50Hertz, Germany’s transmission system operator, has announced plans to invest nearly €23 billion in expanding and upgrading its transmission grid through 2028, as part of efforts to support the country’s energy transition. This investment is five times greater than the amount spent during the previous five-year regulatory period.
The investment will be used to fund the construction of overhead lines, submarine and land cables, substations, digitalization, and other advanced technologies. In 2024 alone, the company invested €3.6 billion, more than doubling its investment from 2023.
To help finance the grid expansion, 50Hertz’s principal shareholder, Elia Group, has secured an equity package worth €2.2 billion. This includes a private placement of €850 million to be subscribed by investment and pension funds. The four investors involved in the placement include Publi-T/Next Grid Holding, ATLAS Infrastructure (along with The Future Fund), BlackRock Inc, and CCP Investments. These new investors have also agreed to participate in a €1.35 billion rights issue following the completion of the private placement.
Bernard Gustin, CEO of Elia Group, commented on the transaction: “This transaction will support the future growth of the Group in Belgium, Germany and international markets. It will enable us to implement our investment plan for the next few years.
Gustin also emphasized the importance of 50Hertz, stating: “50Hertz is and will remain an important pillar in our multinational group of companies, and we as the Elia Group are also a stability factor for the German energy transition. We are very pleased to have KfW Bankengruppe as a strong partner in Germany at our side for the challenging years ahead.
The grid expansion is already underway, with 900 km of power lines currently under construction. In the 50Hertz control area, which includes eastern Germany, Berlin, and Hamburg, renewable energy sources such as wind, solar, and biomass accounted for 73% of electricity consumption in 2024. Wind power was the largest contributor, covering 44% of the demand, while solar power provided around 15%, reflecting an expansion of almost 4GW in installed capacity.
Electricity consumption in the 50Hertz grid area in 2024 was 94TWh, the lowest in 20 years, attributed to weak economic growth and the slow adoption of electric vehicles and heat pumps.
