German insurer Allianz SE (ALV.XE) and reinsurer Munich Re AG
(MUV2.XE) are considering a plan to invest in German power grid
expansion at the Dutch state-owned network operator TenneT Holding
BV, the daily Handelsblatt reports Monday, citing people close to
the negotiations.
According to the newspaper, the German government isn't
satisfied with the slow progress TenneT's German unit TenneT TSO
GmbH is making in connecting wind farms off Germany's North Sea
coast with the mainland, and German economics minister Philipp
Roesler will discuss the issue when he visits his Dutch
counterparts at the end of the week.
German utilities have also expressed concern about the slow
progress. TenneT TSO GmbH has said delays are due to lengthy
approval procedures and technical difficulties faced by
subcontractors such as German engineering giant Siemens AG (SI) in
increasing grid capacity and connections.
According to the article Monday, the economics ministry has lost
patience and is now seeking an alternative to TenneT to connect and
expand the grid.
A German economics ministry spokesman wasn't immediately
available to comment on the report and Allianz declined to comment
to Dow Jones on the report. In the past, the company has said it is
interested in expanding infrastructure investment.
A Munich Re spokeswoman said she couldn't confirm the statements
in the article. The company has said it is targeting investment of
1.5 billion euros ($1.8 billion) in infrastructure projects and
EUR2.5 billion in renewable energy and technology.
Recently, RWE AG (RWE.XE) said sluggish progress is threatening
the economic viability of its showcase, EUR1-billion, Nordsee Ost
wind farm. Originally expected to begin operations at the end of
this year, Nordsee Ost is now set to start producing power sometime
in 2014.
In late May, TenneT and the other three German power
transmission grid operators said investment of around EUR20 billion
is needed to build thousands of kilometers of new power lines and
upgrade the existing network over the next 10 years to ensure the
country's network can cope with rapidly rising renewables
supply.
Newspaper website: http://www.handelsblatt.com
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