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Glossary

ABP - Algemeen Burgerlijk Pensioenfonds

ABP is the civil service pension fund for government, education and energy employees in the Netherlands.

AC - Alternating current

In alternating current (AC), the flow of electricity periodically reverses direction. By contrast direct current (DC), electricity only flows in one direction. AC is used to transport electricity over relatively shorter distances and DC for relatively longer distances.

ACER - Agency for the Cooperation of Energy Regulators

The European network organisation for energy regulators. It has a key role in the integration of European electricity and gas markets, providing a framework for cooperation at EU level and regulatory certainty.

ACM - Autoriteit Consument & Markt

The Dutch Authority for Consumers and Markets protects the interests of consumers and businesses and specifically oversees the energy, telecommunication, transport and postal industries. This authority regulates the network operators in the electricity market and sets maximum transmission tariffs for the national grid operator's system services and for the connections to the grid. ACM creates conditions for a well-functioning national and international wholesale market.

AIS - Air insulated switchgear

A switchgear that is insulated by air instead of gas.

Blockchain

The digital process of verifying and documenting the performance of distributed flexible devices. Blockchain is suited to connecting multiple parties and large numbers of distributed computed nodes and enabling them to undertake joint action in a scalable, transparent and trusted network.

BMWi - Bundesministerium für Wirtschaft und Energie

BMWi is the German federal ministry for economic affairs and energy.

BNetzA - Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen

The German regulatory authority promotes effective competition in the regulated areas and ensures non-discriminatory access to networks. It protects important consumer rights and is also the root certification authority under the Electronic Signatures Act. In addition, BNetzA is responsible for implementing the Grid Expansion Acceleration Act.

BritNed

The 260 km-long high-voltage direct current BritNed cable has a capacity of 1,000 MW and connects the Dutch and British electricity grids.

Capex - Capital expenditure

Capital expenditure (capex) is the amount spent on acquiring or improving long-term assets. Its benefits are enjoyed over a long period time, not only in the current year. Capex is of a non-recurring nature and results in the acquisition of permanent assets.

Carbon footprint

The total amount of greenhouse gases produced to directly and indirectly support human activities, usually expressed in equivalent tons of carbon dioxide (CO2).

CEER - Council of European Energy Regulators

The Council of European Energy Regulators is a 'not-for-profit' organisation in which Europe's national regulators of electricity and gas voluntarily cooperate to protect consumer' interests and to facilitate the creation of a single, competitive and sustainable internal market for gas and electricity in Europe.

CEP - Clean Energy Package

On 30 November 2016, the European Commission published its long-anticipated 'Clean Energy for All Europeans' package, more commonly referred to as the 'Winter Package', consisting of numerous legislative proposals together with accompanying documents, aimed at further completing the internal market for electricity and implementing the Energy Union.

CGU - Cash generating unit

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.

CIGRE – International Council on Large Electric Systems

Founded in 1921, CIGRE, the Council on Large Electric Systems, is an international NGO for promoting collaboration with experts from all around the world by sharing knowledge and joining forces to improve electric power systems of today and tomorrow.

CIP - Copenhagen Infrastructure Partners

Copenhagen Infrastructure Partners is a fund management company that is joined between four senior partners and PensionDenmark.

CO2 - Carbon dioxide

Carbon dioxide is a greenhouse gas formed by the burning of carbon-based fuels. Its concentration in the atmosphere is rapidly increasing, leading to global warming.

COBRAcable

A 275 km-long high-voltage direct current cable that is under construction to connect the Dutch and Danish electricity grids. It will have a capacity of 700 MW.

CORE

CORE is a region in Europe in which methods and tools have been or are to be developed according to the European networks codes. Each border is allocated to a certain region. The main topic addressed in the regions is capacity calculations, i.e. the same capacity calculation method will apply for all borders between bidding zones. CORE is the result of merging Central Western Europe and Central Eastern Europe.

COSO - Committee of Sponsoring Organisations of the Treadway Commission

COSO has established the common internal control model against which companies and organisations assess their control systems.

Council of Children

The Council of Children is an initiative by the Dutch Missing Chapter Foundation. The goal of this foundation is to contribute to finding future-proof solutions for social issues.

CP programme - Commercial paper programme

A commercial paper is a flexible short-term debt instrument that is issued directly to the market with different maturities and is offered continuously.

