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(Bloomberg) — Germany wants to stop laying new high-voltage power lines underground and to give preference to overhead lines in a move that could save billions in overall system costs.
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Most new direct current transmission lines in the extra-high-voltage grid should be built above ground, according to a draft law from the economy ministry seen by Bloomberg. The legislation would also restrict legal recourse and the decision-making power of the energy regulator.
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Opting for overhead lines would break with a key compromise reached after more than a decade of wrangling with opponents of power lines, and risk unleashing pushback while trying to accelerate the buildout.
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As the expansion of grids has stalled over red tape and nimbyism, Germany is expected to lose €3.7 billion ($4.4 billion) to curtailed renewable output this year as the power can’t be transported off. Europe’s biggest economy is also facing some of the highest energy bills in Europe, with businesses paying more than in China or the US.
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Building lines overhead instead of underground could — along with other measures — save up to €35 billion, the Federal Network Agency has previously said. According to the draft, first reported on by newspaper Tagesspiegel, the transmission operators are expected to incur costs of about €44.7 billion in one-time capital expenditures over a period of several years.
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In its coalition agreement, the federal government agreed to place greater emphasis on cost efficiency in grid expansion, an economy ministry spokesperson said. The agreement also stipulates that, where possible, extra-high-voltage direct-current lines should be constructed overhead to reduce costs.
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The energy lobby group BDEW said it generally supports all measures that improve the cost-efficiency of the energy transition and accelerate it.
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