This brief analysis of the BMWE’s draft “Grid Package” examines the redispatch reser-vation (RDV) about EEG costs, spatial steering effects, and renewable energy (RE) ex-pansion volumes. The focus is on the interplay between competitive intensity and the extent of designated capacity-constrained grid areas. The results illustrate that the RDV acts as an effective locational signal only under high competition, as grid-favorable projects crowd out those in RDV areas from the award range and drive bids down towards the levelized cost of electricity. In the event of low competition, how-ever, the steering effect fails, as RDV projects also receive awards and bids align with the maximum value regardless of location, leading to inefficient excess returns and rising EEG costs. Furthermore, the analysis shows that large-scale RDV designation amid lacking competition can lead to systemic project cancellations, causing realiza-tion rates to plummet and massively threatening RE expansion pathways.