Creos Luxembourg


Creos Luxembourg S.A. owns and manages electricity networks and natural gas pipelines in the Grand Duchy of Luxembourg. In this capacity, the company plans, constructs and maintains high, medium and low-voltage electricity networks and high, medium and low-pressure natural gas pipelines, which it owns or which it is responsible for managing.

History

Creos was formed as a result of a merger between Cegedel S.A. – the Grand-Ducal electricity company of Luxembourg, which was founded in 1928 and at the time distributed 70% of the country's required electricity supply, Soteg S.A. – Luxembourg's primary gas supplier, and Saar Ferngas AG – a distribution company created in 1929 in Saarland. On 23 January 2009, all the shares from Cegedel S.A. and Saar Ferngas AG were transferred to Soteg S.A., which – after successfully launching a mandatory public bid for all shares not yet in its possession – underwent extensive restructuring with retrospective effect on 1 January 2009, giving rise to a new energy group. Named Enovos, it included the parent company Enovos International S.A. as well as two main subsidiaries: Creos in charge of network activities, and Enovos Luxembourg S.A. in charge of production, sales and marketing. Enovos and Creos each have a subsidiary to serve the German market: Enovos Deutschland and Creos Deutschland.
Over the next two years, Creos consolidated its position on the Luxembourg market. In 2010, it expanded its gas transmission network to include a distribution network and it purchased the natural gas networks from Luxgaz Distribution S.A., whereby the management of commercial activities was handed over to Enovos Luxembourg S.A. On 1 January 2011, the City of Luxembourg transferred its electricity and natural gas networks as well as its teams to Creos in exchange for a shareholding stake. The publicly owned shareholding thus rose from 5.71% to 24.57%. Besides its subsidiary in Germany, Creos also has a shareholding in the following companies: since 2012, and since 2015 and since 2018.
In order to more clearly distinguish the parent company from its subsidiaries – energy provider Enovos and grid operator Creos – Enovos International was given a new visual identity in 2016 and is now called . End July, private equity firm Ardian sold its stake up to 24.92 percent in Encevo to China Southern Power Grid International, the second grid operator in China and in the world.

Business sector

Creos Luxembourg S.A. plans, constructs and maintains the electricity and natural gas transmission and distribution networks in the Grand Duchy of Luxembourg. Creos installs and manages the meters, processes the customer consumption data, invoices the network access charges and monitors the suppliers' movements and changes. Its subsidiary Creos Deutschland Holding GmbH, which owns 100% of the shares in the companies Creos Deutschland GmbH, Creos Deutschland Stromnetz GmbH, Creos Deutschland Services GmbH and , organises the transmission of medium- and high-voltage electricity and high-pressure natural gas in Saarland and Rhineland-Palatinate.
In Luxembourg, following the liberalisation of the energy markets, an independent organisation – the Luxembourg Institute of Regulation – organises and supervises access to the networks. The tariffs are subject to its approval and it monitors the tolls invoiced to the users. The energy suppliers are thus guaranteed transparent access to Creos's networks.

Infrastructure

Electricity network

The majority of the electric current in the Grand Duchy of Luxembourg comes from Germany via two double high-voltage 220,000 volt lines that are connected to the German network. The interconnection with the Belgian electricity market has become operational with the commissioning of a phase shifting transformer at the Schifflange Centre in October 2017, and around 15% of the energy fed into the network is produced locally The electricity is transmitted to the six transformer stations where the voltage is reduced from 220 to 65 kV before being distributed to industries and large municipal distribution networks. The voltage is then reduced from 65 kV to 20 kV in more than 60 transformer stations distributed across the whole country. The electric energy obtained is distributed to SMEs, towns and villages where the transformers reduce the current voltage to 0.4 kV before distributing it to the end consumer. A control centre, known as Electricity Dispatching, remotely controls and manages these high and medium-voltage networks.
The total length of the Luxembourg electricity network managed by Creos is 10,023 kilometres, including 587 kilometres of high-voltage lines, 3,653 kilometres of medium-tension lines and 5,783 kilometres of low tension lines.
Electricity2019
Electricity flowGWh5,155.1
Electricity network peakMW829.4
Length of networkkm10,023.7

