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"Securing a Gigawatt of Power is Imperative"

Energy sector in Germany advocates for increased gas-powered capacity and lower electricity taxes. They urge prompt action from the incoming government post-February election.

"Securing a Gigawatt of Power is Imperative"

In a post-election turnaround, the energy and water utilities association BDEW is pushing for a swift resumption of the Power Plant Safety Act (KWSG), highlighting the urgent need for additional dispatchable power plant capacity.

Kerstin Andreae, Chairwoman of the BDEW Executive Board, insists that this matter should be high on the priority list for the next federal government. "We need gigawatts," she emphasized, emphasizing the importance of this move for securing supply and grid stability and implementing the coal phase-out.

While renewable expansion is ongoing, BDEW warns about the growing challenges posed by grid instability due to the solar boom. Half of the installed photovoltaic (PV) capacity is below the 100-kilowatt limit and may potentially feed into the grid in an uncoordinated manner. To address this, the energy association is advocating for an 'active power limit' to be introduced before the election to regulate PV peaks.

Despite these challenges, Germany's power supply security remains strong, making it an attractive factor for business locations. Grid expansion is showing results, with grid bottleneck costs expected to fall to 2 billion euros in 2024. Andreae attributes the rise in electricity imports to price differences within the EU internal electricity market, not shortages.

The energy sector also hopes for the extension of the Combined Heat and Power Act and faster authorization procedures under the new EU Renewable Energies Directive before the election. BDEW also favors post-election simplification of the Heating Act and revisiting electricity costs, such as reducing the electricity tax.

Amidst these developments, the potential resurgence of the KWSG could introduce critical trade-offs, particularly concerning grid modernization safety protocols. Grid expansion, digitalization, and hydrogen infrastructure plans are expected to be resolved within the mid-2020s, but incorporating stricter safety requirements for hybrid grid integration could offset some of the potential efficiency gains brought about by streamlined permitting processes. The KWSG's revival would likely necessitate careful harmonization with existing frameworks such as the Net-Zero Industry Act and the Energy Efficiency Act to avoid delays and maintain a balance between safety and rapid infrastructure upgrades.

  1. The BDEW emphasizes the need for gigawatts of dispatchable power plant capacity, as part of their push for a quick resumption of the Power Plant Safety Act (KWSG).
  2. Kerstin Andreae, Chairwoman of the BDEW Executive Board, underscores the importance of the KWSG in securing supply and grid stability, as well as implementing the coal phase-out, for the next federal government.
  3. While the renewable-energy industry is expanding, BDEW voices concerns about grid instability due to the solar boom, and advocates for an 'active power limit' to regulate PV peaks before the 2024 election.
  4. The sector is also optimistic about the extension of the Combined Heat and Power Act and faster authorization procedures under the new EU Renewable Energies Directive, along with post-election simplification of the Heating Act and revisiting electricity costs such as reducing the electricity tax.
  5. The potential revival of the KWSG could involve critical trade-offs, particularly with regard to harmonizing grid modernization safety protocols, grid expansion, digitalization, and hydrogen infrastructure plans, as well as balancing safety and rapid infrastructure upgrades with existing frameworks like the Net-Zero Industry Act and the Energy Efficiency Act.
Germany's energy sector advocates for the growth of gas-powered energy and a decrease in electricity tax. They urge the incoming administration, post-February election, to take prompt action.

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