How Does Germany Fix Its Grid Congestion Problem? EP. 292

This week on the Energy Unplugged podcast, Casimir Lorenz, Managing Director for Central Europe at Aurora Energy Research, is joined by Aurélie Alemany, CEO of enercity, to explore one of the most pressing questions facing Germany's energy transition: how can the country solve its growing grid congestion challenge?

Aurélie became CEO of enercity in July 2024, taking over as Chair of the Board of Management of the Hanover-based energy company. She sees her most important task as advancing the digital energy transition across the Hanover region, Northern Germany and beyond. With more than 15 years of experience in the energy sector, she previously served as CEO of energy solutions provider SENEC and Managing Director of Yello Strom, alongside holding several senior leadership positions within the EnBW Group. Her experience spans renewable energy, battery storage, retail energy and grid operations, providing a uniquely broad perspective on the challenges facing Germany's evolving power system.

Recorded as Germany grapples with rising congestion costs, increasing renewable curtailment and mounting pressure to modernise its electricity market design, the conversation examines the competing approaches being proposed to manage grid constraints and deliver a more efficient energy system. Casimir and Aurélie discuss the role of flexibility, dynamic grid tariffs, regional pricing models and nodal pricing, as well as the practical and political challenges associated with reforming Europe's largest single-price-zone electricity market.

You will learn about:

• Why grid congestion has become one of Germany's most significant energy market challenges.

• The differences between dynamic grid tariffs, regional pricing zones and nodal pricing.

• How flexibility and battery storage can help reduce curtailment and improve grid efficiency.

• Why market design reforms could shape future investment decisions across Germany's energy sector.

• The technical, political and economic barriers to implementing more granular electricity pricing.