Germany's grid stabilization costs fell, but still reached €2.8 billion

In Germany, the need for and cost of measures to stabilize the electricity grid fell in 2024 thanks to lower fuel prices and less windy weather, but still reached €2.8 billion. Curtailment of solar power plants almost doubled due to a sunny summer and growing installed capacity. Germany therefore continues to address the challenges posed by insufficient north-south grid connections.

According to Germany's network regulator (BNetzA), preliminary data show that 12% less redispatch was needed in 2024 to maintain the stability of the electricity system. Redispatch involves curtailing renewable generation in one area while increasing output from conventional sources in another to prevent lines from becoming overloaded.

The lower need for such measures was partly due to low wind power generation, following the so-called Dunkelflaute at the end of last year. Wind power generation was curtailed less than in 2023. However, this decline was also accompanied by a fall in total output.

For solar power plants, generation curtailment almost doubled compared with 2023. BNetzA cites the unusually sunny summer of 2024, along with the growth in installed solar capacity, as the reasons. In total, only 3.5% of renewable generation was curtailed in 2024 .

The lower need for grid management measures also meant lower costs, which fell by 17% from 2023 to €2.8 billion. This decline is attributed to falling fuel prices for dispatchable power plants providing ancillary services.

However, the growing share of intermittent renewable sources continues to pose an increasing challenge for grid management. A particular problem is the inadequate connection between the transmission grid serving the windy north and the industrial centers in southern Germany. The country is currently working to expand it to ensure more efficient use of renewable energy across all regions.