Renewable energy asset classGrid expansion - the backbone of the energy transition

Time to read7 min.

updated at06/10/2026

CategoryNetwork Infrastructure

View from below through a power tower into the blue sky with white clouds.

Almost 60 percent of German electricity already comes from renewable sources - and the trend is increasing.¹ The goal: 80 percent by 2030, climate neutrality by 2045. But without a high-performance power grid, this energy remains where it is generated - instead of flowing to where it is needed. The structural problem is known: Wind generates electricity mainly in the north and east, while industry consumes it in the south and west. The so-called “electric motorways” - the high-voltage networks with 220 to 380 kV - are the link. However, the existing infrastructure has barely met the growing demand: Grid shutdowns and bottlenecks show how urgent the expansion is.¹

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Key figures

~60% - Electricity from renewables in Germany (2025)
€651 billion - investment requirement for network expansion by 2045
€36.4 billion - Amprion investment plan by the end of 2029

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Two types of grid operation

TSO - Transmission System Operator

They operate the supra-regional power grid at the highest voltage level. Responsibilities: transport the power over long distances, expand the grid and control the flow of power centrally. They are therefore responsible for national grid balancing.

DNO - Distribution Network Operator

They take care of the distribution of electricity at regional level to households, companies or municipal institutions. This also includes the operation and maintenance of substations and transformer stations.

651 billion euros: the investment needs by 2045

According to a current estimate by the Institute for Macroeconomics and Economic Research (IMK), investment needs by 2045 will amount to around 651 billion euros - 328 billion euros for transmission networks, 323 billion euros for distribution networks.² Added to this is the increasing demand for electricity due to electromobility, heat pumps and industrial electrification. One of the key players in the expansion is Amprion. Amprion’s 11,000 km high-voltage grid supplies an area that accounts for one third of Germany’s economic output. By the end of 2029 alone, Amprion plans to invest 36.4 billion euros in expansion and modernisation.³ Transmission system operators are natural monopolists: The Federal Network Agency regulates its income and guarantees a predictable return on the capital invested - regardless of whether the sun is shining or the wind is blowing.¹

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klimaVest

First open-ended private investor fund in German electricity grids

In May 2025, the fund acquired an indirect holding of around 4.5 percent in Amprion. With this strategic expansion, klimaVest is expanding its portfolio of wind and solar energy to include the electricity grids sector - and ensures even broader risk diversification. klimaVest is the first open-ended fund to offer private investors access to a previously purely institutional asset class. Thinking long term - actively shaping: investment quality, consistent diversification and active fund management that anticipates megatrends such as the energy transition at an early stage.

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Three developments that shape the market

Regulated stability
Predictable returns regardless of the economic cycle. Electricity grids are a highly regulated asset class by the Federal Grid Agency. The return on tied-up capital is regularly reviewed and determined on the basis of objective criteria - regardless of short-term market fluctuations.¹ This makes network infrastructure a reliable anchor of stability in the portfolio.
Growing demand for electricity
Electrification as a structural driver. Electric mobility, heat pumps and industrial processes are structurally driving the demand for electricity. The 80 percent target for renewable energies by 2030 makes network expansion a political priority.⁴
Political support
Legally anchored transformation order. The Federal Climate Protection Act bindingly specifies the goal of greenhouse gas neutrality by 2045.⁴ The network expansion is part of the national infrastructure strategy - which creates predictable framework conditions for investors in the long term.

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¹IMK / Hans Böckler Foundation: Investment Needs for Germany’s Power Grids Through 2045 https://www.boeckler.de/de/faust-detail.htm?produkt=HBS-009011

²https://www.imk-boeckler.de/de/pressemitteilungen-15992-studie-berechnet-investitionsbedarf-in-deutsche-stromnetze-65371.htm

³Amprion GmbH: Investment Plan of €36.4 Billion Through 2029 Direct link to the grid expansion page on amprion.net (primary source): https://www.amprion.net/Netzausbau/

⁴Federal Climate Protection Act (KSG) – Sections 3 and 4 Section 3 (direct link): https://www.gesetze-im-internet.de/ksg/__3.html

Renewable energy asset classGrid expansion - the backbone of the energy transition

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Key figures

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Two types of grid operation

TSO - Transmission System Operator

DNO - Distribution Network Operator

651 billion euros: the investment needs by 2045

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First open-ended private investor fund in German electricity grids

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Three developments that shape the market

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Key figures

Two types of grid operation

TSO - Transmission System Operator

DNO - Distribution Network Operator

651 billion euros: the investment needs by 2045

First open-ended private investor fund in German electricity grids

Three developments that shape the market

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