“We are right in the midst …”

The German electricity grid must be shaped and designed for security and sustainability. Arvid Gillert, Senior Manager Energy Technology at the Association of the German Electro and Digital Industry (ZVEI), explains how this can be achieved and what German companies have to offer.

Arvid Gillert (AG): The grids are facing tremendous challenges: on the one hand, more and more volatile generators need to be integrated, while on the other, developments such as electromobility are upping the demands made on grid capacities. In this context, technology openness means that the technologies deployed must be tailored to the specific requirements – without being unnecessarily restricted by historically evolved specifications. The technical connection conditions of the grid operators, for example, are often too strongly focussed on individual solutions. Instead, we should focus on available and near-series technologies in order to be able to scale faster and boost network efficiency.

AG: As part of a study, we have compiled profiles of technologies that are already available today, but are not yet sufficiently utilised from our viewpoint. Intelligent local substations are a good example. There is still considerable potential in the use of such technologies – especially with regard to the digitalisation of network components. We can already make significant progress here with existing resources without having to wait for revolutionary new developments.

AG: The current regulatory framework is still strongly orientated towards the structures of the past. To date, network operators have had little incentive to invest in matters such as the digitalisation of their networks – they have mainly implemented what has been promoted by regulation. The Federal Network Agency is now sending out important signals by focussing on so-called energy transition expertise: Grid operators should position themselves for the future and take the necessary steps, such as a forward-looking grid expansion, at an early stage. So far, there has been a lack of incentives here and the grid operators have only pushed ahead with grid expansion to the extent that is directly necessary. Given the increasing requirements of electromobility and heat pumps, for example, grid expansion cannot wait until the demand is there – things must be handled proactively.

AG: Germany is not in an unfavourable position – the progress made in recent years should also be emphasised. Looking at the figures for 2024, 52 per cent of electricity consumption will be covered by renewable energies. In 2005, the figure still stood at 10 per cent. The infrastructure is also solid overall and provides a good foundation. The task now is to expand on this and make things fit for the future. Digital solutions play a key role here. The manufacturers organised in ZVEI already have numerous innovative technologies in their portfolios. Now it's all about scaling, where Germany needs to do even better. Consequently, we still need physical expansion in Germany. But it will not succeed without harnessing digital solutions.

AG: That is de facto the case. The ZVEI Energy Technology Association, which represents the relevant manufacturers, is particularly aware of these tremendous demands. This is also reflected in investments – both in personnel and in the expansion of production capacities. However, there is a certain drop of bitterness here: these investments do not always take place in Germany and Europe. Here, too, we are facing global competition. Where better location conditions prevail, investments will ultimately be made. Politicians could take countermeasures here – by reducing bureaucracy and streamlining authorisation procedures.

AG: We are right in the midst of this, but there is still a lot to do. We are seeing successes on the feed-in side and progress is also being made in terms of grid expansion. We have the impression that network operators have also recognised the needs and are taking action. However, consumers also appear to be disconcerted to some extent by politics when it comes to switching to electricity-based technologies and the price of electricity itself. In order to counter this uncertainty, it is important to consistently relieve the electricity price of all levies and to incentivise grid-friendly behaviour by way of pricing signals. This is how we are driving the energy transition forward – and thereby also sector coupling at the same time.