
TenneT expects to meet its financial obligations for 2025 with (i) Shareholder loan facilities, (ii) financial statements until they are realised. Disclosure of commitments under such contracts is
cash and cash equivalents, (iii) funds from operations, (iv) unused credit facilities, (v) capital made in note 23.
market transactions and (vi) equity contributions from its Shareholder. TenneT expects to meet
its financial obligations for the subsequent years through Shareholder loan facilities, various Energy purchase contracts are considered to comprise two components, being a forward
capital market transactions and equity contributions and intends to manage future refinancing purchase of power at spot prices, and a forward purchase of environmental certificates at a
risks by spreading the tenors of new financing arrangements. variable price (being the contract price less the spot power price). With respect to TenneT's
current contracts, neither of these components meets the requirement to be accounted for as
Equity risk a derivative. As currently no liquid market for environmental certificates exists, this component
Equity risk pertains to the risk of a lack of access to equity on a sustainable basis. This meets the expected purchase or usage exemption of IFRS 9. TenneT expects to enter into an
risk reflects the inability to raise additional capital in a timely fashion for TenneT's extensive increasing number of these contracts, in order to meet its compliance requirements in the short
investment portfolio or to absorb negative regulatory developments, possibly adversely affecting to medium term. It is possible that in future, if and when liquid markets develop, and to the
TenneT's financial position. extent that TenneT is in receipt of environmental certificates in excess of its required levels,
this exemption may cease to apply, and it may be required to account for forward purchase
commitments for environmental certificates as derivatives at fair value through profit and loss.

Integrated Annual Report 2024 TenneT Holding B.V. 230

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

21. Fair values 22. ⓘ Accounting policies for financial instruments

The next table provides an overview of the carrying value, based on the IFRS Accounting Financial assets
Standards, and fair value of financial instruments, including the level in the valuation hierarchy. All financial assets are recognised initially at fair value, net of directly attributable
Financial instruments are measured at fair value. transaction cost.

Carrying amount Fair value

After initial recognition financial assets are measured at amortised cost, fair value through other
(EUR million) Notes 2024 2023 2024 2023 Hierarchy
comprehensive income ('OCI') and fair value through profit or loss. Financial investments in
Financial assets
investment funds (refer to note 7) are classified as fair value through profit or loss. All other of
Other financial assets:
- Financial assets through profit and loss 7 13 15 13 15 Level 3 TenneT's financial assets are classified as amortised cost, because the following two conditions
Total 13 15 13 15 are met:
• The financial assets are held within a business model with the objective to hold financial
Financial liabilities assets in order to collect contractual cash flows; and
Borrowings: • The contractual terms of the financial asset give rise on specified dates to cash flows that are
- Borrowings - bonds 14 16,601 16,587 15,371 16,025 Level 1
solely payments of principal and interest on the principal amount outstanding.
- Borrowings - other 14 15,333 5,924 15,039 5,643 Level 2
Total 31,934 22,511 30,410 21,668
Financial assets at amortised cost are subsequently measured using the effective interest ('EIR')
method and are subject to impairment.
At 31 December 2024, no financial instruments carried at fair value were held (2023: nil).
Furthermore, TenneT concluded that the fair value of the loans and receivables, cash and The Group recognises an allowance for expected credit losses ('ECLs') for financial assets.
cash equivalents, account- and other payables and other financial liabilities approximate their ECLs are based on the difference between the contractual cash flows due in accordance
carrying amounts at year end 2024, due to the short-term maturities of these instruments. with the contract and the cash flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate. For trade receivables and contract assets,
The following hierarchy by valuation technique was used to calculate the fair value of assets the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not
and liabilities: track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at
• Level 1: Measurement based on quoted prices (unadjusted) in active markets for identical each reporting date.
assets or liabilities.
• Level 2: Measurement based on inputs other than quoted prices included in Level 1 that Financial liabilities
are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, All financial liabilities are recognised initially at fair value and, in case of loans, borrowings and
derived from prices). payables, net of directly attributable transaction costs. The Group's financial liabilities include
• Level 3: Measurement based on inputs for the asset or liability that are not based on trade and other payables, loans and borrowings including bank overdrafts.
observable market data (that is, unobservable inputs).
After initial recognition at fair value, interest-bearing loans and borrowings are subsequently
The fair value of the level 2 borrowings was based on discounted cash flows. A change in measured at amortised cost using the EIR method. Gains and losses are recognised in
the assumptions used to calculate the fair value should not result in a significantly different the statement of income when the liabilities are derecognised as well as through the EIR
outcome. There were no transfers between the fair value hierarchy levels during 2024 or 2023. amortisation process. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
The fair value of the level 3 financial assets through profit and loss was based on information amortisation is included as finance expense in the statement of income.
received by the investment funds.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

23. Commitments and contingencies Approximately EUR 9.6 billion of capital commitments were payable within 12 months at
Off-balance sheet rights and commitments existing per balance sheet date consist of 31 December 2024 (2023: EUR 5.3 billion).
the following:
Comfort letters issued
(EUR million) 2024 2023 The comfort letters issued mainly related to offshore projects in Germany.
Investment related off-balance sheet items
Off-balance sheet rights Grid related commitments
Bank guarantees received 4,689 3,746 Grid-related commitments mainly consist of the outstanding value of purchase orders related to
grid expenses to which TenneT is committed.
Comfort letters received 3,212 2,180
Total 7,901 5,926
Other
Other off-balance sheet commitments mainly consist of:
Off-balance sheet commitments • Compensation claimed by several parties for the delay or non-availability of the offshore grid
Capital commitments 43,644 35,778 connection. The related legal proceedings are still pending. If and to the extent the claims are
Comfort letters issued 790 813 (partly) justified and the payments resulting there-from could not be passed through via the
Total 44,434 36,591 grid tariffs, the binding rulings may have a negative impact on the financial position; and
• Capital commitments to minority participating interests.

Other off-balance sheet items

For these items, it is not practically possible to determine the financial effect and possible timing
Off-balance sheet commitments
of cash outflows and cash inflows.
Grid-related commitments 507 758
Other off-balance sheet commitments 127 55 Contingencies
Total 634 813 Due to the business TenneT operates in, and TenneT's legal structure, TenneT faces several
contingent liabilities. In general, the following items are disclosed as contingent liabilities
The expected cash flows in respect of capital commitments equal the amounts in the above at TenneT:
table. For comfort letters issued, no cash flows are expected. • Possible impact of the Dutch regulatory frameworks on the TenneT's business financial
conditions and net income;
Bank guarantees received • Operational risks and risks related to material projects;
The bank guarantees received are relates to ongoing investment projects. • Impact of environmental issues;
• Risks relating to the legal structure of TenneT;
Comfort letters received • Risks relating to the financing of TenneT; and
The majority of comfort letters received was from parties involved in the construction of German • Factors which are material for the purpose of assessing market risks.
onshore and offshore projects.
Financial risk management related to several of these contingencies is disclosed in note
Capital commitments 21. Hereafter the contingencies regarding legal claims and environmental issues are further
Capital commitments are commitments entered into with regard to the purchase of tangible disclosed. Uncertainties relating to contingent liabilities make a reliable estimation of the
fixed assets. The capital commitments increased due to investments in TenneT's 2GW Program. financial impact impossible.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Various other off-balance sheet commitments and contingencies as well as other off- Where an obligation does not meet the recognition requirements for provisions, a contingent
balance sheet rights existed as at 31 December 2024, but were immaterial from a liability is disclosed unless the possibility of an outflow of resources embodying economic
disclosure perspective. benefits is remote. When it becomes probable that an outflow of future economic benefits
will be required, a provision is recognised in the financial statements of the period in which
Legal contingencies the change in probability occurs, except in the extremely rare circumstances where no reliable
Legal claims mainly relate to project claims concerning assets under construction, for which the estimate can be made. If the Company is jointly and severally liable for an obligation, the part of
estimated additional payments would be capitalised. Generally, there are also claims relating the obligation that is expected to be met by other parties is treated as a contingent liability.
to compensation for delays and interruptions, for which any compensation would be passed
through future tariffs. If the recognition criteria for a provision are met, a provision for the legal 24. Revenue
claim is recognised. As a result of uncertainties, legal claims for which the recognition criteria of 2024
a provision are not met, could in unlikely events still result in outcomes with a material impact on TSO Non- Total
(EUR million) TSO NL Eliminations Total
TenneT's financial position. Germany regulated segments

Connection and
2,696 4,207 - 6,903 - 6,903
Environmental contingencies transmission services
The Group is exposed to risks regarding environmental obligations arising from past activities. Maintenance of the energy balance 336 362 - 698 - 698
For example, a number of sites have to be decontaminated and restored to their original Operation of energy exchanges 188 400 - 588 - 588
condition before being handed back at the end of the contractual period. Under current
Offshore (balancing) 255 1,354 - 1,609 - 1,609
legislation, environmental plans and any other measures to be adopted have to be agreed
Other 19 131 40 190 - 190
with local, regional and national authorities as appropriate. As soon as such plans are approved
or other legal obligations arise, a provision is formed based on the most reliable estimate Revenue to related parties 5 2 4 11 - 11

possible of future expenses. TenneT is of the opinion that the currently recognised provisions Inter-segment 50 22 5 77 -77 -
are adequate, based on information currently available. Total IFRS revenue 3,549 6,478 49 10,076 -77 9,999

ⓘ Accounting policies 2023

Contingent assets are disclosed where an inflow of economic benefits is probable. As soon TSO Non- Total
(EUR million) TSO NL Eliminations Total
as it has become virtually certain that an inflow of economic benefits will arise, the asset Germany regulated segments
and the related income are recognised in the financial statements of the period in which the Connection and
1,344 4,524 - 5,868 - 5,868
change occurs. transmission services
Maintenance of the energy balance 261 432 - 693 - 693
Operation of energy exchanges 275 475 - 750 - 750
Offshore (balancing) 345 1,473 - 1,818 - 1,818
Other 21 95 44 160 - 160
Revenue to related parties 3 2 4 9 - 9
Inter-segment 53 24 5 82 -82 -
Total IFRS revenue 2,302 7,025 53 9,380 -82 9,298

A list of all related parties is included in note 29 of the consolidated financial statements.

Integrated Annual Report 2024 TenneT Holding B.V. 233

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Connection and transmission services Offshore (balancing)

Revenue from connection and transmission services is regulated by the ACM in the Netherlands Offshore revenue is also regulated by the ACM. The offshore revenue is a government subsidy
and by the BNetzA in Germany and mainly relates to transmission of electricity volumes through obtained from the ministry of Climate Policy and Green Growth, which is based on the revenue
the high-voltage grid and to connection services provided to distribution system operations decision of the ACM. Offshore revenue decreased mainly because of lower compensation
('DSOs') and industrial customers, i.e. resolution of transmission restrictions, congestion for redispatch expenses on offshore connections and due to several post-calculations, that
management and reactive power management. The increase in the revenue is mainly explained were settled in the 2024 subsidy, in combination with current year expenses that would
by the higher regulatory asset base, as a result of our growing investments, resulting in higher be compensated through post-calculation in the offshore subsidy being shifted to regular
revenue in Germany and the Netherlands in combination with higher grid fee tariffs that included settlement in future tariffs because of the capped subsidies from 2025 onwards, partly offset
the reimbursement of the higher ancillary services costs of earlier years in the Netherlands. by an increase of the offshore asset base and capitalised assets that generate revenue for the
The latter is however partly offset by lower regulatory rates for the return on equity and entire year since 2024, compared to 2023.
includes lower reimbursement compared to 2023 due to decreasing expected costs for ancillary
services in Germany. Furthermore, revenue decreased in Germany compared to 2023, due to ⓘ Accounting policies
an adjustment of EUR 535 million as a result of reassessed estimation assumptions for accruals Revenue primarily represents the sales value derived from the connection and transmission
regarding ancillary services, refer to note 1 for more information. of electricity together with the sales value derived from the provision of other services to
customers during the year. Revenue from contracts with customers is recognised when
Maintenance of the energy balance control of the goods or services is transferred to the customer at an amount that reflects
TenneT is responsible to ensure that electricity supply and demand is in balance at all times (i.e. the consideration to which the Group expects to be entitled in exchange for those goods or
alternating current frequency in the power grid must be at 50 Hz continuously). If this balance is services. Revenue arises from contracts with a single performance obligation.
significantly disrupted, this may result in a power outage or even a black-out, depending on the
length and severity of the imbalance. To ensure this balance, TenneT contracts and deploys If the revenue received or the receivable exceeds the maximum annual amount as determined
(amongst others) reserve and emergency capacity to compensate unexpected fluctuations by the national regulators, ACM or BNetzA respectively, a downward adjustment will be made
in supply and demand with balancing energy. The associated costs are covered by income to future tariffs to reflect this over-recovery. Under IFRS Accounting Standards, no liability is
from parties with balancing responsibility, which are charged for any imbalances attributable recognised for settlement in future tariffs since this adjustment relates to the performance of
to them. Likewise, balancing responsible parties that solve imbalances are compensated. future services. Similarly, no asset is recognised under IFRS Accounting Standards when a
The cash in- and outflows associated from maintaining this energy balance (e.g. imbalance regulator permits upward adjustments to be made to future tariffs in respect of under-recovery.
settlements) fluctuate considerably and are refunded through tariffs of transmission services in In underlying accounting as opposed to IFRS Accounting Standards, the amounts to be settled
subsequent years. in future tariffs are accounted for, please refer to note 2 for further details.

