50Hertz increases investments in grid infrastructure to accelerate the energy transition, 50Hertz plans to invest up to €5.6 billion – EQ Mag Pro

The electricity transmission system operator 50Hertz increases investments in the infrastructure required for the transport of renewable energies. One focus of 50Hertz is on grid connections for large offshore wind farms in the Baltic and the North Sea. 50Hertz wants to boost the connection capacity for offshore wind farms from around 1 GW today to more than 7 GW in 2030. In this way, the company and its employees can make a significant contribution to achieving climate protection targets, maintaining security of supply and strengthening energy sovereignty.

A well-developed grid infrastructure is key for ensuring that sufficient – and increasingly renewable – electricity is available to private households as well as industrial companies. ‘The legislation now initiated by the German government to accelerate the expansion of renewable energy plants is important. Also to reduce dependence on imported energy sources in the medium and long term,’ said Stefan Kapferer, CEO of 50Hertz. ‘However, politicians must not forget that the energy from wind and photovoltaic plants must also be transported to the centers of consumption. Legislative activities must therefore also include measures that accelerate the urgently needed grid expansion.’

50Hertz plans to invest up to €5.6 billion in overhead power lines, land and submarine cables, and substations over the next five years (2022 to 2026). This is almost twice as much as in the past five years (2017 to 2021). In addition to the expansion of renewable energies, this development is also being driven by a forecast sharp rise in demand for electricity in the company’s own network area. This will arise because more and more existing industries are decarbonizing their processes and new, energy-intensive companies will settle, due to the existing high share of renewables in electricity consumption in the 50Hertz area. The increasing electrification of the transport and heating sectors will also lead to higher electricity consumption. Current studies by 50Hertz predict a 30 to 40 percent increase in electricity demand in the grid area by 2030. This trend is already perceptible today: in 2021, electricity consumption in the eastern German territorial states, Berlin and Hamburg has already risen by three percent year-on-year to 103 terawatt hours (TWh).

In retrospect, 2021 was a successful year for 50Hertz: The company can report an annual result of 165 million euros. The company also plans to continue financing the investments required for the additional grid conversion and expansion mainly via the capital markets – another green bond is scheduled to be issued in 2022. Nevertheless, even in the current situation, more appropriate regulatory conditions are required. Marco Nix, Chief Financial Officer of 50Hertz, comments: ‘Urgent adjustments are needed here for the restructuring of the energy system that will be necessary in the coming years. This applies in particular to our investments in our employees and in the security of our IT systems.’

50Hertz and its expansion plans – especially in this special situation for the whole of Europe – have the full backing of its largest shareholder, Elia Group. Chris Peeters, Elia Group-CEO and Chairman of the supervisory board: ‘As Elia Group, we remain strongly committed to the energy transition and the German ‘Energiewende’ in particular. In every strategic decision we take, in every investment we make, we take the interests of society into account. That’s why it is so important that we have a local partner on board: KfW Development Bank.’

Offshore wind power plays a central role in 50Hertz’s strategy. Wind turbines at sea achieve many full-load hours and thus generate a lot of green electricity relatively continuously. Currently, 50Hertz feeds wind power from four Baltic Sea wind farms with around 1,000 megawatts (MW) of capacity into its onshore transmission grid. By 2030, 50Hertz plans to connect additional wind farms to the grid in the maritime area between Rügen and the Danish island of Bornholm, off the Darß, and for the first time in the North Sea. Overall, this means an additional total capacity of over 6,000 MW of offshore wind power that can be fed into the grid.

New overhead lines and underground cables are also required on land to transport renewable electricity.

The Grid Development Plan 2035 (2021) approved by the Federal Network Agency (Bundesnetzagentur) envisages around 500 km of additional network reinforcement and expansion measures in eastern Germany and Hamburg by 2035. This includes another high-voltage direct current (HVDC) link between Mecklenburg-Western Pomerania and the North Frisian coast. To this end, 50Hertz and TenneT want to build an innovative hub for direct current in the Heide area that can receive and distribute offshore and onshore wind power. This electricity will flow to consumption centres in southern Germany via, for example, the SuedOstLink, which has already been submitted for planning approval, and the SuedOstLink Plus, which has yet to be approved.

In order to be able to realize these grid expansion projects more quickly, faster approval processes, better-equipped authorities and a focus on the recruitment of skilled workers are required, among other things.

The expansion of renewables also needs to be stepped up. Last year, onshore wind turbines with only a total capacity of 547 MW (installed onshore wind capacity in 2021: 19,875 MW) were commissioned in eastern Germany, a total which was well short of the volumes needed to reach the climate goals (around 1,000 MW/year). However, we are seeing positive developments when it comes to photovoltaics, with PV plants with a total capacity of 1,670 MW (installed PV capacity in 2021: 16,355 MW) being built. For a secure power supply based on renewable energies, however, a balanced development of PV as well as onshore and offshore wind power is required.

Source : 50hertz