2025-01-30 11:00: Bundestag Committee Report on Draft Law to Amend Energy Law to Avoid Temporary Generation Surpluses
On January 30, 2025, the German Bundestag’s Committee on Economic Affairs and Energy published a report (Drucksache 20/14795) on a draft law submitted by the SPD and Green Party parliamentary groups (Drucksachen 20/14235, 20/14773) to amend the Energy Industry Act to prevent temporary generation surpluses.
Background
As Germany transitions to a renewable energy system, the intermittent nature of renewable generation sources, such as wind and solar power, poses challenges to maintaining grid stability and ensuring reliable power supply. In particular, during periods of high renewable generation and low demand, temporary imbalances can occur, leading to generation surpluses and destabilization of the grid.
Proposed Law
The draft law aims to address this issue by introducing new measures to prevent and mitigate temporary generation surpluses and reduce their impact on grid stability. Key provisions of the law include:
- Establishment of a “Curtailment Registry”: This registry will track curtailment events and identify critical curtailment periods when grid stability is at risk.
- Obligation to Reduce Generation: Generators will be required to reduce their output upon notification of a critical curtailment period.
- Compensation for Reduced Generation: Affected generators will be compensated for lost revenue resulting from reduced generation.
- Deployment of Demand Response Programs: The law encourages the use of demand response measures, such as load shifting and flexible consumption, to reduce demand during peak generation periods.
Committee Report
The committee’s report evaluates the draft law and provides recommendations for its improvement. The committee generally supports the proposed measures but identifies several areas for further clarification and refinement:
- Compensation Mechanism: The report stresses the importance of establishing a fair and transparent compensation mechanism to ensure that generators are adequately compensated for lost revenue.
- Flexibility Requirements: The committee recommends considering more flexible curtailment obligations for generators, allowing them to respond to grid conditions in a manner that optimizes their operations.
- Data Accessibility: The report emphasizes the need for transparent and accessible data on curtailment events and critical curtailment periods to facilitate effective analysis and monitoring.
Next Steps
The draft law will now be considered by the Bundestag in its second and third readings, where further amendments and discussions are expected. The final version of the law is likely to be enacted in the coming months.
Significance
The draft law represents a significant step towards addressing the challenges associated with integrating renewable energy into the German grid. By preventing and mitigating temporary generation surpluses, the law aims to enhance grid stability, improve reliability, and reduce potential system costs. The enactment of the law will also contribute to Germany’s ambitious goal of achieving a climate-neutral energy system by 2045.
20/14795: Bericht gemäß § 96 der Geschäftsordnung zu dem Gesetzentwurf der Fraktionen SPD und BÜNDNIS 90/DIE GRÜNEN – Drucksachen 20/14235, 20/14773 – Entwurf eines Gesetzes zur Änderung des Energiewirtschaftsrechts zur Vermeidung von temporären Erzeugungsüberschüssen (PDF)
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