Federal Economics Minister Katherina Reiche has submitted new energy legislation for inter-ministerial review because an increasing number of wind and solar power plants are being built in congested grid areas. E.on CEO Leonhard Birnbaum backed the grid package at the company’s annual general meeting. He sees an imbalance because redispatch, curtailment, and compensation measures will cost billions. These costs are passed on to private households and industry through grid fees. At the same time, environmental organizations and representatives of citizen energy projects criticize the reform as an attack on the expansion of renewable energies. (welt: 27.04.26)
Grid bottlenecks drive up the costs of the energy transition
A comprehensive grid package aims to direct new installations more towards areas where existing grid capacity is available. Therefore, the ministry intends to manage expansion regionally. Wind and solar power should no longer be generated in areas where the grid can barely absorb it.
The situation has worsened considerably. Applications for grid connections have not only doubled, but quadrupled. Furthermore, solar power plants with a capacity of 17.5 gigawatts were added last year alone.
System imbalance – Birnbaum calls for new regulations
Robert Habeck had to respond with a PV peak load law. Excessive solar peaks could jeopardize grid stability. At the same time, this step demonstrates that the problem does not stem from a rejection of renewable energies.
Birnbaum considers the first phase of the energy transition complete. “With the expansion of capacity, the first half of the energy transition is finished,” he said. Now, efficiency and affordability must be given greater priority.
Redispatch Reservation Intended to Guide Site Selection
However, Birnbaum argues that the current legal framework creates perverse incentives. For operators, the location is of little economic importance. This results in an imbalance within the overall system.
Birnbaum cited E.on subsidiary Edis as an example. There, wind turbines have to be curtailed for up to 1,500 hours per year in extreme cases. At the same time, these turbines only operate for around 3,000 hours annually.
E.on Points to Billions in Grid Investments
Reiche is therefore examining several instruments. These include construction cost subsidies for wind and solar power plants. Flexible grid connection agreements could also better adapt feed-in to the grid situation.
The redispatch reservation, however, is particularly controversial. In regions with more than three percent of renewable energy production curtailed, new plants could lose their compensation for ten years. Critics therefore warn of a de facto halt to expansion.
E.on also emphasizes its role in grid expansion. The company plans to invest around 40 billion euros in its grid by 2030. Furthermore, many wind turbines, solar power plants, and large batteries are already connected to the E.on grid.