Barriers and Solutions for Expansion of Electricity Grids – The German Experience

There is a lack of synchronization in the expansion of renewable energies and the modernization of the electricity grid infrastructure. Main barriers to grid development are the insufficient regulatory framework, an inefficient allocation of planning and authorization competences and a lack of public acceptance of new grids. As response to these barriers, Germany has implemented a fundamental reform of the planning and authorization of high voltage power lines. We analyze the new regime as to what extent it is able to eliminate existing barriers to grid expansion and thus can serve as model for other countries. We find that the establishment of a single authority competent for planning, authorization and regulation may abolish existing lack of coordination. Also, the implementation of early participation on basis of various consultations phases has proved very successful in the establishment of the first grid development plan. Stricter administrative time-limits and sanctions are likely to have an accelerating effect. And an increased openness to new technologies on basis of pilot project gives grid operators more flexibility in grid development. Recently, the European Commission adopted the German approach in its policy guidelines for other EU members