As the Slovenian electric power transmission network system operator we provide safe, reliable and continued transmission of energy 24/7. We co-create the energy future of Slovenia by maintaining, planning, building and modernising the transmission network to satisfy the increasing needs for electric power. Local communities are also our strategic partners. We are aware of the importance of our collaboration; therefore, we build trust by enforcing honest and consistent communication.
The year of 2016 was marked by successes in terms of formulation and implementation of international projects in the field of smart grids, a 110 kV grid takeover and the renewal of the concession for a public economic service as the electricity system operator.
The Government of the Republic of Slovenia approved this Long-term Strategic Business Plan for ELES for the first time, and thus added weight to the strategic document. The Government of the Republic of Slovenia awarded ELES a 50-year concession for public economic service – transmission system operator of the electric power network. By signing the concession agreement the Republic of Slovenia and ELES regulated all interrelations according to the Energy Policy Act and the Concession Act, the Concession Contracts Regulation, and the method of implementation of how the public economic service – transmission system operator of the electric power network. At the end of the year the government of the Republic of Slovenia adopted the decision for transforming ELES from a public enterprise to a corporate entity.
For at least the next 50 years ELES will therefore be responsible for: stable operation of the transmission system, and guaranteeing reliable and secure operation of the electricity system in Slovenia.
We have come to the conclusion, that the challenges ahead in the production of energy from renewable energy sources, such as the sun and wind, for the transmission network are most easily addressed with innovations in the field of smart grids. Therefore, one of the strategic objectives in the Long-term Strategic Business Plan of 2016-2020 was to invest in smart grids. We started searching for partners abroad with whom we outlined a few important projects:
The upcoming years will bring many challenges for ELES. I am full of confidence that together with co-workers who are experts in their respective fields, we will successfully overcome them and fulfil the objectives set in the 2016-2020 Long-term Strategic Business Plan.
The year of 2016 was marked by successesin terms of formulation and implementation of international projects in the field of smart grids, a 110 kV grid takeover and the renewal of the concession for a publiceconomic service as the electricity system operator.
The guidelines for ELES’ 2016 operation were already set at the end of 2015 when the preparations for the Long-term Strategic Business Plan for the 2016-2020 period were finished. The Government of the Republic of Slovenia approved this Long-term Strategic Business Plan for ELES for the first time, and thus added weight to the strategic document. The Government of the Republic of Slovenia awarded ELES a 50-year concession for public economic service – transmission system operator of the electric power network. By signing the concession agreement the Republic of Slovenia and ELES regulated all interrelations according to the Energy Policy Act and the Concession Act, the Concession Contracts Regulation, and the method of implementation of how the public economic service – transmission system operator of the electric power network. At the end of the year the government of the Republic of Slovenia adopted the decision for transforming ELES from a public enterprise to a corporate entity. For at least the next 50 years ELES will therefore be responsible for: stable operation of the transmission system, and guaranteeing reliable and secure operation of the electricity system in Slovenia.
V spremenljivih razmerah na področju elektroenergetike smo tudi v letu 2016 poslovali uspešno. Imeli smo 163,7 milijona evrov celotnih prihodkov, ki so bili za 7 % višji kot v preteklem letu in dva odstotka nižji, kot je bilo načrtovano. Celotnih odhodkov smo v letu 2016 imeli za 151,4 milijona evrov. Največji strošek v letu 2016 so predstavljali stroški zakupa sistemskih storitev, ki so znašali 43,3 milijona evrov ali kar 46 % vseh prihodkov, ki jih družba ELES zaračuna za uporabo prenosnega omrežja slovenskim končnim porabnikom. Poslovni izid pred obdavčitvijo je znašal 12,3 milijona evrov, po upoštevanih odloženih davkih pa smo beležili čisti poslovni izid v višini 12,6 milijona evrov.
Ker se zavedamo vpliva, ki ga imajo lahko neprepoznana tveganja na poslovanje družbe, smo v letu 2016 ponovno posodobili katalog tveganj. V krovni strukturi tveganj smo prepoznali 22 glavnih skupin tveganj, znotraj posameznih skupin prepoznana tveganja smo ocenili in zanje predlagali preventivne, blažilne ukrepe ter določili roke za njihovo izvedbo.
V družbi ELES vemo, kakšen pomen ima opravljanje naše dejavnosti za celotno slovensko družbo in kakšen je pomen naše infrastrukture, ki je uvrščena na seznam kritične infrastrukture državnega pomena, zato smo pri opravljanju dela še zlasti odgovorni. Prizadevamo si, da razvoj in napredek družbe ELES gradimo na temeljih odgovornega odnosa do lastnika, Republike Slovenije, doseganja poslovne odličnosti, skrbi za okolje ter odgovornosti do zaposlenih in družbenega okolja, v katerem delujemo.
