Germany: New rules will allow network operators to curtail supply to heat pumps and electric vehicles

German distribution system operators will be able to temporarily curtail electricity supply to heat pumps and electric vehicle charging points from January 2024 in order to maintain grid stability. This will be enabled by new rules announced by the German network regulator (BNetzA).

The aim of these rules is to accelerate the integration of these devices into distribution networks. In return, distribution system operators will have to offer affected consumers reduced network charges and will not be allowed to refuse or delay connections for new heat pumps or charging stations.

Germany's electricity grids are not yet sufficiently developed to cope with the increase in electricity demand expected as heating and transport become more electrified. In the event of a risk of grid congestion, operators have often had to refuse connections for heat pumps or electric vehicle charging stations.

"We want everyone to be connected while also having a secure grid. … We expect interventions by network operators to remain a necessary exception," said BNetzA chief Klaus Müller.

Under the new rules, network operators will be able to temporarily reduce the electricity drawn from the grid by heat pumps and electric vehicle charging stations, but they will not be allowed to switch these devices off completely. A minimum level of power must always be available so that heat pumps can operate and electric vehicles can be charged.

"Controllable devices such as heat pumps and private electric vehicle charging equipment have a higher capacity than most household appliances. These devices also often draw electricity at the same time," BNetzA says in its report.

During periods of current grid congestion, network operators can reduce supply to 4.2 kW. This means that heat pumps can continue to operate and electric vehicles can generally be charged enough to travel 50 kilometers in two hours, BNetzA says. It adds that the reduction in consumption will not affect other household appliances. Special requirements for large heat pumps will also be taken into account.

"This measure must be based on objective criteria for determining the state of the grid. The state of the grid is determined by its current utilization, based on real-time measurements. This requires the rapid digitalization of low-voltage grids, including the collection of real-time measurements," BNetzA says.

BNetzA is now expanding the options available to consumers under the rules. Individual systems can be controlled directly by the network operator, or consumers can choose to receive a limit on permitted electricity consumption from the network operator, which must not be exceeded. In that case, consumers coordinate consumption reductions independently using an energy management system for several controllable devices.

BNetzA adds that system operators are required to expand their networks proactively and in line with expected demand growth. If operators implement measures to reduce electricity drawn from the grid and their continued use can be expected, they must take this into account in network development planning.

New rules are broadly welcomed

BNetzA's plans, which had been in preparation for several years, initially met with little enthusiasm, particularly from the automotive industry, which feared they would make electric vehicles less attractive. The new guidelines, however, have been better received. The energy companies' association BDEW welcomed the move.

"[BNetzA] has found a good solution that will now allow hundreds of thousands of heat pumps and wallboxes to be connected quickly, while maintaining Germany's usual high level of security of supply," said BDEW chief Kerstin Andreae.

The Association of Energy Market Innovators (bne) also welcomed it as a "balanced compromise between the interests of consumers and network operators", while the local utilities association VKU said it was broadly positive that the regulation had now been introduced.

Heat pumps and electric vehicles as pillars of Germany's decarbonization

Electrifying sectors that currently depend on fossil fuels, such as heating and transport, is crucial to achieving Germany's climate targets.

The German government plans to install 500 000 new heat pumps in homes annually from 2024 and aims to have 15 million fully electric passenger cars on the roads by 2030. To keep pace with the expected increase in electricity demand, BNetzA chief Klaus Müller has called for support for the expansion of local electricity grids.