CSR - Corporate social responsibility

Corporate social responsibility relates to the socially responsible business practices of a company balancing people, planet and profit.

Cross-border TSO

A cross-border TSO is a TSO that operates in more than one country

DC - Direct current

In direct current (DC), the flow of electricity is only in one direction. In alternating current (AC), the electricity flows periodically reverses direction. DC is used to transport electricity over relatively longer distances and AC for relatively shorter distances.

DSO - Distribution system operator

A regional electricity distribution company, that is connected with end users, and is responsible for providing (1) power distribution services, by constructing and maintaining a robust high-voltage grid, and (2) facilitating a smooth functioning, liquid and stable electricity market.

E-wet - Elektriciteitswet 1998

The Dutch electricity law.

EBIT - Earnings before interest and tax

Earnings for the period before income tax expense and interest payments are deducted.

EBITDA - Earnings before interest, tax, depreciation and amortisation

Earnings for the period before income tax expense, interest payments depreciation and amortisation are deducted.

EC - European Commission

The European Commission is the executive of the European Union and promotes its general interest.

EEG - Erneuerbare-Energien-Gesetz

German Renewable Energy Act, designed to govern the preferred supply of electricity from renewable sources into the grid with guaranteed, fixed minimum producer prices. It is intended to serve and protect the climate and is one of several statutory provisions aimed at reducing Germany's dependence on fossil fuels such as oil, natural gas or coal, and nuclear power.

EIB - European Investment Bank

The European Investment Bank is one of the key financial institutions of the EU. It is the only bank owned by and representing the interests of the EU member states, providing financing for sustainable investment projects that contribute to furthering EU policy objectives.

EMTN - Euro medium-term note

A flexible medium-term debt instrument that is issued directly to the market with different maturities and is offered continuously rather than all at once like a bond issue.

Energinet.dk

Energinet.dk is the Danish TSO that TenneT is partnering with to build the COBRAcable between the Netherlands and Denmark. Energinet.dk is also participating in the development of the North Sea Wind Power Hub.

ENTSO-E - European Network of Transmission System Operators for Electricity

ENTSO-E is the organisation of transmission system operators at a European level, representing 41 TSOs from 34 countries. Its mission is to promote important aspects of energy policy, especially integrating renewable energy and the completion of an internal energy market.

EnWG - Energiewirtschaftsgesetz

German Energy Industry Act. In accordance with the EU directive, the EnWG lays down objective and non-discriminating principles for the taking up of energy supply and the construction of power plants and power lines.

EU - European Union

The European Union (EU) is a political-economic union of 28 member states located in Europe.

EU DG COMP- Directorate-General for Competition

The Directorate-General for Competition (DG COMP) is a Directorate-General of the European Commission. The DG Competition is responsible for establishing and implementing a coherent competition policy for the EU.

EU DG ENER - Directorate-General for Energy

The Directorate-General for Energy is one of 33 policy-specific departments in the European Commission. It focuses on developing and implementing the EU's energy policy, namely to provide secure, sustainable, and competitive energy for Europe.

FCR – Frequency containment reserve

Frequency containment reserves are the active power reserves available to contain a system frequency of 50 Hz after the occurrence of an imbalance.

FFO - Funds from operations

Profit for the year plus depreciation, amortisation and impairments minus gain/loss on the disposal of assets.

FFO/net debt

Funds from operations divided by net debt.

FTE - Full-time equivalent

Full-time equivalent is a unit that measures work by converting work load hours into the number of people required to complete that task.

G3 gas

G3 gas is an alternative gas to SF6 for use in high voltage substations.

Gasunie - N.V. Nederlandse Gasunie

Gasunie is a European gas infrastructure company that transports natural gas and green gas in the Netherlands and the northern part of Germany. Gasunie is participating in the development of the North Sea Wind Power Hub.

GIS - Gas insulated switchgear

A switchgear insulated via SF6 gas.

GRI - Global Reporting Initiative

The Global Reporting Initiative is a non-profit organisation that promotes sustainability and produces global standards for sustainability reporting.

GW - Gigawatt

A unit of power equal to one billion watts.

GWh - Gigawatt hour

A unit of energy equivalent to delivering one billion watts of power for a period of one hour.

