(de-news.net) – By more tightly linking generation capacity to the availability of grid infrastructure, a legislative package advanced by Germany’s Minister for Economic Affairs, Katherina Reiche (CDU), seeks to contain the costs associated with the continued expansion of renewable energy. A draft bill circulated to media outlets emphasizes that the rapid growth of wind and solar generation has exceeded the pace of investment in transmission and distribution networks, resulting in increasingly frequent curtailments of renewable output. At present, operators are compensated for electricity that cannot be fed into the grid, a mechanism that entails annual expenditures of several billion euros. The proposal would partially abolish this compensation regime and require project developers to assume a share of the financial burden for grid development.
More detailed provisions are set out in a 36-page draft of the so-called “grid package,” published on January 30. The document outlines measures intended to reduce the attractiveness of regions already facing significant grid congestion for additional renewable investments. Areas would be designated as capacity-constrained zones if more than three percent of the electricity generated there in the previous year could not be delivered to the grid. In such regions, developers seeking to build new renewable facilities would receive immediate grid access only if they agreed to waive compensation for future curtailments for a period of up to ten years.
Curtailment, which grid operators employ to prevent overload during periods of strong wind or high solar irradiation, has until now been treated as a predictable and compensated element of renewable project economics. Industry representatives warn that removing this financial safeguard would materially weaken the economic foundations of many projects, particularly given that several regions already exceed the proposed curtailment threshold.
In addition, the draft authorizes grid operators to impose construction cost contributions on new renewable installations, obliging developers to partially finance grid optimization, reinforcement, and expansion. This provision would further raise upfront investment requirements. The Economy Ministry has stated that it is preparing additional measures designed to improve coordination between the rollout of renewable generation and the development of grid infrastructure, and that these measures are to be presented for public consultation.
Simultaneously, grid operators are confronting exceptionally strong demand for new grid connections, especially from large-scale battery storage projects. Applications totaling roughly 400 gigawatts of storage capacity have reportedly been submitted, despite expectations that only a fraction of these proposals will ultimately be realized. Renewable generators, storage operators, industrial facilities, data centers, charging infrastructure, and telecommunications networks are all competing for limited grid access. The grid package is intended to broaden the legal basis for prioritizing such competing requests.
The initiative has drawn criticism from the Green Party, whose parliamentary leadership contends that the proposed measures would impede, rather than support, the continued expansion of renewable energy in Germany.
