Germany Lifts Undergrounding Mandate for New HVDC Corridors
The German federal cabinet on 29 April 2026 approved a draft law that lifts the country's underground cable priority for new HVDC transmission corridors, paving the way for future HVDC projects to be built as overhead lines, and adding an additional 45 transmission projects (AC and DC) to the Federal Requirement Plan.
The Second Act to Amend the Federal Requirement Plan Act (Bundesbedarfsplangesetz, BBPlG), brought forward by Federal Minister for Economic Affairs and Energy Katherina Reiche, marks a reversal of the 2015 Erdkabelvorrang policy, which mandated that new long-distance HVDC links be buried, a decision that shaped projects such as SuedLink, SuedOstLink and A-Nord.
45 New Projects Added
The draft adds 45 grid expansion projects to the Federal Requirement Plan, comprising 39 AC schemes, three cross-border interconnectors to Denmark, the United Kingdom and Switzerland, two new DC projects, and one offshore connection. The need for these projects had previously been confirmed by the Federal Network Agency (Bundesnetzagentur) in its 2023–2037/2045 Network Development Plan, and they are also included in the transmission system operators' current draft published in March 2026.
Under the draft law, new DC corridors may be built as overhead lines rather than underground cables. The Federal Ministry for Economic Affairs and Energy stated that overhead implementation can deliver significant cost reductions, as overhead lines are cheaper to build than underground cables. The explanatory memorandum to the bill refers to potential savings in the billions of euros, with figures cited in associated reporting placing overhead construction costs as much as 30% below those of equivalent underground cable schemes.
The change is intended to implement a commitment in the CDU/CSU/SPD coalition agreement, which states that newly planned HVDC transmission networks should be built as overhead lines "where possible".
Reiche said the move would lay the groundwork for the further cost-efficient expansion of the electricity grids and would ultimately reduce network charges (Netzentgelte) paid by consumers. Once the new lines are in operation, the government also expects redispatch costs, currently incurred when generation must be curtailed in grid-constrained regions and ramped up elsewhere — to fall.
Industry and State Reactions
Industry associations broadly welcomed the shift. The Federal Association of the Energy and Water Industries (BDEW) described the move as a sensible measure, with chief executive Kerstin Andreae stressing the importance of a clear political decision to enable cost savings. The Association of Municipal Utilities (VKU) also welcomed the departure from the general underground cable priority for new HVDC lines. The state of Bavaria publicly backed the change, saying it would noticeably reduce grid expansion costs and ease pressure on rising network charges.
The German Electrical and Digital Industry Association (ZVEI) took a more critical view of the wider planning package. Chairman Wolfgang Weber said the current grid planning is insufficient for the long-term rise in electricity demand expected from the electrification of industry, mobility and heating, and the build-out of data centres. He warned that the cabinet decision could weaken investment certainty for cable manufacturers and other suppliers of grid components.
Lower Saxony, a traditional transit region for north–south corridors, signalled opposition. State Environment Minister Christian Meyer described the prospect of large overhead pylons cutting across the state as fatal and warned of public resistance and additional costs from re-planning.
Next Steps
The draft now passes to the Bundesrat for parliamentary scrutiny, where state-level concerns — particularly from Lower Saxony — are expected to be raised. The legislation does not retroactively alter HVDC projects already approved as underground cable schemes, including SuedLink, SuedOstLink, A-Nord and Ultranet, which remain on their existing routes and technologies.
