The power grid is an important building block for the energy transition. The transmission grid transports electricity over long distances, for example, from wind power plants in the North Sea southern destinations. The distribution grid integrates decentralized power plants such as photovoltaics. However, the production of electricity from renewable energies depends on their location and the weather. This poses increasing challenges for the power grid. Short- and long-term storage facilities and the grid must be expanded to compensate for the volatility in renewable electricity supply.
However, there have been several obstacles to grid expansion up to now, such as protests against new electricity poles and lines near residential areas and lengthy approval procedures. The operation of storage facilities and plants that can flexibly consume electricity is also often not yet economical.
Another obstacle to an efficient energy transition is often the current regulation of the grids. As natural monopolies, their operators are controlled by the Federal Network Agency (Bundesnetzagentur). However, there is much debate about the specifics of the regulation. These have consequences for sector coupling, for example: if electricity is too expensive due to grid fees, it cannot be used economically in other sectors.
