Germany’s power grids need €300b for decarbonisation – KfW

By Aya El Sayed On Jul 9, 2024

The logo of the promotional bank KfW stands on a pane of glass in front of lights in offices during a press conference of the promotional bank Kreditanstalt fuer Wiederaufbau (KfW). Sebastian Gollnow/dpa

Germany needs approximately 300 billion euros ($325 billion) in investments by mid-century to modernise its power grids for the transition to decarbonisation, according to state bank KfW.

At a capital markets conference in Frankfurt, KfW emphasised the necessity for expanded renewable energies and flexible transmission networks, highlighting the significant financial commitment needed.

“The means for that cannot come from public funds alone but must, for the larger part, be mobilised via private investors or the capital market,” KfW stated.

The conference, attended by over 150 representatives from infrastructure funds, insurers, banks, and energy firms, convened to explore investment opportunities as Germany shifts from fossil fuels to renewables.

Key participants included Deutsche Bank CEO Christian Sewing, Allianz CEO Oliver Baete, Uniper CEO Michael Lewis, and German Economy Minister Robert Habeck.

Germany aims to achieve carbon neutrality by 2045 and plans to increase the share of green energy in its power generation to 80 per cent by 2030, up from over half in 2023.

Attribution: Reuters.