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Germany鈥檚 Federal Network Agency (BNetzA) for a wider reform of the system of fees that finance the country鈥檚 electricity grid and is considering an option where electricity producers pay, in a possible shakeup to the current framework built on payments by end consumers.

In outlining different options, the agency said that there is currently no fee on the feed-in of electricity into the grid, unlike in other European countries or when it comes to the gas pipeline network. The key driver of grid development needs and costs was the expansion of renewable energy, said the agency. 鈥淐onsumption is charged with fees even though it is not the main cost driver,鈥� it added.

The electricity grid fee system must undergo reform for several reasons BNetzA president Klaus M眉ller said. 鈥淭he number of users who pay the full amount of fees is constantly decreasing 鈥� while costs are rising at the same time,鈥� he said. The system was also lacking incentives that reward flexible behaviour, as well as effective signals as to how and where electricity generators can be operated cost-effectively in order to avoid an unnecessarily expensive expansion of the grids.

Germany鈥檚 electricity system is increasingly shifting to fluctuating renewable energy sources as its main power generation technology, which is creating challenges for the country鈥檚 grid operators. Previously, conventional power plants ran flexibly to meet demand. Now, a change of weather can result in a sudden influx of electricity in a more decentralised grid, which must be expanded, modernised and adapted. However, in Germany and across the EU, planned grid investment are falling short of expansion needs.