Germany’s federal energy regulator, the Bundesnetzagentur, has announced a strategic plan aimed at streamlining the allocation of funds required for the transition to low-carbon energy systems by power and gas grid operators. The initiative comes as part of the country’s commitment to accelerating its energy transition efforts.
In an online press conference held on Thursday, Klaus Mueller, the president of Bundesnetzagentur, emphasized the increasing momentum of the energy transition. “The energy transition is gathering pace,” stated Mueller, highlighting the urgency of adapting power and gas networks to meet the demands of a rapidly evolving energy landscape.
Mueller outlined the key elements of the strategy paper that will serve as the foundation for a two-year planning process. “Power networks must be extended and digitized,” he asserted, underlining the essential upgrades needed to accommodate the shift towards cleaner energy sources. Additionally, Mueller proposed the partial conversion of gas networks to transport green hydrogen, with an acknowledgment that certain segments might eventually need to be closed.
Read more: EU Energy Regulator Warns Against Capping Gas Prices
Crucially, the regulator aims to involve operators in discussions on meeting the financial needs of institutional investors who are crucial for funding the infrastructure conversion. The goal is to strike a balance that supports the transition without placing an undue financial burden on consumers through a fee-based revenue system.
Barbie Haller, the vice president of Bundesnetzagentur, provided insights into the timeline for implementing the new scheme. “The new scheme is expected to be in place in early 2026,” she announced, indicating a comprehensive planning and consultation process over the next two years.
Haller also addressed the substantial investment required for the transition, estimating a low three-digit billion euro sum for local electricity grids and a middle three-digit billion euro sum for cross-country electricity transmission grids up to 2030. This underscores the magnitude of the financial commitment necessary to modernize and adapt Germany’s energy infrastructure to meet the challenges of a low-carbon future.
Source: Reuters
Featured News
European Music Streaming Firms Rally Against Apple’s Proposed Remedies
May 9, 2024 by
CPI
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI