CEO TenneT Manon van Beek: 'Industry can save up to 30 percent on energy bills by properly matching energy needs'

The electricity grid in the Netherlands is under "high voltage"; it is being overloaded. At the same time, the need for electricity from industry in particular is growing rapidly. According to Manon van Beek, CEO of TenneT, this calls for a grid in which multifunctionality is paramount, as well as an integrated approach to the North Sea countries. The "sockets at sea" developed by TenneT could well play a major role in this.

These are bizarre times, says Manon van Beek. 'UN Secretary-General Guterres calls the latest IPCC climate report "an atlas of human suffering and a damning indictment of failing climate leadership." Moreover, the unjustifiable attack on Ukraine does make it clear that we should no longer want to depend on gas, oil and coal and that European cooperation and coordination are more important than ever.'

Electrification industry

That energy transition and the war in Ukraine obviously have a major impact on TenneT, grid operator in the Netherlands and much of Germany. The company is therefore investing in grid expansion in various ways.

Grid expansion

'Especially the increasing demand from industry - accounting for half of all energy consumption - for green power is affecting the electricity grid. That green power will be generated mainly via offshore wind energy. In the Netherlands, we want to connect more than 20 GW of offshore wind to the high-voltage grid by 2030 and 30 GW in the German part of the North Sea. Europe wants to connect a total of 60 GW of offshore energy by 2030 and as much as 300 GW by 2050. That's a lot! TenneT is therefore investing up to €6 billion a year in the high-voltage grid in the Netherlands and Germany in the coming years.

Sockets at sea

TenneT is investing in regular grid expansions, but also in so-called sockets at sea. Van Beek explains: 'Together with the market, we have developed the infrastructure for a standardized 2 GW grid at sea, with which you can transport three times as much wind energy via one socket. The first (of five) 700 MW offshore sockets is now hub ready. The next necessary step is to connect offshore grids in the North Sea internationally and create a North Sea Wind Power Hub. In theory, you could build energy islands of up to 10 to 15 gigawatts, located between offshore wind farms and different countries. Imagine: When the wind blows, we can transport huge amounts of power to the Netherlands, Germany and Denmark and the United Kingdom and Norway. When the wind is not blowing, the same network can be used to supply hydropower from Norway, for example. A North Sea Wind Power hub guarantees the stability and flexibility of the European high-voltage grid.'

Multifunctional connector

The offshore sockets combine innovations in data, flexibility, storage and conversion technologies and can also be used in the future to switch to hydrogen. 'This multifunctionality is important for a sustainable energy system,' she emphasizes. 'After all, electricity grids will be used in different ways in the future.'

North Sea countries

Van Beek talks passionately about the innovations of TenneT and its partners but also says that the acceleration of the energy transition cries out for an integrated approach. 'Innovations for renewable generation, market design, security of supply, infrastructure construction and the strategy for hydrogen require a joint strategy from the North Sea countries. All parts of the system influence each other and we desperately need that joint strategy. In doing so, we need to think far ahead. We are too fixated on 2030. In our world, 2030 is tomorrow and 2040 is the day after tomorrow.'

Industry

Finally, what does Van Beek want to give the industry? 'Industry plays a relatively new role in the power game. Until now, the distribution of industrial energy consumption has been eighty percent gas and twenty percent electricity. By stimulating electrification and pricing CO2, the share of electricity rises 40 percent toward 2030 and goes to about 60 percent in 2050. In practice, this means that many companies will need a heavier connection, increasing the pressure on grid operators. TenneT is happy to support companies in their choices. The geographical location of a company or cluster can already make a big difference. Chemical parks by the sea will find it easier to connect to offshore wind farms than large consumers inland. But it also matters whether a new connection is close to a high-voltage substation or far away from one. The sooner we know plans, the sooner we can start expanding or providing alternatives.'

Advantage

Incidentally, Van Beek expects that good coordination between industry and TenneT could prove to be very beneficial. 'Research shows that we can reduce the peak load of the electricity grid by as much as 10 to 17 percent if we use the full potential of supply and demand. The industry could save up to 30 percent on its energy bills this way. Large electricity consumers such as Aldel, ESD-Sic and Nobian, for example, are already deploying their electrical assets as virtual batteries. If demand exceeds supply, they turn their production back a bit. The more flexible capacity there is in the system, the better.'

Manon van Beek

Manon van Beek (50) was born in Rosmalen and studied Business Economics at VU University Amsterdam. She worked for nearly 25 years at consulting firm Accenture, where she started as a business analyst and ended as CEO of the Dutch branch. Since September 2018, she has been CEO of TenneT. She is also board chair at the social enterprises Giving Back and Refugee Talent Hub and is committed to the Top Woman of the Year Foundation.

In terms of energy consumption, she tries to lead by example. 'I'm not self-sufficient yet, but since a few weeks I got rid of gas. I have also been driving electric for years and prefer to walk short distances. I travel a lot for my work and try to avoid flying as much as possible, unfortunately this doesn't always work out.