More and more electricity in Germany is being generated emission-free and decentralized from renewable energies, primarily through wind power and photovoltaic plants. In transport and buildings, electric vehicles and heat pumps are helping to reduce CO2 emissions. Both developments are mostly of decentralized nature, so bottlenecks can arise in the distribution grids, particularly if too many devices draw electricity from the grid at the same time.
Additionally, demand is changing. Concerning electricity consumption, people are becoming more sensitive to how they are supplied with energy: For example, some prefer locally and green-generated electricity, which results in increasing demand for this type.
The transformation of the electricity sector from a few largescale power plants to many small, decentralized units, which are often both generators and consumers, must be coordinated in a targeted manner. Local mechanisms can be used for this purpose. They could also be used to exploit flexibility potential at the distribution grid level. The exploitation of local mechanisms would mean that it is easier to control how and when electricity is generated and consumed. This control is vital to reduce peak loads, i.e., prevent a lot of electricity from being required simultaneously.
Overall, it is essential to understand these structures through sound economic analyses to accompany and shape this transformation process.