Q&A Energy and Infrastructure-#2 Focus on EEG 2021-Energy and Natural Resources

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Smart meter-a smart metering system for energy transition. Most likely, the digitization of energy turnover is not just a starting signal. However, smart metering systems or smart meters are undeniable as the core component of this digitization. Smart meters are designed to achieve better power management and help reduce power costs and increase network utilization. According to the German Renewable Energy Law-EEG 2021 (§ 9), the obligation to retrofit certain power plants came into effect at the beginning of the year. Our experts will inform you about some aspects of the obligation to retrofit renewable energy plants.
Q: What is a smart metering system and how does it work? Answer: The smart metering system consists of modern metering devices and so-called smart meter gateways. Modern measurement equipment takes over the measurement of data, while the smart meter gateway acts as a communication unit to realize consumption value transmission, real-time monitoring, and factory monitoring and operation management. Question: When does the power plant have to retrofit this smart metering system? Answer: The basic prerequisite for nationwide promotion is the so-called market availability statement (“Marktverfügbarkeitserklärung”) from the Federal Office of Information Security (“BSI”). So far, such statements have only been issued for metering points for low-voltage end users with annual electricity consumption of 100,000 kWh or less. However, for power plants, a market availability statement is expected in the first quarter of 2021. Question: Which power plants will be equipped with smart metering systems? Answer: A distinction must be made here between existing power plants whose commissioning date is before January 1, 2021, and those that are commissioned after January 1, 2021 (according to the validity of EEG 2021). Old power plants basically do not need to be retrofitted. Power plants that will be put into operation after January 1, 2021 will basically install a smart metering system from a certain power plant scale (above 25KW) to realize remote control and retrieval of actual power feed provided by the grid operator .
EEG 2021 stipulates that the number of bids for onshore wind power should be reduced to prevent under-subscription of bids. If the German regulatory agency Federal Network Agency (“Bundesnetzagentur”) believes that the quantity provided in the bid cannot be reached, the bid quantity must be reduced. In past tenders, this was the case. Mainly due to the lack of approvals, the total quantity provided was lower than the available capacity in each case. Regardless of the economic point of view, in terms of energy turnover, whether it is reasonable to reduce the amount of tenders, our experts also briefly elaborated on the specific aspects of §28 (6) of the Renewable Energy Act of 2021.
Question: When can the Federal Network Agency reduce the statutory bid volume? Answer: In the case of “undersubscription imminent”: this is the case if the two conditions are met cumulatively: (1.) The previous bids are under-subscribed and (2.) The ratio of the total amount of new and unapproved bids will be about The bidding volume of the bidding should be small. Question: How much will the bidding volume be reduced? A: The sum of newly approved bids since then plus the previous bid date plus the unapproved bids from the previous bid date. Question: It is often pointed out in the regulatory-related notes that this may lead to uncertainty among market participants-is this true? Answer: If there is an under-subscription in the last bid, the Federal Network Agency will reduce the number of bids in the upcoming bidding. There is some uncertainty. On the other hand, if there is no under-subscription on the last bid date, there will be no threat of a decrease in the number of the next bid. Question: In this case, what does it mean that it is possible to make up for this fact? For the number of bids that have not yet been signed? Answer: This refers to the provisions in Article 28(3) paragraph 1 of the EEG in 2021. According to this provision, the catch-up of the number of “non-attributed” will begin in 2024 (for the “non-attributed” in the third calendar year Quantity). Therefore, catching up aims to make up for the decrease in numbers, but the time period (that is, the third year after the decrease) is often criticized as being too long.
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Post time: Jul-14-2021
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