Hansa

Hansa is a region in Europe in which methods and tools have been or are to be developed according to the European networks codes. Each border is allocated to a certain region. The main topic addressed in the regions is capacity calculations, i.e. the same capacity calculation method will apply for all borders between bidding zones in these regions. Hansa contains the links between Scandinavia and the continent.

Helaba - Helaba Pension Trust e.V.

Helaba Pension Trust e.V. is a subsidiary of German bank Landesbank Hessen-Thüringen and holds a part of the assets of the German pension plan.

HGRT - Holding des Gestionnaires de Réseaux de Transport d'Électricité S.A.S.

Holding des Gestionnaires de Réseaux de Transport d'Électricité S.A.S. is a holding company of EPEX SPOT power exchange.

HR - Human resources

Our HR department aims to make a distinctive contribution to TenneT's position as a leading TSO by attracting, recruiting and retaining qualified staff, and by creating a healthy and stimulating working environment.

HVDC - High-voltage direct current

A high-voltage, direct current system can transmit bulk electricity over longer distances than an alternating current system and with lower grid losses. As such, HVDC is used for connecting offshore wind farms to the onshore grid and for our Interconnectors NorNet to Norway, BritNed to the UK and COBRAcable to Denmark and NordLink to Norway.

ICF - Internal control framework

Framework for the set of internal controls, to provide reasonable assurance on the reliability of our internal and external reporting.

IDCONS - Intra-Day Congestion Management

Market based congestion management is used to take into account the physical transmission capacity of the European power grid within the electricity market model.

IFRS - International Financial Reporting Standards

The internationally prescribed and recognised reporting guidelines.

JAO - Joint Allocation Office

The merger of regional auction offices CASC.EU and CAO in June 2015 created the Joint Allocation Office for cross-border electricity transmission capacity; JAO is a collaboration of 20 TSOs from 17 European countries. It significantly increases the efficiency and transparency of the European electricity market, creating a single point of contact for market participants with harmonised auction rules that simplify trading and promises substantial savings to TSOs in the coming years.

KfW - Kreditanstalt für Wiederaufbau

KfW is the Reconstruction Credit Institute development bank owned by the German government.

kV - kilovolt

A unit of electric voltage equal to 1,000 volts.

KWK-G - Kraft-Wärme-Kopplungs-Gesetz

The German Combined Heat and Power Act.

LEAN

The core idea of LEAN is to maximise customer value while minimising waste. Simply, LEAN means creating more value for customers with fewer resources. The principles of LEAN were developed by the Japanese car manufactory Toyota.

LOR - Letter of representation

A Letter of Representation is signed by the management of the Group and/or performance unit to attest to the accuracy of the financial statements.

LTIF - Lost-time injury frequency

The lost-time injury frequency is the number of lost-time injuries per million hours worked. A lost time injury is an injury that results in at least one day's absence from work.

MIGRATE - Massive InteGRATion of power electronic devices

The MIGRATE research programme seeks to develop solutions to technical issues

Moody's

Moody's Investors Service provides of credit ratings, research, and risk analysis.

MW - Megawatt

A unit of power equal to one million watts.

MWh - Megawatt hour

A unit of energy equivalent to delivering one million watts of power for a period of one hour.

Net debt

Gross debt minus cash and cash equivalents at free disposal.

Netbeheer Nederland

Netbeheer Nederland is the association in the energy sector representing the interests of national and regional electricity and gas network operators in the Netherlands.

NGO - Non-governmental organisation

A non-governmental organisation is a voluntary citizens' group that is neither a government initiative nor a conventional for-profit business.

NOKA - DC Nordseekabel GmbH & Co. KG

NOKA is jointly owned by TenneT and German development bank KfW. It is responsible for financing and building the German part of the NordLink cable.

NordLink

TenneT is jointly developing the NordLink interconnector with its project partners, the Norwegian TSO Statnett and German development bank KfW. With an overall transmission capacity of 1,400 MW, the subsea cable will run between Tonstad in the south of Norway and Wilster in northern German.

NOVI – Nationale Omgevingsvisie

The Netherlands’ new Environment and Planning Act comes into effect in 2021, part of which is a single national roadmap for the living environment called the 'National Omgevingsvisie'.

