The Institute for Climate Protection, Energy and Mobility (IKEM), together with the Forschungsgesellschaft für Energiewirtschaft mbH (FfE), has published a study on decarbonization options for the Saxon economy. The final report shows that the decarbonization of Saxony’s economy is technically possible, but that there are economic, regulatory and infrastructural hurdles.
In the research project “Decarbonization options for the Saxon economy – investigation into the status of decarbonization in selected key sectors of the Saxon economy”, FfE analysed the technical and economic framework conditions of various decarbonization paths for Saxon companies. IKEM examined the legal framework conditions that must be taken into account when implementing the necessary transformation projects of companies with regard to the upstream grid infrastructure. In particular, it analyzed the legal constraints that arise for operators at the distribution grid level. In addition to the legal challenges posed by the increase in electricity demand, the study also focused on the transformation of gas distribution grids and the legal framework for technologies such as CCS and CCU.
The study shows that companies urgently need a reliable legal framework. One challenge for grid operators lies in the timely handling of a growing number of grid connection requests, with less and less free grid connection capacity. The current legal framework is only partially suitable for effectively addressing this problem. In addition, high grid fees are another major obstacle to the decarbonization of industry. The efforts already initiated to further develop the grid fee system and individual grid fees offer important approaches in this regard, but are still in the development phase.
The analysis also shows that the players at distribution grid level in the gas and hydrogen sector are currently facing considerable regulatory uncertainty. The transposition of the EU Gas/Hydrogen Single Market Directive into national law as envisaged by the BMWE’s draft bill is to be welcomed in principle – particularly in view of the planned implementation of the original planning responsibility of distribution system operators. However, there is still a need for further adjustments, for example with regard to the planned interlinking of the new binding planning instruments with non-binding municipal heat planning.
The study was commissioned by the Saxon State Ministry of Economic Affairs, Labour, Energy and Climate Protection (SMWA) and the Saxon Energy Agency – SAENA GmbH to systematically examine the status of decarbonization in the Saxon economy.
