Expansion of renewable energy: "Reform projects are heading in the wrong direction"

The German government is planning reforms to several laws to make the expansion of renewable energies more efficient and to align it with grid expansion. From the ZVEH's perspective, these plans are headed in the wrong direction.

The German government is currently planning amendments to the Renewable Energy Sources Act (EEG), the grid package, and the Electricity Supply Security and Capacity Act (StromVKG). The aim of the reforms is a more efficient expansion of renewable energies. This expansion is also to be aligned with grid expansion. The Central Association of German Electrical and Information Technology Trades (ZVEH) criticizes the government's plans. They argue that the plans are misguided because they will hinder public participation in the energy transition and thus reduce public acceptance of it.

Stefan Ehinger Photo: © Elektro Ehinger GmbH

“We are in favor of a cost-efficient energy transition,” explains Stefan Ehinger, President of the ZVEH (Central Association of German Electrical and Information Technology Trades). However, the federal government must create the necessary conditions for grid expansion, the digital energy transition, energy tax reform, and emissions trading. “The current legislative package is unfair. It unilaterally slows down the expansion of renewable energies without requiring grid operators to undertake the necessary expansion, without fully pricing climate-damaging emissions in the market, and without ending the fourfold higher tax burden on electricity compared to gas.”

The federal government is pitting the energy transition against the economy instead of leveraging its potential. Ehinger: "Many craft businesses, as demanded, occupied future-oriented sectors after the last energy crisis. Now they're reversing course. Where is the promised stability? Where is the overall plan for the energy transition?"

This is what the ZVEH says about the EEG reform:

The German Electrical and Information Technology Association (ZVEH) warns that the complete elimination of feed-in tariffs for new photovoltaic (PV) systems could cause massive uncertainty among consumers and therefore rejects this plan. Under the current energy policy framework, the tariff is a crucial factor, especially for private investors, ensuring the profitability of their investments. According to the ZVEH, tenant electricity models also become less attractive if the feed-in tariff is eliminated. The option of directly marketing electricity generated by one's own system is not a viable alternative, as this is only feasible to a very limited extent for small PV systems in practice.

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It is particularly paradoxical that new rooftop PV systems up to 25 kilowatt-peak (kWp) are slated to receive no subsidies for fed-in electricity from 2027 onwards. Stefan Ehinger: "These systems, in particular, enable private households and small businesses to participate in the energy transition. At the same time, they contribute to relieving the strain on the grid and – in the event of blackouts – to ensuring the security of supply for private households and small businesses." The association points to the loss of trust associated with the abrupt suspension of established support schemes.

The ZVEH (Central Association of German Electrical and Information Technology Trades) is thus also refuting claims that feed-in tariffs only benefit homeowners. Tenant electricity, they argue, addresses 60 percent of the population who do not live in their own homes. Without small rooftop systems, only energy companies, not private citizens, could participate in renewable energy. While the ZVEH welcomes the planned elimination of tiered feed-in tariffs for new systems up to 100 kWp, it views the announcement that all PV systems above two kilowatts must be controllable with skepticism.

"Especially with older systems, the costs of equipping them with smart metering systems are disproportionate to the benefits," explains the ZVEH president. Often, equipping older inverters with communication interfaces is simply not technically feasible. Therefore, the focus of the smart meter rollout should be on new PV systems. All responsible metering point operators should be obligated to equip every metering point behind which a new PV system has been installed with smart meter and control technology within a specific timeframe. 

This is what the ZVEH says about the network package:

The ZVEH (Central Association of German Electrical and Information Technology Trades) demands that grid connection and commissioning procedures be accelerated and made more digital. The association therefore welcomes the requirement that, from 2028 onwards, grid operators must ensure that all grid connection processes at all network levels can be carried out entirely via a digital web portal. "However, it must also be ensured that these portals are designed according to uniform standards, and automation must be introduced much faster to increase efficiency; a digital mailbox for PDF documents with otherwise identical processes is of no use to anyone," emphasizes Stefan Ehinger.

Regarding the planned designation of grid-limited areas and the redispatch reservation, he clarifies: "It is fundamentally correct that power generation plants must assume greater system responsibility in order to limit the costs of grid expansion and redispatch. However, this must not further slow down the urgently needed grid expansion." The ZVEH criticizes the fact that the planned designation of "grid-limited areas," in which redispatch compensation for new plants would be waived, represents an incalculable risk for investors. The consequence could be that the construction of larger wind and solar farms becomes less attractive.

This is what the ZVEH says about the electricity supply law reform:

The Electricity Supply Act (StromVKG) is intended to help ensure sufficient generation capacity from 2031 onwards. The German Association of Energy and Water Industries (ZVEH) considers it problematic that the criteria for the first round of tenders are designed in such a way that practically only gas-fired power plants meet the requirements. Battery storage systems, which can also make a significant contribution, are excluded. The association finds it particularly incomprehensible why explicitly hybrid solutions – for example, the combination of gas-fired power plants and battery storage or grid-supporting storage park clusters – are not allowed to participate in the tender.

"From the ZVEH's point of view, this violates the principle of technological neutrality propagated by this federal government," explains Ehinger, pointing out that this could result in unnecessarily high electricity prices: "We also believe it is wrong to rely primarily on gas to ensure power plant capacity, knowing the risks of fossil fuels."

Source: ZVEH

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