The planned expansion of renewable energies (RE) and load-side flexibilities is unprecedented and is taking place at a rapid pace. As grid expansion is significantly more complex and lengthy than the site-specific planning of RE plants, the imperative grid expansion will continue to lag behind the requirements of RE expansion in the future. The number and scope of bottlenecks will increase significantly in Germany in the coming years. This makes grid expansion very important. In addition, load-side flexibilities can reduce costs for congestion management and increase system security. However, grid operators have only very limited opportunities to use them today.

Based on the evaluation of a broad spectrum of instruments, this paper selects, concretises and provides a first possible operationalisation of approaches for the use of flexibility in high and medium voltage. The proposal contains three building blocks that complement each other and can, but do not have to, be used by grid operators according to demand:

  1. Complementary market-based redispatch: The existing redispatch 2.0 processes are expanded within the framework of a “hybrid model” to include the voluntary offer of load-side flexibilities. This has the potential to resolve impending congestion with all efficient means. In this context, the priority implementation of redispatch 2.0 and the connectivity of complementary market-based redispatch is indispensable.
  2. Review of network tariffs: Network tariffs must not stand in the way of activating flexibility. A development or further development of congestion-oriented tariffs, for example by grid operators forecasting periods with grid congestion and communicating a financial incentive (both positive and negative) for consumers in high and medium voltage, can help shift electricity consumption to corresponding periods. Foreseeable grid congestions would thus already be taken into account in the schedules.
  3. Location incentives: Incentives for locating at grid-relieving sites. This stimulates demand-side flexibility at the right location.

The E-Bridge paper (German language) can be found at https://www.bdew.de/media/documents/E-Studie_E-Bridge_fur_BDEW_Flexibilitat_bei_Netzbetreibern.pdf, the entire BDEW market design (German language) at https://www.bdew.de/energie/ein-langfristiges-marktdesign-fuer-deutschland/.

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Dr. Christian Kraemer
Principal Consultant
Leader Distribution System Operators