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Our initiatives for 2016 Year Plan

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Our initiatives for 2016

Year Plan

Alliander Year Plan 2016 | Choosing our energy together 2

Choosing our energy togetherThe energy market is undergoing rapid transformation. We are committed to delivering a reliable energy supply so that people can continue living, working and travelling in the future.

Management BoardIngrid ThijssenPeter MolengraafMark van Lieshout

operations. What's more, the energy challenges of the future often demand new and more flexible solutions. That's why we are working with our customers to create the energy supply of the future. For instance, by encouraging them to make choices that not only make sense for them, but also for our energy system as a whole.

In addition, we are looking at opportunities for implementing infrastructures such as heating and biogas networks. And we are making our electricity and gas networks smarter, both to target investments more effectively and to offer customers the data they need to make well-informed energy choices. As ever, excellent network management lies at the heart of our work.

In this Year Plan you can read all about our activities and plans for empowering customers to make the right energy decisions. So that everyone has equal access to reliable, affordable and sustainable energy.

The world of energy is poised for revolutionary change in the coming decades. 24/7 power plants are making way for solar panels and wind turbines that only generate energy when the sun shines or the wind blows. To power our cars en heat our homes, we are increasingly switching over from oil and gas to electricity and residual heating. Customers are going to generate their own energy, both for their own use and to share.

More and more energy decisions will be made at home by the customer rather than by the energy companies. Decisions such as: am I going to store my solar energy, sell it to my neighbour or use it myself? At what time of day (or night) am I going to switch on appliances that use a lot of energy? Should I recharge my car when I get back home from work, or at some other time? All these developments influence the reliability, affordability and accessibility of our energy supply. At the same time, our society is becoming increasingly reliant on energy. Expanding or upgrading the networks is no longer the most obvious solution. These are time-consuming and costly

ContentsWhat Alliander does 4

Mission and Strategy 5

Our objectives in 2016 6

Special projects 8

Connected to the regions 10

Noord-Holland 12Amsterdam 13Zuid-Holland 14Flevoland 15Gelderland 16Friesland 17

Energie in the future

18

A smart future together

2016 is the year in which Liander is going to start the large-scale roll-out of the smart meter. In the coming five years all our customers will be offered this digital meter. A rapid roll-out is vital, because our energy landscape is undergoing fast and radical change. Customers are increasingly making their own decisions about energy. The smart meter constitutes a crucial link in the energy system of the future. It helps customers to use energy when the costs are low. And to feed energy into the grid when the electricity price is high.The first pilot with a variable hourly rate is now under way (see page 8). But the smart meter is not just smart. It's also sustainable and responsible. Based on our stringent procurement policy, we pay close attention to the use of sustainable materials, origin of materials, exclusion of child labour and circular procurement.

Alliander Year Plan 2016 | Contents 3

Alliander is made up of a group of companies, including Liander and Liandon. Together we stand for high-quality knowledge of energy networks, energy technology and technical innovations.Network operator Liander sees to the smooth distribution of energy through all our networks, providing three million consumers and businesses as efficiently as possible with gas and electricity. Liandon is dedicated to the development of sustainable technologies and intelligent energy infrastructures. Alliander is also cultivating new fields of activity such as electric transport,

innovative energy markets and sustainable area development. All these activities contribute towards the transition to the new energy system.

The shareholders of Alliander are Dutch provinces and municipalities. Together with them and our partners, we hold consultations about our future plans and offer solutions for complex energy issues.

What Alliander doesAlliander is a network company. We deliver reliable, affordable, accessible and sustainable energy to a large part of the Netherlands. We are continuously improving our network in preparation for the future. A future where everyone can use, produce and share sustainable energy. That's how Alliander is contributing to an open and sustainable energy system.

5.6 m 7,10036 % 1.7 € bn

Activities of Alliander

Network solutions

13%

9% Germany

Alliander AG

New markets& energy transition

Technology development

See all ouractivities onpages 18–19

DGO

45%

24%

13%

9%

9%2016

Gelderland

Friesland

Noord-Holland

Amsterdam

Overige aandeelhouders

Shareholders

Number of employeesRevenueMarket positionCustomer connections

Alliander Year Plan 2016 | What Alliander does 4

Mission and StrategyEnergy is essential for our well-being and our prosperity. Without energy we cannot cook, teach, communicate, heat our homes or keep our financial system up and running.

