This much can already be revealed at this point: All of the evening’s participants agreed that the grids are crucial for the success of the energy transition. The host of the evening, BBH partner and lawyer Prof. Dr. Ines Zenke, welcomed more than 200 guests noting that “the topic of grids is finally being discussed also by policymakers, with ambitious projects being implemented and the state taking responsibility.” Nevertheless, these positive developments are still limited to certain aspects of the grids and not all grid operators are benefiting. With regard to the debt brake, Zenke raised the question whether “investments in infrastructure, i.e. investments in the future, should really be treated as if they were one-off expenses.” “This is a rhetorical question”, she added. In her opinion, things will have to change. Zenke’s next question was not rhetorical but one guiding the evening: “What do we need to do to optimise the grids so that they are fit for our purposes?”
Member of the Bundestag Bernd Westphal, under whose auspices the parliamentary evening was held, addressed this question in his welcoming words and emphasised the importance of investments in infrastructure and the launch of the hydrogen core network at the political level. The challenge now is to provide access to this network across the country. He then gave the floor to Hartmut Höppner, State Secretary at the Federal Ministry for Digital Affairs and Transport (BMDV), who shared an exciting thought with the guests: “One essential aspect of networks is that you don’t usually notice them, but woe betide us if something is amiss” – and so he got straight to the central point of his presentation: the transport sector, Germany’s largest energy consumer. According to Höppner, foregoing mobility is not an option in a modern society with a prospering economy. Transforming the network is thus of particular importance, especially the expansion of the charging infrastructure across Germany. Höppner emphasised the achievements of the traffic light coalition in this area (doubling the installed charging capacity), but also made it clear that much remains to be done: electricity grids need to be modified, connection procedures have to be simplified for distribution system operators, a customer-friendly system should be developed. Given the short time horizon, Germany should not waste any time but set to work immediately.
Afterwards, three industry representatives delivered interesting keynote speeches providing food for thought: First, Kerstin Andreae, Chair of the German Association of Energy and Water Industries (BDEW), emphasised that the most important goal is to expand the networks and figure out the financing of this endeavour. According to Andreae, the financial burden cannot be borne by the grid users alone; the grid charges should be financed through taxes as well. “It is not the investments in the distribution grid that are driving costs, but the ongoing lack of investments.” She also addressed the issue of the charging infrastructure and e-mobility: “The success of electric mobility depends on whether we have cars that people can afford.” Dr. Thomas Gößmann, Chairman of the Executive Boards of Thyssengas GmbH and the association FNB Gas, who is passionate about all types of networks, primarily emphasised the importance of the hydrogen core network in his keynote speech. According to him, it constitutes an “incredibly powerful lever for the economy, and an enabler, a prerequisite for further industrial production.” Most of the speakers agreed that unresolved issues in this context relate to financing. The third and final keynote speaker was Torsten Maus, CEO of EWE Netz GmbH, whose key message was: “The grids are the hub of the energy transition – and they work extremely well.” It is mainly down to the framework conditions to ensure that this remains the case. Companies need an effective regulatory framework as well as a sensible financial framework.
The second round of keynote speeches – delivered by MPs – was opened by Bernd Westphal who emphasised that security of supply has always been the locational advantage of the German economy. “Security of supply and price stability, these are the challenges of the future.” Dr. Ingrid Nestle said that the coalition government was working on the ramp-up of the hydrogen economy as a matter of priority. All of the evening’s panellists agreed on the need to invest in the conversion and expansion of the grids. Reinhard Houben looked at the issue from a business point of view: “Any kind of grid is already an investment, and it would be foolish not to future-proof the existing grids, or adapt them so that we can use them. That’s where the money is.” However, he also noted that the energy transition has gathered considerable pace. “We should finish what we already have in the pipeline.” Maria-Lena Weiss demanded that planning and permitting procedures be expedited and criticised the coalition government for having the wrong priorities: “The government’s involvement in the hydrogen infrastructure should be as large as necessary, but as small as possible.” When asked about the legislative amendment to the CHP Act, the members of the German traffic light coalition on the panel stressed the significance of district and local heating networks but, as expected, would not commit to a specific time horizon. “It is quite conceivable to me that there will be an amendment”, said Nestle. Houben pointed out that this is a question that should rather be addressed to the minister responsible. The panel discussion became lively when Weiss brought up the report by the Federal Audit Office, which found that the government “still has a lot of room for improvement” when it comes to the pace of the energy transition and grid expansion, according to Weiss. While Prof. Dr. Ines Zenke suggested that the Federal Audit Office‘s assessment of the energy transition was perhaps a little too negative after all, and that the issue was less about security of supply than about the type of generation mix, members of the governing parties emphasised the achievements of the past two years. Nestle concluded: “Never before has so much been done to speed up the expansion of grids.” As regards the financing of the energy transition, which many speakers referred to, Houben stated that the public sector cannot bear the entire financial burden and that “private money” would “have to be invested in the system, too”.
The guests raised a number of questions addressing a variety of practical details. For example, section 13k of the German Energy Industry Act (EnWG) was brought into the equation and thus also the associated flexible grid charges and/or cutting of red tape. “Section 13k does not have to be abandoned,“ said Weiss, “but should be made more feasible.” The panellists nearly formed a “very grand” coalition on many points. However, there was less agreement on the issue of hydrogen. According to Weiss, “we will not be able to use hydrogen in the foreseeable future for heating purposes.”
BBH partner and lawyer Prof. Dr. Christian Theobald took on the difficult task of summarising the enthralling evening full of discussions. He also looked ahead at how the Federal Network Agency will use the additional powers conferred to it, hoping that the viability of the grids remains a priority and that all options will be up for discussion “as this is the only way to ensure a successful energy and heat transition”.
Contact:
Prof. Dr. Ines Zenke
Rechtsanwältin/Lawyer, Partner
Phone +49 (0)30 611 28 40-179
ines.zenke@bbh-online.de
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