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Germany Accelerates Grid Buildout as Negative Power Prices Prompt Subsidy Rethink

Record approvals for new transmission coincide with a sweeping Bavarian distribution upgrade.

Overview

  • Bavaria’s largest distributor, Bayernwerk, published a plan to 2030 that adds about 40,000 kilometers of medium- and low-voltage lines, roughly 1,000 kilometers of high-voltage lines, upgrades around 300 substations, and digitizes grid control.
  • The federal regulator approved about 2,000 kilometers of new high-capacity lines in 2025, up roughly 45 percent from 2024, and completed permitting for A-Nord, Ultranet, SuedLink, and SuedOstLink, slated to start service between late 2026 and 2027.
  • Bayernwerk reports connection requests for approximately 77,000 megawatts of battery storage and urges grid-friendly operation, with bidirectional vehicle charging expected to grow.
  • Germany logged at least 525 hours of negative wholesale power prices in 2025; RWI cites about €18.5 billion in 2024 costs from guaranteed feed-in payments, while dynamic tariffs and smart meters let some consumers benefit from price dips.
  • Eon CEO Leonhard Birnbaum calls for ending subsidies for small rooftop PV, and Economy Minister Katherina Reiche proposes halting support for new small systems while requiring controllability, market participation, and a greater contribution to grid costs.