The electricity system in Germany is in the midst of a transformation. The main reason is the expansion of renewable energies from wind and solar. This has consequences.
The Federal Ministry of Economics has presented proposals for reforming the electricity system in Germany. The central idea is to be a new so-called capacity mechanism, which is to be introduced by 2028. In a paper, the department headed by Robert Habeck (Greens) presented various models for this.
In the future, renewable energies from wind and sun will cover most of the electricity supply. But there will also be “dark lulls” when there is no wind and no sun. Then so-called “flexible” power plants such as new gas-fired power plants and storage facilities will step in as backups – to ensure a secure electricity supply at all times. They will also compensate for seasonal fluctuations in the generation of renewable energy.
Incentives for drivers of electric cars
However, these “controllable loads” may only run for a few hours a year. A capacity mechanism will now be used to reward suppliers in tenders for providing power plant capacity – even if they do not produce any electricity.
The Ministry of Economic Affairs named four areas of action in a paper. In addition to the future reform of renewable energies, these include more flexibility in electricity use – in other words, incentives so that users charge their electric cars when electricity is cheap.
Electricity system in transition
A paper from the ministry states that Germany’s electricity system is in the midst of a comprehensive modernization. Germany is to become climate-neutral by 2045. Sun and wind are increasingly the main sources of electricity generation. The phase is now beginning in which it should be possible to cover the electricity supply entirely with renewable energies, in which a “massive electrification” of the energy supply in heating and transport is imminent and coal, oil and gas are finally replaced as fossil energy sources.
The aim of the “electricity market design” of the future is a secure, affordable and climate-neutral electricity system. A public consultation on the proposals will initially take place until the end of August.
Source: Stern
