TSO implementation concept

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In accordance with Section 13k(6) of the Energy Industry Act (EnWG) – ‘Utilisation instead of curtailment’ – transmission system operators (TSOs) are required to develop an implementation plan by 1 April 2024. This plan is intended to define the key framework conditions for this instrument.

The TSOs, in consultation with the relevant stakeholders, drew up the implementation plan within the deadline and submitted it to the Federal Network Agency (BNetzA) for review in accordance with Section 13k(7) of the Energy Act (EnWG). The BNetzA has completed its review and concluded that the specific design of the submitted implementation plan for the trial phase is suitable for effectively reducing the curtailment of electricity from installations in accordance with Section 3(1) of the Renewable Energy Sources Act and does not compromise grid and system security. There are no substantive objections.

Implementation plan for the target model

On 1 October 2026, following the conclusion of the two-year trial phase, the target model for the ‘Benefit instead of curtailment’ instrument will come into force in accordance with Section 13k of the Energy Industry Act (EnWG). To this end, the findings from the trial phase have been incorporated into the new Implementation Plan v2.0. The adjustments include editorial corrections, the incorporation of the tender design and an adjustment of the remuneration framework, taking into account the findings from the trial phase, as well as an update of the relief regions.

The TSOs, in consultation with the relevant stakeholders, revised the implementation concept within the deadline and submitted it to the Federal Network Agency (BNetzA) for review in accordance with Section 13k(7) of the Energy Act (EnWG). The BNetzA has completed its review, concluding that the specific design of the submitted implementation concept for the target phase is suitable for effectively reducing the curtailment of electricity from installations in accordance with Section 3(1) of the Renewable Energy Sources Act and does not compromise grid and system security. There are no substantive objections.

The resulting necessary amendments to the contractual documents will be published on 1 July 2026.

The current implementation plan is valid only for the duration of the trial phase (from 1 October 2024 to 30 September 2026 in accordance with Section 13k(1) of the Energy Industry Act).

The implementation concept has been drawn up with the best possible involvement and participation of the relevant stakeholders. In drawing up the concept, the TSOs did not confine themselves to the minimum requirements of Section 13k of the Energy Industry Act (EnWG), but actively engaged with the industry to gather relevant perspectives on the subject. These were incorporated into the implementation concept to create the best possible framework for successful implementation.

Furthermore, the TSOs commissioned Frontier Economics Ltd. to review the remuneration framework they had proposed in an expert report. Frontier Economics Ltd. concluded that the submitted concept is in line with the objectives of Section 13k of the EnWG and that economic and energy industry aspects are appropriately taken into account.

To enable potential participants to assess the business case for taking part, a template is available for download below. This template allows you to independently calculate the individual SNK compensation as described in the remuneration framework of the TSO Implementation Concept.

Please note that this template is provided for guidance only and is therefore non-binding and provided without warranty.

Minor adjustments to the implementation plan based on operational implementation findings 

In line with the pilot nature of the scheme, the four transmission system operators are making minor adjustments to the implementation plan for Section 13k of the Energy Industry Act (EnWG) following a review by the Federal Network Agency. The adjustments have been set out in Implementation Concept v1.1, which comes into force on 1 January 2025. The adjustments include editorial corrections and a change to the remuneration framework applicable to the pilot phase (Part 2: SNK compensation). This concerns the calculation of the potential SNKf compensation (fixed SNK compensation component for participation during part of the year, i.e. participation during an ongoing 13k period in the trial phase). Specifically, the phrase “relating to the participation period from registration until the end of the period” is replaced by “relating to the application period of the performance price component of the network usage charges (year or month)”. The amendment rectifies an unintended disadvantage for participants in the event of participation during an ongoing 13k period in the trial phase (participation during the course of a year). This enhances the effectiveness of the instrument in the case of participation during the course of a year. The overall economic benefit and cost-reducing effect compared to redispatch measures (cf. Section 13k(6)(4) of the Energy Industry Act) remains guaranteed.

The following files/documents have been amended accordingly:         

• Editorial amendments:

Implementation Concept v1.1: pp. 10, 12 and 41

Model Contract/PQ Terms and Conditions:

▪ NsA_PQ Terms and Conditions_Main Document: pp. 1 and 5

▪ NsA_PQ-Conditions_Appendix 4_Application Form: p. 1

• Adjustments to the remuneration framework:

Implementation Concept v1.1: pp. 37, 49 and 50

Model Contract/Remuneration Framework:

▪ NsA_Remuneration Framework_Main Document: pp. 6, 7 and 8

▪ NsA_Remuneration Framework_Appendix 2_SNK Compensation Feedback: pp. 6 and 7

Calculation template

The adjustments come into force on 1 January 2025.

If you have any further questions, suggestions or feedback, please contact us using the contact form and select the topic "Use instead of curtail".