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Germany's Electricity Fees - Installment 4: Questionable Distribution of Network Charges Among Parties

Solar power systems remain viable options due to self-consumption, feed-in tariffs, and economical production costs.

Solar power plants keep costs low through self-consumption, feed-in tariffs, and advantageous...
Solar power plants keep costs low through self-consumption, feed-in tariffs, and advantageous production expenses.

Germany's Electricity Fees - Installment 4: Questionable Distribution of Network Charges Among Parties

Cost Distribution in Grid Fees: Addressing the Impact of Photovoltaic Systems

Photovoltaic (PV) systems continue to be cost-effective due to self-consumption, feed-in tariffs, and favorable production costs. However, as PV system owners pay less for grid fees, they still depend on the power grid, causing a shift in costs towards households, particularly tenants. As the grid expands, costs are increasingly being distributed unfairly, potentially leading to social tensions.

To address this issue, several reform proposals are being discussed to achieve a fairer cost distribution. One option might be a flat grid fee component for all grid connections, regardless of individual consumption, or a minimum contribution from PV system owners to ensure proportionate grid financing. Additionally, tenant electricity models could be developed, allowing tenants to benefit from PV systems on their buildings, contingent upon simplified legal regulations.

To relieve tenants, possible measures include the immediate installation of smart meters in Leipzig and enabling regional time-variable grid fees for all. Direct marketing models with small storage systems could also benefit tenants more from the energy transition than with solar systems, as these take up less space, can be installed per apartment, and help stabilize the power grid.

Furthermore, expanding heat pumps and district heating could be essential for tenants, as waste heat from cooling processes can be used to heat shower water and summer warm water costs would be almost zero. In winter, cheap wind power could be used.

However, it's crucial to remember that connection costs depend on the connection capacity, not the actual consumption. A possible reform model could involve a basic fee for all connections, regardless of the amount consumed, or a flexible pricing system that considers actual network usage and feed-in.

Network charge exemptions for energy-intensive companies are important for the competitiveness of the German industry, securing tax revenues and jobs in Germany. Nevertheless, these costs are still passed on to households and non-privileged, often medium-sized companies, causing electricity prices to rise.

An interesting model is to cover 100% of grid fees through regionally variable time-based tariffs. The StromNEV and KWK surcharges should be either abolished or made time and regionally dynamic to reduce costs for consumers and provide incentives for flexible consumers.

Dependence on weather conditions often leads to excess renewable electricity in some parts of Germany, requiring transportation over long distances, resulting in overloading or bottlenecks in the transmission networks. Smaller electricity price zones could reduce costs and increase supply security, as they would result in shorter transmission paths and fewer redispatch measures.

In conclusion, implementing time-variable grid fees equitably requires careful consideration of strategies such as smart grid technologies, incentivizing energy efficiency, fair billing mechanisms, regulatory frameworks, inclusive policy design, and community engagement. These measures can ensure that both homeowners and tenants benefit from reduced grid fees during off-peak hours, ultimately addressing the cost distribution issue effectively.

  1. In the context of achieving fairer cost distribution in grid fees, the proposal for a flat grid fee component for all grid connections, regardless of individual consumption, could potentially benefit from the realms of finance, as it involves managing costs equitably.
  2. As we aim to develop tenant electricity models, the need for simplified legal regulations might necessitate engagement from the field of education-and-self-development, ensuring a comprehensive understanding of the potential legal complexities.
  3. In the quest for energy transition benefits for tenants, direct marketing models with small storage systems could be explored in the realm of technology, particularly in the development of efficient and compact energy storage solutions.

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