Amprion Boosts Grid Expansion with Record €27.5 Billion Investment

Dortmund’s Amprion GmbH , one of four transmission grid companies (TSOs) in Europe's biggest economy, is significantly accelerating its grid expansion initiatives. In the past financial year, investments more than doubled to a record level of approximately €3 billion. By 2028, Amprion plans to invest around €27.5 billion in enhancing and upgrading its transmission grid, reflecting a robust commitment to supporting Germany's energy transition.

Key Highlights

Investment Surge: Amprion's investments have surged since 2021, tripling in size as the company prepares for a new phase of implementation.

According to CEO Dr. Hans-Jürgen Brick, “The statutory measures introduced to accelerate grid expansion are having an impact. We are moving into the implementation phase and will complete key projects ahead of time.”

·A-Nord Project: A notable achievement includes advancing the construction of the A-Nord direct current link by a full year. This project, along with the Ultranet initiative, will establish Germany's first wind power corridor, enabling the transport of substantial green electricity from the North Sea to western and southern Germany by 2027.

Financial Performance: Amprion reported a remarkable 37.5% increase in revenues for 2023, totaling approximately €4.8 billion. Adjusted consolidated net income rose by about 49%, reaching around €339 million, primarily driven by heightened investment activity and an expanded regulated asset base (RAB).

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Challenges and Solutions

Despite these advancements, challenges persist in achieving a balanced energy transition. Brick highlighted that energy prices in Germany remain high and called for nationwide congestion management costs to be excluded from grid fees. He proposed financing these transformation costs through proceeds from the Climate and Transformation Fund, which could significantly reduce grid fees for consumers and businesses.

Future Outlook

Amprion plans to invest approximately €3.9 billion in grid expansion throughout 2024. CFO Peter Rüth emphasized the importance of securing various components and services valued at around €17 billion for future projects while maintaining economic feasibility.

Commitment to Sustainability

In line with its investment strategies, Amprion is also dedicated to sustainability. The company will publish a sustainability update alongside its annual financial report for 2023, aligning with EU regulations under the Corporate Sustainability Reporting Directive (CSRD). This update will showcase Amprion's efforts to improve its ESG Risk Rating from Sustain analytics to 9.3 placing it in the best risk category achievable: “negligible.”

Conclusion

Amprion's aggressive investment strategy not only bolsters Germany’s energy transition but also positions it as a leader in sustainable energy infrastructure development. With substantial investments planned and a focus on innovative solutions, Amprion is poised to play a pivotal role in shaping a climate-neutral energy future while addressing affordability and regulatory challenges in the energy sector. As we move forward into an exciting yet challenging decade for energy transition, Amprion remains committed to engaging with stakeholders and ensuring that its projects align with societal needs and environmental goals.

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