Hamburg power grid shortage forces postponement of large‑scale industrial and EV projects

The Hamburg Senate reported that the city's medium‑ and high‑voltage electricity network has run out of spare capacity. As a result, 45 connection requests for projects larger than 5 MW have been delayed, affecting battery storage facilities, data centers and other large‑scale industrial developments. The shortage stems from a surge in applications – about 4,800 MW of new demand between 2020 and 2025 – and delayed grid expansion by transmission operator 50Hertz. The Senate is devising a new allocation procedure, but the criteria have not yet been defined, leaving companies uncertain about future connections.

The situation in Hamburg reflects broader German challenges: prolonged delays in grid upgrades are cited as the main obstacle to the rollout of heat pumps, electric‑vehicle charging infrastructure and the decarbonisation of industry. Critics argue that policy uncertainty has already hurt the heat‑pump market, with a sharp sales drop in 2024 following regulatory doubts. Without sufficient grid capacity, investments in climate‑friendly technologies risk stalling, threatening national climate targets.