We stand for an energy system where everyone has equal accessto reliable, affordable and sustainable energy.

ReliabilityCustomers must have safe and continuous access to energy. 24 hours a day, 7 days a week. That's why we adhere to safe working practices and try to prevent scheduled and unscheduled energy interruptions wherever possible.

AffordabilityCustomers want to pay as little as possible for their reliable energy supply. That's why we work daily to make our activities even more effective and efficient.

AccessibilityCustomers must be in a position to make their own energy choices. That's why we enable customers to choose their own supplier and to feed energy into the grid. We also actively help customers switch over to sustainable forms of energy.

Alliander aims for:

support of customers in making choicesWorking on an energy system in which users can jointly optimise their own energy usage and consumption.

new open networksThe ambition to achieve an energy supply at the lowest possible social costs requires developing new infrastructures to which everyone has equal access. Heating networks are one example of these new infrastructures.

digitisationOur existing electricity and gas networks are not equipped to handle the future changes to our energy supply. We are opting for digitisation in order to make our existing networks fit for the future.

excellent network management as a basisOur energy networks are among the most reliable in the world.Thanks to efficient operations and economies of scale, we can keep the existing networks affordable. We also want to continue increasing the level of comfort our customers experience when we are carrying out work on their behalf.

Alliander Year Plan 2016 | Mission and Strategy 5

Mission

How we make a difference for our customers

Our strategy

Alliander helps customers make the right energy choices. Both for themselves and for the entire energy system.So that everyone enjoys equal access to reliable, affordable and sustainable energy.

Our objectives in 2016Our diverse stakeholder groups have different needs. The overview below shows our concrete objectives for 2016. We will present a full account of the achieved results in our annual report 2016. The half-year report will provide a midway update on our progress.

Safety

Objectives Year Plan 2015 Year Plan 2016 Long-term objectives

LTIF (lost time injury frequency)Number of accidents leading to absenteeism times one million divided by the number of hours worked.

LTIF lower than 2.2. An LTIF of

2.1 or lower.

An LTIF score of 2.0 or lower from 2017.

Customers

Objectives Year Plan 2015 Year Plan 2016 Long-term objectives

Customer satisfaction

Outperform the benchmark of Dutch network operators.

Customer satisfaction inconsumer and business marketsoutperforms the benchmark ofDutch network operators.

Customer satisfaction in consumer and business markets continues to outperform a benchmark of Dutch network operators.

Electricity outage duration

Lower than 22 minutes. Maintain low outage duration.Objective for 2016 is

21 minutes at maximum.

The outage duration remains 21 minutes at maximum in the coming years.

Postcode areas with more than five interruptions per year

17 at maximum. Number of postcode areaswith more than five interruptionsis a maximum of

16

The number of postcode areas with more than five interruptions is a maximum of 15 in 2017.

Top risk-reducing projects

90% of these projects have been completed.

In 2016 we will continue to striveto complete

90% of these projects.

Offer smart meter

n.a We will offer a smart meterat 447,000 addresses.

By 2020 everyone has been offered a smart meter.

Digitisation projects such as construction of intelligent networks

n.a In 2016 we will complete

95% of our planneddigitisation projects.

Alliander opts for digitisation of its networks.

Alliander Year Plan 2016 | Our objectives in 2016 6

Employees

Objectives Year Plan 2015 Year Plan 2016 Long-term objectives

Employee survey score

Score of 75 in the Great Place to Work employee survey. 1)

A score of

75 in the Great Place to Workemployee survey.

Be a top-class employer: an innovative and successful company where we develop future-oriented knowledge and competences.

Employee absenteeism

Maximum absenteeism percentage of 3.9%. 1)

Maximum absenteeismpercentage of

3.9%

The maximum absenteeism percentage is 3.9% in the coming years.

Women in leadership positions

At least 23%. At least

26% of all leadership positionsare filled by a woman.

In 2020 at least 27% of our leadership positions are filled by women.

People at a distance from the labour market

Offer a job to 100 people at a distance from the labour market. 100

people at a distance from the labour market will be offered work.

In 2020 we, together with our suppliers and partners, will annually help 100 people at a distance from the labour market into work.

