On the Progress in Flexibility and Grid Charges in Light of the Energy Transition : The Case of Germany

Title data

Hanny, Lisa ; Wagner, Jonathan ; Buhl, Hans Ulrich ; Heffron, Raphael J. ; Körner, Marc-Fabian ; Schöpf, Michael ; Weibelzahl, Martin:
On the Progress in Flexibility and Grid Charges in Light of the Energy Transition : The Case of Germany.
In: Energy Policy. Vol. 165 (2022) . - 112882.
ISSN 0301-4215
DOI: https://doi.org/10.1016/j.enpol.2022.112882

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Abstract in another language

In the course of the energy transition, flexibility on the demand side is crucial to balance intermittent supply from
renewable energy sources. In Germany, however, a large part of the demand side flexibility potential remains
unused, especially due to an outdated and inappropriate grid charges regulation. In this respect, policymakers
have failed to align their regulatory instruments, e.g., grid charges, to the flexibility requirements of the energy
transition. Moreover, regulatory and planning uncertainties regarding the long-term vision for future electricity
systems inhibit flexibility investments – marking another policy failure. Although the above issues are known to
policymakers for quite some time, too little has been done to further develop corresponding regulation. This
policy inaction results from a decision-making dilemma, in which policymakers did not reach a solution that
benefits all stakeholders involved in the grid charges debate (e.g., energy-intensive and less energy-intensive
electricity consumers). Solving the policy failure in the form of a revised and future-proof grid charges regula-
tion will, however, increase the prospect of a just outcome for society and, more specifically, recognition and
cosmopolitan justice. In this paper, we outline how grid charges inhibit demand side flexibility in Germany and
which policy failures have ultimately contributed to stuck political decision-making. We further provide concrete
suggestions of how existing policy failures may be corrected in order to ensure a successful energy transition as a
policy guide for Germany and other countries all around the world.