NWE - north-west Europe(an)

A region in Europe that includes Netherlands, Germany, Belgium, Denmark, United Kingdom, France, and Luxembourg.

NWb - WENB Sector Energie NWb

NWb is a Dutch NGO for employers in the energy sector.

Oekom

Oekom research AG is a sustainability ratings agency and external assessor for benchmarking CSR reports.

Opex - Operational expenditure

Operating expenditure (opex) is the expenses that a company incurs as a result of its normal business operations.

OWF - Offshore wind farm operators

Offshore wind farms are constructed in bodies of water to generate electricity from wind.

PCI - Project of common interest

To help integrate the European energy market, the European Commission has drawn up a list of 248 projects of common interest (PCIs). These projects may benefit from accelerated licensing procedures, improved regulatory conditions, and access to financial support totalling EUR 5.35 billion from the Connecting Europe Facility (CEF) between 2014 and 2020.

PROMOTioN - Progress on Meshed HVDC Offshore Transmission Networks

A leading European research programme that will result in an offshore grid development plan for 2020 and beyond

Prosumers

Energy consumers simultaneously acting as producers

RCF - Revolving credit facility

A line of credit where TenneT pays a commitment fee and can then use the funds as and when they are needed.

RCR - Rijks coördinatie regeling

A Dutch new regulatory regime, for important projects which are funded at a t-0 level by the regulator.

RES - Renewable Energy Sources

All sources of renewable energy including sunlight, wind, tides, waves, biomass and geothermal heat.

RGI - Renewables Grid Initiative

The Renewables Grid Initiative is a unique collaboration of NGOs and TSOs from across Europe. It promotes transparent, environmentally sensitive grid development to enable the further steady growth of renewable energy and the energy transition.

ROIC - Return on invested capital

Earnings before interest and tax expressed as a percentage of the average invested capital during the year based on 'underlying' information.

S&P - Standard & Poors

Standard & Poors provides of credit ratings, research, and risk analysis.

SCL - Safety Culture Ladder

TenneT uses the Safety Culture Ladder (SCL) as a tool to increase safety awareness and enhance safety culture and not only within our own organisation but also for our contractors. The Safety Culture Ladder is a requirement in the selection phase of a tender as described in the 'Safety by Contractor Management' programme.

SDG - United Nations Sustainable Development Goals

The United Nations Sustainable Development Goals (SDGs), officially known as transforming our world: the 2030 Agenda for Sustainable Development, is a set of seventeen aspirational 'global goals' with 169 targets between them. This agenda is set by the UN.

SF6 - Sulphur hexafluoride

An inorganic, colourless, odourless and non-flammable greenhouse gas that is used in the electricity industry to insulate high-voltage circuit breakers, switchgear and other electrical equipment.

SHE - Safety, health & environment

SHE is the set of activities relating to Safety, health & environment.

SINTEG - Schaufenster Intelligente Energie

With the SINTEG funding programme, the Federal Ministry for Economic Affairs and Energy (BMWi) aims to carry out a large-scale practical test for the energy supply of the future and the digitization of the energy sector.

SLA - Service level agreement

A service-level agreement is an agreement between two or more parties, where one is the customer and the others are service providers.

Statnett

Statnett SF is the Norwegian TSO transmission system operator that TenneT and German development bank KfW are partnering with to build the NordLink cable between Germany and Norway.

SuedLink

A DC connection to transport electricity generated in the north of Germany to the south.

SuedOstLink

A DC connection to transport electricity generated in north of Germany to the south-east.

Sustainalytics

Sustainalytics is a sustainability ratings agency and external assessor for benchmarking CSR reports.

TSCNET

TSCNET Services is the service company of the TSC TSOs. The Munich-based company coordinates TSC's activities and provides integrated services for TSOs and their control centres

TSO - Transmission system operator

A transmission system operator transports electricity on a national or regional level from producers to distributers. 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.

Transparantie Benchmark

Dutch CSR benchmark by the Dutch Ministry of Economic Affairs that annually assesses Dutch companies on the content and quality of their CSR reports.

UN - United Nations

An international organisation formed to promote international peace, security, and cooperation under the terms of the charter signed by 51 founding countries in San Francisco in 1945.

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.

VET - Wetsvoorstel Voortgang Energietransitie

VET is the Dutch law proposal that combines the current E-wet and Gaswet.

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.