German Grid Firms to Extend Networks in Zero-Carbon Shift

German Grid Firms to Extend Networks in Zero-Carbon Shift

BY  
Seneca ESG  
- March 29, 2023

Germany’s high voltage grid firms (TSOs) have lay out a developing plan for public consultation, revealing their need for 14,197 km of new networks costing hundreds of billions of euros, as reported by Reuters on March 24. The plan aims to boost German power transmission lines to accommodate a shift to zero-carbon generation industry. Four companies call for additional investments of EUR128.3bn (USD137.72bn) from now until 2045, completion of some projects may need to be completed by 2037. By increasing investments in grids, the firms aim to ensure stable grid performance when tapping intermittent renewable energy, as their share in the country’s power mix is increasing rapidly.

The massive grid construction program aligns with Germany’s ambition to have 80% of its power output from renewables by 2030, in a move to reduce its overall carbon dioxide (CO2) emissions by 65% by 2030 on 1990 levels. The German government also expects the power sector to be 100% green by 2035, and the national power demand to double from 2020 levels by 2045. To realize the projected 2045 scenario, renewable energy would account for around 90% of electricity generation, up from 49.6% in 2022. This would require major expansion and upgrading of Germany’s existing grid network. For instance, power grids must be extended to reach green energy sites and transmit their output, connecting the industrial south to wind power generated in the north. Moreover, the extended grids could link new electrolysis plants which will use clean electricity to produce green hydrogen.

Source:

https://www.reuters.com/business/sustainable-business/german-power-grid-firms-list-costs-meet-zero-carbon-targets-2023-03-24/

https://energypost.eu/germanys-electrification-ambitions-tsos-scenario-for-91-renewables-by-2045/

https://renewablesnow.com/news/renewables-account-for-496-of-germanys-power-mix-in-2022-810330/

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