Short-term grid bottlenecks unlikely to be resolved by dynamic fees – operators

Setting higher prices for using the grid at times of high demand is unlikely to do much to resolve short-term bottlenecks, two transmission system operators (TSOs) said at a stakeholder discussion organised by the Federal Network Agency (BNetzA). Representatives from TSOs Transnet BW and 50 Hertz said that while dynamic grid fees might lower the need for general grid congestion management, they would have no significant effect on spontaneous bottlenecks in the transmission grid, Tagesspiegel Background reported.

So-called redispatch occurs when grid operators step in to keep electricity supply and demand in balance. This includes curtailing renewable power feed-in in one area while ramping up electricity generation in another. BNetzA expects redispatch costs to rise to 3.7 billion euros in 2026, from 2.7 billion in 2024, Tagesspiegel Background reported.

BNetzA published a discussion paper in December proposing the introduction of dynamic grid fees from 2029. Dynamically changing the charges for using the grid should ensure that future grid fees not only cover management costs, but also guide electricity use, feed-in, and investment decisions, BNetzA said.

Ensuring that flexible electricity use is accounted for in Germany's grid fee reform could allow for lower electricity bills, according to a group of energy providers and mobility service companies which provide dynamic contracts. Grid fees currently make up a significant share of electricity bills, and minimising them could be made possible by examining cost efficiency, cost responsiveness, and cost drivers liked to the timing and location of grid use, they said.