Fees based on congestion could help optimise renewable energy use, says Professor of Energy Policy.
Taking Frosta and Speira as examples, a Handelsblatt article from 5 October reports on how an increasing number of businesses are reducing their production costs by adjusting electricity consumption to account for variations in available wind and solar energy. According to Lion Hirth, Professor of Energy Policy, the current system for setting electricity network fees does not promote flexible production. Currently, grid charges are highest when consumption is highest, irrespective of the amount of electricity available on grid at that moment. Instead, explains Hirth, network operators should charge more when there is high congestion, or load. This would encourage flexible production, allowing producers to shift intensive energy use to periods of high renewable energy availability.
Read the full article here.
More about our expert
-
Lion Hirth, Professor of Energy Policy