Shareholders and investors

Objectives Year Plan 2015 Year Plan 2016 Long-term objectives

Retention of solid rating

Maintain solid A rating profile. Handhaven solide A rating profiel.

Maintain solid A rating profile.

Continuously outperform the sector in terms of costs and operational excellence.

Solid results compatible with the regulated permitted return.

FFO/net debt > 20% > 20%

Interest cover > 3,5> 3.5

Net debt (net debt + net equity

< 60%< 60%

Solvency > 30%> 30%

Socially responsible procurement

At least 65%. At least

68% of our procurementis socially responsible

In 2020 arrangements are in place with at least 80% of our suppliers about the CO2 performance of their own operationsand the products or services to be delivered to Alliander. 40% of our materials are purchased on the basis of circular procurement.

CO2 emissions from business operations

831 ktonnes at maximum. 1) The CO2 emissions are a maximum of

769 ktonnes 2)

We strive for climate-neutral operations in 2023.

1 These objectives differ from what was published in the Year Plan 2015. This is because the definite objectives were adopted by the Supervisory Board after the publication of the Year Plan 2015.2 This still excludes the new service area in Friesland and the Noordoostpolder

Alliander Year Plan 2016 | Our objectives in 2016 7

As the digitisation of our networks and connectivity of

our systems continues to develop, the risks and threats

also increase. We take these cyber risks, including

hacking, very seriously. Cyber security will therefore

receive increasing attention in the coming years so

that we can actively anticipate and rapidly respond

to these evolving threats.

Sustainability is another key priority in our own

organisation. In 2016 Liander will start rolling out

sustainable air-conditioning systems at substations.

This will cut the amount of electricity required to

heat substations by 30 per cent, yielding annual

savings equivalent to the energy consumption of

2300 households.

Due to the advent of renewables such as solar and wind,

energy prices are subject to larger daily fluctuations. The

Homeowners Association (Vereniging Eigen Huis), energy

supplier Qurrent and Liander want consumers to benefit

from this. Together we are conducting a pilot with a smart

energy contract, allowing a small group of consumers to take

advantage of hourly rates for power and daily rates for gas.

An app from the supplier (Qurrent) lets the participants in the

pilot check the rates for the next day and adjust their usage

accordingly.

Special projectsTo continue securing the reliability, affordability and accessibility of energy, we anticipate future developments in the world around us.

Alliander is in the process of digitising its networks. Investing in digitisation

improves our ability to facilitate changes in the energy system. It also

means that faults can be more quickly resolved and even prevented. In

2016 we will gain experience with various applications, such as the smart

meter and the automation of mid-voltage units and substations,

in Noord-Holland. Read more on page 12.

Digitisation of the networks

Focus on cyber security

30% less energy consumption in our substations

Pilot with variable energy pricing

Alliander Year Plan 2016 | Special projects 8

Alliander DGO, which specialises in sustainable area development, is launching

a new release of the HEAT simulation game in 2016. HEAT is a collaborative

game which enables customers to design and develop heating networks via

interactive simulations. Operating in a recognisable virtual world, stakeholders

can acquire first-hand experience of all conceivable scenarios and their

consequences based on real data. This game has already been successfully

deployed in several regions.

FlexOVL is Liander's new switching system for remote-

controlled municipal public lighting, giving municipalities

greater control and influence over their lighting systems.

With FlexOVL they can switch lighting on and off

independently, detect faults more quickly and save energy.

Eventually all 800,000 street lights in the Liander area will

be monitored and controlled using FlexOVL.

And we make an active contribution to the development of open standards, both for new networks and solutions that help customers make the right choices.

Our Step2Work programme offers people at a

disadvantage in the labour market an apprenticeship

learning programme. Within this programme we

organise and supervise secondary special education

courses and set up projects to combat youth unem-

ployment. The aim is to focus on each individual's

talents instead of on their limitations, and thus give

unemployed youngsters, over-50s and people with

a physical impairment the opportunity to enter or

re-enter the labour market.

Flexible public lighting Step2Work: an

opportunity for everyone

New release: HEAT

Alliander Year Plan 2016 | Special projects 9

Connected to the regionsMillions of customers in our service area count on a reliable energy supply every day. By opting for a regional approach, we can take full advantage of the diverse opportunities in every region. At the same time we are working nationally on a safe energy transition for a sustainable future.

