Overhead German power lines would lower costs, says 50Hertz CEO

Elia SA

24/01/2024 10:31

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      New power grids across the country cost billions
    

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      Subterranean grids were chosen to appease opponents
    

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      Run-away costs require rethink for future, says grid boss
    

  
    By Vera Eckert and Tom Käckenhoff
       BERLIN, Jan 24 (Reuters) - New German high-voltage power
lines to move renewable energy across the country should be
above ground rather than under it to save money and fend off
criticism of the energy transition, an industry leader told
Reuters.
    Stefan Kapferer, chief executive of grid operator 50Hertz
 ELI.BR , said the decision to put some high-profile cable links
underground this decade to quell opposition meant investors had
to pay more than three times the usual outlay and had
complicated maintenance.
    The public pays for part of the cost of the transition to
greener energy via grid fees, a burden that has increased after
a federal court ruling threw Berlin's budget plans into disarray
two months ago.
    As Europe's biggest wholesale electricity market, Germany's
infrastructure is crucial not only to the country, but to
neighbours exporting across borders or relying on German power.
    "We need a serious debate (about) what is better for
acceptance, subterranean cables or overground," Kapferer said on
the sidelines of a Handelsblatt energy conference.
    "We don't want support for the transition collapsing because
people find this all too expensive."
    The three lines are called OstWestLink, NordwestLink and
SuedWestLink, under a plan that runs up to 2037, and follow on
from prominent projects including SuedLink and SuedostLink this
decade, which will cost single-billion digit euro sums each.
    Under plans by 80% shareholder Elia, 50Hertz will spend 3
billion euros ($3.26 billion) this year on expanding its grids,
having increased its five-year rolling spending plan for
2024-2028 to 20 billion euros, Kapferer said.
    This is more than double its previous 2023-2027 plan
totalling 8.7 billion.
    State bank KfW  KFW.UL  owns the remaining 20%.
    "There are three reasons: new projects, cost inflation and
the change of basis year," Kapferer said, as there will be
sizeable investments coming up in 2028. 
    Parent company Eurogrid on Tuesday said it has acquired
1.5-billion euros in green bonds to help finance grid
improvements.
    50Hertz wants its network area to be 100% green in 2032.
    Germany's energy regulator on Wednesday said it would allow
higher returns on investment in networks to try to attract
investors.
($1 = 0.9204 euros)

 (Reporting by Vera Eckert and Tom Kaeckenhoff, additional
reporting by Christoph Steitz, editing by Miranda Murray and
Barbara Lewis)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))