"The old grid fee rebates no longer meet the requirements of an electricity system that is characterized by a high proportion of renewable electricity generation," says Klaus Müller, head of the authorities. The aim is to create incentives to ensure that the industry's electricity consumption is "system-friendly" in future.

More electricity generation from renewables

The discounts are very important for the industry. They date back to a time when nuclear power plants and coal-fired power plants were the central elements in German electricity generation and energy production was relatively even. Nuclear power plants are now history in Germany and the proportion of coal in the electricity mix is falling.

More than half of the electricity generated in Germany already comes from wind turbines, photovoltaic systems and other green energy plants, and the trend is still rising. However, their electricity generation fluctuates - depending on how much wind is blowing and whether the sun is shining, there is sometimes more and sometimes less electricity.

Industry to become more flexible

Now the Federal Network Agency wants to use new discounts on grid fees to put gentle pressure on industry to use new technology and adapt their electricity requirements to the changed generation conditions. "Industry and commerce should pay reduced grid fees if they consume more electricity in situations of high electricity supply," says Federal Network Agency President Müller. "Conversely, they will also receive a reduction in grid fees if they consume less electricity in times of scarce electricity supply."

A transition from a rigid to a flexible system is being proposed. Following the initiation of a so-called determination procedure, the plan is now to be discussed with the industry and other stakeholders. It will be some time before the new discounts are set.

Reaction from VKU

The German Association of Local Utilities (VKU) views the authorities' proposal positively, as it could contribute to grid stability. "The proposals can prevent renewable energy plants from having to be curtailed at times when there is a lot of electricity from wind and solar energy because there are no customers," says VKU Managing Director Ingbert Liebing. The current regulations are no longer up to date.