The energy transition poses enormous challenges for distribution system operators – from massive connection requests for renewable energy systems, storage, and charging infrastructure to the digitalization of their processes.

In our expert report, prepared together with FGH, on quality regulation with regard to energy transition capability and service quality for electricity distribution grids, we examined how the energy transition capability of grid operators can be objectively measured, compared, and systematically strengthened through an effective incentive framework.

Key findings of the report:

• Output instead of input: What matters is not which measures grid operators take (these must always consider local requirements), but what effect is achieved. The evaluation focuses on how many systems are actually connected and how quickly – in comparison with grid operators under similar conditions.
• Three indicators of energy transition capability:
  • Connection of renewable energy systems
  • Connection of consumer facilities & storage systems
  • Grid connection time
• Digitalization index: Four dimensions (smart grids, processes & systems, data management, customer interface) with particularly strong influence on energy transition capability make the level of digitalization of individual grid operators and the sector as a whole transparent. Currently, the average is only around 25%, with a wide gap between pioneers and laggards.
• Monetary incentive mechanism: Through CO₂ savings, a bonus/penalty system can be designed that specifically motivates grid operators to connect faster and more efficiently.

The Federal Network Agency’s (BNetzA) position:
The BNetzA has largely adopted the recommendations of our report:

• The proposed indicators are being implemented.
• The digitalization index will be introduced and published.
• A financial incentive system for energy transition capability is planned.
• For grid service quality, the BNetzA acknowledges its relevance but is initially refraining from monetary regulation.

This sets a strong signal: The ability of grid operators to actively implement the energy transition with digital support will henceforth be systematically assessed and rewarded.

We are pleased that our work has made a key contribution to further developing quality regulation – and thus to the successful implementation of the energy transition in Germany.

Our report as PDF (German language)