We work daily on the reliability and safety of the energy network. The energy needs and energy generation potential differ in every region where we are active. In Friesland, Noord-Holland and Flevoland many initiatives are being undertaken for wind energy and biogas, whereas in Gelderland the focus is on the development of heating networks. These differences call for a customised approach. Our activities are therefore carried out wherever possible in close collaboration with municipalities and provinces.

A more reliable network Customers expect an uninterrupted supply of energy. Over the past years we have succeeded in reducing the outage duration. And further improvements lie ahead, including the replacement of obsolete gas pipes and the digitisation of our networks in all regions. Thanks to this digitisation, faults can be localised faster and sometimes resolved at a distance.

Electricity and gas

Electricity

Electricity (€ million) Gas (€ million)

447,000

5.6 mln

Smart meters (offer tonumber of customers)

EXPANSION

188.8REPLACEMENT

83.1

EXPANSION

34.7REPLACEMENT

104.6Customer connections (about)

Alliander Year Plan 2016 | Connected to the regions 10

FrieslandAmsterdamNoord-Holland

(excl. Amsterdam)

121.1

78.6

57.1

12.6

101.6

40

FlevolandZuid-Holland Gelderland

Electricity Gas

€ million

Investments in the regions in 2016

0

20

40

60

80

100

120

140

Alliander Year Plan 2016 | Connected to the regions 11

Noord-HollandThe development of the energy system in Noord- Holland is continuing at a rapid pace. Renewable forms of energy (such as solar and wind) and sustainable construction are being facilitated. The province is also continuously seeking new ways to accelerate and intensify its energy efforts.

Working to improve our network performanceNoord-Holland is seeing an upturn in business activity, particularly in the Haarlemmermeer region, as well as a strong housebuilding revival. Our focus in 2016 will be on projects to further improve the performance of the network. Adjustments are being made to networks, installations and substations in e.g. Aalsmeer, Uithoorn and Santpoort.In addition, the networks will be adapted in several strategic places to facilitate faster fault repairs.Ongoing digitisation plays an important role in this respect by making it possible to control and observe transformer houses at a distance.

Road and dyke reconstructionTo improve accessibility and traffic flow within the region, the province of Noord-Holland is planning to reconstruct several provincial roads. This also has an impact on the existing energy infrastructure. Many cables and pipes need to be moved to enable the construction of the new roads. These network activities near the N23 (Westfrisiaweg) and N241 (Verlaat-Schagen) are scheduled to continue into 2017.Sometimes we also need to move cables and pipes in order to facilitate dyke reinforcements. In 2016 preparations will be made for the reinforcement of the Zuiddijk at Beemster, the Ringdijk at Heerhugowaard and the Markermeerdijk between Hoorn and Edam.

Facilitating the arrival of data centersIn 2016 work will start on the construction of the new Middenmeer substation and the expansion of the capacity of the existing stations at Haarlemmermeer, Rozenburg and Hoofddorp. These expansions are necessary to cope with the increasing supply of renewable energy, including the expansion of the Wieringermeer wind farm.Liander is strengthening its network in order to connect large customers such as horticultural producers. Adjustments to the network are also necessary to accommodate the growing number of data centers in this region.

Smart Cable GuardAfter successful trials with the Smart Cable Guard system in Friesland, Liander is now going to roll out this revolutionary monitoring technology in Noord-Holland. Developed in collaboration with DNV GL, Enexis and Locamation, this technology makes it possible to detect and locate small faults faster and prevent outages.

Smart meters(offer to number of customers)

130,300

Employees in Noord-Holland

1,250

Electricity(€ million)

EXPANSION REPLACEMENT

73.1 22.0Gas (€ million)

EXPANSION REPLACEMENT

8.7 17.3

Customer connections(Electricity and gas)

ABOUT

1,607,000

Alliander Year Plan 2016 | Noord-Holland 12

Amsterdam

Increase security of supplyWorking in close association with the municipality of Amsterdam, Liander is carrying out various plans to increase the reliability of the energy supply in the capital.

