Energy watchdog urges faster grid expansion

German Power Grid Expansion faces permitting bottlenecks as Bundesnetzagentur urges faster approvals, enabling renewables integration and wind power transmission to demand centers, with investors ready to fund infrastructure while nuclear plants bridge supply.

Germany's renewable energy future hinges on the fast expansion of power transmission grids, but planning authorities are dragging their feet, the head of the country's energy regulator said.

"Many of the planned lines, including some proposed power lines that face opposition, are waiting in local queues, among them ones that have priority," Matthias Kurth of the Bundesnetzagentur BnetzA told reporters during an energy conference.

"The lengthy procedures are creating grid roadblocks that slow projects, we are talking to the states and the economy ministry is doing the same. We have to do something."

The remarks came a day after Chancellor Angela Merkel's government agreed to lengthen the life cycles of nuclear plants to give that technology a bridging role until renewables can provide the bulk of power.

In order for grids to cope with the rise of volatile green power, they must be expanded so they can transport energy from wind power-heavy regions to consumption centers.

Dena, a government agency, said five years ago that 850 kilometers of power lines needed to be built by 2015. Only 90 kilometres have materialized.

Kurth said this was not the fault of his office. New grids were profitable propositions for investors, and projects had been cleared.

Germany's federal structure means that when projects touch on various states' territory, a national approach is often proposed to streamline approvals as many local authorities must give the green light before construction can begin.

Kurth supplied data showing that of the 13 billion euros US $16.7 billion in planned power transmission infrastructure applications made in 2008 and 2009 for equipment such as pylons, digital transformer stations and underground cables, BnetzA has already approved 10 billion euros worth.

Privately owned Amprion, formerly the RWE power transmission unit, and 50Hertz, formerly the Vattenfall Europe unit, are among companies that have submitted applications.

Some 5.3 billion euros of fresh investment planning has so far been presented this year.

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