Germany’s networks regulator, Bundesnetzagentur, expects 1.4% higher revenues for electricity distribution network operators from 2029 onwards as the authority tweaks regulations to make grid investments more attractive.
Bundesnetzagentur oversees the revenues and earnings for the electricity and gas networks in Germany.
“Investments in the German electricity grid will become more attractive” under the new rules, the regulator’s president Klaus Müller said on Wednesday as Bundesnetzagentur unveiled proposals for the new rules.
“At the same time, we are ensuring that grid operators manage their operations more efficiently and that only unavoidable costs are included in grid fees. Efficiency is crucial for implementing the energy transition at the lowest cost possible,” Müller said.
Germany’s grid is in need of investment in upgrades to accommodate the growing share of solar and wind power in the electricity mix.
Renewable energy accounted for 64.1% of the electricity mix in the third quarter of 2025, up from 63.5% for the same period last year, Germany’s statistics office Destatis said in preliminary figures earlier this week.
The share of renewables is a new high as renewable power generation rose by 3% from a year earlier, Destatis added.
Germany saw the highest number of onshore wind turbines commissioned in the first half of 2025 for eight years, but the rebound in installations is still off track to reach the official targets, the German wind energy association, Bundesverband WindEnergie (BWE), said in July.
Despite the jump in wind power installations, Germany still has a gap between the rate of capacity expansion and the legally mandated goals in the Renewable Energy Sources Act, the so-called EEG, Bärbel Heidebroek, BWE president, said.
Germany has a target to install 10 GW of wind power capacity every year to have renewables account for 80% of its electricity generation in 2030.
Earlier this month, the chief executive of German power utility major E.ON has called on the government to prioritize businesses over wind and solar capacity additions, saying job creation was more important than more turbines.
By Michael Kern for Oilprice.com
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