We have come to the conclusion, that the challenges ahead in the production of energy from renewable energy sources, such as the sun and wind, for the transmission network are most easily addressed with innovations in the field of smart grids. Therefore, one of the strategic objectives in the Long-term Strategic Business Plan of 2016-2020 was to invest in smart grids. We started searching for partners abroad with whom we outlined a few important projects. In January, work on the MIGRATE project started. The main question we have to address here is, what mass integration of production sources based on power electronics will bring to our operations? In February, work started on implementation of the FutureFlow project in the field of smart grids. In October, an agreement was signed of joint coordination of Slovenian and Croatian partners, SODO, HOPS, and HEP-ODS companies, under the international SINCRO.GRID project. The project was later prepared for the tender for the absorption of funds of the Connecting Europe Facility programme. In November, as part of the Slovenian-Japanese partnership (Project NEDO), an agreement of memorandum with the NEDO organisation, and an implementation contract with Hitachi were signed. The conclusion of the contract formally represents the start of the project that will put to the test advanced new technologies and solutions in the field of existing smart grids, and will also contribute to the establishment of a fully integrated concept of a smart grid in Slovenia.
In 2017 ELES plans net sales revenue in the amount of EUR 150.7 million, and net profit for the accounting period in the amount of EUR 16.3 million. We will achieve the set business goals if we take into account the adopted guidelines, and if there are no unforeseen events.As far investments are concerned, the highest amount of assets will be provided for both investments and reconstruction. Large scale investments include smart grid investments (NEDO, SINCRO.GRID), construction of the ELES technological hub in Beričevo, reconstruction of the Pekre substation, and upgrading and reconstruction of the Divača substation switchyard. All investments are of big significance for the Company’s operations and will account for better reliability of the energy power transmission.In ELES we eagerly await the results of the last tender for the Horizon 2020 programme ending on February 14, where ELES took part as a partner in five applications.The upcoming years will bring many challenges for ELES. I am full of confidence that together with co-workers who are experts in their respective fields, we will successfully overcome them and fulfil the objectives set in the 2016-2020 Long-term Strategic Business Plan.
Ljubljana, 17. 5. 2017
Chief Executive Officer
Aleksander Mervar; MSc
Transmission network is planned according to sustainable development principles for the preservation of the natural environment. We are also aware of the significance of codependency of man and nature. This is a responsibility that we wish to carry on to the next generations, thus we encourage activities building the philosophy of symbiosis, help and the concern for others.
2016 was marked by volatile situations in the field of energy supply, but ELES still conducted business successfully. The Company had EUR 163.7 million in total revenue – 7% higher than the previous year, but 2% lower than planned. In 2016, the Company had EUR 151.4 million in total expenses. In 2016, the biggest expense was the costs of the lease of ancillary services, which totalled EUR 43.3 million, or 46% of all revenue ELES charges for the use of the transmission network to Slovenian end-consumers. Profit or loss before taxes amounted to EUR 12.3 million, and after deferred taxes the net profit of the Company amounted to EUR 12.6 million.
As the Slovenian energy transmission system operator we cooperate with other European operators and are working together with neighbouring countries in a joint energy circle. The transmission of electricity continuously crosses borders, so that we persistently preserve balance between the production and the consumption of energy.
ELES set out its long-term strategic objectives in its Long-term Strategic Business Plan for the 2016-2020 period, which was endorsed by the Government of the Republic of Slovenia for the first time in its history. In addition to key strategic guidelines and objectives through 2020, this document also includes priority strategic investments and reconstruction of transmission connections.
Respecting target values, employees working in accordance with the code of ethics and corporate integrity guidelines with the aim of achieving an appropriate level of business excellence.
Investment and maintenance activities on the basis of asset management philosophy, introduction of this philosophy in HR management.
In addition to comprehensive control over the operation of 400 and 220 kV transmission network, assuming comprehensive control over the entire looped 110 kV network in Slovenia.
Purchase of system services at comparable prices to neighbouring TSOs. With regard to new technologies, transition to the greatest possible autonomy based on technical and economic criteria.
Investments in cross-border transmission capacities, justifying the amount of NTCs towards neighbouring TSOs – according to the national interest of the Republic of Slovenia.
Operation in the regulatory framework, providing profit to the owner with regard to regulatory methodology.
For monitoring the level of successful operations in the period of validity of the 2016-2020 LSBP document were determined.
Indicator target values were determined on the basis of the following facts:
1) ELES is listed among the top three, or at least in the average range of all (8) analysed transmission system operators in EU Member States.
