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German electricity grid in transition
Does Germany need one uniform power grid company rather than 4 regional operators? Can the cooperation between the four current operators mimic the efficient operation and expansion of the grid? These were some of the key questions raised at the panel session of the Berlin Euroforum conference on "the Future of the Electricity Grid."
Johannes Kindler, vice president of the German regulator (BNetzA) pointed out that a merged grid company not only had economic benefits, but would also allow Germany to speak with one voice in the international regulatory arena. He conceded, however, that for legal reasons such a merger could not be imposed on the current owners. By contrast Klaus Kleinekorte and Christoph Müller, Board members of the grid companies of RWE and EnBW, respectively, argued that the prospective cooperation of the four operators would allow them to achieve most of the potential cost savings that could arise from merging the companies.
Christoph Riechmann, Director in the Energy Practice of Frontier (Europe) considered the underlying economics: “The planned cooperation already brings significant benefits. In coming years, however, the integration of renewables into the German grids requires investments that by far exceed the current value of all four grids. It is questionable if these can be achieved at least cost within the existing structure, where each operator has little incentive to consider the negative effects that his action has on the other grid companies.”
Frontier has been a key adviser in the debate on power system restructuring in Germany. Frontier advised the Ministry (BMWi) on options to restructure the transmission grid and on the creation of incentives for prospective power stations to locate in the proximity of demand centres. Frontier also advised BNetzA on the efficient handling of transmission congestion.






