Alliander and Ørsted conclude sustainability contract for grid losses

27 September 2019

Alliander and energy company Ørsted have signed an agreement that reduces the CO2 emissions of the grid company by around 25 percent annually. The agreement takes effect in 2021 and has a duration of fifteen years. Alliander purchases green certificates from Ørsted’s windfarm Borssele 1+2.

Ørsted is market leader offshore wind energy and their goal is to create a world that runs entirely on green energy. Alliander aims to have a climate-neutral business operation by 2023. The annual CO2-emissions of Alliander are mainly due to the so-called grid losses that arise during the transport of energy. In this way, Alliander uses 1,500 gigawatt hours of electrical energy each year. This is comparable to the energy consumption of 500,000 households. From a social point of view, Alliander chooses to compensate these grid losses in a sustainable manner.

This compensation takes place through the purchase of so-called Guarantees of Origin (GoOs), which is proof that electricity has been generated in a sustainable way. Alliander has chosen that its electricity demand must be compensated with Dutch sustainable sources. In this way, Alliander wants to support the energy transition. The grid operator has now signed a contract with Ørsted that will green between 23 and 28 percent of grid losses from 2021 onwards.

95 percent of the grid losses now compensated

With the new contract with Ørsted, 95 percent of the grid losses are now compensated. In addition to greening the grid loss, Alliander also takes numerous other measures to reduce its own CO2 emissions, like the development of our own energy-efficient locations, making the fleet more sustainable and focusing on circularity.