The electricity grids are increasingly reaching their limits. Due to the growing generation of renewable energy and rising consumption, they are subject to significant fluctuations: overloads and bottlenecks vary depending on the time of day and the region. Grid tariffs currently offer little incentive to make smart use of existing grid capacity. The result is that cheap energy from wind turbines and solar panels in the north is curtailed, whilst expensive gas and coal-fired power stations in the south are brought online. With dynamic grid tariffs, generation and consumption can be adapted to the grid more flexibly in terms of both time and region. However, this also requires the consistent digitalisation of the grids. “Only if we resolutely drive forward both – the digitalisation of the grids and the reform of grid tariffs – can the energy transition be shaped efficiently,” said Duso. Possible alternatives to dynamic grid tariffs include electricity price zones and nodal pricing systems. However, these are considered politically difficult to implement.  

CHARGING INFRASTRUCTURE 

Electric mobility is a key component of the energy transition. A lack of competition in the roll-out of charging point infrastructure and a lack of transparency regarding charging prices mean that many motorists end up paying too much when charging their vehicles. The Monopolies Commission therefore welcomes the progress made in setting up a price transparency body for ad hoc charging and recommends fostering greater competition through tenders for municipal land. The expansion of charging infrastructure for electric lorries on motorways is a particular cause for concern.

Background: Around two-thirds of the planned motorway charging parks were awarded directly to the company without a tender process.  

DISTRICT HEATING 

The German government aims to provide district heating to 30 per cent of households by 2045 and to decarbonise the system completely. This can only succeed if district heating is affordable. “At present, local district heating monopolies can drive up costs for consumers,” says Tomaso Duso. Competition from gas or oil heating systems is steadily declining. The Monopolies Commission recommends a mandatory transparency platform, a low-bureaucracy benchmark for price caps, and access regulations for larger district heating networks to enable greater competition within and around the networks. Only in this way can district heating be established as a cornerstone of the energy transition. GAS Structural change is also on the horizon for the gas network: gas as an energy source is to be phased out completely by 2045 at the latest. But what will become of the gas networks once they are no longer needed? Without early political action, remaining customers face the risk of high network costs. It is currently unclear who will finance the dismantling or decommissioning of the gas networks.

“The energy transition can only succeed if people are on board. Our recommendations set out a clear roadmap for a sustainable energy system in Germany. Competition and efficiency can resolve the current problems,” summarises Tomaso Duso.