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POWER: Germany Proposes Annual Cost-Based Rules to Boost Grid Funding

POWER

Germany’s energy regulator, Bundesnetzagentur, has proposed annual cost-based rules for power grid operators as part of a regulatory overhaul aimed at improving funding conditions, it said, cited by Reuters.

  • The regulator aims for a simpler, more transparent system to accelerate funding flows, according to a 15-page proposal.
  • The update could replace incentive regulation, giving grid operators like Amprion clarity on investment returns for €450bn in upgrades by 2045.
  • Grid operators also argue that capped returns limit investment to modernise and expand renewable infrastructure.
  • Distribution grid spending, including market leader E.ON , is also affected by regulatory cost recognition.
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Germany’s energy regulator, Bundesnetzagentur, has proposed annual cost-based rules for power grid operators as part of a regulatory overhaul aimed at improving funding conditions, it said, cited by Reuters.

  • The regulator aims for a simpler, more transparent system to accelerate funding flows, according to a 15-page proposal.
  • The update could replace incentive regulation, giving grid operators like Amprion clarity on investment returns for €450bn in upgrades by 2045.
  • Grid operators also argue that capped returns limit investment to modernise and expand renewable infrastructure.
  • Distribution grid spending, including market leader E.ON , is also affected by regulatory cost recognition.