Electricity Grids and Climate Targets: New Approaches to Grid Planning

Grid optimization, capacity increases, and grid expansion all play a key role in the development of the German power generation system. Thanks to transmission system operators’ foresightedness with regard to grid planning, as well as generous financial incentives related to grid expansion, Germany’s energy transition has not been impeded by transmission congestion in the electricity grid to date. So far, grid expansion planning already accounted for German renewable energy targets, the nuclear phase- out, and the European Emissions Trading System. From now on, the planning framework also includes scenarios which explicitly account for German emissions reduction targets. The level of CO2 emissions from power stations is to be cut to 187 million tons and 134 million tons by 2025 and 2035, respectively, compared with 317 million tons in 2013. Unlike last year’s version of the scenario framework, the latest draft put forward by transmission system operators included a significant increase in lignite-based power generating capacities. In contrast, the version that has now been approved by the German government contains specifications for lignite-based power generation which, depending on the scenario, are five to seven gigawatts lower than the values set down in the draft.