Operation of energy exchanges Offshore revenue is reimbursed through tariffs and partially through a subsidy. Offshore revenue
This revenue stream is resulting from the auctioning of the available electricity transmission received through subsidy is accounted for in accordance with the recognition and measurement
capacity on cross-border interconnections, which is facilitated through a singe trading platform principles of IAS 20 related to government grants. Revenue is not recognised until there is
of a related party. The decrease in 2024 compared to 2023 is mainly due to lower auction prices. reasonable assurance that the Group satisfies the conditions for receiving the subsidy.
The auction prices were higher in 2023 due to larger uncertainties on the energy market.

Integrated Annual Report 2024 TenneT Holding B.V. 234

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

25. Operating expenses Personnel expenses

Grid expenses (EUR million) 2024 2023
(EUR million) 2024 2023 Salaries 698 576
System services 2,266 3,158 Social security contributions 100 81
Connection and transmission services 1,176 1,342 Pension charges defined benefit plans 15 11
Maintenance of the energy balance 457 522 Pension charges other plans 45 35
Other ancillary services -1 44 Other personnel expenses 61 53
Total ancillary services 3,898 5,066 Capitalised costs for (in)tangible fixed assets -566 -421
Maintaining and operating transmission grids 666 901 Total 353 335
Total 4,564 5,967
2024 2023

Ancillary services are the costs TenneT must incur to maintain the energy balance in the high- Average internal workforce in FTEs employed in the Netherlands 3,103 2,652
voltage grid with balancing energy, balancing capacity and reactive power and to compensate Average internal workforce in FTEs employed in Germany 4,391 3,625
for grid losses and grid congestion (redispatch costs). As ancillary services require TenneT
Average internal workforce in FTEs 7,494 6,277
to procure electricity, these cost are directly affected by electricity market prices. Following
mild weather, societal savings of fossil fuels, a diversification of gas supplies including LNG to
Europe, and increased solar and wind output energy prices dropped significantly and the energy Of the total number of employees, around 3,085 (2023: 2,636) work in the Netherlands.
markets became less volatile in 2023, which continued in 2024. As such, TenneT's ancillary Personnel expenses increased mainly due to increasing FTEs. Furthermore, salaries have
services costs decreased from EUR 5,066 million in 2023, to EUR 3,898 million in 2024. The grid increased due to individual salary increases.
expenses will largely be reimbursed through future tariffs as pass-through costs, which means
that the decreased grid expenses will therefore result in lower grid tariffs in future years. Key management remuneration
Members of the Executive Board and Supervisory Board are regarded as key management.
In 2024, an amount of EUR 206 million (2023: EUR 109 million) concerns transactions
with related parties. A list of all related parties is included in note 29 of the consolidated Aggregate remuneration of members of the Executive Board and Supervisory Board is
financial statements. as follows:

Remuneration Executive Board

(EUR thousand) 2024 2023

Fixed remuneration 1,827 1,753

Pension cost 302 274

Total 2,129 2,027

Integrated Annual Report 2024 TenneT Holding B.V. 235

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Remuneration Supervisory Board (EUR thousand) 2024 2023

Audit of the financial statements

(EUR thousand) 2024 2023
Deloitte Accountants B.V. 1,437 836
Fixed remuneration 181 155
Deloitte GmbH Wirtschaftsprüfungsgesellschaft 1,088 750
Committee fee 83 80
Total audit of the financial statements 2,525 1,586
Total 264 235

Other assurance services

The entire Executive Board consists of statutory directors. Pension remuneration equals (i) the Deloitte Accountants B.V. 681 337
contributions payable to the defined contribution plan for service rendered in the period or Deloitte GmbH Wirtschaftsprüfungsgesellschaft 368 409
(ii), for defined benefit plans, the current service cost and, when applicable, past service cost.
Total other assurance services 1,049 746
Please, refer to the Supervisory Board Report for a more detailed disclosure on remuneration.

Total audit fees 3,574 2,332

Other operating expenses
(EUR million) 2024 2023

Accommodation and office expenses 166 136 The fees for the audit of the financial statements include the audit fees related to (i) TenneT’s
Consultancy expenses 85 74 Integrated Annual Report, (ii) any statutory financial statements of subsidiaries and (iii) services
Hiring of temporary personnel 214 211 that are normally provided by the auditor in connection with their audit mandate.

Travel and living expenses 53 43

The other assurance fees include the aggregate fees invoiced for assurance and services for
Other expenses 111 88
other audit services, which generally only the Company's independent auditor can reasonably
Capitalised costs for (in)tangible fixed assets -180 -175
provide, such as comfort letters, regulatory statements and audits of grant statements.
Total 449 377
ⓘ Accounting policies
Other operating expenses mainly increased due increased number of office locations and TenneT has energy purchase contracts for the forward purchase of electricity that are used
increased FTEs which lead to higher travel expenses and higher expenses for IT. Furthermore, to fulfil performance obligations to customers, or for energy that the Group uses itself.
consultancy expenses increased, due to possible sale of TenneT Germany. Substantially all TenneT's costs of purchasing electricity for supply to customers are recoverable
at an amount equal to cost (pass-through in the tariffs for subsequent years). The timing
Auditors' remuneration of recovery of these costs can vary between financial periods leading to an under- or over-
The fees listed in the table hereafter relate to the services provided to the Company and its recovery within any particular year that can lead to large fluctuations in the IFRS statement
consolidated Group entity by Deloitte Accountants B.V., the Netherlands, the external auditor as of income. TenneT follows approved policies to manage price and supply risks for TenneT's
referred to in section 1(1) of the Dutch Accounting Firm Oversight Act (Dutch acronym: Wta), commodity activities.
as well as by other Dutch and non-Dutch Deloitte legal entities, including their tax services and
advisory groups. The aforementioned energy purchase contracts for the forward purchase of electricity meet the
expected purchase or usage requirements of IFRS 9. These energy purchases are, therefore, not
recognised in the financial statements until these are realised. Disclosure of commitments under
such contracts have been disclosed as 'Grid related commitments' in note 23.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Operating expenses are expenses incurred during regular day-to-day business, such as 27. Corporate income tax
personnel expenses, depreciation or costs for connection and transmission services, system TenneT strives to comply with all applicable tax legislation in a socially responsible manner,
services, maintenance of the energy balance, maintaining and operating transmission grids, maintaining among the highest levels of transparency, quality and integrity.
accommodation or travel. Operating expenses are recognised in the statement of income in
the period these costs are incurred. Payments to defined contribution pension plans are also Corporate income tax is payable in the Netherlands and Germany. In the Netherlands, TenneT
charged as an expense in the period to which these payments relate. has the so called 'horizontal monitoring agreement' with the Dutch tax authorities. Based on
transparency and mutual trust, this agreement is meant to ensure that tax positions are fully
26. Finance income and expenses disclosed and agreed on in advance. Therefore, generally no tax audits are performed by the
Finance income Dutch tax authorities.
The finance income mainly relates to interest on bank accounts. In 2024, the received finance
income has increased compared to 2023, due to a, on average, higher cash balance in The corporate income tax returns in the Netherlands have been filed up to and including
combination with increased interest rates. 2022. Corporate income tax paid in the Netherlands in 2024 amounted to EUR 145 million
(2023: EUR 74 million). In Germany, corporate income and trade tax returns for all German
Finance expense entities have been filed up to and including 2023. In 2024, TenneT paid EUR 174 million (2023:
(EUR million) 2024 2023 EUR 66 million) of corporate income and trade tax in Germany.
Interest on borrowings and credit facilities 607 394
Capitalised interest on assets under construction -39 -25 The key components of the corporate income tax expense are:
Interest on provisions 49 32
(EUR million) 2024 2023
Interest on lease liability 37 18
Current income tax charge 376 399
Interest on financial liability 9 21
Deferred tax 325 -139
Interest on defined benefit obligation 7 6
Income tax expense reported in the statement of income 701 260
Other finance expenses 69 49
Total 739 495
Corporate income tax on results has been applied at the rates prevailing in the respective
Finance expenses comprise mainly interest expenses, such as interest and fees on borrowings countries. In the Netherlands, a statutory corporate income tax rate of 25.8% was applied, while
and credit facilities, interest on provisions and interest on lease liabilities. Finance expenses in Germany, on average, a marginal statutory corporate income tax rate of 30.2% was applied
increased, mainly because of the withdrawals from the shareholder loan facility, refer to note (including trade tax levied by municipalities or 'Gewerbesteuer').
14, in combination with increased interest rates. The interest on financial liability concerns a
transaction with a related party. As the corporate income tax calculation is based on underlying results, the differences between
underlying financial information and IFRS figures, as already disclosed in note 2, also result in a
For the effective rates of interest on assets under construction, lease liabilities, borrowings and net deferred tax asset and a deferred tax expense. The majority of the deferred tax position and
provisions, please refer to note 3, 4, 14 and 16 respectively. the deferred tax expense are therefore related to (variances in) amounts to be settled in tariffs
(including proceeds from maintenance of the energy balance), auction receipts, investment
ⓘ Accounting policies contributions and depreciation differences. Also some other minor differences between IFRS
Finance expenses are recorded in the statement of income using the effective interest Accounting Standards and fiscal valuation exist in the tangible fixed assets and provisions. The
rate method. deferred tax position and deferred tax expense are further specified hereafter.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Reconciliation between the corporate income tax expense and the result before income tax Statement of income
multiplied by the Dutch statutory corporate income tax rate of 25.8% is as follows: (EUR million) 2024 2023

Auction receipts 57 57
(EUR million) 2024 2023
Investment contributions -3 -2
Result before tax 2,528 971
Tariffs to be settled 235 -226
Statutory corporate income tax expenses 652 251
Accelerated depreciation for tax purposes 15 121
Effect of higher corporate income tax rate in Germany 46 43
Provisions -19 -86
Adjustment in respect to current and deferred tax of previous years - -3
Receivable/payable 45 1
Non-deductible costs 15 8
Other -5 -4
Non taxable income -10 -35
Deferred tax expense/(income) 325 -139
Tax paid by third parties -2 -4
Effective corporate income tax expenses 701 260
Deferred taxes are presented in the statement of financial position as follows:
The main reason for the higher effective tax rate of 27.7% compared to the Dutch statutory rate
is mainly the effect of the higher statutory tax rate for the German operations. (EUR million) 2024 2023

Deferred tax assets 521 852

Deferred tax is recognised in the statement of financial position as follows: Deferred tax liabilities -3 -3
Deferred tax, net 518 849
Statement of
financial position

(EUR million) 2024 2023 Movements in the deferred tax position are disclosed hereafter:
Auction receipts -154 -97
Investment contributions -64 -67 (EUR million) 2024 2023

Tariffs to be settled 318 553 At 1 January 849 699

Accelerated depreciation for tax purposes -245 -230 Income tax during the period recognised in statement of income -325 139

Provisions 374 357 Transfer to current tax payable -20 -15

Result allocation to hybrid securities -10 -6 Deconsolidation - 2

Receivable/payable 297 342 Income tax during the period recognised in equity 16 15

Other 2 -3 Income tax during the period recognised in other comprehensive income -2 9

Net deferred tax assets/(liabilities) 518 849 At 31 December 518 849

Unrecognised deferred tax assets are reassessed at each reporting date and are recognised
to the extent that it has become probable that future taxable profits will allow the deferred tax
asset to be recovered. There are no unrecognised carry-forward losses per 31 December 2024
(2023: nil).

