Germany has begun a comprehensive reform of its overburdened grid financing system. It plans to reduce electricity costs for industrial and commercial users, and at the same time require renewable energy producers to bear grid costs for the first time. The German Federal Network Authority announced a draft reform plan on Thursday. It plans to levy a one-time grid connection fee for wind farms and photovoltaic power plants, and to charge an annual fee of 4 to 7 euros per kilowatt starting in 2029. The move is aimed not only at sharing the cost burden more evenly, but also at better matching electricity supply and demand to ease long-standing grid congestion.

Germany has begun a comprehensive reform of its overburdened grid financing system. It plans to reduce electricity costs for industrial and commercial users, and at the same time require renewable energy producers to bear grid costs for the first time. The German Federal Network Authority announced a draft reform plan on Thursday. It plans to levy a one-time grid connection fee for wind farms and photovoltaic power plants, and to charge an annual fee of 4 to 7 euros per kilowatt starting in 2029. The move is aimed not only at sharing the cost burden more evenly, but also at better matching electricity supply and demand to ease long-standing grid congestion.