Value chain

The Vattenfall value chain begins with a source of energy, such as hydropower, and goes all the way to the end user.

Electricity value chain

Generation

Hydropower, nuclear power, fossil fuel and smaller proportions of wind power, biofuel and waste generate electricity. Vattenfall’s generation consists of hydropower (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 the electricity companies own them. 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 major power utilities, municipalities or other players own them.

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.