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

Pillar Two legislation Deferred tax is not recognised for the temporary differences arising from the initial recognition
The Group has applied the temporary exception as issued by the International Accounting of goodwill or an asset or liability in a transaction that is not a business combination and, at the
Standards Board ('IASB') from the accounting requirements for deferred taxes in IAS 12. time of the transaction, affects neither the accounting profit nor taxable profit or loss.
Accordingly, the Group neither recognises nor discloses information about deferred tax assets
and liabilities related to Pillar Two income taxes. Deferred tax assets and liabilities are recognised on a gross basis in the statement of financial
position unless:
In the Netherlands, the Pillar Two legislation is enacted and is effective as of 2024 and will • The entity has a legally enforceable right to set off current tax assets against current tax
be applicable to the TenneT Group. Accordingly, the Pillar Two legislation has been fully liabilities; and
integrated into this years tax reporting and TenneT has comprehensively reviewed the Pillar • The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the
Two requirements to ensure all tax obligations are properly met. TenneT is mainly operating same taxation authority on either:
in the Netherlands and Germany. In both jurisdictions TenneT will apply a (transitional) safe ◦ The same taxable entity; or
harbour approach with regard to Pillar Two compliance and as a result a top-up tax will not ◦ Different taxable entities which intend either to settle current tax liabilities and assets on
be applicable. a net basis, or to realise the assets and settle the liabilities simultaneously, in each future
period in which significant amounts of deferred tax liabilities or assets are expected to be
ⓘ Accounting policies settled or recovered.
The corporate income tax charge for the period is recognised in the statement of income,
equity or the statement of comprehensive income, in accordance with the relevant accounting 28. Earnings per share
treatment of the related transaction. The corporate income tax charge comprises both current Earnings per share were calculated by dividing results for the year attributable to ordinary
and deferred tax. shareholder of the Group, after adjustment for the distribution on hybrid securities, by the
weighted average number of ordinary shares outstanding during the year. The following
Current income tax assets and liabilities are measured at the amount expected to be recovered table reflects the income and share data used for the basic and diluted earnings per
from, or paid to, the tax authorities. The tax rates and tax laws used to calculate these amounts share calculations.
are those enacted or substantively enacted at the reporting date in those countries where
TenneT operates and where it generates taxable income. (EUR million) 2024 2023

Result attributable to ordinary equity holders of the parent 1,822 652

Deferred tax is recognised using the liability method with respect to temporary differences Allocation to hybrid securities -78 -57
between the tax bases of assets and liabilities and their respective carrying amounts for Result for the year attributable to equity holders of the company adjusted
1,744 595
financial reporting purposes at the reporting date. Deferred tax assets and liabilities are for the allocation to hybrid securities
measured at the tax rates that are expected to apply in the year when the asset is realised or Weighted average number of ordinary shares in issue (in thousands) 200 200
the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date in the relevant jurisdictions.
ⓘ Accounting policies
Deferred tax is generally recognised in respect of all temporary differences, the carry-forward Calculation of earnings per share is based on the result for the year attributable to TenneT's sole
of unused tax credits and any unused tax losses. Deferred tax assets (also in association with shareholder and the weighted average number of shares outstanding during the year.
investments in subsidiaries, associates and interests in joint arrangements) are recognised to
the extent that it is probable that taxable result will be available against which the deductible
temporary differences and the carry-forward of unused tax credits and unused tax losses can be
utilised. This assessment is performed annually.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the consolidated financial statements

29. Related parties Voting interest Economic interest

An overview of legal entities included in the consolidated financial statements is included in note Subsidiary Legal seat Country 2024 2023 2024 2023

30. In addition, the following related parties are identified at the Company level within the Group: Indirect subsidiaries continued
TransTenneT B.V. Arnhem Netherlands 100% 100% 100% 100%
• The Shareholder, state of the Netherlands: TenneT Holding B.V. is controlled by the Dutch
Omroepmasten B.V. Vianen Netherlands 100% 100% 100% 100%
state, which owns 100% of the Company's ordinary shares (note 12);
DC Netz DolWin4 GmbH Bayreuth Germany 100% 100% 100% 100%
• Joint ventures and associates (note 6); DC Netz HelWin1 GmbH Bayreuth Germany 100% 100% 100% 100%
• Members of the Executive Board and Supervisory Board of TenneT Holding B.V. (note 25). DC Netz SylWin2 GmbH Bayreuth Germany 100% 100% 100% 100%
Greennet Stiftung Bayreuth Germany N/A N/A N/A N/A
ⓘ Accounting policies TenneT GmbH & Co. KG2 Bayreuth Germany 100% 100% 100% 100%
TenneT has identified its shareholder, its key management personnel and its joint ventures and TenneT Offshore 1. Beteiligungsgesellschaft mbH Bayreuth Germany 51% 51% 31% 31%
TenneT Offshore 2. Beteiligungsgesellschaft mbH Bayreuth Germany 51% 51% 31% 31%
associates as related parties. Key management personnel are those persons having authority
TenneT Offshore 8. Beteiligungsgesellschaft mbH Bayreuth Germany 51% 51% 37% 37%
and responsibility for planning, directing and controlling the activities of the entity, directly or
TenneT Offshore 9. Beteiligungsgesellschaft mbH Bayreuth Germany 51% 51% 37% 37%
indirectly, as defined by IAS 24 ‘Related Parties’. The transactions with the key management TenneT Offshore Dolwin3 Beteiligungs GmbH &
Bayreuth Germany 51% 51% 30% 30%
personnel are split in the total fixed remuneration and the pension cost. There are no (long-term) Co. KG2
incentive schemes. TenneT Offshore Dolwin3 GmbH & Co. KG Bayreuth Germany 51% 51% 30% 30%
TenneT Offshore Dolwin3 Verwaltungs GmbH Bayreuth Germany 51% 51% 33% 33%
TenneT Offshore GmbH Bayreuth Germany 100% 100% 100% 100%
30. Consolidated subsidiaries
TenneT TSO GmbH Bayreuth Germany 100% 100% 100% 100%
The following legal entities are included in the consolidation of TenneT Holding B.V.:
TenneT Verwaltungs GmbH Bayreuth Germany 100% 100% 100% 100%
1 For these companies TenneT has issued a declaration of liability as referred to in Part 9 of Book 2 of the Dutch Civil Code, article 403.
Voting interest Economic interest
2 These companies, which has been consolidated in these financial statements, has opted for the exemption of Section 264b of the
Subsidiary Legal seat Country 2024 2023 2024 2023
German Commercial Code.
Direct subsidiaries
NLink International B.V.1 Arnhem Netherlands 100% 100% 100% 100%
Relined B.V. Utrecht Netherlands 100% 100% 100% 100% As TenneT is able to exercise direct control over its management and financial and
TenneT Duitsland Coöperatief U.A.1 Arnhem Netherlands 100% 100% 100% 100% operational policies, Stichting Beheer Doelgelden Landelijk Hoogspanningsnet, a foundation
TenneT Green B.V.1 Arnhem Netherlands 100% 100% 100% 100% which temporarily manages funds arising from the maintenance of the energy balance and
TenneT Orange B.V. Arnhem Netherlands 100% 100% 100% 100% auctioning of cross-border capacity by TenneT TSO B.V., is included in the consolidation. The
TenneT Reinsurance N.V. Arnhem Netherlands 100% 100% 100% 100% same applies to Greennet Stiftung which is a foundation that compensate negative impact due
TenneT TSO B.V. Arnhem Netherlands 100% 100% 100% 100%
to construction work of TenneT in its German grid.
TenneT TSO Duitsland B.V.1 Arnhem Netherlands 100% 100% 100% 100%
NOVEC B.V. The Hague Netherlands 100% 100% 100% 100%
Indirect subsidiaries 31. Events after the reporting period
B.V. Transportnet Zuid-Holland 1
Voorburg Netherlands 100% 100% 100% 100% At 21 February 2025, TenneT and the Dutch state have made arrangements regarding
Duvekot Rentmeesters B.V. Bathmen Netherlands 100% 100% 100% 100% a supplementary shareholder loan facility of EUR 19.4 billion, safeguarding our planned
Nadine Netwerk B.V.1 Arnhem Netherlands 100% 100% 100% 100% investments in the Netherlands and Germany for 2025 and 2026. The loan facility will be granted
Nederlands-Duitse Internet Exchange B.V. Enschede Netherlands 100% 100% 100% 100%
at market conditions.
Saranne B.V.1 Arnhem Netherlands 100% 100% 100% 100%
Stichting Beheer Doelgelden
Arnhem Netherlands N/A N/A N/A N/A TenneT Holding B.V. sold the in-scope assets and liabilities of its subsidiary NOVEC B.V., and
Landelijk Hoogspanningsnet
Relined GmbH Emsbüren Germany 100% 100% 100% 100% its indirect stake in Open Tower Company B.V., per February 2025 for a cash consideration of
EUR 145 million. Further reference is made to note 1 of the consolidated financial statements.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Company financial statements

The balance sheet is prepared on a basis before result appropriation

Company statement of financial position

For the year ended 31 December

(EUR million) Notes 2024 2023 (EUR million) Notes 2024 2023

Assets Equity and liabilities

Non-current assets Equity
Investments in subsidiaries 33 12,271 10,661 Paid up and called-up capital 100 100
Investments in associates 34 31 31 Share premium 4,622 3,020
Other financial assets 35 28,472 22,299 Legal reserves 751 759
Total non-current assets 40,774 32,991 Retained earnings 1,510 1,042
Unappropriated result 1,744 595
Current assets Equity attributable to ordinary shares 8,727 5,516
Other financial assets 35 348 317 Hybrid securities 2,140 2,125
Account- and other receivables 36 7 5 Equity attributable to owners of the company 37 10,867 7,641
Cash and cash equivalents 3,531 295
Total current assets 3,886 617 Non-current liabilities
Borrowings 14 31,366 18,871
Deferred tax liabilities 10 6
Total non-current liabilities 31,376 18,877

Current liabilities
Borrowings 14 568 3,640
Financial liabilities 38 - 1,602
Account- and other payables 39 1,849 1,848
Total current liabilities 2,417 7,090

Total assets 44,660 33,608 Total equity and liabilities 44,660 33,608

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Company financial statements

Company statement of income

For the year ended 31 December

(EUR million) Notes 2024 2023

Revenue - -
Other operating expenses 41 -10 -23
Other gains/(losses) - -
Total operating expenses -10 -23
Share in profit of joint ventures and associates 5 4
Operating result -5 -19
Finance income 42 725 436
Finance expenses 43 -692 -456
Finance result 33 -20

Result before income tax 28 -39

Income tax expenses -20 -3
Result from subsidiaries 33 1,814 694
Result for the year 1,822 652

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Notes to the company financial statements When TenneT's share of losses in an investment equals or exceeds its interest on investment,
(including separately presented goodwill or any other unsecured non-current receivables, as
part of the net investment), it does not recognise any further losses, unless it has incurred
These notes contain information about the company financial statements of
legal or constructive obligations or made payments on behalf of this investment. In such case,
TenneT Holding B.V. Details related to TenneT Holding B.V.'s financial results and
TenneT will recognise a provision.
position are provided, as well as a description of the specific accounting policies
applied when compiling these company financial statements. 34. Investments in associates
The investment in associates is related to HGRT. In 2024, TenneT's share in HGRT's
32. Company accounting policies result amounted to EUR 5 million (2023: EUR 4 million) and EUR 5 million (2023:
The company financial statements for TenneT Holding B.V. have been prepared in accordance EUR 4 million) dividends were received. Further reference is made to note 6 of the consolidated
with the provisions of Part 9 of Book 2 of the Dutch Civil Code. The same principles governing financial statements.
valuation and the determination of results (including the principles governing the classification
of financial instruments as equity or liability) have been applied when compiling the company 35. Other financial assets
financial statements and the consolidated financial statements, as permitted by as permitted by In relation to (i) fees for credit facilities available and (ii) financial assets through profit and loss
Article 362 clause 8 of Part 9 of Book 2 of the Dutch Civil Code. reference is made to note 7 of the consolidated financial statements. The remaining portion
of the other financial assets relate to receivables from subsidiaries. These receivables relate
33. Investments in subsidiaries to inter-company loans and cash management activities of TenneT Holding B.V. The agreed
Investments in subsidiaries relate to the legal entities included in the consolidation as disclosed interest rate for the inter-company loans is its cost of fund rate plus 0.125%. These receivables
in note 30 of the consolidated financial statements. are unsecured. The movements relating to the non-current other financial assets are as follows:

The movement in investments in subsidiaries can be specified as follows: (EUR million) 2024 2023

At 1 January 22,299 17,412

(EUR million) 2024 2023
Additions 7,899 6,432
At 1 January 10,661 8,491 Capital contributions to minority participating interests - 2
Share in result 1,814 694 Repayments -1,574 -1,338
Capital contributions 56 1,602 Transfer to current -151 -207
Capital repayments -49 -42 Fair value adjustment equity investments -1 -2
Dividends received -217 -64 At 31 December 28,472 22,299
Remeasurement of defined benefit pension plans 6 -20
At 31 December 12,271 10,661 TenneT Holding B.V. had EUR 338 million (2023: EUR 312 million) of current other financial
assets which were related to receivables from subsidiaries. The remaining current other financial
● Accounting policies assets relate to fees for credit facilities.
Investments in subsidiaries are measured at net asset value. The net asset value of a
participating interest is determined by valuing assets, provisions and liabilities and calculating 36. Account- and other receivables
the result using the accounting principles applied to the consolidated financial statements. Account- and other receivables relate to interests to be received in deposits amounting to
EUR 7 million (2023: nil). Last year, the account- and other receivables relate to a corporate
income tax receivable.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the company financial statements

37. Equity Reserve for internally generated assets

Please refer to the consolidated statement of changes in equity and note 12 in the consolidated The reserve for internally generated assets relates to internally developed software by TenneT's
financial statements for further disclosure regarding the components of the equity, including the own workforce. During 2024, EUR 63 million (2023: EUR 39 million) of software was internally
hybrid securities, except for the legal reserves that are required to be recognised at company developed. The legal reserve for internally generated assets is amortised over the related assets
level, which are disclosed hereafter. In the consolidated financial statements, the reserve for useful life. For more details on the intangible assets please refer to note 5.
internally generated assets, the revaluation reserve and the reserve for participating interests are
included in retained earnings. Appropriation of result for the year ended 31 December 2024
The financial statements of 2023 were approved in the General Meeting held on 7 March 2024.
Reserve
Reserve for The General Meeting determined the appropriation of result in accordance with the proposal
internally Revaluation Total legal
(EUR million) participating being made to that end. The appropriation of the 2024 result is at the free disposal of the
generated reserve reserves
interests
assets General Meeting of Shareholders and has not been recorded in the financial statements.

