January 23, 2025 11:03 GMT
POWER: Germany’s Amprion Calls for Higher Return Caps to Support Grid Growth
POWER
Germany’s power grid operators need higher return caps on infrastructure spending, urging the national regulator to raise the limits for the 2029 regulatory period to support grid expansion and attract investment, operator Amprion said, cited by Reuters.
- The current return rates are 7% for new infrastructure and 5% for existing infrastructure, while other European countries offer between 7-9%, making it harder for German operators to compete internationally.
- Amprion's CEO, Christoph Mueller, warned that the current return rates are insufficient to compete internationally and could pose significant challenges in financing future projects.
- Amprion, which operates 11,000km of grid, plans to invest €27.5bn by 2028, focusing on connecting offshore wind turbines and upgrading cables in the North Sea region.
- Furthermore, the operator warned that Germany may need to keep its mothballed coal power plants in operation for longer due to delays in the construction of new gas power plants, cited by Bloomberg on 22 January.
- Germany’s power plant strategy aims to add 12.5GW of power plant capacity and 500MW of long-term storage capacity, including 10GW hydrogen-ready gas-fired capacity.
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