08.05.2024
Source: Energie & Management Powernews
Bayernwerk plans to invest more than 5 billion euros in the expansion of its grids over the next two years. The workforce has already grown in the four-digit range.
At the annual press conference on May 7 in Regensburg, CEO Egon Leo Westphal spoke of a historic growth program that Bayernwerk is launching for the future of energy. "We are going all-in." Westphal immediately drew attention to the problem that has plagued the energy transition from the outset. Namely, that it must not just be geared towards expanding more renewable energies. "It's about a complete transformation and redevelopment of the system, about creating completely new foundations," he explained, meaning that the electricity grid also needs to be redesigned.
The expansion figures for renewables were already very high. After Russia attacked Ukraine, applications for the connection of photovoltaic systems skyrocketed once again. In 2023 alone, more than 87,000 new solar systems with a capacity of 2,200 MW were connected to the Bayernwerk grid. The total number of integrated PV areas is set to reach 500,000 in the near future. "These are milestones that were almost unthinkable for a long time," said Westphal. He also recalled Friday, April 5, 2024, when the entire energy consumption in Bavaria was covered by renewables. This year, for the first time, more energy will be exported from the company's own grids than imported.
Wrong sequence as a birth defect of the energy transition
At the same time, the CEO made no secret of the fact that not everything is going as planned in the dimensions that the topic has taken on. For example, numerous customers are in arrears with compensation payments for redispatch operation, i.e. compensation for when their plants have to be curtailed for grid-related reasons. However, 3 million such interventions were required in 2023 alone - two years ago it was only 100,000. According to Westphal, however, the backlog should be cleared by the middle of the year.
There are also delays of several months in some cases for new metering equipment required for PV systems. This is simply due to the limited service provider capacity available. The company is doing all it can to expand this capacity. "We are doing our best and will find solutions as always. But we can't prepare for everything that might come."
Westphal regretted that far too little attention is being paid to the path that lies between the initial chapter on "renewables" and the final chapter on "climate neutrality". The motto is still "renewables first, grids second. That's the wrong order". The expansion of the energy grids cannot keep pace in many regions. Renewable energy must go where the grids are - not the other way around. In this context, Westphal spoke of a "birth defect of the energy transition".
The expansion path to date - even if it has been successful - is far from sufficient to make the Bavarian energy system climate-neutral by 2040. The need to expand the grid to integrate renewable energy is immense and will cost a lot of money. "Even the sun doesn't come for free." The Bayernwerk boss also hoped for greater acceptance of the energy transition in society. Although a majority of people in Germany are in favour of the energy transition, it is felt that their share is declining.
Power plant strategy with decentralized supplement
Westphal also commented on the German government's power plant strategy, which envisages 10,000 MW of hydrogen-capable gas-fired power plants. For Bavaria, decentralized solutions in various regions could also help to avoid gaps in capacity. In this context, he referred to a shortfall of 6,900 MW in secured lines in the state in 2030, adding that centralized and decentralized solutions must be brought together to close this gap.
The grid expansion plans up to 2028 include:
- 540 kilometers of high-voltage lines
- 10.000 kilometers of medium-voltage lines
- 173 substations
- 8.500 digital local network stations
Finance Director Daniela Groher put the investment volume at 5.1 billion euros by 2026, 1.3 billion euros by 2024, more than 1.7 billion euros by 2025 and more than 2 billion euros by 2026. She also referred to the problems of being able to use the money invested: The availability of materials, a shortage of skilled workers, the duration of approvals and the acceptance of projects on site would all stand in the way at times.
Albert Zettl, the Executive Board member responsible for HR and Sales, highlighted the increase in the number of employees from 3,000 in 2022 to 4,200 currently. In addition, there would be thousands of jobs created by his company's projects with partner companies. He highlighted the newly founded Bayernwerk Academy as a successful model for combating the shortage of skilled workers. "The popularity already shows that we are on the right track."
Author: Günter Drewnitzky
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