Bundesnetzagentur launches second consultation on integrating controllable consumer devices into the electricity grid
Klaus Müller: "Aim is to enable swift and safe growth in electromobility and heat pumps"
Year of issue 2023
Date of issue 2023.06.16
The Bundesnetzagentur has today presented a revised draft of its framework of rules designed to enable controllable consumer devices such as electric vehicle charge points and heat pumps to be integrated safely and swiftly into the electricity grid.
"We have been listening very closely over the past few months and have improved a lot of the details of our proposals. One of these is an optional incentive scheme for consumers who are willing to shift their electricity consumption,"
said Klaus Müller, President of the Bundesnetzagentur. "Our framework of rules will enable the swift connection and safe operation of electric vehicle charge points and heat pumps. We want to make sure that everyone is connected but also that everyone has a safe network. We presume network operators will only intervene when absolutely necessary. This will only be allowed as a last resort and only as far as is technically necessary. Consequently, consumers will hardly notice this as they will still be able to consume a base amount of electricity. If bottlenecks occur, the grid will need to be expanded swiftly. We will make sure this happens."
Changes from the key elements published in November
The Bundesnetzagentur has modified numerous aspects of the draft framework presented in the key elements paper in November 2022 in light of the responses received.
The Bundesnetzagentur plans to increase the minimum amount of electricity a device can consume when a network operator needs to reduce consumption. The original proposal in the key elements paper was 3.7 kW. The new proposal is for a minimum of 4.2 kW to be available for consumption. This means it will still be possible to operate a heat pump or, in most cases, charge an electric vehicle for a 50-kilometre drive within two hours.
Consumers will have more flexibility under the new proposals as they will only need to reduce the amount of electricity their controllable devices draw from the grid. This technology-open approach will make it possible to offset different devices in a consumer's household using energy management systems. In this case, network operators will not intervene in the consumption of individual devices. For example, if a network operator needs to control consumption, a wallbox charger will be able to consume more electricity if it comes from the consumer's own solar installation. It will just not be able to consume more electricity than allowed from the distribution network.
The Bundesnetzagentur's proposals also increase transparency. Network operators will need to publish details of when and how they have intervened in consumption on a joint internet platform using a standardised format. This will make network overloading and the need for network operators to upgrade their networks more transparent for the public at large.
The new proposals include penalties for consumers with controllable devices who do not reduce consumption when requested or who do not notify their distribution system operator when they decide to stop operating a device permanently.
Reduction in network tariffs
Consumers with controllable devices will benefit from a reduction in their network tariffs in return for allowing their network operators to control their consumption.
The Bundesnetzagentur has proposed different tariff reduction models in view of the wide range of connection and consumption scenarios. Consumers will have the right to choose which model to use.
The first option is a general discount on the network tariff. Each network operator's discount will be calculated following rules applicable to all operators throughout the country. The discount will vary from €110 to €190, depending on the network area. This is the equivalent of 50% to 95% of the additional network tariff payable for the annual consumption of an electric vehicle (around 2,500 kWh).
Respondents to the consultation suggested supplementing the requirements with an optional incentive scheme. Variable network tariffs were suggested to encourage consumers to voluntarily shift their consumption to times when demand is low and therefore relieve the load on electricity networks.
In response to this, the Bundesnetzagentur has created the first-ever framework for variable network tariffs that makes sure that consumers can be rewarded for shifting their consumption but also that consumers who cannot shift consumption are not at a disadvantage. The Bundesnetzagentur's proposal requires network operators to offer consumers the option of a network tariff that varies according to the time of day in conjunction with the general discount. There will be different time periods with three levels of local network tariffs. The time periods and tariff levels will be set for each calendar year and will be applicable within the whole of a network area.
A general discount supplemented by a variable network tariff is expected to prove especially attractive for electric vehicle users.
The second option that consumers can choose is a reduction of 60% in the unit price. The technical requirement for this option is a separate meter for the consumption of the controllable device. This option can be combined with a surcharge exemption for heating electricity (CHP and offshore surcharges, surcharge exemption under the Energy Financing Act) and in many cases is expected to be particularly suitable for heat pumps.
The reduced tariffs will be billed using the current structure of energy supply contracts. There will be no new structure for network operators to bill final consumers directly. However, the Bundesnetzagentur's proposals require customers' bills to include clear details of the reduced tariffs.
Background and basic model for rules
The electrification of the transport and heating sectors can help to cut carbon emissions significantly, which is why the Bundesnetzagentur especially welcomes the strong growth in the use of electric vehicles and heat pumps.
Controllable consumer devices such as private electric vehicle charge points and heat pumps have a higher capacity than most household appliances and tend to consume electricity at the same time. Low-voltage networks are capable of integrating individual new applications but most of them are not currently designed to accommodate a large number of additional applications in a short space of time. The networks therefore need to be optimised, digitalised and expanded quickly.
The Bundesnetzagentur's framework of rules will help to accelerate the transition in the mobility and heating sectors and also guarantee security of supply at low-voltage level even where networks have not been upgraded.
Network operators will not be able to refuse or delay connecting new private electric vehicle charge points or heat pumps on the grounds that there may be local overloading in their networks. In return, operators will be able to relieve the load on their networks by temporarily reducing the amount of electricity consumed by a controllable device if there is an acute threat of damage or overloading in their networks. They must guarantee that a minimum amount of electricity is available to enable consumers to still operate their heat pumps or charge their electric vehicles. The Bundesnetzagentur presumes that operators will only need to intervene in exceptions and without any significant loss in comfort for consumers. It will not be possible to switch off controllable consumer devices completely.
Network operators who have taken measures to reduce consumption and who anticipate having to take further measures must take this into account when planning the expansion of their networks and must take swift action to resolve bottlenecks in their networks.
It is planned for the rules to come into force on 1 January 2024. The Bundesnetzagentur has drawn up transitional rules for existing consumer devices already subject to a load control agreement with the network operator. Existing consumer devices without a load control agreement will be permanently exempt. Night storage heaters will be covered by the transitional arrangements until they are taken out of operation but not by the new framework of rules.
Previous proceedings and consultation on draft determinations
In the first quarter of this year, the Bundesnetzagentur consulted on a key elements paper published on 24 November 2022 with its initial considerations on the future model. The Bundesnetzagentur drew up a detailed framework of rules on the basis of the responses to its consultation.
The framework comprises two draft determinations. The first determination from Ruling Chamber 6 deals with integrating controllable consumer devices and controllable network connections under section 14a of the Energy Industry Act. The second determination from Ruling Chamber 8 relates to the associated reduction in network tariffs.
The Bundesnetzagentur has now published these determinations for consultation. Interested parties are invited to submit their responses by 27 July 2023. It is planned to complete both determination proceedings in the fourth quarter of 2023 to enable the rules to come into force on 1 January 2024.
Further information on the determination proceedings is available on the Bundesnetzagentur's website at www.bundesnetzagentur.de/14aenwg and www.bundesnetzagentur.de/steuerbare-ve (in German).