Billions of euros for integrating more renewables vs. consumer protection: German regulator to assess grid operators' profitability

German electricity system operators could see changes in how an adequate return is determined in the future. The country's network regulator plans to conduct a study that will take into account not only inflation but also operators' investment plans to strengthen their systems and accommodate additional renewable generation capacity.

The president of Germany's Federal Network Agency, Klaus Mueller, said at a conference held in Essen on Monday that the new study would assess inflation and interest rates. The recent rise in interest rates has made all investments more expensive, including those in the development of energy systems. Higher financing costs for the necessary investments in energy infrastructure are making it harder not only for Germany to further develop the use of renewable energy sources.

Transmission and distribution system operators, including E.ON and EnBW, previously said, according to Reuters, that they need more funding to remain competitive at a time when billions of euros must be invested in developing the grids to accommodate more solar and wind power plants.