At 1 January 2023 665 111 1 777

38. Financial liabilities
Result from joint ventures and associates 145 - - 145
The contribution received from the Shareholder for an amount of EUR 1.6 billion last year has
Dividends from joint ventures and associates -148 - - -148
been reclassified from current financial liability to equity as the shares in TenneT Germany
Capital repayments from joint ventures will not be transferred for 100% to KfW. The latter was a condition for distribution of the
-34
and associates -34 - -
EUR 1.6 billion to the Shareholder and that condition is not met as the negotiations were
Internally generated intangible assets - 39 - 39 terminated (refer also to note 1).
Amortisation on internally generated
-19
intangible assets - -19 -
39. Account- and other payables
Depreciation revaluation tangible fixed assets - - -1 -1 (EUR million) 2024 2023

At 31 December 2023 628 131 - 759 Payables to subsidiaries 1,532 1,627

Interest payable 221 148
Result from joint ventures and associates 48 - - 48 Income tax payable 88 70
Dividends from joint ventures and associates -38 - - -38 Other payables 8 3
Capital repayments from joint ventures Total 1,849 1,848
-35
and associates -35 - -
Internally generated intangible assets - 63 - 63
The interest payable increased, mainly because of the withdrawals from the shareholder loan
Amortisation on internally generated
-46 facility, refer to note 14, in combination with increased interest rates.
intangible assets - -46 -
At 31 December 2024 603 148 - 751
40. Personnel expenses
TenneT Holding B.V. did not employ any personnel during 2024 or 2023, and as a result did
The legal reserves are not freely distributable. not incur any personnel expenses in those periods. Members of the Executive Board and
Supervisory Board of the Company received their remuneration, as disclosed in note 25 of the
Reserve participating interests consolidated financial statements, from other entities within the Group.
The reserve for participating interests relates to joint ventures and associates, for which TenneT
does not control payment of dividends.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Notes to the company financial statements

41. Other operating expenses Arnhem, 3 March 2025

Other operating expenses mainly comprise of consultancy expenses due to advise relating to
amongst others the exploration of alternative funding solutions for its German activities. Executive Board TenneT Holding B.V.
M.J.J. van Beek (Chair)
42. Finance income T.C. Meyerjürgens
Finance income was mainly related to the interest received on inter-company loans and other M.C. Abbenhuis
in-house financing activities (refer to note 35). The inter-company agreements have terms A.C.H. Freitag
equivalent to those that prevail in arm's length transactions.

43. Finance expenses Supervisory Board TenneT Holding B.V.

Finance expenses comprise mainly interest expenses, such as interest and fees on borrowings A.F. van der Touw (Chair)
and credit facilities. Finance expenses increased, mainly because of the withdrawals from the A.C.C. van Els
shareholder loan facility, refer to note 14, in combination with increased interest rates. E. Kairisto
E.M. Schöne
44. Commitments and contingencies M.R.P.M. Camps
Off-balance sheet rights per balance sheet date consist of payment guarantees for an amount K. Singh
of EUR 1,916 million (2023: EUR 2,190 million) issued by TenneT Germany ('Guarantor') to
the Company. The Guarantor guarantees to the Company to pay on behalf of TenneT Holding TenneT Holding B.V.
to amongst others its credit providers to complete satisfaction of any and all due payment Utrechtseweg 310
obligation of the Company. 6812 AR Arnhem
The Netherlands
Furthermore, the Company has provided an irrevocable and unconditional undertaking in
relation to the reinsurance arrangements of its subsidiary TenneT Reinsurance N.V. (‘Reinsurer’). PO Box 718
In the event that the Reinsurer fails, in whole or in part, to meet its payment obligations, the 6800 AS Arnhem
Company is obliged to take care of the withdrawal of the claims from the claimant or making The Netherlands
direct payments to the claimant equivalent to the outstanding default amounts. While no such
defaults have occurred to date, the Company continuously monitors its reinsurance exposures Chamber of Commerce register 09083317
and related financial commitments.

45. Events after the reporting period

Please, refer to note 31 of the consolidated financial statements.

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Other information Profit appropriation

Independent auditor’s report
247
248
Company addresses 255
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Profit appropriation
Profit appropriation is governed by Section 38.3 of the Articles
of Association, which states the following 'To the extent that
the profit is not used to make up prior losses in accordance
with the provision of paragraph 2, it shall be at the free
disposal of the general meeting. In the calculation of the profit
amount to be distributed on every share, only the amount
of the compulsory payments on the nominal amount of the
shares shall be taken into consideration. In the event of a tied
vote on a proposal to distribute or reserve profits, the profits
to which the proposal relates shall be reserved'.

Hybrid securities are deeply subordinated securities and

are, with the exception of common equity, the most junior
instruments in the capital structure of the Company. The
hybrid securities are undated and do not default on non-
payment of coupons (unless such payment was mandatory
following a resolution or payment of a dividend to common
shareholders, i.e. as so called ‘dividend pusher’).

The holders of the hybrid securities have limited ability to

influence the outcome of a bankruptcy proceeding or a
restructuring outside bankruptcy. Consequently, the hybrid
security holders cannot oblige TenneT to pay distributions
or redeem the securities in part or in full. Payment of
distributions on and redemption of the securities is at our
sole discretion.

As a result, the hybrid securities are classified as part of the

equity attributable to the company's owners.

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Independent auditor’s report

To: the shareholder and Supervisory Board of TenneT Holding The company financial statements comprise: opinion was addressed in this context, and we do not provide
B.V. (“TenneT” or the “Company”) 1. the company statement of financial position as at a separate opinion or conclusion on these matters.
31 December 2024;
Report on the audit of the financial statements 2. the company statement of income for 2024; and Materiality
2024 included in the Integrated Annual 3. the notes comprising a summary of the material accounting Based on our professional judgement we determined the
Report 2024 policies and other explanatory information. materiality for the Financial Statements as a whole at
EUR 90.0 million (2023: EUR 75.0 million). The materiality is
Our opinion Basis for our opinion based on 7% of the average underlying operating result for
We have audited the financial statements 2024 of We conducted our audit in accordance with Dutch the years 2024, 2023 and 2022. We have also taken into
TenneT, based in Arnhem, the Netherlands (the “Financial law, including the Dutch Standards on Auditing. Our account misstatements and/or possible misstatements that
Statements”). The Financial Statements comprise the responsibilities under those standards are further described in our opinion are material for the users of the Financial
consolidated and company financial statements. in the 'Our responsibilities for the audit of the Financial Statements for qualitative reasons.
Statements' section of our report.
In our opinion: Component audits are performed using the materiality levels
• the accompanying consolidated financial statements give a We are independent of TenneT in accordance with determined by the judgement of the group engagement
true and fair view of the financial position of TenneT as at the EU Regulation on specific requirements regarding team, considering materiality for the consolidated financial
31 December 2024, and of its result and its cash flows for statutory audit of public-interest entities, the ‘Wet toezicht statements as a whole and the reporting structure of the
2024 in accordance with International Financial Reporting accountantsorganisaties’ (Audit firms supervision act), the group. For the largest reporting entities, the audits are
Standards as adopted by the European Union (“EU-IFRS’’) ‘Verordening inzake de onafhankelijkheid van accountants performed using the following component materiality levels:
and with Part 9 of Book 2 of the Dutch Civil Code; and bij assurance-opdrachten’ (Code of Ethics for Professional • TenneT GmbH & Co. KG (“TSO DE”): EUR 54.0 million
• the accompanying company financial statements give a Accountants, a regulation with respect to independence) and (2023: EUR 51.0 million); and
true and fair view of the financial position of TenneT as at other relevant independence regulations in the Netherlands. • TenneT TSO B.V. (“TSO NL”): EUR 46.8 million (2023:
31 December 2024, and of its result for 2024 in accordance Furthermore, we have complied with the ‘Verordening EUR 33.0 million).
with Part 9 of Book 2 of the Dutch Civil Code. gedrags- en beroepsregels accountants’ (Dutch Code of
Ethics for Professional Accountants). For the other reporting entities, the component materiality
The consolidated financial statements comprise: levels did not exceed EUR 18.0 million (2023:
1. the consolidated statement of financial position as at We believe the audit evidence we have obtained is sufficient EUR 15.0 million).
31 December 2024; and appropriate to provide a basis for our opinion.
2. the following statements for 2024: the consolidated We agreed with the Supervisory Board that misstatements in
statement of income, the consolidated statements of Information in support of our opinion excess of EUR 4.5 million (2023: EUR 3.75 million), which are
comprehensive income, changes in equity and cash We designed our audit procedures in the context of our audit identified during the audit, would be reported to them, as well
flows; and of the Financial Statements as a whole and in forming our as smaller misstatements that in our view must be reported on
3. the notes comprising a summary of the material accounting opinion thereon. The following information in support of our qualitative grounds.
policies and other explanatory information.

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Independent auditor’s report

Scope of the group audit The group consolidation, Financial Statements disclosures We evaluated the design and relevant aspects of the system
TenneT is at the head of a group of entities. The financial and certain centrally coordinated accounting topics were of internal control and in particular the fraud risk assessment,
information of this group is included in the consolidated audited by the group engagement team. These topics as well as among others the code of conduct, whistle
financial statements of TenneT. included among others treasury and corporate income tax. blower procedures and incident registration. We evaluated
Team members with specialized knowledge were involved in the design and the implementation and, where considered
Because we are ultimately responsible for the opinion, we the areas of forensic, tax, accounting, valuation, pension and appropriate, tested the operating effectiveness, of internal
are responsible for directing, supervising and performing the information technology. controls designed to mitigate fraud risks.
group audit. In this respect we have determined the nature
and extent of the audit procedures to be carried out for Based on our risk assessment, we determined the nature, As part of our process of identifying fraud risks, we evaluated
reporting entities. Decisive were the size and/or the risk timing and extent of audit procedures to be performed, fraud risk factors with respect to financial reporting fraud,
profile of the reporting entities or operations. On this basis, including determining the components at which to perform misappropriation of assets and bribery and corruption in
we selected reporting entities for which an audit had to be audit procedures. We have obtained the following audit close co-operation with our forensic specialists. We evaluated
carried out on the complete set of financial information or coverage of the group with our audit procedures: whether these factors indicate that a risk of material
specific items. misstatement due to fraud is present.
Audit coverage

In establishing the overall group audit strategy and plan, we IFRS revenue 99% We identified the following fraud risks and performed the
determined the type of work that needed to be performed IFRS operating result 99% following specific procedures:
at the components by the group engagement team and the IFRS assets 99% • We evaluated TenneT’s fraud risk assessment and
component auditors. made inquiries with management, those charged with
governance and others within TenneT, including but not
Where the work was performed by component auditors, we By performing the procedures mentioned above at group limited to the units/departments (i) Internal Audit, (ii)
determined the level of involvement we needed to have in entities, together with additional procedures at group level, Compliance & Integrity and (iii) Financial Governance
the audit work at those components to be able to conclude we have been able to obtain sufficient and appropriate audit Services. We reviewed their process for identifying and
whether sufficient appropriate audit evidence was obtained evidence about the group's financial information to provide an responding to the risk of fraud, the internal communication
as a basis for our opinion on the Financial Statements as opinion on the consolidated financial statements. regarding their views on business practices and ethical
a whole. For each component we determined whether we behaviour and whether they have knowledge of any actual,
required an audit of their complete financial information or Audit approach fraud risks suspected or alleged fraud affecting the Company.
whether other procedures would be sufficient. We identified and assessed the risks of material • We held discussions amongst team members and
misstatements of the Financial Statements due to fraud. component auditors to identify fraud risk factors and
Our group audit mainly focused on the significant group During our audit we obtained an understanding of the considered whether other information obtained from our
entities TenneT Holding B.V., TSO DE and TSO NL, because Company and its environment and the components of the risk assessment procedures indicated risks of material
combined they make up more than 95% of the group’s system of internal control, including the risk assessment misstatement due to fraud. Fraud risk factors identified
revenue, operating result and assets. We included additional process and management's process for responding to the include among others:
reporting entities in the scope of our group audit to risks of fraud and monitoring the system of internal control ◦ fraud, bribery and corruption;
have additional audit coverage on the group’s consolidated and how the Supervisory Board exercises oversight, as well as ◦ compliance with respect to trade regulations/sanctions;
financial statements, and performed other procedures with the outcomes. ◦ compliance with respect to environmental
respect to residual risk in components and account balances requirements; and
that have not been included in audit scope. ◦ compliance with procurement policies.