Adaptation of energy networks around the Zuidas areaThe development of the energy networks around the Zuidas area is continuing apace to meet the needs of the burgeoning number of homes and businesses. Liander is going to reinforce the main infrastructure in 2016 in response to this growing demand. In addition, connections will be laid to two new-build switching stations (Zuidas Noord & Zuid).

Red Carpet and North/South Metro LineThe construction of the North/South Metro Line is entering its final phase, just as Liander is starting to implement its Gas Network Management Plan in 2016. This means that for up to two years after the completion of the metro line we must remain extra vigilant in order to identify any consequences the works might have on the gas network. Amsterdam is also engaged in the Red Carpet project, a major makeover of the route running from the Central Station to the Ceintuurbaan in the Pijp district.To facilitate this process, we will carry out various works on the electricity and gas networks in 2016, including the replacement of obsolete gas pipes and the connection of gas networks between the Damrak and Oosterdokseiland.

Traffic accessibility To achieve improved traffic access and flow, the province of Noord-Holland and municipality of Amsterdam are planning to take various roads in hand. This will

have an impact on the existing energy infrastructure. Among other things, gas mains will be taken out of service to enable the deepening of the A10 in the Zuidas area.

Sustainable transitionAmsterdam continues to promote sustainable initiatives. In 2016 a pilot will be carried out with charging poles for electric mobility. At times when sufficient energy is available in our network, the poles charge extra fast. By contrast, when network demand is high, the charging process is slightly slower. The aim is to encourage people to spread their energy usage more evenly. In the ‘Sleeswijk’ neighbourhood 200 homes are being renovated and made more sustainable based on an energy-neutral All Electric concept. This involves upgrading the local electricity network in the neighbourhood and removing the gas network.

Partner in Amsterdam Smart CityIn 2016 we will remain a partner of Amsterdam Smart City, an initiative with more than 100 parties working together on smart energy applications in Amsterdam. Amsterdam is also pursuing ICT, data and mobility innovations in partnership with other international cities.

Our capital is developing rapidly and welcoming a growing number of businesses and inhabitants. More and more sustainable initiatives are being undertaken in the city. Reliable energy networks are vital to facilitate these developments.

Smart meters(offer to number of customers)

97,100

Employees in Amsterdam

800

Electricity(€ million)

EXPANSION REPLACEMENT

30.7 16.7Gas (€ million)

EXPANSION REPLACEMENT

4.1 27.2

Customer connections(Electricity and gas)

ABOUT

830,000

Alliander Year Plan 2016 | Amsterdam 13

Meeting the energy needs of the futureThe Zuidplaspolder is home to numerous horticultural producers. Many of these companies are still unsure what the transition to sustainable energy means in terms of their future energy needs and opportunities. Together, we are looking at future scenarios to find the best energy solutions for horticultural producers in the region. As a first step, Liander is planning to modernise the existing obsolete network.

Shifting energy networks for road developmentThere are ambitious road plans for the coming years at municipal, provincial and national level. To facilitate these infrastructure projects, we are also moving our energy networks at various locations such as the Nagelbrug at N444 and Leimuiden at N207 as well as in the Leiden region due to the construction of the Rijnland route.

Energy-neutral houses in LeidenIn the coming years Liander will be closely involved in ‘Stroomversnelling’, a residential renovation programme to make 111,000 Dutch homes energy neutral. ‘Energy neutral’ means that, assuming average weather conditions, the household uses just as much energy as it consumes.In 2016 a total of 444 homes will be renovated under this programme at two locations in Leiden.

Network expansion to meet growing demand for electricityDue to the growing demand for electricity in Zuid-Holland, we are continuously enlarging our network. In 2016, we will expand the substation at Alphen aan den Rijn and upgrade the regional networks so that these can interface with the new high-voltage connection through the ‘Groene Hart’ area. We are also continuing to replace brittle pipes in line with our agreement with the State Supervision of Mines (SODM) to remove all these pipes by 2040. This means replacing 12 kilometres of brittle pipes every year.

Development of heating network Zuid-Holland is an ideal area for sustainable heating networks. It is a busy centre of horticultural, industrial and urban activity, so there is an abundant supply and demand for heating. Alliander DGO is working actively on the future heating network in Zuid-Holland (also known as the ‘Warmterotonde’).The objective is to create a heatingmarketplace where energy producers, horticultural companies and community cooperatives offer and buy heating.

