Secure supply with decarbonization and affordable prices are the ambitious goals in Germany. How this can be achieved was discussed at the E&M Energy Manager Conference.
The energy sector and industry are working together to ensure security of supply and the energy transition, says Christian Seyfert. However, the CEO of the Association of Industrial Energy and Power Industry (VIK) also sees major challenges for his industry. Industrial energy producers are extremely efficient in operating for their specific purpose. However, if they are to stabilize the grids in the future through flexible operation, this effectiveness will decline.
This is not only regrettable, but could also lead to the loss of privileges and subsidies. Legislators and regulators must therefore enable the economic operation of power plants and the supply of industrial companies. Currently, the draft grid fees (AgNeS) for industry and commerce presented by the Federal Network Agency this week are disrupting companies' planning security. Seyfert advocated coordinating grid fees as a whole rather than splitting them up into individual sectors.
The VIK representative fears that high energy prices will lead to further industrial migration in the coming years. Security of supply is still a plus point for Germany, but Seyfert fears brownouts in the near future: industrial companies will have their electricity supply throttled in order to maintain supply. Then this advantage for Germany will also be lost, he warns.
Despite the energy transition, not everything can be supplied with electricity, said Thomas Hüwener, head of Germany's largest long-distance gas network operator, Open Grid Europe (OGE). “Thirty percent of Germany's primary energy consumption comes from natural gas,” he said. Added to this are biogas and, in the future, hydrogen. In any case, molecules will continue to be needed for a secure and sustainable energy supply, according to Hüwener.
“The LNG terminals currently supply one million cubic meters of natural gas per hour; without them, it would not be possible,” said Hüwener, addressing critics of the newly constructed import routes following the loss of Russian pipeline supplies.
The OGE boss would like to see stricter legislative requirements for filling gas storage facilities. Although an 80 percent fill level is expected to be reached by the beginning of winter, this is barely enough for a cold winter. In addition, liquefied natural gas (LNG) deliveries by ship are susceptible to disruption by crises and wars, as the closure of the Strait of Hormuz has proven.
Hydrogen could partially replace natural gas in the future, and network operators are in the process of converting long sections of the gas network for the H2 core network (see also separate report on Gasunie in Bremen). “We will be able to reach the Ruhr area with hydrogen by 2027,” Hüwener promised. However, he complained that the regulator must give companies the opportunity to raise sufficient external capital for the upcoming investments. This is currently not possible, he said. The amortization account model for the hydrogen core network is a good solution, but the risk for companies must be reduced further, Hüwener demanded.
Added to this is the new task of transporting a third molecule. The greenhouse gas carbon dioxide (CO2) must be captured and removed from industrial processes where its formation cannot be avoided. A framework must also be created for this, which is currently being worked on with the CO2 Storage Act.
Municipal operators of critical infrastructure need the new federal government to quickly provide clarity on the new gas-fired power plants, demanded the chief executive of the Association of Municipal Companies (VKU). Unfortunately, the long-announced tender will now probably not come until 2026. Ingbert Liebing welcomed the energy transition monitoring by Federal Minister for Economic Affairs Katherina Reiche (CDU): “If electricity consumption rises more slowly because we don't have 15 million electric cars and six million heat pumps in 2030, it is worth adjusting investments,” he said.
According to the EWI and BET report, electricity demand would rise by around 20 percent over the next five years. This would create sufficient demand for expansion of networks, storage facilities, and digitization of companies. However, legislators must provide a framework that enables investment.
The E&M Energy Manager Conference is linked to the presentation of an award. Kerstin Andreae, CEO of the German Association of Energy and Water Industries (BDEW), was named “Energy Manager of the Year.”