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Independent auditor’s report

• We evaluated whether unusual or unexpected relationships life of assets, grid expense payables and the provision under EU-IFRS and Part 9 of Book 2 of the Dutch
have been identified in performing analytical procedures, for decommissioning were focus areas in our audit as Civil Code.
that may indicate risks of material misstatement due the related account balances are subject to significant • Apart from these, TenneT is subject to other laws and
to fraud management judgement. Reference is made to the regulations where the consequences of non-compliance
• We pinpointed the significant risk of material misstatement section “Our key audit matters”; and could have a material effect on amounts and/or disclosures
due to fraud related to management override of controls to ◦ performing a retrospective review of management in the Financial Statements, for instance, through imposing
(i) the classification of expenditures given their relevance to judgements and assumptions related to significant fines or litigation. Given the nature of TenneT’s business
regulatory accounting and thus future revenues, and (ii) the accounting estimates such as cost assumptions on the and the complexity of European public procurement
procurement on TenneT’s largest Target Grid 2045 projects decommissioning provisions and in-feed management regulations, the Elektriciteitswet (Dutch Electricity Act), the
given their size and strategic importance. accruals reflected in prior year financial statements. Energiewirtschaftsgesetz (German Energy Industry Act),
• We determined overall responses to address the assessed We considered available information and made and other relevant Dutch and German energy laws and
risks of material misstatement due to fraud which included: enquiries of relevant executives, directors and the regulations, as well as environmental laws, there is a risk
◦ assigning and supervising personnel with the adequate Supervisory Board. of non-compliance with the requirements of such laws and
knowledge, skills and ability; Based on our procedures performed, we have no matters regulations. In addition, we considered relevant laws and
◦ evaluating whether the selection and application to report. regulations applicable to listed companies.
of accounting policies by the group, particularly • Our procedures are more limited with respect to other
those related to subjective measurements and Audit approach compliance with laws and regulations laws and regulations that do not have a direct effect
complex transactions, may be indicative of fraudulent As part of obtaining an understanding of TenneT and its on the determination of the amounts and disclosures
financial reporting; environment we obtained a general understanding of the in the Financial Statements. These laws and regulations
◦ we tested the operating effectiveness of the relevant legal and regulatory framework applicable to TenneT and compliance may be fundamental to the operating aspects
controls in the business processes surrounding project the industry in which it operates and how TenneT is of the business, to TenneT’s ability to continue its business,
procurement and project cost accounting; complying with that framework. Moreover, we performed the or to avoid material penalties (e.g. compliance with
◦ incorporating elements of unpredictability in the following procedures: the energy laws in the Netherlands and Germany or
selection of the nature, timing and extent of our audit • We assessed the laws and regulations relevant to the compliance with environmental regulations) and therefore
procedures, e.g. related to our selections for further Company through discussion with management, those non-compliance with such laws and regulations may
testing of tangible fixed asset projects, including Target charged with governance and others within TenneT, have a material effect on the Financial Statements. Our
Grid 2045 projects and related capital expenditures; including the units (i) Internal Audit, Risk & Internal Control responsibility is limited to undertaking specified audit
◦ we tested the appropriateness of journal entries and Compliance & Integrity, (ii) Legal Affairs, (iii) Regulatory procedures to help identify non-compliance with those
recorded in the general ledger and other adjustments Affairs (iv) Business Guidance and (v) Financial Governance laws and regulations that may have a material effect on
made in the preparation of the Financial Statements; Services. We have read related minutes and reports. We the Financial Statements.
◦ evaluating whether the judgements and decisions made involved our forensic specialists in our evaluation. • Our procedures are limited to (i) inquiry of the Executive
by management in making the accounting estimates • We obtained sufficient appropriate audit evidence Board, the Supervisory Board and others within TenneT
included in the Financial Statements indicate a possible regarding provisions of those laws and regulations as to whether the Company is in compliance with such
bias that may represent a risk of material misstatement generally recognised to have a direct effect on the laws and regulations and (ii) inspecting correspondence,
due to fraud. Significant accounting judgements, determination of material amounts and disclosures in the if any, with the relevant licensing or regulatory authorities
estimates and assumptions that might have a major Financial Statements such as (corporate) tax and pension to help identify non-compliance with those laws and
impact on the Financial Statements are disclosed in laws and financial reporting regulations, the requirements regulations that may have a material effect on the
note 1 of the consolidated financial statements. Useful Financial Statements.

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Independent auditor’s report

• We remained alert to indications of (suspected) non- Based on our procedures performed, we have no matters • the one-off nature of this potential transaction could lead
compliance throughout the audit. to report. to incorrect accounting and incomplete disclosures on
• We obtained written representations that all known the matter.
instances of (suspected) fraud or non-compliance with Our key audit matters
laws and regulations have been disclosed to us. Key audit matters are those matters that, in our professional Our response
judgement, were of most significance in our audit of the We performed the following procedures:
Based on our procedures performed, we have no matters Financial Statements. We have communicated the key audit • we obtained a detailed understanding of the (internal)
to report. matters to the Supervisory Board. The key audit matters are process that TenneT management uses to keep track of
not a comprehensive reflection of all matters discussed. all developments in Project Voltura;
Audit approach going concern • we have reviewed all relevant minutes and reports,
We are responsible to obtain sufficient and appropriate audit These matters were addressed in the context of our audit made regular inquiries with TenneT’s Executive Board,
evidence regarding the appropriateness of management's of the Financial Statements as a whole and in forming our Supervisory Board, and other key officers involved;
use of the going concern assumption in preparing the opinion thereon, and we do not provide a separate opinion on • we performed an analysis on the media coverage
financial statements. Management is responsible to assess these matters. surrounding this topic, including potential developments in
the Company’s ability to continue as a going concern the process; and
and disclosing in the Financial Statements any events 1. Project Voltura • we evaluated the affected accounting positions, and the
or circumstances that may cast significant doubt on the related disclosures in the Financial Statements around
Company’s ability to continue as a going concern. As Description the project.
described in note 1, the Executive Board holds the view that On June 20, 2024, TenneT announced that TenneT
no events or conditions give rise to doubt about the ability of and Kreditanstalt für Wiederaufbau (KfW) terminated the Our observations
the Company to continue in operation, for at least one year discussions on a full sale of TSO DE (“Project Ampere”). Our procedures did not identify material observations and
from the date of the end of the reporting period. Subsequently, TenneT started to explore alternative funding we considered management’s judgement and the disclosure
solution for its German activities, including public (potential thereon to be adequate.
To fulfil our responsibilities, we performed the listing) and private capital markets (“Project Voltura”).
following procedures: Consequently, TenneT concluded as at 30 June 2024 that 2. Tangible fixed assets
• we evaluated management’s assessment of the going it is no longer highly probable that TenneT Germany for
concern assumption and related disclosure note 1 of the 100% will be sold to KfW. Consequently, IFRS 5 ‘Non current Description
Financial Statements; assets held for sale and discontinued operations' Accounting Securing supply and facilitating the energy transition by
• we challenged management’s cash flow forecasts and Standard is no longer applied in the consolidated financial expanding and enhancing the high-voltage grid through
primary assumptions, also in the light of our understanding statements. The German activities are presented as continued integration of sustainable energy sources require substantial
obtained with regards to management’s outlook as operations and the comparative figures 2023 for the P&L investments and flexible access to (equity) funding. TenneT
reported in the Executive Board Report; and the balance sheet per 31 December 2023 have been increased its annual investment volume to EUR 10.6 billion in
• we evaluated the Company’s capital management adjusted voluntary. 2024 for on- and offshore grid connections.
objectives, including its long-term credit rating and liquidity
on a rolling 12-month forward looking basis as disclosed in We have included this as a key audit matter because of: We have included this as a key audit matter because of:
note 11; and • the additional reporting risks such as incorrectly concluding • the financial significance of the tangible fixed assets and
• we evaluated the Company’s repayment obligations as that IFRS 5 is not applicable; and related capital expenditures;
disclosed in note 20.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Independent auditor’s report

• the risks associated with large investment projects, Our observations Our observations
complexity in procurement, construction and Our procedures did not identify material observations and we As part of our evaluation of management's estimate, we
timely completion; considered management’s key assumptions, to be within the obtained their position paper detailing the changes in
• the professional judgement required in determining the reasonable range of our own expectations. estimates made and reasons to do so. We subsequently
impact of the energy transition on (i) (funding) the capital challenged the revised assumptions with external sources and
investment planning, and (ii) the existing asset portfolio, 3. Provision for decommissioning of (offshore) assets tested the inputs as well as the model used to determine the
including the assessment of remaining useful lives of revised asset retirement obligation. Our procedures did not
assets; and Description result in any matters to report.
• the professional judgement required in (i) assessing Moving towards a future with renewable energy sources
whether there is any indication that an asset may be involves significant investments in (offshore) assets that are to Report on the other information included in the
impaired and (ii) if there is any such indication, estimating be decommissioned in the future, thus requiring recognition Integrated Annual Report 2024
the recoverable amount of that asset (i.e. measuring of decommission provisions. The corresponding provisions The Integrated Annual Report 2024 contains other
any impairment). are based on estimates of costs, timing of decommissioning, information, in addition to the Financial Statements and our
discount rates and inflation. auditor's report thereon (the “Other Information”).
Our response
We performed the following procedures: We have included this as a key audit matter because of: The Other Information consists of:
• we tested the internal control environment related • the significance of the provision and additions for the year 1. the Director’s Report, consisting of:
to tangible fixed assets through testing of operating triggered by the start of construction of new (offshore) a. the Executive Board Report; and
effectiveness of relevant controls, including controls related assets; and b. the Sustainability statements;
to (i) investment approval, (ii) the financial closing of assets • the uncertainty involved in measuring the provision and 2. the Supervisory Board report;
under construction, and (iii) the periodic reassessment of sensitivity to changes in key assumptions, including the 3. other information as required by Part 9 of Book 2 of the
the useful lives of tangible fixed assets; cost base, the inflation rate and the discount rate. Dutch Civil Code; and
• we tested the design and implementation of relevant 4. other information included in the Integrated Annual Report.
controls related to TenneT’s liquidity forecast underpinning Our response
its ability to finance investments; We performed the following procedures: Based on the following procedures performed, we conclude
• we obtained and discussed internal management reports • we have obtained management’s position papers on the that the Other Information:
about progress of the key assets under construction and cost assumptions and alignment of the methodology • is consistent with the Financial Statements and does not
performed tests of details on the additions to and other across the Netherlands and Germany. Our audit contain material misstatements; and
movements in tangible fixed assets; procedures included testing of design and implementation • contains all the information regarding the director’s report
• we performed substantive tests of details on of relevant controls around the periodical assessment of and the other information as required by Part 9 of Book 2
the capitalised amounts including those related to these assumptions and the evaluation of the financial of the Dutch Civil Code.
internal hours; model used to calculate the provision;
• we evaluated management’s estimation of the useful lives • the reasonability of the key assumptions through We have read the Other Information. Based on our knowledge
of tangible fixed assets based on economic, regulatory and comparison with observable market data and procedures and understanding obtained through our audit of the Financial
technical data; and to address the completeness of the provision; and Statements or otherwise, we have considered whether the
• we evaluated management’s assessment that no • we evaluated the appropriateness of the disclosure of Other Information contains material misstatements.
indications were identified that any assets may be impaired the accounting policy and estimation uncertainty of
as at 31 December 2024. these provisions.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Independent auditor’s report

By performing these procedures, we comply with the Management is responsible for preparing the annual report Description of responsibilities regarding the
requirements of Part 9 of Book 2 of the Dutch Civil Code including the Financial Statements in accordance with the Financial Statements
and the Dutch Standard on Auditing 720. The scope of the RTS on ESEF, whereby management combines the various
procedures performed is substantially less than the scope of components into one single reporting package. Responsibilities of management and the Supervisory
those performed in our audit of the Financial Statements. Board for the Financial Statements
Our responsibility is to obtain reasonable assurance for our Management is responsible for the preparation and fair
Management is responsible for the preparation of the Other opinion whether the annual report in this reporting package presentation of the Financial Statements in accordance with
Information, including the Director’s Report in accordance with complies with the RTS on ESEF. EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code.
Part 9 of Book 2 of the Dutch Civil Code, and the other Furthermore, management is responsible for such internal
information as required by Part 9 of Book 2 of the Dutch We performed our examination in accordance with Dutch control as management determines is necessary to enable
Civil Code. law, including Dutch Standard 3950N ‘Assurance-opdrachten the preparation of the Financial Statements that are free from
inzake het voldoen aan de criteria voor het opstellen van een material misstatement, whether due to fraud or error.
Report on other legal and regulatory digitaal verantwoordingsdocument’ (assurance engagements
requirements and ESEF relating to compliance with criteria for digital reporting). Our As part of the preparation of the Financial Statements,
examination included amongst others: management is responsible for assessing the Company's
Engagement ability to continue as a going concern. Based on the
We were engaged by the annual meeting of shareholders as Our examination included amongst others: financial reporting frameworks mentioned, management
auditor of TenneT on 18 December 2019, as of the audit for • Obtaining an understanding of the Company's financial should prepare the Financial Statements using the going
the year 2020 and have operated as statutory auditor ever reporting process, including the preparation of the concern basis of accounting unless management either
since that financial year. reporting package. intends to liquidate the company or to cease operations, or
• Identifying and assessing the risks that the annual report has no realistic alternative but to do so.
No prohibited non-audit services does not comply in all material respects with the RTS
We have not provided prohibited non-audit services as on ESEF and designing and performing further assurance Management should disclose events and circumstances that
referred to in Article 5(1) of the EU Regulation on procedures responsive to those risks to provide a basis for may cast significant doubt on the Company's ability to
specific requirements regarding statutory audit of public- our opinion, including: continue as a going concern in the Financial Statements.
interest entities. ◦ obtaining the reporting package and performing
validations to determine whether the reporting package The Supervisory Board is responsible for overseeing the
European Single Electronic Format (ESEF) containing the Inline XBRL instance and the XBRL Company's financial reporting process.
TenneT has prepared its annual report in ESEF. The extension taxonomy files has been prepared in
requirements for this are set out in the Delegated Regulation accordance with the technical specifications as included Our responsibilities for the audit of the
(EU) 2019/815 with regard to regulatory technical standards in the RTS on ESEF; and Financial Statements
on the specification of a single electronic reporting format (the ◦ examining the information related to the consolidated Our objective is to plan and perform the audit engagement in
“RTS on ESEF’’). Financial Statements in the reporting package to a manner that allows us to obtain sufficient and appropriate
determine whether all required mark-ups have been audit evidence for our opinion.
In our opinion, the annual report, prepared in XHTML applied and whether these are in accordance with the
format, including the (partly) marked-up consolidated financial RTS on ESEF. Our audit has been performed with a high, but not absolute,
statements, as included in the reporting package by TenneT level of assurance, which means we may not detect all
complies in all material respects with the RTS on ESEF.

