RWE Proposes to Manage German Ultra-High Voltage Grid Systems

Jul 11, 2008 - Datamonitor

RWE has announced that it is prepared to take on systems management of the ultra-high voltage grid owned by the four German transmission systems operators.

The company could then manage the uniform German control area envisioned by policymakers and the country's Federal Network Agency. RWE is also offering to co-ordinate plans for grid expansion in Germany. The grids are to remain the property of the current or future owners of the transmission networks.

RWE welcomed the measures announced by the Federal Network Agency regarding interest on investments in new networks. The energy group noted that other details that have an impact on the level of total interest are still unclear. Chief among these is reportedly the complete refinancing of energy procurement costs for compensation services.

RWE said that an acceptable entrepreneurial interest rate on borrowed capital in the incentive-based regulatory system is also essential.

Juergen Grossmann, CEO of RWE, said: "We are addressing the policymakers' call for bundled system responsibility and a uniform German control area. Moreover, we are co-ordinating the expansion of the grid and thus ensuring the achievement of the federal government's energy policy objectives. Our model offers not only benefits in terms of outage prevention and connectivity of new renewable and decentralized power plants, but also the possibility of flexible and transparent ownership structures."