Enexis invests billions of euros in record expansion, waiting times for customers persist

In 2024, Enexis delivered a record work package for the fifth consecutive year, investing nearly €1.5 billion. With the installation of 1,450 kilometres of electricity cable and the construction of 1,201 stations, 1,225 megawatts of additional capacity were added through expansion, and 695 megawatts through regular replacement. In addition, nearly 500 megawatts of grid capacity were freed up by optimising grid use and implementing flexible solutions. This is equivalent to the total capacity of the city of Eindhoven. Despite significant progress in expanding the electricity grid, customers are not yet fully benefiting. After large companies, households now also having increasingly to take into account that it may take a long time before they can get a new or heavier connection.

Rutger van der Leeuw, CEO of Enexis Groep: ‘Thanks to the tireless efforts of our employees, contractors and close collaboration with customers and local governments, Enexis made significant progress with this record expansion in 2024. We remain committed to meeting the growing demand for grid space. However, our waiting lists continue to grow, and the tipping point has yet to be reached.’

Increasing the grid load to accommodate more customers

To connect as many customers as possible, Enexis has not only accelerated the expansion of the grid and improved utilisation but also increased the load on the grid. This leads to a controlled concession in reliability. In 2024, the average number of outage minutes per customer rose slightly to 22.5 minutes. Despite this, the grid remains one of the most reliable in the world, with a supply reliability of 99.99%. ‘High reliability remains a crucial value for us. At the same time, we want to provide as many businesses and households as possible with access to our network. It’s a complex dilemma with significant implications for society,’ says Rutger van der Leeuw.

Insight contributes to grid-conscious energy use

Grid congestion and longer waiting times for new or upgraded connections are the new reality. In 2024, we took additional steps to better inform customers about our grid's capacity and potential solutions, such as flexible contracts and innovative technologies. We provide large businesses with insight into the grid situation through capacity maps. We also sign flexible contracts with them to offer the desired capacity despite the full grid. Households and small businesses can use the Grid Checker to see how much space is available on the electricity grid and how long they may have to wait.

‘Customers are increasingly aware that a full electricity grid requires a new way of thinking about energy use,’ says Van der Leeuw. ‘To help them use the available energy more efficiently, they need insight into the options on the electricity grid. By maintaining ongoing dialogue with our customers, we aim to provide information that helps them make timely and informed decisions about their future and sustainability.’

Record investments put pressure on financial position

Future-proofing the energy system resulted in record expenditures for Enexis in 2024, with a work package of €1.486 billion, € 272 million more than in 2023. These expenditures put pressure on Enexis' financial position. Last year, Enexis spent an average of over €1.5 million per day more than it received. This resulted in a negative cash flow from operational activities and investments in assets of € 567 million. This deficit increased compared to 2023 and is expected to persist in the coming years, as the costs of necessary grid investments continue to exceed the benefits. To sustain its investment efforts, Enexis successfully issued a fourth € 500 million green bond.

Net profit increased by €182 million to €254 million in 2024 due to better alignment between customer tariffs and costs compared to 2023. The increase was mainly driven by a €582 million rise in net revenue, partially offset by higher costs of transmission services. Enexis has a strong credit rating profile. Standard & Poor’s long-term credit rating was adjusted from A+ with a positive outlook to AA- with a stable outlook. Moody’s credit rating remained unchanged at Aa3 with a stable outlook.