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information
Independent auditor’s report

material misstatements, whether due to fraud or error, during exists related to events or conditions that may cast regarding independence, and to communicate with them
our audit. significant doubt on the Company's ability to continue as all relationships and other matters that may reasonably be
a going concern. If we conclude that a material uncertainty thought to bear on our independence, and where applicable,
Misstatements can arise from fraud or error and are exists, we are required to draw attention in our auditor's related safeguards.
considered material if, individually or in the aggregate, they report to the related disclosures in the Financial Statements
could reasonably be expected to influence the economic or, if such disclosures are inadequate, to modify our From the matters communicated with the Supervisory Board,
decisions of users taken on the basis of the Financial opinion. Our conclusions are based on the audit evidence we determine the key audit matters: those matters that were
Statements. The materiality affects the nature, timing and obtained up to the date of our auditor's report. However, of most significance in the audit of the Financial Statements.
extent of our audit procedures and the evaluation of the effect future events or conditions may cause the Company to We describe these matters in our auditor's report unless law
of identified misstatements on our opinion. cease to continue as a going concern. or regulation precludes public disclosure about the matter or
• Evaluating the overall presentation, structure and content when, in extremely rare circumstances, not communicating
We have exercised professional judgement and have of the Financial Statements, including the disclosures. the matter is in the public interest.
maintained professional skepticism throughout the audit, • Evaluating whether the Financial Statements represent
in accordance with Dutch Standards on Auditing, ethical the underlying transactions and events in a manner that Rotterdam, 3 March 2025
requirements and independence requirements. achieves fair presentation.
Deloitte Accountants B.V.
Our audit included among others: We are responsible for planning and performing the group
• Identifying and assessing the risks of material audit to obtain sufficient appropriate audit evidence regarding
misstatement of the Financial Statements, whether due to the financial information of the entities or business units Signed on the original: J.A. de Bruin
fraud or error, designing and performing audit procedures within the group as a basis for forming an opinion on the
responsive to those risks, and obtaining audit evidence financial statements. We are also responsible for the direction,
that is sufficient and appropriate to provide a basis supervision and review of the audit work performed for
for our opinion. The risk of not detecting a material purposes of the group audit. We bear the full responsibility
misstatement resulting from fraud is higher than for one for the auditor’s report.
resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override We communicate with the Supervisory Board regarding,
of internal control. among other matters, the planned scope and timing of the
• Obtaining an understanding of internal control relevant to audit and significant audit findings, including any significant
the audit in order to design audit procedures that are findings in internal control that we identified during our audit.
appropriate in the circumstances, but not for the purpose In this respect we also submit an additional report to the
of expressing an opinion on the effectiveness of the Audit, Risk and Compliance Committee in accordance with
Company's internal control. Article 11 of the EU Regulation on specific requirements
• Evaluating the appropriateness of accounting policies used regarding statutory audit of public-interest entities. The
and the reasonableness of accounting estimates and information included in this additional report is consistent with
related disclosures made by management. our audit opinion in this auditor's report.
• Concluding on the appropriateness of management's use
of the going concern basis of accounting, and based on We provide the Supervisory Board with a statement
the audit evidence obtained, whether a material uncertainty that we have complied with relevant ethical requirements

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Company addresses
Head office Regional offices

TenneT Holding B.V. and TenneT TSO B.V. The Netherlands Germany
Mariëndaal Centre of Excellence
Utrechtseweg 310 TenneT region West Head office Germany
6812 AR Arnhem Tielweg 28 TenneT TSO GmbH
The Netherlands 2803 PK Gouda Bernecker straße 70
Phone +31 (0)26 373 11 11 The Netherlands 95448 Bayreuth
PO Box 718 Germany
6800 AS Arnhem TenneT region North Phone + 49 (0) 921 50740-0
The Netherlands De Stroom 2
7901 TE Hoogeveen TenneT Lehrte
[email protected] The Netherlands Eisenbahnlängsweg 2a
31275 Lehrte Germany
www.tennet.eu TenneT region South
Copernicusstraat 9 TenneT Berlin
6003 DE Weert Representative Office
The Netherlands Friedrichstraße 150
10117 Berlin
Germany

Belgium

TenneT Brussels
TenneT Holding B.V.
European Office
Rue des Deux Eglises 29
1000 Brussels
Belgium

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Supplementary information Limited assurance report of

the independent auditor on the
257

sustainability statement
About this report 260
Key figures: five-year summary 262
Definitions 263
Glossary 264
Colophon 268
Disclaimer 269
 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

Limited assurance report of the independent auditor

on the sustainability statement
To: the shareholder and Supervisory Board of TenneT Holding International Standard on Assurance Engagements (ISAE) Emphases of matter
B.V. (“TenneT” or the “Company”) 3000 (Revised) ’Assurance engagements other than audits or
reviews of historical financial information’. Emphasis on the most significant uncertainties affecting the
Our conclusion quantitative metrics and monetary amounts
We have performed a limited assurance engagement on the Our responsibilities in this regard are further described in We draw attention to the section ‘Use of estimations’
(consolidated) sustainability statement for 2024 of TenneT, the section ‘Our responsibilities for the limited assurance (page 130) in the Sustainability statement that identifies
based in Arnhem the Netherlands included in the section engagement on the Sustainability statement’ of our report. the quantitative metrics that are subject to a high level of
‘Sustainability statements’ in the Integrated Annual Report measurement uncertainty and discloses information about the
(the “Sustainability statement”), including the information We are independent of TenneT in accordance with the sources of measurement uncertainty and the assumptions,
incorporated in the Sustainability statement by reference. ‘Verordening inzake de onafhankelijkheid van accountants bij approximations and judgements the Company has made in
assurance-opdrachten’ (“ViO”, Code of Ethics for Professional measuring these in compliance with the ESRS.
Based on our procedures performed and the assurance Accountants, a regulation with respect to independence) and
evidence obtained, nothing has come to our attention that other relevant independence regulations in the Netherlands. The comparability of sustainability information between
causes us to believe that the Sustainability statement is not, in Furthermore, we have complied with the ‘Verordening entities and over time may be affected by the lack of historical
all material respects: gedrags- en beroepsregels accountants’ (“VGBA”, Dutch sustainability information in accordance with the ESRS and
• prepared in accordance with the European Sustainability Code of Ethics for Professional Accountants). by the absence of a uniform practice on which to draw,
Reporting Standards (“ESRS”) as adopted by the European to evaluate and measure this information. This allows for
Commission and in accordance with the double materiality The ViO and VGBA are at least as demanding as the the application of different, but acceptable, measurement
assessment process carried out by the Company to International code of ethics for professional accountants techniques, especially in the initial years.
identify the information reported pursuant to the ESRS; and (including International independence standards) of the
• compliant with the reporting requirements provided International Ethics Standards Board for Accountants. Emphasis on the double materiality assessment process
for in Article 8 of Regulation (EU) 2020/852 (the We draw attention to sections ‘Statement on due diligence’
“Taxonomy Regulation”). We believe that the assurance evidence we have obtained (page 130) and ‘Double materiality assessment’ (pages
is sufficient and appropriate to provide a basis for 132-135) in the Sustainability statement. This disclosure
Basis for our conclusion our conclusion. explains future improvements in the ongoing due diligence
We have performed our limited assurance engagement and double materiality assessment process, including how
on the Sustainability statement in accordance with the entity communicated with affected stakeholders. Due
Dutch law, including Dutch Standard 3810N, 'Assurance- diligence is an on-going practice that responds to and may
opdrachten inzake duurzaamheidsverslaggeving' (Assurance trigger changes in the Company’s strategy, business model,
engagements relating to sustainability reporting) which activities, business relationships, operating, sourcing and
is a specified Dutch standard that is based on the selling contexts. The double materiality assessment process

Integrated Annual Report 2024 TenneT Holding B.V. 257

 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

may also be impacted in time by sector-specific standards Responsibilities of management and the Supervisory assurance engagement. Consequently, the level of assurance
to be adopted. The Sustainability statement may not include Board for the Sustainability statement obtained in a limited assurance engagement is substantially
every impact, risk and opportunity or additional entity-specific Management is responsible for the preparation of the lower than the assurance that would have been obtained had
disclosure that each individual stakeholder (group) may Sustainability statement in accordance with the ESRS, a reasonable assurance engagement been performed.
consider important in its own particular assessment. including the double materiality assessment process carried
out by the Company as the basis for the Sustainability We apply the applicable quality management requirements
Emphasis on the use of third party information statement and disclosure of material impacts, risks and pursuant to the ‘Nadere voorschriften kwaliteitsmanagement’
We draw attention to section 'Basis for preparation' in the opportunities in accordance with the ESRS. As part of the (regulations for quality management) and accordingly maintain
Sustainability statement that indicates that certain metrics and preparation of the Sustainability statement, management is a comprehensive system of quality management including
calculations are (partly) based on assumptions and sources responsible for compliance with the reporting requirements documented policies and procedures regarding compliance
from third parties. These assumptions and sources are provided for the Taxonomy Regulation. with ethical requirements, professional standards and other
disclosed in the basis of preparation of the respective metric. relevant legal and regulatory requirements.
Validation of such third-party information and certifications is Management is also responsible for selecting and applying
not common market practice. additional entity-specific disclosures to enable users to Our limited assurance engagement included among others:
understand the Company’s sustainability-related impacts, • Performing inquiries and an analysis of the external
risks or opportunities and for determining that these additional environment and obtaining an understanding of relevant
Our conclusion is not modified in respect of these matters. entity-specific disclosures are suitable in the circumstances sustainability themes and issues, the characteristics of
and in accordance with the ESRS. the Company, its activities and the value chain and
Comparative information its key intangible resources in order to assess the
The Sustainability statement has been prepared in accordance Furthermore, management is responsible for such internal double materiality assessment process carried out by the
with ESRS for the first time. As a consequence, the control as it determines is necessary to enable the preparation Company as the basis for the Sustainability statement
comparative information has not been subject to reasonable of the Sustainability statement that is free from material and disclosure of all material sustainability-related impacts,
or limited assurance procedures. Our conclusion is not misstatement, whether due to fraud or error. risks and opportunities in accordance with the ESRS.
modified in respect of this matter. • Obtaining through inquiries a general understanding of the
The Supervisory Board is responsible for overseeing Company’s (i) internal control environment, (ii) processes
Limitations to the scope of our assurance engagement the sustainability reporting process including the double for gathering and reporting entity-related and value
In reporting forward-looking information in accordance with materiality assessment process carried out by the Company. chain information, (iii) information systems and (iv) risk
the ESRS, management of the Company is required to assessment process, to the extent relevant for:
prepare the forward-looking information on the basis of Our responsibilities for the limited assurance engagement ◦ the preparation of the Sustainability statement; and
disclosed assumptions about events that may occur in the on the Sustainability statement ◦ the preparation of the disclosures provided for in the
future and possible future actions by the Company. The actual Our responsibility is to plan and perform the limited assurance Taxonomy Regulation, including the determination of
outcome may differ, as anticipated events frequently do not engagement in a manner that allows us to obtain sufficient eligible and aligned economic activities,
occur as expected. Forward-looking information relates to appropriate assurance evidence for our conclusion. without obtaining assurance information about the
events and actions that have not yet occurred and may never implementation, or testing the operating effectiveness, of
occur. We do not provide assurance on the achievability of Our assurance engagement is aimed to obtain a limited level related controls.
this forward-looking information. of assurance that the Sustainability statement is free from
material misstatements. The procedures vary in nature and
Our conclusion is not modified in respect of this matter. timing from, and are less in extent than for a reasonable

