Financial outlook for 2025

Investments

Alliander’s work package will continue to grow significantly in the coming years. We anticipate that the gross investments, mainly for expanding the networks, will total in excess of €2 billion in 2025. As a consequence of the fast-growing demand for transmission, the power grid is becoming increasingly congested, resulting in limits on transmission. Besides the traditional way of resolving this issue by laying additional cables, Alliander is also boosting its efforts to make better use of the networks.

Cash flow

As the ever increasing investment level cannot be fully financed with the operational cash flows, we expect a sharp negative free cash flow in 2025, which will have to be funded through bond loans, possibly in a hybrid form. In addition, the intention is to repay a subordinated perpetual bond loan with a nominal value of €500 million by mid-2025 at the latest.

Regulation

The ACM and the network operators have already initiated a joint process to determine the long-term regulatory method. This is mainly being done as part of the energy transition. All the parties agree that the network operators need to be given more financial scope to make all the required investments in the coming years. An outline agreement on the regulatory method to be applied from the start of the new regulatory period (2027 financial year) is expected to be reached in 2025.