In many regions of Germany, grid fees will continue to rise significantly next year, leading to higher energy costs for many industrial and commercial companies. Grid fees account for about 20 percent of total electricity costs, but depending on the region, significantly more. The result is thus generally higher operating costs for affected companies.
Significant price increase in grid fees in south-west Germany
The largest increase in the provisionally published grid fees in a nationwide comparison was recorded by the transmission system operator TransnetBW. The company has announced a price increase of 10 percent as of 1 January 2021. The reasons given are the investments in the expansion of the transmission grids due to the energy transition and the maintenance of grid and system security. In addition, the third step in the implementation of the Grid Tariff Modernisation Act (NEMoG), which aims to standardise transmission grid tariffs by 2023, will take place next year. The relatively low grid fees in Baden-Württemberg compared to the rest of Germany will thus be a thing of the past — the grid fees will also rise to the targeted uniform level in the coming years. The downstream distribution grid operators cannot avoid passing on these price increases to their end customers.
Enormous cost burden for important industrial locations
The GET AG map shows which distribution grid regions in Germany are affected by high grid fees. For example, the eastern part of Germany is also affected by high prices: the transmission system operator 50Hertz is increasing its charges by 7 percent, so that the costs per kW are rising to 120 euros and higher. In isolated regions, there are also price increases of more than 10 percent, for example at the distribution grid operator Westnetz: here, the price per kW rises from 88.78 euros to 100.60 euros, i.e. by 13 percent. Or by as much as 32 percent, as at Versorgungsbetriebe Hoyerswerda, where the price increases from 82.48 euros to 109.19 euros per kW.
For the affected companies in these regions, the question now is how they can compensate for the continuously rising energy costs.
Save grid costs through load management with battery storage systems
An energy management system (EMS) monitors the electricity consumption of the industrial customer in order to take countermeasures when a peak load is reached. If the EMS reports a load peak, electricity from this battery storage is fed into the customer’s grid. In this way, industrial companies with recording power measurement (RLM) can achieve considerable savings with the help of battery storage. Companies that already actively operate load management also benefit from lower energy costs, because grid operators reward efficient load management through reduced grid fees.
Battery storage is a key technology for a successful energy transition
At the same time, industrial companies are making an important contribution to the implementation of the energy transition: Battery storage relieves the load on the electricity grid and increases grid stability by supporting constantly reliable electricity consumption. This also compensates for the fluctuating yields of renewable energy sources.
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About EDF Renewables Germany
Through innovative energy services and the use of battery storage systems, EDF Renewables Deutschland supports industrial and commercial customers in their efforts to operate energy efficiently and save energy costs. In this way, we make an important contribution to the success of the German energy transition in cooperation with local players. Our partners at the local level primarily include municipal utilities, grid operators and innovative companies. The EDF Renewables Group can draw on extensive experience and technologies in the development, design, integration and operation of battery storage systems. EDF Renewables has built numerous storage facilities of all sizes in the US, UK and France and continues to develop its business model.