In Tandem Towards the Energy Transition – Embracing Strategic Partnerships and Alliances

By 2045 Germany aims to become greenhouse gas neutral

The European Union has committed to becoming the world's first climate-neutral continent by 2050, aligning with the 1.5-degree goal of the Paris Agreement. Germany aims to achieve this milestone by 2045. TenneT assumes the responsibility to ensure that the high-voltage grid evolves in line with the increasing sustainability of the entire energy system, so that by 2045, we can integrate large quantities of green energy into our grid. To ensure stable grid operations in a climate-neutral energy system, the modernisation and targeted, intelligent, and efficient expansion of the existing grid is of great importance.

TenneT opts for significant reduction in greenhouse gases

Given the massive grid expansion projects underway, TenneT can make a significant contribution to reducing greenhouse gas emissions by systematically lowering its own carbon footprint and that within its value chains. TenneT aims to lead the transition to a clean, circular, and decarbonized energy system. By 2030, we aim to be among the top 5% in the CSR sector (Utilities/Network Operators).

To measure our carbon footprint, we distinguish between scope 1, scope 2, and scope 3 emissions according to the Greenhouse Gas Protocol (GHG). While scope 1 (direct) and scope 2 (indirect) emissions result from our immediate business activities, scope 3 emissions include indirect emissions typically arising in the upstream or downstream value chain. Decarbonization is a complex endeavor that can succeed only by reviewing the entire value chain.

We are actively working to reduce both our direct and indirect emissions and to make these emissions more environmentally friendly. Our goal is to reduce absolute greenhouse gas emissions in scope 1 and scope 2 by 95% by 2030 compared to 2019. The largest share of our scope 1 and scope 2 emissions comes from SF6 losses, mobility (owned or leased company vehicles), and gas usage. Therefore, our reduction measures focus on:

• Reducing and greening our grid losses

• The use of SF6-free alternatives in high-voltage installations (aiming to employ SF6-free technologies in two-thirds of newly installed systems by 2030)

• Transitioning to electric vehicles in our fleet

• Switching to green gas for building heating

The bulk of our scope 3 emissions (emissions resulting from our upstream and downstream value chain) result from the goods and services we procure from our (upstream) supply chain. Thus, sustainable procurement is central to our strategy. We aim to reduce absolute scope 3 greenhouse gas emissions by 30% by 2030 compared to 2019.

A collaborative approach for a greener energy future

There are overlaps between our scope 3 footprint and the scope 1, -2, and -3 footprints of our suppliers. This approach leads to shared responsibility and motivation to reduce emissions along the same value chain. We pursue a collaborative approach with our suppliers and contractors. It is crucial to have partners at our side who share our vision – partners who are willing to reassess their product portfolio, drive innovation, and invest in environmentally friendly technologies. This also requires the courage to take on a pioneering role together.

To achieve our 30% scope 3 emissions reduction target by 2030, TenneT has launched the “Decarbonizing Supply Chain” program. This initiative focuses on developing sustainable sourcing strategies to reduce emissions while maintaining product availability and quality.

Key components include:

• A detailed analysis of the procurement portfolio to quantify the environmental impact of procured goods and services.

• Integrating sustainability aspects into our procurement strategies, focusing on those categories and activities in our supply chains that contribute most significantly to our scope 3 emissions.

• Considering sustainability criteria in our procurement decisions and providing targeted incentives for sustainable practices among our suppliers – particularly through the use of Life Cycle Assessments (LCAs) and the Environmental Cost Indicator (ECI) approach.

Circular economy and decarbonization have significant overlap

We are also aware of the general scarcity of the materials needed for the energy transition and the environmental impact of the production of primary materials and waste generation. In particular, raw materials used in the goods and services we procure, such as steel, copper, aluminum, plastic, and concrete, play a key role here.

We are convinced that transitioning from a linear material use model (produce, use, dispose) to a circular economy is achievable by increasing the recycling of valuable raw materials and resources within our operations and promoting the circular economy together with our partners. The big challenge consists in thinking and acting sustainably from the outset and throughout the entire lifecycle.

A consistently developed circular economy presents the opportunity to reduce the use of primary raw materials and enhance resource efficiency along the entire chain. At the same time, we aim for a systematic reduction of our CO2 emissions. For the transformation to a climate-neutral power grid, circular economy and decarbonization need to go hand in hand.

The key to a successful energy transition

The energy transition is one of the biggest and most important challenges of the 21st century. It is a project across generations that cannot be achieved by acting alone. It is like riding a tandem – only through the harmonious cooperation of all involved stakeholders can we achieve our ambitious goals and create a climate-neutral energy system for future generations.

Building strategic partnerships and alliances are the driver for technological innovations and the key to success. This new form of collaboration requires a mutual understanding and the development of a shared vision. It is a systematic and continuous process of collaborative learning, trial, and improvement. There is a need for maximum transparency and long-term planning security on all sides, close collaboration at both strategic and operational levels, and, above all, forward-looking products, technologies and services.

Such a transformation will bring fundamental changes to the economy and society. For this reason, we must take steps to make sure that they are accepted and actively supported by broad segments. If – but only if – all our efforts towards a green and clean energy future remain affordable can we achieve the acceptance required for successful implementation.

#LightingTheWayAheadTogether #EnergyTransition #BuildingTheGreenCathedral #GridDecarbonization