Zuid-HollandSustainable energy is high on the agenda in Zuid- Holland. The province is hoping to generate 14% of its total energy consumption from renewable sources within five years. Liander is active in the northern part of the province and is carrying out major infrastructure works. In addition, Alliander is engaged in the development of a heating network in Zuid-Holland.

Smart meters(offer to number of customers)

30,900

Electricity(€ million)

EXPANSION REPLACEMENT

17.8 17.9Gas (€ million)

EXPANSION REPLACEMENT

4.2 17.3

Employees in Zuid-Holland

190

Customer connections(Electricity and gas)

ABOUT

517,000

Alliander Year Plan 2016 | Zuid-Holland 14

FlevolandSustainability is an integral part of provincial policy in Flevoland. The ambition is to be energy-neutral in 2020. The province is therefore investing heavily in wind and bioenergy as well as sustainable mobility. To help achieve all these plans, Liander is working hard to make the energy network larger, stronger and smarter. From 1 January these activities will be extended to the Noordoostpolder.

Sustainable business parkLiander is involved in the plans surrounding the expansion of Lelystad airport. The province has the ambition to realise a sustainable business park adjacent to the airport. Various options will be assessed for feasibility in 2016. New industrial and residential developments are also planned in Lelystad, Almere, Zeewolde and Dronten. Liander is working hard to ensure the smooth and rapid connection of homes and businesses to the energy network. The completion of the new switching station, for instance, guarantees a reliable energy supply for the Trekkersveld industrial estate in the coming years. AccessibilityTo improve the access to and from Flevoland, the motorways between Amsterdam and Almere will be widened at various places in the coming years. Alliander will shift the electricity cables and gas mains along the A6 to facilitate the new traffic routes.

Wind and bioenergyThe restructuring of wind energy is also high on the agenda in Flevoland. In the coming 15 years the existing wind farm (about 535 megawatts) will be largely removed and replaced by wind farms with a joint capacity of 1250 megawatts. Liander is committing major investments to connecting the wind farms, while also helping to find ways of keeping the costs as low as possible. Various projects in this field have already been realised in Flevoland and more are in the pipeline. Further sustainability plans and the accompanying investments will be prepared in the coming year.

Expansion of service areaOn 1 January Liander also became the manager of the electricity and gas networks in the Noordoostpolder. These networks were taken over from Enexis,making Liander network operator of the entire province for electricity and gas.

Smart meters(offer to number of customers)

54,100

Employees in Flevoland

110

Electricity(€ million)

EXPANSION REPLACEMENT

7.5 2.4Gas (€ million)

EXPANSION REPLACEMENT

0.7 1.9

Customer connections(Electricity and gas)

ABOUT

286,000

Alliander Year Plan 2016 | Flevoland 15

GelderlandGelderland has ambitious energy saving plans. The province is keen to facilitate the energy transition by investing in a broad mix of renewable energy sources. Alliander is working hard to ready the energy networks for a sustainable future. This includes the further development of the heating network in the province.

Growth in Gelderland demands expansion of the networksGelderland needs network connections and energy solutions to cater to the strong residential and business development in the region. Liander is assisting in various ways: large customers are being connected to a new switching station in Nijmegen and another new switching station is being realised in Bommelerwaard in order to meet the growing energy needs of horticultural producers.We are also connecting the networks of various villages to each other for improved security of supply in the future.

Safe and smooth traffic flow thanks to reconstructionsThe N18 will be constructed (reconstruction of N823) to achieve a safe and smooth traffic flow between Varsseveld and Enschede. In addition, to guarantee good accessibility around the Arnhem and Nijmegen region, the A15 is being lengthened from Ressen junction to the A12 between Duiven and Zevenaar. The road linking the A1 and Voorthuizen is also being reconstructed. As a result of all these reconstructions, Liander must move various cables and mains. The preparations are already underway.

Energy-neutral homes in GelderlandGelderland is fast-tracking a number of neighbourhoods towards energy neutrality. Liander, together with housing associations and project developers, is helping to achieve this ambition by realising energy-neutral homes. The houses will be equipped with solar panels, heat pumps and electric heating systems. This renovation drive contributes to the

construction of an energy-neutral environment, offering customers affordable homes with lower energy costs well into the future.As part of this project, several parts of the municipal electricity networks are being upgraded or replaced.