Natural gas network

Thanks to its entry points with Germany, Belgium and France, Luxembourg is linked to the interconnected gas networks throughout Europe. Monitored by Dispatching Gas, the high and medium-pressure pipelines carry the gas to sixty or so communes that are connected to the national gas network. Pressure-reducing stations that supply the local networks then reduce the gas pressure. Creos ensures the distribution of natural gas in 45 communes.
Natural gas2019
Total capacity of gas networkNm3/h319,000
Gas network peakNm3/h210,331
Volume transportedGWh8,839
Length of networkkm2,133.2

Since 1 October 2015, Creos and its Belgian counterpart Fluxys Belgium, in collaboration with their respective regulators ILR and CREG, have merged the two national markets into one single Belux market. This integration, the first of its kind between two European Union member states, reflects the willingness of the European Union to create a borderless European gas market,,,. , the joint venture between Creos and its Belgian counterpart Fluxys, will become the balancing operator in the Belux zone from 1 June 2020. In other words, it will be responsible for ensuring that the gas market is well supplied, without one of the two suppliers having to pay an entry fee for its gas on the other's market.

Operation centres

Creos has four regional centres, which are dedicated to building, operating, maintaining and repairing the electricity and natural gas networks.
The Centre manages the central and northern regions. It covers the high, medium and low-voltage electricity services and the medium and low-pressure natural gas services, the central store and both the mechanical and electrical workshops,.
The Schifflange Centre covers the southern part of the country.
The Luxembourg City Centre covers the capital and the adjoining communes of Strassen and Hesperange. Headquarters and Luxembourg City Centre will merge in a new single location in 2020.
The Contern Centre manages and adjusts the meters, in particular smart meters.
Dispatching for electricity and natural gas together with the monitoring rooms for remote network control and management are installed at the Creos facility in Heisdorf. It will relocate to Bettembourg in 2020.

Smart grids, electric mobility and energy management

Creos is involved in three nationwide projects; smart grid, electro-mobility and energy management.
In accordance with the law of 7 August 2012 that transposes the European Energy Efficiency Directive into Luxembourg legislation, all the gas and electricity meters must be changed across the entire national territory, independently of the network operator. By the year 2020, Creos will thus install 300,000 smart meters that record detailed information on the consumption and production of energy throughout the entire territory of the Grand Duchy of Luxembourg, including 250,000 electricity meters and 50,000 gas meters. The installation of these new electricity and gas meters – called Smarty – in Luxembourg homes will enable the creation of networks with built-in real intelligence: smart grids. These smart grids are capable of monitoring decentralised electricity production, directing the variations of the feeds into the distribution networks with greater precision and managing the isolated demand peaks linked with the charging of electric vehicles more effectively. The law from 7 August 2012 also stipulates that the metering system must be able to receive other vectors such as water and heating,,,,.
Creos is working towards the national electric vehicle objective that consists of installing 800 public charging stations for electric cars and hybrid plug-in cars across the country by 2020. Each charging station will incorporate two charging points, and the network – known as Chargy – will include 1,600 parking bays dedicated to electric vehicles. Creos will be responsible for the deployment, operation and maintenance of the public charging infrastructure on its distribution network, representing a total of 749 stations out of the 800 that are to be installed by 2020.
Creos is also preparing the Third Industrial Revolution of the country. This convergence of IT, renewable energy and means of transport will have an impact on how the power grids are managed. To anticipate this evolution, the grid operator joined forces with Powerdale S.A. to create NEXXTLAB, an entity that aims to develop innovative solutions in the field of energy management in coordination with the widespread introduction of electro-mobility.