German grid agency projects lower need of grid management, reserve capacity next winter

Germany’s Federal Network Agency (BNetzA) predicts the country will need lower reserve power plant capacity, and projects a reduced demand for grid management measures in winter 2025/2026, potentially lowering costs for consumers.

“A decline in line with the forecasts will help to reduce the costs for re-dispatch measures and thus relieve grid users financially,” said the agency in a press release. It cited progress in grid expansion as a main reason. Compared to the last winter (2024/2025), Germany is projected to need 7 percent less reserve capacity and 30 percent lower volume of so-called re-dispatch measures. These include curtailing renewables feed-in in one area while ramping up electricity generation in another – often in the form of fossil backup plant capacity – due to a lack of grid connections.

Most reserve power capacity would be provided by plants in Germany, but German grid operators will also have contracts with providers in neighbouring countries, said BNetzA.

The agency recently said that the volume and costs of measures required to manage the stability of Germany’s power grid decreased in 2024. Germany’s electricity system is shifting to intermittent renewable energy sources as its main power generation technology, which is creating challenges for the country’s grid operators. Previously, conventional power was supplied to meet demand. Now, a change of weather can result in sudden changes of electricity generation.

Operators have to work hard to keep the grid stable through re-dispatch measures that ensure a balance is kept between electricity supply and demand. One of the biggest challenges is insufficient transmission grid connections between Germany’s windy north and energy-hungry industrial centres in the south. The country is currently in the process of expanding the grid to ensure a more efficient use of renewable power across all regions.