Billions in Investments in the Distribution Grid

November 4, 2026

Source: E & M powernews

Electric power distribution system operators were required to publish their expansion plans by October 31. Billions in investments are needed for the energy transition.

The goal of the biennial grid expansion plans is to foster a transparent dialogue about the requirements for the energy infrastructure in the coming decades. The plans are based on scenarios for the six German planning regions that estimate energy generation and consumption over the long term. They distinguish between North, East, Central, West, Southwest, and Bavaria. Until 2024, the plans were due by April 30; since then, the deadline has been October 31.

Not all of the more than 800 distribution system operators in Germany are required to publish their own grid expansion plans. Larger grid operators with more than 100,000 connected customers incorporate information from smaller operators in their region.

Bayernwerk Netz, based in Regensburg, estimates that the installed capacity of renewable energy in its network area will triple by 2045 compared to today, while electricity consumption will double. To achieve this, in addition to traditional grid expansion, there must also be greater use of capacity management and flexibility measures. To this end, Bayernwerk Netz plans to invest approximately twelve billion euros by 2030.

The distribution network operator Westnetz in Dortmund, also part of the E.ON Group, plans to renovate, expand, or build more than 21,000 kilometers of power lines by 2030. According to a recent announcement, work is also planned at more than 30,000 local network substations: Existing facilities are to be expanded, renovated, or replaced with new, digitized substations. The goal is to digitally map 100 percent of the local networks in order to better utilize grid capacity.

Refinancing Through Grid Fees

Linked to these expansion plans are the grid fees for electricity customers, which are used to finance the expansion. Network operators emphasize that how these fees develop will depend on whether the federal subsidy for transmission network fees—amounting to 5.525 billion euros for 2027 through 2029—is secured in this year’s federal budget.

Those who generate their own electricity—for example, with a PV system—or operate their heat pump and wallbox in a way that benefits the grid can save money through flexible grid fees.

The Energy Transition Requires a Different Grid

“Today, around one million renewable energy systems are connected to the Bayernwerk grid. For a successful second half of the energy transition, we therefore need a new system,” explained Egon Leo Westphal, CEO of Bayernwerk AG. The grid expansion plan reflects this potential.

According to current estimates, Bayernwerk Netz’s long-term plans for the 2045 target grid include approximately 450 new or expanded substations. In addition, there will be approximately 4,100 kilometers of new or optimized high-voltage lines, as well as around 79,000 kilometers of new medium- and low-voltage lines.

In addition to infrastructure expansion, grid-supporting flexibility measures—such as storage and bidirectional charging management—are expected to gain importance. These could reduce the necessary grid expansion or replace individual construction projects.

Westnetz Plans for Data Centers

Westnetz plans to implement measures at approximately 250 substations by 2030. The reason is the projected power demand from data centers and electric mobility, which, according to forecasts, will each rise to more than eight times the 2024 level in its grid area by 2030. Since 2020, the Westenergie Group has invested approximately 4.5 billion euros in the regulated electricity and gas grids, and this investment must continue.

“A plan alone does not create a grid connection. What is crucial is that we not only expand our grids but also advance them technologically,” said Robert Denda, CEO and CTO of Westenergie. That is why the company is investing in higher-capacity lines, modern substations, and digitized local distribution stations. “Ultimately, it’s not the number of planned lines that determines the success of the energy transition, but what we make possible with them,” said Denda.

Avacon Is Expanding Its Grid Primarily in Lower Saxony

Avacon’s grid expansion plan identifies a need for the modernization, reinforcement, and construction of approximately 11,700 kilometers of power lines by 2035—and approximately 16,200 kilometers by 2045. Of the power line requirements through 2035, approximately 63 percent are in Lower Saxony, 27 percent in Saxony-Anhalt, and 9 percent in Hesse.

According to the E.ON Group company, the regional distribution will remain largely unchanged through 2045. By 2035, the plan calls for 245 new substations and 117 substation expansions, as well as work on approximately 5,400 local distribution substations. Avacon is headquartered in Helmstedt, Lower Saxony.

The current grid expansion plan is available on the distribution system operators’ portal.

Author: Susanne Harmsen