Our key tasks

We are primarily tasked with providing power transmission services, system services and facilitating the energy market. Our core tasks follow from our appointment as grid operator under the Dutch 'Elektriciteitswet' (E-wet) and the German 'Energiewirtschaftsgesetz' (EnWG).

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Innovation

TenneT presents Hub and Spoke concept for large scale wind energy on the North Sea.

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Our grid

TenneT manages the high-voltage grid in the Netherlands and large parts of Germany. TenneT transmits electricity at 110,000 volts (110 kV) and higher. With around 24,500 kilometres of high-voltage lines, we cross borders and connect countries.

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Offshore Outlook 2050

Already by 2030, the originally planned capacity of 15 gigawatts of offshore wind energy will increase to 20 GW.

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Electricity market

The energy sector is developing rapidly. The process of European market integration began some years ago. Its purpose is to create a single European market that enables market parties to trade gas and electricity across national borders easily and efficiently.

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Transparency data

We provide transparency data on our operations on our Dutch and German transparency page and on ENTSO-E. 

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E-Insights

Our vision is to be one of the most transparent Transmission System Operators (TSO) in Europe and thereby creating value for society. In this Energy Insights section we present selected energy related topics and show data, information and valuable insights. 

E-Insights

E-Insights

Facts & figures related to TenneT facilitating the market can be found here.

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Company

TenneT is a leading European electricity transmission system operator (TSO), with activities in the Netherlands and in Germany. We strive to ensure a reliable and uninterrupted supply of electricity in our high-voltage grid for some 42 million people.

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We are TenneT

Meet us

Regulators

TenneT is a transmission system operator (TSO) for electricity in the Netherlands and in a geographically specifically defined supply area in Germany, the so-called control area. Due to the legally defined tasks as well as the use of investment-intensive and long-lasting operating resources required for this purpose, each electricity grid operator has a "natural monopoly" in its respective supply area.

Dutch regulation

Independent regulatory authorities are therefore used to monitor and control the activities of the TSOs. These are, in the Netherlands the Dutch Autoriteit Consument en Markt (Consumer & Markets Inspectorate (ACM)) and in Germany the Bundesnetzagentur (BNetzA). Their tasks are to balance the interests between electricity end consumers, i.e. household customers and companies, and the grid operators, while pursuing the goals of the tension triangle of sustainability, affordable energy prices and security of supply set out in the Energy Industry Act (EnWG). 

The regulatory authorities fulfil this task through regular cost controls of the network operators and in particular by means of benchmarking, in which comparable network operators are compared with each other and thus encouraged to reduce costs. In this way, the regulators set incentives for efficient operations and determine the allowed return on investment. The key parameters of the regulatory framework in the Netherlands and Germany are set for a period of five years. In 2022, the eighth regulatory period started in the Netherlands, which runs until the end of 2026. In Germany, we are currently in the third regulatory period, which runs until the end of 2023.

Regulation through financial incentives (incentive regulation) currently takes place in both the Netherlands and Germany. Basically, a bonus-malus model is used to motivate the TSO to achieve the objectives of the regulators. In this procedure, the TSOs have a corresponding margin of discretion to generate profits when making decisions for a specific operation. The allowed regulatory revenues set by the regulators thereby correspond to the costs of an efficient TSO and include operating costs, depreciation and the capital costs necessary for network expansion, as shown in the figure below.

The interconnection of the transmission system operators at European level as well as their legally prescribed cooperation in European bodies requires a coordination of the activities of the national regulatory authorities at European level. Based on the Third European Internal Market Directive, the Agency for the Cooperation of Energy Regulators (ACER) was therefore founded on 3 March 2011, which acts as a European regulatory authority and thus complements the national regulatory authorities.

ACER contributes to the smooth functioning of the European electricity and gas market. The agency's tasks include complementing and coordinating the work of national regulatory authorities. Furthermore, ACER participates in the development of regulations for European networks and, in the context of this, also takes binding individual decisions on the provisions for access to cross-border infrastructures and their operational security. ACER also acts as an advisory body to EU institutions on energy issues. In addition, the agency reports on developments in the electricity market and monitors both these and wholesale energy markets to identify and prevent market abuse. This is done in close cooperation with national regulators.

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TenneTs earning model (330 KB, pdf, 07/03/17)

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Electricity traders

Traders buy and sell electricity at competitive prices, directly from producers, via energy suppliers or on the Amsterdam Power Exchange (APX).

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Metering companies

Every party that purchases electricity from the grid is responsible for measuring how much they take and disclosing this information to their grid operator.

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