E.ON raises expected grid investment to integrate renewables

German company E.ON will have to increase its original five-year investment plans by a fifth. The main reason is the need for a more robust and flexible grid that can ensure and facilitate the efficient integration of renewable energy sources. Reuters reported recently, citing Thomas König.

According to König, energy grids must become more efficient to facilitate the transition from centralised fossil-fuel-based generation to millions of decentralised low-carbon generation units powered by wind and solar, he said at a company event last week.

In March, Europe's largest distribution network operator said it would increase its investment programme through 2027 by six billion euros to 33 billion euros.

Of the total, 26 billion euros would be allocated to expanding and overhauling energy grids to integrate renewable energy sources and digitalise operations.

König added that the amount earmarked for grid digitalisation would probably grow further. At the same time, he stressed that E.ON's board must first approve its medium-term plans.

“We have eight years (until 2030) to connect, at least in terms of planning, another three million renewable energy sources and three million new customers,” König added.

As the number of electric vehicle charging stations, heat pumps and other devices connected to the power grid grows, more flexible systems are needed to effectively manage the intermittency of renewable energy and support new business models, primarily through the installation of smart meters.

E.ON's grid investment plans have been increased every year for the past three years, as the number of connections for new generation and consumption points to local low-voltage grids was found to have doubled annually, König said.