Germany proposes stricter grid connection rules for wind and solar

The German Federal Cabinet has approved a draft law that will restructure grid connections for wind and solar projects starting in 2027. Under the new regulations, grid operators will be permitted to reject connection requests in capacity-limited regions. A region is classified as capacity-limited if more than five percent of the energy produced there was curtailed due to grid congestion in the previous year. This classification remains in effect for up to six years, with a possible extension of eighteen months.

The reform also includes a reduction in compensation for operators whose production is throttled to stabilize the grid. For solar installations, compensation could drop by up to 20 percent of annual yield, while wind power operators face a reduction of up to 18 percent. Additionally, direct marketing will become mandatory for new solar installations.

Bärbel Heidebroek, President of the Wind Energy Association, has criticized the reforms, warning they could lead to a halt in renewable energy expansion. She argued that the regulations place an unfair burden on green energy producers rather than requiring grid operators to expand infrastructure more quickly. Heidebroek expressed concerns that the loss of profitability could lead to job cuts in the German wind industry and increase dependency on Chinese manufacturers.