Create a clear vision. Sustainability goal: CO2 emission and use of copper Smart data analysis. Design of Experiment Form alliances. Develop transformers based on non- scarce material, focus on long term improvements What is the most economical and sustainable asset management strategy for Liander? “We can’t solve problems by using the same kind of thinking we used when we created them” (Albert Einstein)

THE GREAT GREEN GRID Consultancy Group for Liander Maaike Strijker, Shenila Sewgobind, Feng Fang, Jonas Hogenelst, Tom van Tent Beking Case: What is the most economical and sustainable asset management strategy for Liander? In other words, what is the best decision on: Current installed base New investment in circular transformers

1.Competitors 2.Customers 3.Energy 4.Power plants 5.Authorities 6.Employees 7.Civilians living close to plants/ substations/…. 8.Contractors

Strength Good mindset on sustainability and commitment of leadership Long life-cycle of the transformers Transformers are reliable Weakness Energy losses Lack of vision on clear definition of sustainability Small player in the electrical industry Lack of data

Opportunities Being a front-runner Reduce energy losses e.g. by reducing energy consumption, e.g. stimulate households and companies to use solar panels Form alliances Smart data analysis Threaths Increasing sensitivity to voltage dips of consumer electronics Losing focus on the core business of the company Increasing price/scarceness of copper

Create a clear vision. Sustainability goal: CO2 emission and use of copper Smart data analysis. Design of Experiment Form alliances. Develop transformers based on non-scarce material, focus on long term improvements

Create a clear vision. Sustainability goal: CO2 emission and use of copper Smart data analysis. Design of Experiment Form alliances. Develop transformers based on non- scarce material, focus on long term improvements Agreed targets with Liandon and Alliander Value sustainability CO2 - €25/ton Copper – €35/kg (?) Invest this value in sustainability (research and replacements of transformers) Train and motivate the Alliander community and make it part of the company culture. Integrate this value in hiring policy for all departments Don’t invest in efficient transformers… yet! Start with measurements and perform a risk/financial analysis before spending money. Design a smart experiment on efficiency losses: Measure losses of groups of existing transformers, divided in age (10 year periods) Install new high-performance transformers for reference data Measure usage profile (peaks) Decide on the most optimal phasing out strategy based on the data gathered and the value for CO2/copper The availability of copper and even aluminum is finite A truly sustainable alternative is needed for the old fashioned design of transformers Research and development of such a device is a costly and long process Alliances will be needed to share costs and knowledge Think big, start small

Case: What is the most economical and sustainable asset management strategy for Liander? In other words, what is the best decision on: Current installed base New investment in circular transformers First things first

Albert Einstein: “We can’t solve problems by using the same kind of thinking we used when we created them”

Groep 6 SWOT Strengths: Good mindset on sustainability and commitment of leadership Monopoly position: customers will stay when Liander tries a radical sustainable policy High safety standards for staff Long life-cycle of the DBT’s DBT’s are reliable Weaknesses: Energy losses Increasing sensitivity to voltage dips of consumer electronics Lack of vision on clear definition of sustainability

Groep 6 SWOT Opportunities: Being a front-runner Reduce energy losses e.g. by reducing energy consumption, e.g. stimulate households and companies to use solar panels Threats: Losing focus on the core-business of the company: transport electricity to customers Change of technology which may imply major replacements of Liander’s assets Lack of network capacity due to increase of energy consumption Losing large customers: bankruptcy of greenhouse companies due to sanctions imposed upon Russia