Working on a greener province In addition to these scheduled works, Liander is undertaking various sustainable initiatives. In the municipality of Nijkerk, for instance, 1200 new-build homes are being equipped with biogas. Early in 2016 Liander will start a pilot in Arnhem in which the heating of our transformer houses will be turned off or down. This is expected to yield a CO2 reduction of 830 tonnes. We are also closely involved in the provincial wind energy plans. This includes the realisation of wind turbine and wind farm connections in e.g. Ulft, Buren and Ede-West. Finally, Alliander is working with various partners on plans to expand the heating network in Gelderland. The objective is to connect 90,000 houses to a sustainable heating network in 2030.

Smart meters(offer to number of customers)

125,300

Employees in Gelderland

3,940

Electricity(€ million)

EXPANSION REPLACEMENT

41.2 16.7Gas (€ million)

EXPANSION REPLACEMENT

13.7 29.9

Customer connections(Electricity and gas)

ABOUT

1,751,000

Alliander Year Plan 2016 | Gelderland 16

FrieslandRenewable energy generation and energy saving are central to the policy of Friesland. The province is aiming to generate 25 per cent of its energy from renewable sources by 2025. An impulse must therefore be given to clean energy sources such as wind, solar, heating and biomass. Liander is working to make the existing energy infrastructure more sustainable through the construction of intelligent networks.

Friesland is moving towardsrenewable energyThe energy landscape is undergoing a noticeable shift in the province of Friesland. Demand for the facilitation of sustainable initiatives is overtakingthe demand for new traditional connections. This calls for the reinforcement, expansion and replacement of the current networks and the construction of intelligent networks. These networks can cope with the extra demand for energy, while being precisely controlled and monitored from a distance. In 2016, too, various switching stations will be built and connected to provide large companies, including the industrial estate in Heerenveen, with sufficient energy.

Sustainable wind energyWind energy is thriving in Friesland, which is home to diverse wind farms spread across the region. The province is creating space for a total of 530 megawatts of wind energy in 2020. Concrete plans include expanding the existing Hiddum-Houw wind farm (near the Afsluitdijk) from 9 to 36 MW. Liander is monitoring the developments closely in order to ensure that sustainable energy networks are adapted and wind farms are optimised in time.

Green gas and sustainable pipelinesEarly in 2016, Liander and OMRIN from Oudehaske will start delivering green gas to the network in Heerenveen. Before this can happen, the network must be strengthened to handle the increase in gas pressure required to

transmit the green gas to the large users at the IBP industrial estate. In line with the plan drawn up in 2010 with the State Supervision of Mines (SODM) to replace all brittle pipelines by 2040, we will also continue to replace kilometres of pipelines in Friesland.

Liander now operator of a larger part of FrieslandOn 1 January 2016 Liander became the operator of a larger part of Friesland for electricity and gas. Parts of the electricity and gas networks were taken over from Enexis.

Smart meters(offer to number of customers)

9,000

Employees in Friesland

390

Electricity(€ million)

EXPANSION REPLACEMENT

18.3 7.5Gas (€ million)

EXPANSION REPLACEMENT

3.3 11.0

Customer connections(Electricity and gas)

ABOUT

562,000

Alliander Year Plan 2016 | Friesland 17

HoomEmpowering homeowners to create a more sustainable and comfortable home in 3 easy steps.

Hoom helps homeowners make their homes more sustainable. Whether it be insulation, heat pumps or solar self-generation, we offer our customers the information and tools they need to change over to energy-neutral homes step by step. Hoom offers these services in partnership

with community initiatives and sustainable businesses. And in 2016 Hoom will launch a brand-new app enabling homeowners to assess their own home's energy performance. www.maakjehuishoom.nl

Alliander DGO Realising sustainability ambitions together all over the Netherlands.

