German grid operator: We should take a more measured approach to solar expansion

Installed solar capacity has surged across Europe in recent years. Germany, a neighbouring country, is one of the most developed markets, with total installed photovoltaic capacity already exceeding 100 GW. However, the rapid expansion of solar power also places greater demands on transmission and distribution grids. According to one of Germany’s transmission system operators, the expansion of solar energy should be approached more evenly and cautiously.

The development of transmission and distribution grids is often associated with the transition to energy systems based on renewable sources. According to 50Hertz, one of Germany’s transmission system operators, there is a risk of overloading transmission grids unless the future expansion of solar energy is accompanied by measures to develop the grids.

At the beginning of the week, 50Hertz CEO Stefan Kapferer said, according to Clean Energy Wire, that grid stability and affordability are facing a growing number of challenges. Further solar expansion, he said, should therefore be guided by realistic assumptions about future electricity demand, the development of power grids and greater storage capacity to support grid operations.

The growing share of renewable sources affects not only the power grid but also electricity markets. According to Kapferer, rising price volatility associated with very high or, conversely, very low renewable generation is a clear warning sign. In the area served by 50Hertz, solar sources cover around 15% of electricity consumption. Last year alone, installed solar capacity in the 50Hertz grid increased by 4 GW.

"So far, it has been possible to manage both peaks in solar power generation and periods of low renewable generation without jeopardising system stability or security of supply. However, major price swings in both directions are a clear warning sign from the electricity market," Kapferer said.