Supplier’s risk

international authorities. The need to obtain such approvals and permits within certain timeframes represents an

important challenge to timely implementation. Moreover, these approvals and permits can be contested in the relevant courts.

Responses

In order to manage uncertainties related to permitting, concrete and upfront stakeholder management takes place, as well as transparent communication to the community.

Working hands in hands with authorities on a common goal (i.e. the integration of renewables while ensuring the security of supply with affordable energy prices) helps to build sustainable relations and achieve grid projects within the timeframe of climate ambitions.

For instance, in spite of COVID circumstances, ELIA TRANSMISSION BELGIUM worked together with governments and local municipalities to develop and be able to go further with digital participation strategies. By having this proactive and agile approach, we did not suffer from significant delays to progress and obtain the decisions we were waiting for in 2020.

Further information

In Belgium, some projects are particularly important to facilitating the energy transition: the interconnection projects, the reinforcement of the backbone (HTLS projects), the construction of new projects to reinforce the backbone, such as Ventilus and Boucle du Hainaut and finally the development of the second wave of offshore windfarms. Despite the common interest for the society, they also require a great deal of effort to gain community acceptance due to local impact.

Further information on these projects is available in our Federal Development Plan 2020-2030:

https://www.elia.be/fr/infrastructure-et-projets/plans-investissements/plan-de-developpement-federal2020-2030

2.2.7 Supplier’s risk

ELIA TRANSMISSION BELGIUM relies on a limited number of key suppliers to provide him with material and realise its investment projects. Given the complexity of the infrastructure works, the increasing demand in the market, and the factories' full order books, ELIA TRANSMISSION BELGIUM may not be able to find sufficient suppliers or supply capacity for its projects. These key suppliers also face the challenge of having enough skilled HR profiles, so that the design of their products is adequate, their production capacity is sufficient, the quality of their supplies is good and their work teams demonstrate a deeply embedded safety culture. Should they fail to have enough skilled profiles, this might adversely impact our business, including the safety of our works. In addition, ELIA TRANSMISSION BELGIUM is also exposed to the risk of public procurement claims and that their respective suppliers, when facing financial difficulties, may not be able to comply with its contractual obligations. Covid19 may place some suppliers in a tight financial & supply chain situation (limited stock of supplies). Any cancellation of or delay in the completion of its infrastructure works could have an adverse effect on the business and reputation of ELIA TRANSMISSION BELGIUM.

Responses