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

• Assessing the double materiality assessment process • Considering whether:

carried out by the Company and identifying and assessing ◦ the disclosures, addressing the reporting requirements
areas of the Sustainability statement, including the provided for in the Taxonomy Regulation for each
disclosures provided for in the Taxonomy Regulation, of the environmental objectives, (i) reconcile with the
where misleading or unbalanced information or material underlying records of the Company, (ii) are consistent
misstatements, whether due to fraud or error, are likely with the Sustainability statement and (iii) appear
to arise (“Selected Disclosures”). Responsive to this risk reasonable, in particular whether the eligible economic
analysis, we designed and performed further assurance activities meet the cumulative conditions to qualify as
procedures aimed at assessing that the Sustainability aligned and whether the technical screening criteria are
statement is free from material misstatements. met; and
• Considering whether the description of the double ◦ the key performance indicators’ disclosures have been
materiality assessment process as disclosed in the defined and calculated (i) in accordance with the
Sustainability statement appears consistent with the Taxonomy reference framework (as defined in Appendix
process carried out by the Company. 1 Glossary of Terms of the CEAOB Guidelines on
• Determining the nature and extent of the procedures to limited assurance on sustainability reporting adopted
be performed for the group components and locations. on 30 September 2024) and (ii) in compliance with the
Decisive were the size and/or the risk profile of these reporting requirements provided for in the Taxonomy
components and locations. Regulation, including the format in which the activities
• Performing analytical review procedures on quantitative are presented.
information in the Sustainability statement, including • Considering the overall presentation, structure and the
consideration of data and trends in the information fundamental qualitative characteristics of information
submitted for consolidation at corporate level. (relevance and faithful representation: complete, neutral
• Assessing whether the Company’s methods for developing and accurate) reported in the Sustainability statement,
estimates are appropriate and have been consistently including the reporting requirements provided for in the
applied for the Selected Disclosures. We considered data Taxonomy Regulation.
and trends; however, our procedures did not include • Considering, based on our limited assurance procedures
testing the data on which the estimates are based or and evaluation of the assurance evidence obtained,
separately developing our own estimates against which to whether the Sustainability statement as a whole is free from
evaluate management’s estimates. material misstatements and prepared in accordance with
• Analysing, on a limited sample basis, relevant internal the ESRS.
and external documentation available to the Company
(including publicly available information or information Rotterdam, 3 March 2025
from actors throughout its value chain) for the
Selected Disclosures. Deloitte Accountants B.V.
• Reading the other information in the annual report
to identify material inconsistencies, if any, with the
Sustainability statement. Signed on the original: J.A. de Bruin

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 TenneT at a glance Executive Board Report Corporate Governance Sustainability statements Financial statements Other information

About this report

Scope of this report of the EU Corporate Sustainability Reporting Directive (CSRD), In 2015, the United Nations launched the Sustainable
The scope of this integrated report is TenneT Holding B.V. supplemented with the GRI G4 Electric Utilities Sector Development Goals (SDGs). These goals are accepted
and the subsidiaries in which it has a controlling interest. Disclosures and own reporting criteria developed by TenneT worldwide as driving sustainability. The section in our
For disclosures on specific topics like our greenhouse gas for entity-specific disclosures like, for example, TenneT’s Integrated Annual Report ‘The Sustainable Development
emissions and incident reporting, this integrated report covers avoided emissions. In accordance with ESRS 1, we have Goals’ describes our impact and the contribution we make
a broader scope than the operations of the group and incorporated the required disclosures as outlined by the EU to the SDGs that are most relevant to our business.
includes aspects of our value chain. When aspects of our Taxonomy Regulation (Article 8 of Regulation (EU) 2020/852
value chain have been considered, this has been indicated. and associated delegated acts). Stakeholders and materiality
In accordance with the applied reporting principles, this
A complete overview of all the consolidated entities in this In accordance with the policy on state-owned companies integrated report covers topics considered material to
Integrated Annual Report is disclosed in note 30 of the (Nota Deelnemingenbeleid Rijksoverheid 2022), TenneT our organisation. TenneT uses the materiality principle to
consolidated financial statements. Our reporting policy in complies with the Dutch Corporate Governance Code, as laid determine which subjects/impacts to include in the integrated
the event of acquisitions or divestments is disclosed in down in the Corporate Governance section of this report. report related to which activities (also with respect to our
notes 1 and 6 of the consolidated financial statements. As required per this policy, TenneT also signed the Diversity value chain) to take into account. Our corporate website
For non-financial performance we report acquisitions and Charter in 2021 and embraces the principles of the Tax (www.tennet.eu) includes additional information which was
divestments from the day of purchase or when an entity Governance Code. not considered material for integrated reporting purposes.
is sold respectively. We recognise that in the event of How we defined the material topics and the results of this
acquisitions, reporting improvements may be required which We have used the Integrated Reporting (IR) framework, as assessment can be found in the Sustainability Statements
may result in data gaps or estimates. In 2024, there were defined by the International Integrating Reporting Council – Double materiality assessment section. The fact that we
no significant acquisitions or divestments impacting our non- (IIRC, which together with SASB formed the Value Reporting report on selected topics does not mean we do not manage
financial reporting. Foundation in 2021) as a basis for the Executive Board report. aspects that are not considered material to our business. Our
Furthermore, this report is also part of our progress and activities and CSR policy are broader and are not limited to
This integrated report covers the full year 2024, i.e. 1 January how we implement the 10 principles of the United Nations the outcome of the materiality analysis. For more detailed
2024 to 31 December 2024. TenneT’s Integrated Annual Global Compact (UNGC). We have endorsed these principles information, go to the CSR section of our website.
Report 2024 was published on 6 March 2025 and is since 2015, not just to underline our own commitment,
available online. but also to drive CSR performance in the value chain. Data collection process
The UNGC principles are the basis of our TenneT Supplier The reported data is obtained from financial and non-financial
Reporting principles Code of Conduct and mandatory for all suppliers. New data management systems in our own operations, such as
The financial information in this report was prepared in suppliers who do not meet our standards during supplier SAP for financial and HR data, Mecoms for our electricity
accordance with IFRS, as adopted by the EU, and complies visits, are disqualified from our tender procedures. The way transport data, and Zenya for our incident reporting, i.e. safety
with Part 9 of Book 2 of the Dutch Civil Code. Our non- communication on the progress related to the UNGC has data. The key non-financial qualitative and quantitative data
financial qualitative and quantitative information was prepared changed in 2022 and as of 2023 this will be shared via the is included in the regular planning and control cycles and
in accordance with the disclosure requirements of the UNGC website. reported internally at least once a quarter by the Business
European Sustainability Reporting Standards (ESRS) pursuant Guidance department which performs a check on the quality

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and reliability of the data. TenneT’s Executive Board and our activities are conducted by TenneT TSO B.V. and its
senior management contribute to the context of the report and subsidiaries. In Germany, our activities are performed by
the quantitative data. TenneT GmbH & Co. KG and its subsidiaries.

The definitions and calculations used are disclosed in the The Dutch state owns the entire issued share capital of
abbreviations and definitions section of this Integrated Annual TenneT Holding B.V. Furthermore, TenneT Holding B.V. has
Report and in the CSR section of our corporate website. issued hybrid securities which are deeply subordinated and
The definitions and calculations used were re-assessed are accounted for as part of equity attributable to equity
based on such things as process improvements, further holders of the Company. The registered office of TenneT
alignment within the group and the materiality analysis. As Holding B.V. is located at Utrechtseweg 310, Arnhem,
a result, certain originally reported comparative figures were the Netherlands, with its statutory seat in Arnhem and
re-classified to conform to the current year’s presentation. a registration with the Dutch Commercial Register under
The data for this report was measured, and where no data number 09083317.
was available, it was estimated. An example of this is the
outflow of materials. Due to the nature and maturity level
of non-financial data, we acknowledge that it is a journey
to fully align this with the level of financial systems and
processes. Therefore, improvements can be made over time
with the aim to provide our stakeholders better and more
relevant information.

External assurance
The financial statements included in this report are subject
to an independent external audit and TenneT’s non-financial
reporting is subject to a limited assurance review. These were
both conducted by our external auditor, Deloitte Accountants
B.V. We have requested Deloitte to review the Sustainability
statements and by 'incorporation by reference' the sections
or IAR2024 as listed in the respective table in the Appendix
of the Sustainability statements in accordance with ESRS as
required by the CSRD and audit the financial statements in
accordance with IFRS as adopted by the EU and Part 9 of
Book 2 of the Dutch Civil Code.

Other information
TenneT Holding B.V. and its subsidiaries are a leading
electricity transmission system operator with activities in the
Netherlands and a large part of Germany. In the Netherlands,

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Key figures: five-year summary

Based on underlying figures 2024 2023 2022 2021 2020

Building the electricity grid of tomorrow

Investments (EUR million) 10,637 7,730 4,493 3,969 3,412

# connections realised 1
40 – – – –

# connection requests 1
728 – – – –

Circuit length (kilometres) 1

245 – – – –

Newly installed GW offshore 0.0 2.3 0.0 1.4 0.7

Utilise the grid to empower society

Grid availability (onshore) 99.99988% 99.99993% 99.99963% 99.99999% 99.99995%

Grid availability (offshore) 97.09% 97.90% 94.08% 94.09% 94.03%

Deliver more grid capacity together for our customers and to serve society

Number of initiatives with other stakeholders that helped build the grid faster or utilised the grid better1 30 27 11 13 –

Create a safe and inspiring workplace

TRIR 4.0 4.5 4.9 5.8 4.1

Absentee rate NL 3.6 3.9 3.7 3.1 2.7

Absentee rate DE 3.3 3.4 4.1 2.6 2.5

Percentage of female inflow of total inflow 32% 32% 33% 31% 33%

Percentage of non-Dutch non-German inflow 11% 11% 9% – –

Transition to a brighter energy future within social and planetary boundaries

Reduction of carbon footprint compared to base year 2019 (Scope 1 and scope 2 market-based emissions)1 93% 20% – – –

Percentage of non-virgin materials procured 2% – – – –

Percentage of recoverable waste 97% 75-90% 75-90% 75-90% 75-90%

Number of environmental incidents 171 190 97 81 57

Percentage of supplier visits performed that meet or standards (of a.o. quality, sustainability, etc.) 77% 82% 86% 83% 96%

Safeguard sustainable financial performance

Underlying EBIT (EUR million) 1,745 1,817 1,210 834 910

Adjusted FFO/Net debt 8.2% 11.6% 11.1% 10.5% 11.3%

ROIC 4.7% 5.8% 4.9% 4.2% 5.1%

1
New metrics we report as of 2024. As data is more difficult to obtain for the previous years it is not included.

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Definitions
Power units Energy units Weight units
• Power is energy per unit of time • Energy is power multiplied by time • ktonnes (kilotonnes) = 1,000 tonnes
• Power output is measured in watts (W) • 1 kWh (kilowatt hour) = 1 kW in one hour • Mt or Mtonnes (megatonnes) = 1,000,000 tonnes
• 1 kW (kilowatt) = 1,000 W • 1 MWh (megawatt hour) = 1,000 kWh
• 1 MW (megawatt) = 1,000 kW • 1 GWh (gigawatt hour) = 1,000,000 kWh Voltage
• 1 GW (gigawatt) = 1,000,000 kW • 1 TWh (terawatt hour) = 1,000,000,000 kWh • 1 kV (kilovolt) = 1,000 volts (V)

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Glossary CIP – Copenhagen Infrastructure Partners

Copenhagen Infrastructure Partners is a fund management
company that is joined between four senior partners
DBO - Defined Benefit Obligation
A defined benefit obligation pension plan is a type of
pension plan in which an employer/sponsor promises a
and PensionDenmark. specified pension payment, lump-sum or combination thereof
AC – Alternating Current on retirement that is predetermined by a formula based on the
In alternating current (AC), the flow of electricity periodically COSO – Committee of Sponsoring Organisations of the employee's earnings history, tenure of service and age, rather
reverses direction. By contrast direct current (DC), electricity Treadway Commission than depending directly on individual investment returns.
only flows in one direction. AC is used to transport electricity COSO has established the common internal control model
over relatively shorter distances and DC longer ones. against which companies and organisations assess their DC – Direct Current
control systems. In direct current (DC), the flow of electricity is only in one
ACER – Agency for the Cooperation of Energy Regulators direction. In alternating current (AC), the electricity flows
The European network organisation for energy regulators. It CPI index periodically reverses direction. DC is used to transport
has a key role in the integration of European electricity and A consumer price index measures changes in the price level electricity over relatively longer distances and AC over
gas markets, providing a framework for co-operation at EU of a weighted average market basket of consumer goods and shorter ones.
level and regulatory certainty. services purchased by households.
DSO – Distribution System Operator
ACM – Autoriteit Consument & Markt Cross-border TSO A regional electricity distribution company, that is connected
Dutch national regulatory authority. A cross-border TSO is a TSO that operates in more than with end-users and is responsible for providing (1) power
one country. distribution services, by constructing and maintaining a robust
aFRR – automatic Frequency Restoration Reserve high-voltage grid, and (2) facilitating a smooth functioning,
aFRR is a market service that the TSO uses for balance CSRD – Corporate Sustainability Reporting Directive liquid and stable electricity market.
maintenance purposes. The objective of the proposed CSRD is to improve
sustainability reporting and ensure it is brought into a E-wet – Elektriciteitswet 1998
BNetzA – Bundesnetzagentur für Elektrizität, Gas, company’s management report to better leverage the potential The Dutch electricity law.
Telekommunikation, Post und Eisenbahnen of the European single market and to contribute to the
German national regulatory authority. transition to a fully sustainable and inclusive economic and EBIT – Earnings Before Interest and Tax
financial system in line with the European Green Deal and the Earnings for the period before income tax expense and
BritNed UN Sustainable Development Goals (SDGs). interest payments are deducted. EBIT equals operating profit.
The 260 km-long high-voltage direct current BritNed cable has
a capacity of 1,000 MW and connects the Dutch and British CTA - Contractual Trust Arrangements ECL - Expected Credit loss
electricity grids. A contractual trust arrangement is essentially a form of Expected credit loss is the probability-weighted estimate of
company pension fund where the fund's assets have been credit losses (i.e., the present value of all cash shortfalls) over
CGU – Cash-Generating Unit transferred to a legal entity separate from the company. the expected life of a Financial Instrument.
A cash-generating unit is the smallest group of assets
that independently generates cash flow and whose cash
flow is largely independent of the cash flows generated by
other assets.

