A dispute is brewing within the federal government concerning the plans for the electricity grid, spearheaded by Economics Minister Katherina Reiche (CDU). Environment Minister Carsten Schneider (SPD) voiced his concerns to the “Süddeutsche Zeitung”, stating, “I still see considerable room for improvement”. He argued that the energy transition cannot end up being slower and more expensive simply because the legislation creates new uncertainties. Schneider asserted that the correct response to the fossil energy crisis now mandates that “local renewable energies have complete priority” calling them “the cheapest energy source of our time”. The draft for the so-called grid package, which was revealed yesterday, outlines massive restrictions on expanding green electricity in certain regions. Under Reiche’s current proposal, grid operators will eventually be able to designate areas as “capacity-limited” if, due to line overload, power generation there drops by more than three percent in a given year. In such zones, new wind or solar farms could only be established if their operators waived any right to compensation for electricity that they could not feed into the grid. Trade groups for green electricity have strongly objected to this “redispatch reserve”. They argue that this provision complicates the financing of new projects because predictable revenue streams become difficult to calculate. Furthermore, environmental groups caution that this requirement undermines all efforts to accelerate the expansion of wind energy.