2) Achieving indicator values for improving business operations.
Energy travels with us 24 hours a day at every moment, we provide for its continuous, quality and safe transmission, because we are aware of the significance of reliable supply of slovenia with electricity. We manage this by implementing team work, where every individual is an important part of this giant energy system.
In ELES we know what an impact our operations have on Slovenian society, and what our infrastructure means. The latter is listed as the critical infrastructure for the country. Thus, we are particularly responsible in our operations. We strive that the development and advance of ELES is built on foundations of responsible relationships to the owner, the Republic of Slovenia, achieving business excellence, environmental concerns, and being responsible for both the employees and social environment in which we operate.
Electrical energy offtake: 22,475 GWh
Electrical energy input: 22,136GWh
Peak load: 3,603 MW
Tertiary regulation: 8,708 MWh
In 2016, the scope of implemented element takeovers of the 110 kV networks was smaller than expected, or takeovers did not happen at all. The legislation defining the takeover of the 110 kV network is uncoordinated. In addition to planning and construction, one of the main activities of the Company ELES is also regular maintenance of the existing electric power transmission network.
In 2016, all the maintenance work possible in relation to the electricity situation was carried out.
Length of transmission lines: 2,863 km
Length of optical network: 1,677 km
ELES recognises the importance of cooperation with other electric power transmission system operators and other organisations and companies in the field of development of transmission activities.Therefore, a great deal of attention is put in both implementing of existing and forming new international projects.
We play by the rules of international operating codes and by abiding high ethical standards. We are driven by values that we have evolved with our employees to mutually build a solidorganisational culture. Our value system is composed of responsibility, engagement, knowledge, reliability, cooperation and determination.
In 2016, the anonymous survey on employee satisfaction (including employees from different lines of work) included 424 or 74.9% of all employees in ELES in 2016, which is 3% more than in 2015. The results of the survey showed that in general the employees are very satisfied with job stability, working time, work conditions, the work itself, education opportunities, CEO of ELES, co-workers, relations in the work group, and with the role they have in ELES. Less, but still above the Slovenian average, employees are satisfied with promotion opportunities, their paycheck, and with the general atmosphere among the employees. The total average including different aspects of satisfaction of employees amounted to 4.71 points out of 6 possible points, which is a very high figure that greatly exceeds the Slovenian average. Compared to 2015, the result is higher for 3.5% and is 0.26 point above the value of the strategic indicator defined by the Strategic Business Plan for 2016-2020.
For the understanding of ELES’ activity in preserving a contemporary life style strongly related to the use of electrical power, it is extremely important that the society we live in is literate about the energy sector. A great deal of activities are carried out in the field of eliminating energy illiteracy of the young (Elektrofest, Ecoquiz for Secondary Schools,…).
Responsibility towards the social environment is also demonstrated by the support of various organisation, association operations, and humanitarian operation. In the selection of the recipients of sponsorships and donations, ELES takes into consideration the principle of balance and appropriate dispersion.
ELES is aware of possible effects the operations of the Company has on the environment. Therefore, necessary preventive measure are carried out to prevent or decrease the possible negative effects on the environment. The responsibility towards the environment is one of the most important values that guide ELES in its everyday work, which is reflected in the amount of assets intended for investments and facilities, and device maintenance in the field of environmental care. As part of the structure and device maintenance required measurements are carried out to check the adequate state of facilities and devices.
Recycled and reused.
reduced theamount of water consumed per employee.
savings of electric energy because ofgradual refurbishment of outdoor lighting.
Electromagnetic radiation monitoring conducted
Measured values of electric and magnetic fields were below the prescribed limits set by the Decree on Electromagnetic Radiation in the Natural and Living Environment.
The transmission of electricity is managed by the National Control Centre's one of the most advanced technologies and highly qualified staff. Knowledge puts us on a par with themajor operators in Europe, therefore, we consider knowledge as one of the most important values that lead to the progress of the entire company.
ELES is aware of the importance of active risk management. Therefore, an advanced, information-backed system was developed by the Company for determining, logging, controlling, and managing of risks that may threaten the achievement of set goals. The Company ensures key risks are detected, evaluated, and controlled in a timely manner with the setting up of a comprehensive system of risk management integrated into a single management system, and built in all processes of operation in ELES.
In 2016, the Company was implementing measures and therefore did not only came close to the still acceptable level of risks, but also lowered the risk assessment below the acceptable level. On this basis, one can conclude that the risk management system of the Company reached the strategic goal of the successful management of strategic and process risk, and thus enabled the reaching of set business and strategic goals of the Company.