Billion-euro package for infrastructure: The cable boom is coming

What is particularly interesting is that 100 billion euros of this is specifically reserved for climate protection and the climate-friendly transformation of the economy. These funds are to be distributed via the existing Climate and Transformation Fund (KTF), a clear pointer towards a more sustainable, greener future. While politicians are still debating the sense and nonsense of the use of the funds, one thing is certain for us as a cable supplier: nothing will work without cables. Neither in the expansion of wind farms, nor in the laying of power lines or the modernization of energy infrastructures. The demand for cable will therefore increase – considerably.

The billion-euro package and its distribution – who gets what?

The distribution of the money is clearly defined and comprises three major areas:

• 500 billion euros total budget:
  This sum will be made available over twelve years. An ambitious project that is being pursued with a lot of hope and just as much skepticism.
• 100 billion euros for the federal states:
  This is intended to enable the federal states to push ahead with their own infrastructure projects. These include the expansion of electricity grids, the connection of new wind and solar parks and measures to increase grid stability.
• 100 billion euros for climate protection:
  The green part of the package, which is clearly aimed at converting the economy to climate-friendly technologies. This means: more onshore wind turbines, more solar parks, more cables.
  These funds will be made available via the existing Climate and Transformation Fund (KTF) and are intended to help reduce CO2 emissions while guaranteeing a stable energy supply.

Why cable suppliers should hit the ground running now

There is a lot of talk about subsidies, funding and how to use it. But the real challenge remains: The necessary infrastructure must be created – and that only works with high-performance cables. The following trends are particularly relevant for us:

1. Expansion of power lines and grid connection projects:

With the billion-euro package that has been agreed, it is clear that power lines connecting renewable energy sources such as onshore wind farms or solar parks need to be massively expanded. This primarily concerns the integration of electricity generation from wind turbines into the grid. Our low-, medium- and high-voltage cables are designed to meet these requirements.

2. Decentralization of the energy supply:

Another important topic is the trend towards decentralized energy supply. More and more energy is being produced directly on site – and must be reliably fed into the grid. Here, too, underground cable systems are in demand, which are characterized by their high load-bearing capacity and resistance.

3. Climate protection measures and climate-friendly restructuring of the economy:

As 100 billion euros have been earmarked specifically for climate-friendly conversion, we can assume that projects for electrification, CO2 reduction and the expansion of renewable energies will receive massive funding. This applies in particular to cable systems that are designed for high performance and stability – like the ones we supply at KLZ.

KLZ’s role in this gigantic investment offensive

With these billion-euro investments, the demand for underground cables, especially medium-voltage cables, will virtually explode. The question is not whether cables will be needed – but when and in what quantities. And that’s where we come in.

Our strengths:

• High-quality cables:
  We only supply high-quality cables, such as the NA2XS(F)2Y, NAYY or even the NAYY-J. These are ideally suited for use in onshore wind farms, solar fields and transformer stations. They offer high reliability, resilience and durability.
• Fast delivery thanks to logistical efficiency:
  Thanks to our central logistics hub, we can deliver quickly and reliably – including to our customers in the Netherlands. This is a decisive advantage when projects have to be realized under time pressure.
• Sustainability:
  While the German government is pushing ahead with its climate targets, we are also doing our bit. We have long attached great importance to sustainable solutions that meet the requirements of the future.

Why the timing is ideal for grid expansion

Of course, not everyone approves of this mega project. There are those who criticize the project as being too ambitious or poorly planned. But one thing is certain: the demand for modern infrastructure will increase, and it will increase dramatically. Instead of discussing whether it is the best solution, we are concentrating on ensuring that the best cable technology is available when it is needed. The energy transition will come – and we will make sure that it really works. And while others are still debating what makes sense and what doesn’t, we have long since focused on optimizing our product portfolio to meet the growing demands of the market.

KLZ is ready – are you too?

The billion-euro package is more than just a financial injection for the expansion of infrastructure. It is a clear sign that Germany wants to – and must – move towards a green future. Now is the time for us as cable suppliers: Be ready. Because demand will increase faster than many people expect. And with our products, we are ready to meet this challenge.