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German ministry scraps peak power shaving draft law for EV roll-out - S&P Global

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Highlights

Draft included limited cuts for power-intensive households

Regulatory details key for grid to manage EV roll-out

Record 395,000 EVs sold 2020 including 195,000 BEVs

London — Germany's energy ministry has scrapped a draft law that would have allowed grid operators to limit the load of some households for up to two hours in order to reduce peak demand, a BMWi spokeswoman said.

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Germany's utility lobby on Jan. 18 criticized the dropping of the proposal, which followed a two-year consultation on expert working group level on peak shaving via a reform of the energy law (article 14a EnWG), plus new regulation on controllable consumer units (SteuVerG) such as electric vehicles or heat pumps.

"It is completely incomprehensible that the balanced proposal was withdrawn," BDEW Managing Director Kerstin Andreae said.

Electromobility would only be successful if the power system was taken into account, she said.

"Stirring unfounded fears will hinder the success of CO2-free mobility in the future," Andreae said, in response to the auto lobby VDA's concerns on the proposed two-hour restrictions for some consumers with above average demand.

Energy minister Peter Altmaier would be working "over coming days" on a new proposal with car makers and grid operators to help make the EV roll-out as fast and reliable as possible for all stakeholders, the ministry said Jan. 17 in response to an article by "Welt am Sonntag" with the draft which was not approved by the minister scrapped Jan. 15, when the consultation period ended.

Peak shaving is a concept to help manage local demand and system security in the low-voltage distribution grid during the roll-out of new electric applications with high power demand, while system operators (DSOs) invest in modernizing the local grid.

Total annual demand for electricity in Germany (once recovered from the coronavirus impact) is forecast to dip to around 502 TWh by 2025, according to the TSOs mid-term outlook in Oct. 2020.

Improved efficiency was still more than offsetting new demand from decarbonization applications, but this was to increase sharply towards the end of the forecast period.

Transport sector power demand was set to rise by 5 TWh/year to 16 TWh in 2025, the TSOs said.

Modelling exactly how, where and when EV charging and other applications would impact the grid show uncertainty with a regulatory framework required to incentivize so-called smart charging and other smart behavior as well as securing system stability.

Home charging

Germany's transport ministry plans to invest Eur4 billion ($4.8 billion) over coming years to improve charging infrastructure from motorways to homes with a new subsidy scheme for so called wall boxes offering Eur900/home EV charger launched in December with 85,000 applications in its first week.

Standard EV home chargers offered by car makers such as Tesla or VW now offer 11 kW capacity, which would fully charge an average mid-sized EV (60 kWh) in around six hours, but drawing above average power from the grid.

Away from homes, Germany has some 35,000 public EV chargers with three out of four operated by utilities, often still underutilized with talks about expanding the public network alongside the EV roll-out ongoing between government, auto makers, utilities and forecourt, retail or parking operators.

A record 395,000 EVs were sold 2020 in Germany of which 194,000 were BEVs, the VDA said with the government targeting one million EVs of the road next year and 7-10 million EVs by 2030 to meet transport sector climate targets.

EV charging talks focus on all aspects of charging including European harmonization of payment systems to simplify the process still often experienced as bewildering with focus switching to charging at home or work which requires various building regulations changes to optimize power grid integration and distribution, the government said.

The VDA auto lobby has been calling for 2,000 new public charging points each week to reach a 2030 government target of 1 million with car makers themselves having a sector target of 15,000 by 2022.

The BDEW utility lobby pointed at the much higher grid investment required to allow a simultaneous ability to charge all applications at the same time with monitoring and practical experience required to flexibly adapt to the local specifics of the rollout.

German household power bills are some of the highest across Europe with the share of grid fees rising sharply over recent years and amid government efforts to harmonize grid fees regionally, while still offering flexibility to incentivize smart behavior.

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