Alliander Duurzame Gebiedsontwikkeling (DGO) connects area owners, authorities, providers and users to help them realise their specific ambitions for their area. Together we create area development plans and realise open energy infrastructures to make areas more sustainable. Examples are heating networks in the Arnhem-Nijmegen region, Greenport Venlo and the construction of a process water and biogas pipeline in Eerbeek. Our close involvement in numerous local and regional projects across the Netherlands will continue in 2016. www.allianderdgo.nl

Allego Offering electric driving solutions that are reliable, affordable and accessible for everyone.Electric driving is on the rise andis set to continue growing in the years ahead. That's why we offer user-friendly, accessible and future-proof charging solutions. Because electric car drivers want to be able to charge their car anywhere and anytime. Allego is developing a charging infrastructure in the Netherlands, Belgium and Germany, with ambitions for the whole of Europe. In 2016 we will focus on the expansion of this charging network.

We also offer e-drivers the opportunity to apply to the municipality for a public charging pole and are starting up our first public transport projects.www.allego.eu

Meetbedrijf Liander

Insight into energy is becoming increasingly important for our large business users. Alongside reliable metering of their daily energy consumption, there is a growing need for a complete range of services. These include data products that give customers immediate insight into their energy consumption at a specific location. In 2016 our metering

company will actively enter the market with a broad range of products and services. These will give businesses more insight into their electricity and gas usage by enabling metering at divers places within a production process, building or business park. liander.nl/meetbedrijf

By actively investing in new activities, we gain new insights into energy trends and issues and are able to work on a reliable, affordable and accessible energy supply.

Energy in the future

Developing suitable new products together with customers.

Alliander Year Plan 2016 | Energy in the future 18

Smart Society ServicesPromoting innovation by stimulating open protocols and open standards.

More and more appliances and installations can be monitored and controlled from a distance using IT and web applications. However, this often involves closed technologies that are delivered by specific providers, Smart Society Services helps to overcome this with open services that enable independent monitoring of public infrastructures

and buildings. The first service - a new and flexible switching system for public lighting (FlexOVL) - is now being rolled out by Liander. In addition, services are being developed in the field of smart meters and distribution automation. www.smartsocietyservices.com

Locol Locol is the leading platform for complex energy concepts.

Locol develops concepts and brings regional and local parties together in order to enable the transition to sustainable energy. We collect sustainable energy cases that are too complex to get off the ground, but could potentially have a strong impact in terms of sustainability (CO2 savings) and repeat business. Among other things, we realise Smart Festivals by providing sustainable energy solutions in collaboration with festival organisers and local parties. In addition, we help neighbourhoods switch over to local solar energy systems. www.locol.me

Zown Realising, managing and optimising the localenergy balance and ambitions.

Customers are increasingly looking to set up localand entirely independent energy networks together. At industrial estates, for instance, or in remote areas. Zown helps to turn these energy needs into well-organised, technically-sound and financially-viable energy solutions. We help from design to implementation and manage the local energy flows on independent networks with our own open Microgrid Platform. Activities in 2016 include the realisation of an off-grid campus (‘Kop van Java’ in Amsterdam), the implementation of further sustainability measures on the island of Pampus and other projects for business customers, including project developers, business parks, remote areas and campuses. www.zown.nl

MPAREConnecting all appliances, applications and services, while offering consumers freedom of choice and personal control over their data.

MPARE offers insight into your energy consumption and generation data of e.g. solar panels. While ensuring that these energy data cannot be used for other purposes. We are introducing an open standard - HelloData - for sharing energy data. HelloData connects equipment with diverse applications and services, without tying the user tothe restrictive conditions of e.g. hardware suppliers. HelloData thus facilitates an open market in which consumers have freedom of choice and can effortlessly manage their own energy usage and generation.www.mpare.net

Energy Exchange EnablersHelping parties make the connection between their new business concept and the energy market.

Looking to the future, it is important to closely match energy production and demand. One specific challenge concerns the increasing use of sustainable fluctuating sources and variable pricing. Energy Exchange Enablers facilitates energy transactions for the efficient exchange of energy.Thanks to our high-tech solutions, appliances can respond to continuous fluctuations in energy prices and make smart use of sustainable energy sources. In 2016 we are going to expand our activities to Germany.In addition, the first steps are being made towards setting up local energy markets in which local consumers and producers can trade electricity. www.energy-exchange-enablers.com

Alliander Year Plan 2016 | Energie in the future 19

January 2016 First edition

Alliander N.V.

Visiting address:Groningensingel 1, 6835 EA Arnhem Postal address:P.O. Box 50, 6920 AB Duiven [email protected] www.alliander.com

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