Energy transition: Berlin probably lacks money for power grid expansion

The state-owned network operator Stromnetz Berlin does not have enough money to finance the expansion of the electricity network. At a hearing in the Economic Committee, a capital requirement of 250 million euros was mentioned. However, the sum is not included in the double budget for the next two years.

“We have to make the preparations now. We have to build now and invest now so that the service can be brought to Berlin,” said power grid boss Erik Landeck in the Economics Committee of the House of Representatives. Stromnetz Berlin as a network operator faces several challenges.

On the one hand, the connections of the Berlin network to the supra-regional high-voltage lines are not yet designed for future loads. On the other hand, the technology must be made fit for the heat transition and significantly more electric cars. In Berlin, digitalization in the form of large data centers also plays a special role. These data centers have huge energy requirements. “That’s the equivalent of Potsdam,” said Landeck. The network therefore needs to be adapted.

The current financing model is no longer sufficient for these investments, explained the managing director of the state-owned Berlin Energie und Netzholding (BEN), Stephan Boy. As the parent company, BEN is there to provide Stromnetz Berlin with sufficient capital. This is possible with basic investments in maintaining the network. However, this is “not the case” with new expenditure on heat and energy transition, Boy explained to the economic committee.

The reason given by the manager was that banks’ requirements for granting loans had changed. Unlike in the low-interest phase, the institutions would now require a certain equity ratio. This is 10 percent of a company’s total assets. “BEN needs this equity capital to master the new challenges,” explained Boy, without naming a specific amount.

The energy policy spokesman for the Green Party, Stefan Taschner, put the capital requirement at 250 million euros. His calculation was not contradicted in the Economic Committee. Rather, Taschner and the SPD’s economic policy spokesman Jörg Stroedter pointed out that this money was not part of the double budget. “We want to pass the budget here in parliament in two weeks,” warned Taschner.

Economics Senator Franziska Giffey (SPD) reiterated that “significant investments” are required in the energy transition. Giffey also said that the equity ratio for Berlin Energie und Netzholding (BEN) was “essential”. “The question needs to be clarified,” said the SPD politician, and that’s what’s happening right now. She didn’t want to be more specific. Giffey referred to confidential business figures from the two national companies.