Our value chain
The Vattenfall value chain begins with a source of energy, such as hydro power, and goes all the way to the end user.
Electricity value chain
Generation
Electricity is generated by hydro power, nuclear power, fossil fuel and smaller proportions of wind power, biofuel and waste. Vattenfall’s generation consists of hydro power (23%), nuclear power (35%) and fossil fuel (42%).
Electricity trading
Vattenfall and other actors sell electricity via marketplaces to sales companies or to major resellers. A portion of Vattenfall’s generation goes directly to Vattenfall’s sales units. The price paid by the sales units is determined in the marketplaces.
Sales
Private people and industries sign delivery agreements with the different actors at the sales stage. Prices are regulated via various types of agreement between sales companies and customers.
Distribution chain
Transmission
The national grids are the large high-voltage networks that transport large volumes of electricity over longer distances. National grids are for the most part state owned in the Nordic countries and Poland, while in Germany they are owned by the electricity companies. Vattenfall owns national grids in Eastern Germany and the Hamburg region.
Distribution
Regional and local electricity networks transport electricity to end customers. Vattenfall and other large players share the market with regional and local network companies. The networks must be operated by separate legal entities, even if they are owned by major power utilities, municipalities or other players.
Consulting
Covering the entire energy sector, Vattenfall provides technical, management and environmental consultancy. We develop cost-effective, reliable and sustainable solutions to improve the assets and operations of customers all over the world.
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