In Berlin on January 23, Amprion's CEO, Christoph Mueller, highlighted the necessity for Germany's power grid operators to have the national regulator increase the cap on their returns on infrastructure spending in 2029. This adjustment would facilitate grid expansion and attract investors.
Speaking at the Handelsblatt conference, Mueller expressed concern over the current disparity in equity interest rates for transmission grids globally, emphasizing the need for a competitive rate to support upcoming projects.
In the existing regulatory framework, the Bundesnetzagentur permits write-off rates of return on equity employed at 7% for new infrastructure and 5% for existing infrastructure pre-tax. However, these rates lag behind those of 7% to 9% seen elsewhere in Europe.
Mueller stressed that without adjustments, financing upcoming projects could become significantly challenging for transmission system operators, including Amprion.
The operators in Germany, like Amprion, need to adhere to the regulatory standards while planning substantial investments in power lines and equipment to accommodate the increasing flow of electricity from renewable sources. These investments are crucial for connecting wind and solar generation sites effectively, often involving costly underground cables to meet public resistance concerns associated with overground lines.
For Amprion, a major player with an 11,000 km grid in Germany, significant investments are planned through 2028, including initiatives to connect offshore wind turbines and cables from the North Sea to the industrial Ruhr region in Germany's West.
Concerns loom over whether the regulator will align with the operators' expectations, given its mandate to control grid costs for consumers. Any shortfall in regulatory support might lead to unfavorable funding conditions and jeopardize the operators' financial standings, according to Mueller's assessment.