Germany outlines plan to expand, digitalise power grids

The digitalisation of distribution grids is one of the main priorities of the German Federal Network Agency, which presented ambitious plans on Monday (26 June) for the expansion of the country’s electricity grid.

The Federal Network Agency, Germany’s central infrastructure authority, wants to double the already completed procedures from 440 kilometres of high-voltage lines to 900 km by the end of 2023.

The agency aims for 2,800 km to be approved by the end of next year and 4,400 km by the end of 2025.

The expansion of electricity highways is intended to link the northern region, where wind power is generated, with the south and west of Germany, where the largest industrial consumers of electricity are located. The agency did not elaborate on the costs of Germany’s electricity grid upgrade.

However, the federal government also has plans for the distribution level – the final stage in electricity delivery, where power is carried from high-voltage lines to the individual consumer.

Although grid expansion is the responsibility of Germany’s 16 federal states, the central government in Berlin has also set in motion a national legal framework for “smart grids”, with its Act on the digitisation of the energy transition, which came into force at the end of May.

The digitisation of grids “is currently being discussed mainly in the distribution grid sector, as digitisation has not yet progressed as far here,” a spokeswoman for the Federal Network Agency told EURACTIV.

Digitalisation of the energy transition

Digitalised grids are becoming essential to the green transition as EU countries install growing amounts of intermittent renewable electricity capacity.

“Smart grids” are intended to ensure an optimal allocation of electricity flows, based on an integrated data and energy network. At consumer’s premises, remotely communicating digital electricity meters – or “smart meters” – enable biderectional exchanges of electricity between consumers and energy service providers.

But Germany is currently a European laggard when it comes to the installation of smart meters, with a penetration rate currently close to zero.

To catch up, Germany’s economy and climate minister, Robert Habeck, announced a plan in January to accelerate the roll-out of smart meters.

According to the Federal Ministry for Economic Affairs and Climate Action, the installation of such smart metering systems will be mandatory from 2025 for households with an annual electricity consumption of more than 6,000 kilowatt-hours or a photovoltaic system with an installed capacity of more than seven kilowatts.

“The law to relaunch the digitalisation of the energy transition aims to accelerate the smart meter rollout. This will mainly have an impact on the digitalisation of distribution grids,” a spokesperson said.

Expansion of the electricity grids

A massive expansion of Germany’s power grid will be needed to meet the country’s goal of sourcing 80% of its electricity from intermittent sources like wind and solar by 2030.

“Electricity demand is rising, and at the same time generation is changing. Smaller additions are therefore no longer sufficient,” the Federal Network Agency spokeswoman explained.

“This is mainly due to three goals that Germany has set for itself: the switch to renewable energies, continued high security of supply, and electricity trading within Europe,” she added.

In determining the needs, the infrastructure authority relied on a scenario framework, which outlines the likely developments of the German energy landscape in the coming years and lists concrete expansion measures of the transmission system operators.

“Once the network development plan is confirmed, it is clear which expansion measures are necessary,” the spokesperson told EURACTIV.

Decisions on where to place individual power lines will be made at a later stage.

cover photo:The Federal Network Agency, Germany's central infrastructure authority, wants to double the number of already completed procedures from 440 kilometres of high-voltage lines to 900 kilometres by the end of 2023. The agency aims for 2,800 kilometres to be approved by the end of next year and 4,400 kilometres by the end of 2025. [Panchenko Vladimir / Shutterstock]