Challenges for Germany's Power Grid on the Rise, Says Tennet CEO

The CEO of Tennet, a leading power grid operator, has raised concerns about the increasing challenges facing Germany's electricity supply network. Despite Germany's reputation for having one of the most reliable power grids in the world, Tim Meyerjürgens emphasizes the need for proactive measures to maintain this status.

According to Meyerjürgens, ensuring supply security is not a given and requires significant effort. He stated that while there is no immediate risk of power outages, decisive actions must be taken now to ensure that the grid remains operational beyond 2030.

His remarks come ahead of an anticipated report from the Federal Minister for Economic Affairs and Energy, Katherina Reiche, which will address the current state of the energy transition in Germany. Reiche has indicated a shift in focus toward supply security and affordability in energy policy.

Meyerjürgens highlighted the urgent need for new gas power plants as part of the strategy to replace coal-fired power generation by 2030 and 2038. The proposed gas facilities would serve as backup sources to meet electricity demand during periods of low renewable energy generation, such as cloudy days or calm winds. Reiche is expected to initiate the first funding tenders for these plants by the end of the year, a process that may require substantial government investment.

Furthermore, Meyerjürgens pointed out the growing frequency of interventions in the electricity grid to maintain stability. Two decades ago, such actions were necessary only once or twice a year, but now Tennet's grid has seen around 2,500 interventions annually, averaging seven per day. This increase underscores the growing complexity of managing a stable energy system.

The financial implications of these interventions are significant, as they lead to higher costs that are ultimately passed on to consumers through grid fees. Meyerjürgens stressed the need for effective tools to manage the grid sustainably in the future.

He elaborated that the grid operates similarly to a highway with limited capacity. If the volume of electricity exceeds the grid's capacity, it leads to congestion. In such instances, Tennet must reduce the power output from renewable sources in the north to balance supply and demand, which incurs additional costs and necessitates finding substitutes in other regions.

In light of these challenges, there is a need for a regulatory environment that encourages flexibility and responsiveness in the energy sector. With a substantial portion of installed solar power capacity being non-controllable--estimated at 50 to 60 gigawatts--there is a pressing need to ensure that these facilities can be managed to support grid stability.

In response to these challenges, the German government passed a law earlier this year that lowers the threshold for new installations to become controllable, a move that Meyerjürgens views as critical. He advocates for a focus on system services, which may involve temporarily reducing the output of solar installations to safeguard the integrity of the grid.

He also cited a model from the Netherlands, where grid customers receive discounts on their grid fees if they agree to adjust their power output. Such incentives could help create a more flexible grid system that benefits both providers and consumers.