The passage "Use instead of regulating" has existed in the Energy Industry Act (EnWG) since 2017. However, this has hardly been used in recent years due to its complexity. However, the rapid increase in the share of renewable energies in the German electricity mix and the sluggish expansion of the grid are making the issue increasingly urgent.
In 2023 alone, renewable energy installations in Germany were redispatched by 10 TWh curtailed. This accounted for around 4 % of total generation from renewable energies. This curtailment not only leads to a loss of climate-neutral electricity, but also to rising Redispatch-Costs. Based on the original strategy, a new draft called "Utilization instead of curtailment 2.0" was therefore agreed at the end of 2023 and included in Section 13k EnWG. This now also includes the use of state-of-the-art technologies and new regulatory measures.
A total of 21 associations, interest groups and companies took part in the consultations. Nevertheless, Klaus Müller, President of the Federal Network Agency, emphasized at the end that the new instrument No replacement for a fast and demand-oriented Grid expansion represents.
Objectives of "Use instead of regulating 2.0"
The aim of "Utilization instead of curtailment 2.0" is to optimize the integration of renewable energies into the German electricity grid and to increase the efficiency of the entire energy system. The central concern is the Reduction of the curtailment of wind and solar plants due to grid bottlenecks. Surplus electricity is to be generated by a additional electricity demandwhich would not have taken place without this instrument. The aim is to use forecasts and allocation procedures to adapt demand to periods of high generation and control it regionally.
Functions and key points of "Use instead of regulating 2.0"
"Utilization instead of curtailment 2.0" envisages initially selling the curtailed electricity volumes to additional consumers at a low price. After this initial test phase, in which a simplified allocation procedure applies, the surplus electricity will later be used in a Auction procedure to switchable load facilities in relief regions. To this end, the new Section 13k EnWG allows the four transmission system operators (TSOs) to allocate electricity to operators of switchable loads at a reduced price. Tennet, Amprion, 50Hertz and Transnet BW publish a daily 24-hour forecast of the surplus electricity in the respective relief regions. This allows eligible consumers to plan their electricity consumption in such a way that there are no grid bottlenecks on the following day.
The Federal Network Agency (BNetzA) and the TSOs have designed and defined specific criteria for participation in "Utilization instead of curtailment 2.0" by mid-2024. Accordingly, in the first step, operators of plants that Generate heat electrically or Grid-connected storage participate. The following are also eligible to participate Electrolyzers and Large heat pumps. The range of participants will later be extended to include other sector coupling technologies.
Trial phase and future developments
From October 1, 2024, the transmission system operators will start a two-year trial phase with the simplified allocation procedure. From April 1, 2025, distribution system operators will also be able to use the instrument. The competitive tendering procedure will be developed in parallel.