Europe's power grid financing conundrum
Yusuf Latief
Posted on: 15 November 2024
Financing upgrades to the European power grid is one of the key challenges we need to overcome - Rainer Pflaum of TransnetBW discusses.
Financing upgrades to the European power grid is one of the key challenges that must be overcome to secure a net zero future. Rainer Pflaum, CFO at German TSO TransnetBW, discusses.
Pflaum, citing the European Commission’s price tag on a modernised grid at €584 billion ($630.6 billion), says that one of the issues we still need to figure out and overcome is ensuring an attractive market for investors.
“One of the key elements…is that it should be attractive conditions for the investors and this is something we are working on.”
Speaking at Enlit Europe, Pflaum said that conditions in Germany are not that favourable for investors, with interest rates for equity standing 2.5 percentage points behind the European average.
More from Enlit Europe:
How to prioritise financing for the power grid of tomorrow
Key technologies to drive Europe’s industrial decarbonisation
Indeed, the figure is not favourable, especially considering the price tag on Germany’s grid words alone:
“For enhancing and reinforcing the grid, alone in Germany, it will account for €300 billion up to 2030.”
Watch the rest of the exclusive interview with Pflaum for his insights into this challenge and his thoughts on the key priorities for the oncoming European Commission.
