Energy transition
Study: Power grid expansion could cost 651 billion euros
In order to achieve the climate goals, the electricity grid must be massively expanded. A new study calculates how much that could cost. Sobering realization: It could also be even more expensive.
According to a new study, the expansion of the electricity grid in Germany necessary for the energy transition will cost around 651 billion euros by 2045. The previous annual investments would have to more than double, according to the study by the Institute for Macroeconomics and Business Cycle Research (IMK), sponsored by the trade union-affiliated Hans Böckler Foundation. Investments of around 34 billion euros will be necessary in the coming years – 127 percent more than the 15 billion euros that were invested in 2023. Researchers from the University of Mannheim were also involved in the study.
The expansion of the electricity grid is considered a crucial building block for achieving climate neutrality in 2045. To this end, among other things, the energy requirements of transport, industry and buildings should be converted to renewable electricity. When it comes to electricity networks in Germany, a distinction is made between the transmission network, which is responsible for long-distance overland transport, and the distribution network, which ensures regional distribution. While the transmission network is around 38,000 kilometers long, the distribution network is around 1.9 million kilometers long. The costs for operation and expansion are passed on to all electricity consumers.
Costs for the transmission network and distribution network are about the same
For their calculation, the study authors rely on the transmission system operators’ forecasts. They estimate the expansion costs for the transmission network in the current network development plan at 328 billion euros. The researchers made their own calculations for the expansion costs in the distribution network and came to an investment requirement of 323 billion euros. For comparison: A study by the consulting firm ef.Ruhr estimated the total costs at around 732 billion euros in the spring. In a further step, the authors of the new study want to examine how the investments can best be financed.
According to the IMK study, the total costs could be even higher. The researchers include rising raw material prices, bottlenecks in transformers or lines and delays in approval procedures as risk factors.
dpa
Source: Stern