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EEG – Erneuerbare-Energien-Gesetz Gasunie – N.V. Nederlandse Gasunie IAS - International Accounting Standards
German Renewable Energy Act, designed to govern the Gasunie is a European gas infrastructure company that International Accounting Standards (IAS) are older accounting
preferred supply of electricity from renewable sources into transports natural gas and green gas in the Netherlands and standards issued by the International Accounting Standards
the grid with guaranteed, fixed minimum producer prices. the northern part of Germany. Gasunie is participating in the Board (IASB), an independent international standard-setting
It is intended to serve and protect the climate and is one development of the North Sea Wind Power Hub. body based in London. The IAS were replaced in 2001 by
of several statutory provisions aimed at reducing Germany's International Financial Reporting Standards (IFRS).
dependence on fossil fuels such as oil, natural gas or coal, GIS – Gas Insulated Switchgear
and nuclear power. A switchgear insulated via SF6 gas or other gasses IASB - International Accounting Standards Board
The International Accounting Standards Board is the
EIB – European Investment Bank Green (Hybrid) Bonds independent accounting standard-setting body of the IFRS
The European Investment Bank is one of the key financial The proceeds of the green bonds are used to finance, Foundation, which is the successor to the International
institutions of the EU. It is the only bank owned by and refinance and/or invest in projects relating to the transmission Accounting Standards Committee.
representing the interests of the EU member states, providing of renewable electricity from offshore wind power plants into
financing for sustainable investment projects that contribute to the onshore electricity grid using direct current technology IFRIC - International Financial Reporting
furthering EU policy objectives. or alternating current technology. Green hybrid bonds are Interpretations Committee
perpetual bonds without an end-date. IFRIC Interpretations are developed by the IFRS
EIR - Effective Interest Rate Interpretations Committee (previously the International
The effective interest rate is the interest rate on a loan or Helaba – Helaba Pension Trust e.V. Financial Reporting Interpretations Committee, IFRIC) and
financial product restated from the nominal interest rate and Helaba Pension Trust e.V. is a subsidiary of German bank are issued after approval by the International Accounting
expressed as the equivalent interest rate if compound interest Landesbank Hessen-Thüringen and holds a part of the assets Standards Board (IASB).
was payable annually in arrears. of the German pension plan.
IFRS Accounting Standards – International Financial
EMTN – Euro Medium-Term Note HGRT – Holding des Gestionnaires de Réseaux de Reporting Standards
A flexible medium-term debt instrument that is issued Transport d'Électricité S.A.S. The internationally prescribed and recognised reporting
directly to the market with different maturities and is offered Holding des Gestionnaires de Réseaux de Transport guidelines and accounting standards as endorsed by the
continuously rather than all at once like a bond issue. d'Électricité S.A.S. is a holding company of EPEX SPOT European Union (EU).
power exchange.
ENTSO-E – European Network of Transmission System IIRC – International Integrated Reporting Council
Operators for Electricity HVDC – High-Voltage Direct Current The International Integrated Reporting Council (IIRC) is a
ENTSO-E is the organisation of transmission system operators A high-voltage, direct current system can transmit bulk global coalition of regulators, investors, companies, standard
at a European level, representing 39 TSOs from 35 countries. electricity over longer distances than an alternating current setters, the accounting profession, academia and NGOs. The
Its mission is to promote important aspects of energy policy, system and with lower grid losses. As such, HVDC is used coalition promotes communication about value creation as the
especially integrating renewable energy and the completion of for linking offshore wind farms to the onshore grid and for next step in the evolution of corporate reporting. Together
an internal energy market. our Interconnectors NorNed to Norway, BritNed to the UK and with the Sustainability Accounting Standards Board (SASB)
COBRAcable to Denmark and NordLink to Norway. the IIRC formed the Value Reporting Foundation.
EnWG – Energiewirtschaftsgesetz
The German electricity law.

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KfW IPEX-Bank GmbH (KFW)– Kreditanstalt OECD – Organisation for Economic Co-operation SASB – Sustainability Accounting Standards Board
für Wiederaufbau and Development The Sustainability Accounting Standards Board is a non-profit
KfW is the Reconstruction Credit Institute development bank The Organisation for Economic Co-operation and organisation that sets financial reporting standards. SASB was
owned by the German government Development is an intergovernmental economic organisation founded in 2011 to develop and disseminate sustainability
with 36 member countries, founded in 1961 to stimulate accounting standards. Together with the IIRC, the SASB
KWK-G – Kraft-Wärme-Kopplungs-Gesetz economic progress and world trade. formed the Value Reporting Foundation.
The German Combined Heat and Power Act.
Pillar Two SBTi – Science Based Targets initiative
LoR – Letter of Representation Pillar Two is a tax law adopted by the European Union (and The SBTi is a partnership between CDP (Carbon Disclosure
A letter of representation is signed by management of the also adopted in national legislation) effective as of 1 January Project), the United Nations Global Compact, World
Group and/or performance unit to attest to the accuracy of the 2024, and aims to ensure that income of large groups with Resources Institute (WRI) and the World Wide Fund for Nature
financial statements. a turnover of more than a certain threshold is taxed at an (WWF). The SBTi call to action is one of the We Mean
appropriate rate. In short, it ensures a minimum effective tax Business Coalition commitments.
Moody's rate ('ETR') of 15% for the whole group. In case the ETR of a
Moody's Investors Service provides credit ratings, research, group in any jurisdiction is below the minimum rate of 15%, SDG – United Nations Sustainable Development Goals
and risk analysis. the rules require that a top-up tax is to be levied. The Sustainable Development Goals (SDGs) are a universal
call to action to end poverty, protect the planet and improve
Net Debt RCF – Revolving Credit Facility the lives and prospects of everyone, everywhere. The 17
Gross debt minus cash and cash equivalents at free disposal A line of credit where TenneT pays a commitment fee and can aspirational ‘global goals’ with 169 targets between them were
plus lease liabilities plus net employee defined benefit then use the funds as and when needed. adopted by all UN Member States in 2015, as part of the 2030
obligation plus 50% of hybrid securities. Agenda for Sustainable Development which set out a 15-year
ROIC – Return on Invested Capital plan to achieve the Goals.
Netbeheer Nederland Underlying EBIT Group expressed as a percentage of the
Netbeheer Nederland is the association in the energy sector average underlying invested equity plus loans and bank SF6 – Sulphur Hexafluoride
representing the interests of national and regional electricity overdrafts minus cash at free disposal during the year. An inorganic, colourless, odourless and non-flammable
and gas network operators in the Netherlands. greenhouse gas that is used in the electricity industry to
S&P – Standard & Poors insulate high-voltage circuit breakers, switchgear and other
NOKA – DC Nordseekabel GmbH & Co. KG Standard & Poors provides credit ratings, research, and electrical equipment.
NOKA is jointly owned by TenneT and German development risk analysis.
bank KfW. It is responsible for financing and building the SuedLink
German part of the NordLink cable. SAIDI - System Average Interruption Duration Index A DC connection to transport electricity generated in the north
The average outage duration for each customer served of Germany to the South.
NordLink
TenneT is jointly developing the NordLink interconnector with SuedOstLink
its project partners, the Norwegian TSO Statnett and German A DC connection to transport electricity generated in north of
development bank KfW. With an overall transmission capacity Germany to the South-East.
of 1,400 MW, the subsea cable will run between Tonstad in the
South of Norway and Wilster in Northern German.

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TRIR – Total Recordable Incident Rate Workforce

The total recordable incident rate is the number of total All internal and external people who works for TenneT
recordable incidents per million hours worked. Recordable and where TenneT is responsible for their safety relating to
incidents are fatalities, lost work day cases, restricted work our work.
day cases and medical treatment cases.

TSCNET
TSCNET Services is one of Europe’s Regional Security
Coordinators (RSCs). The company based in Munich, renders
integrated services for power transmission system operators
(TSOs) and their control centres to maintain the operational
security of our electricity system – 24 hours a day, seven days
a week.

TSO – Transmission System Operator

A transmission system operator transports electricity at
national or regional level from producers to distributors. A TSO
is responsible for providing (1) power transmission services,
by constructing and maintaining a robust high-voltage grid, (2)
system services, by maintaining the balance between supply
and demand of electricity 24/7 and (3) facilitating a smooth
functioning, liquid and stable electricity market.

UNGC – United Nations Global Compact

A call from the UN to companies to align strategies and
operations with universal principles on human rights, labour,
environment and anti-corruption, and take actions that
advance societal goals.

VKE – Versorgungskasse Energie VVaG

Versorgugnskasse Energie VVaG is pension fund for energy
mutuals and a subsidiary of E.ON SE. It holds a part of the
assets of the German pension plan.

WACC – Weighted Average Cost of Capital

The WACC is the rate that a company is expected to pay on
average to all its capital providers to finance its assets.

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Colophon
TenneT Holding B.V.

Visiting address
Utrechtseweg 310, 6812 AR, Arnhem, the Netherlands
T: +31 (0)26 – 37 31 111

Concept & Design

CF Report, Amsterdam

Copy
Stampa Communications, Amsterdam

Corporate Communications Department

T: +31 (0)26 – 37 32 600
E: [email protected]
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Disclaimer
`We´, `TenneT´, `TenneT Holding´, `the Group´, `the company´ or
similar expressions are used in this report as a synonym for
TenneT Holding B.V. and its subsidiaries.

Parts of this report contain forward-looking information. These

parts may include unqualified statements on future operating
results, government measures, the impact of other regulatory
measures on the activities of TenneT as a whole, TenneT´s
shares and those of its subsidiaries and joint-ventures in
existing and new markets, industrial and macro-economic
trends and TenneT´s performance in these. Such statements
are preceded or followed by or contain words such as
`believes´, `expects´, `anticipates´ or similar expressions. These
forward-looking statements are based on current assumptions
concerning future activities and are subject to known and
unknown factors, and other uncertainties, many of which are
beyond TenneT´s control, so that future actual results may
differ significantly from these statements.

All financial information in this Integrated Annual Report is

reported in millions of euro, unless stated otherwise. As a
result, small rounding differences may occur.

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TenneT is a leading European grid operator. We are committed to providing a secure and
reliable supply of electricity 24 hours a day, 365 days a year, while helping to drive the energy
transition in our pursuit of a brighter energy future – more sustainable, reliable and affordable.
In our role as cross-border Transmission System Operator (TSO) we design, build, maintain
and operate over 25,000 kilometres of high-voltage electricity grid in the Netherlands and large
parts of Germany, and facilitate the European energy market through our 17 interconnectors
to neighbouring countries. We are one of the largest investors in national and international
onshore and offshore electricity grids, with an underlying revenue of EUR 8.4 billion and a total
underlying asset value of EUR 55 billion. Every day our 9,700 people are highly motivated
to ensure that the supply and demand of electricity is balanced and always available for over
43 million people.

Lighting the way ahead together.

TenneT Holding B.V.

Utrechtseweg 310, 6812 AR, Arnhem, the Netherlands
P.O. Box 718, 6800 AS Arnhem, the Netherlands

Telephone: +31 (0)26 – 37 31 111

E-mail: [email protected]
Website: www.tennet.eu

© TenneT – March 2025