TenneT has reported a decline in both earnings and revenue for 2024, primarily attributed to falling energy prices. Underlying revenue decreased by €792 million to €8.4 billion, down from €9.2 billion in 2023. Additionally, underlying earnings before interest and tax (EBIT) fell by €72 million to €1.7 billion.
The reduction in revenue was linked to a decrease in the overall costs for ancillary services, such as redispatch, grid losses, reserve power plants, and control power, which contributed to lower underlying revenue. Furthermore, lower regulatory rates for return on equity in Germany also impacted revenue generation.
Despite these setbacks, TenneT saw an increase in revenue from its growing investments, which led to a larger regulatory asset base and higher income from both onshore and offshore activities. The company’s investment in modernizing and expanding its electricity infrastructure exceeded €10 billion in 2024, a notable increase from €7.7 billion in 2023.
Arina Freitag, CFO of TenneT Holding, commented on the company’s financial support, saying: “Whilst we are working with the Dutch state on structural financing solutions for TenneT Germany, the shareholder loan facility provided in 2024 demonstrates the continuous support of TenneT’s shareholder for an investment program set to deliver a more efficient energy system.”
The company’s EBIT performance was affected by lower regulatory rates and decreased results from its non-regulated joint venture, BritNed, due to lower auction receipts. However, this was partially offset by the higher revenue from ongoing investments and a reassessment of the useful lives of tangible fixed assets, which reduced depreciation expenses.
TenneT’s EBIT for the TSO Netherlands segment rose to €625 million, up from €548 million in 2023. However, EBIT for the TSO Germany segment decreased to €1 billion, compared with €1.1 billion in the previous year.
TenneT achieved several key milestones in 2024, including the start of work on the offshore grid connection project BorWin6, as well as the commissioning of the Wahle-Mecklar project, which is designed to ensure the transmission of wind energy along the north-south axis in Lower Saxony and Northern Hesse. In November, construction of the IJmuiden Ver Beta platform began in Singapore, marking one of the first Dutch 2GW grid connection projects. The construction of the onshore converter station for the 2GW IJmuiden Ver Alpha offshore connection was also approved in the same month.
Manon van Beek, CEO of TenneT Holding, emphasized the company’s strategic focus on grid development: “Our investment portfolio is about building a reliable and cost-effective electricity grid that supports the transition to an electricity system delivering on energy-security and energy-independence. In the short term, TenneT remains resolutely focused on delivering grid capacity for our customers and facilitating the electrification of industry, businesses, homes, institutions, and public transport with additional high-voltage infrastructure.
