IKEM – Institute for Climate Protection, Energy and Mobility has analyzed reform approaches to the structure of network charges. Five proposals were examined that provide for a fundamental redesign of the system of network charges. The analysis was published today and was developed within the framework of “WindNODE” project.
Network charges urgently need to be reformed: They have been rising continuously for years and their level varies considerably from region to region, especially between urban and rural areas and between northeastern and southern Germany. The system of network charges leads to a overlapping of the price signal of the electricity market, and noticeable price incentives are therefore hardly perceptible for end consumers. Moreover, the system does not provide any incentive to leverage flexibility potentials on the consumer side.
There are numerous proposals for what a future network charge structure could look like. In its legal opinion, IKEM has processed, systematized and prioritized these proposals. The analysis presents five reform proposals that envisage a fundamental redesign of the network charge system: A bidirectional cost rollup, a nationwide standardization of (distribution) grid charges, grid charges for feed-in variable grid charges, and a capacity price.
Based on the literature research and a stakeholder workshop with experts from the SINTEG project WindNODE, the examined proposals were evaluated and also examined for their legal feasibility.
You can find a summary of each proposal in the PDF below. You can download the entire study here.
