Renewable energies - Federal government courts private investors for energy transition
The German government aims to bring more private investors on board for the financing of the energy transition. Economics and Climate Protection Minister Robert Habeck (Greens) stated at a conference of the state development bank KfW that Germany pursues long-term goals and has "reliable paths" that offer a reliable, long-term, and profitable investment field for investors. "Germany has a plan," Habeck said in Frankfurt and spoke of a secure investment environment.
Germany aims to be climate-neutral by 2045. The share of electricity consumption from renewable energies such as wind and solar should reach 80 percent by 2030. In the first half of this year, according to industry data, this share was 58 percent. In order for a large part of the wind power produced in the north to reach major consumption centers, thousands of kilometers of new power lines are to be built. Habeck stated that the network expansion has been noticeably accelerated. He also referred to the planned construction of a hydrogen "core network".
German companies have already invested a lot in climate protection. The expansion of renewable energies requires suitable and flexible transmission and distribution networks and requires high investments. The funds for this cannot come solely from the public sector but must mainly be mobilized from private investors or the capital market, according to the ministry.
Premier event for conference
Representatives from international infrastructure funds, pension funds, insurances, and banks came together at this type of conference for the first time. KfW CEO Stefan Wintels said that demand and supply should be brought together so that the energy infrastructure in Germany can become climate-friendly and affordable.
Deutsche Bank CEO Christian Sewing stated that investments in the power grid are estimated to amount to around 300 billion euros in the next 20 years. Sewing also referred to the EU's climate goals and necessary massive investments. The states cannot cover these investments alone. Investors need security. Sewing emphasized the need to realize the so-called Capital Markets Union in the EU. In this context, bureaucratic hurdles between EU states should be dismantled. Regarding the difficult government formation in France after the parliamentary elections, Sewing said that this should not lead to a slowdown in the Capital Markets Union.
State Secretary Philipp Nimmermann named the capital remuneration set by the Federal Network Agency for operators of power and gas networks - in international comparison - attractive. Nimmermann confirmed the interest of the federal government in a strategic minority stake in the power grid operator Tennet Deutschland as part of a consortium. Negotiations over a complete sale of the German power grid from Tennet to the federal government had failed.
- The conference was held in Frankfurt am Main, where Economics and Climate Protection Minister Robert Habeck (Greens) highlighted Germany's commitment to the energy transition.
- Habeck emphasized that Germany has a reliable plan for the energy transition, which offers profitable investment opportunities in the finances sector, particularly in renewable energies.
- KfW CEO Stefan Wintels mentioned that the conference in Frankfurt aimed to bring together demand and supply, enabling the creation of a climate-friendly and affordable energy infrastructure in Germany.
- Deutsche Bank CEO Christian Sewing discussed the need for private investors to finance a significant portion of the 300 billion euros required for power grid investment during the next 20 years, as per the EU's climate goals.
- Sewing suggested that realizing the Capital Markets Union in the EU was crucial for dismantling bureaucratic hurdles between EU states and encouraging investment in the energy sector, especially after the difficult government formation in France.
- The European Union's climate goals also demand substantial investments in energy infrastructure, including the construction of thousands of kilometers of power lines and a hydrogen "core network," as stated by Robert Habeck in Frankfurt.
- The German Federal Government, led by Christian Sewing, is interested in a strategic minority stake in the power grid operator Tennet Deutschland as part of an international consortium, demonstrating a commitment to supporting renewable energies and the energy transition.
