Less grid expansion – more revenue: Grid expansion
For our company ADS-TEC Energy, grid expansion is an essential ongoing issue. With fast charging in particular, the available grid capacity determines whether a location can be put into operation – or not. This makes it all the more important to take a realistic look at the status quo.
What does grid expansion actually entail – and who is responsible?
Grid expansion refers to the extension, densification or renewal of existing electricity grids – both in transmission grids (high voltage) and in distribution grids (medium and low voltage). The aim is to ensure the security of supply, distribute electricity efficiently and make the feed-in of renewable energies technically possible.
The Federal Network Agency is primarily responsible for planning and approval. It reviews the grid development plans of grid operators and ensures that legal requirements are complied with. At the political level, the Federal Government is creating the framework conditions – for example, through the Grid Expansion Acceleration Act (NABEG), which is intended to simplify the approval process.
But despite legal requirements, expansion is stalling in many places – often due to lengthy planning processes, complaints or a shortage of skilled workers. The problem is that many energy transition projects cannot be implemented without grid expansion. At the same time, the question arises as to whether every cable, every transformer station and every grid connection is really needed.
Why the grid needs to be stronger
The need for grid expansion arises from several developments.
- Electricity demand is increasing – significantly. With the growing electrification of transport, the replacement of fossil fuel heating systems with heat pumps and digitalization in commerce and industry, there is greater demand for power at all voltage levels.
- The structure of energy generation is changing. In the past, electricity mainly came into the country from large power plants. Today, thousands of PV installations, wind farms and storage systems feed in locally. The energy flows in both directions – making the grid more complex, demanding and prone to failure.
- New consumers are making additional demands. The fast charging infrastructure for electric vehicles in particular generates very high loads for short periods of time, which the local grid is often unable to provide. This becomes a bottleneck on highways, commercial sites or parking lots with several charging points.
Where grid expansion makes sense – and where it doesn’t
Grid expansion is not necessary to the same extent everywhere in Germany. In urban centers, industrial clusters and around busy transport routes, there are very few alternatives: this is where both electricity consumption and the demand for charging infrastructure and feed-in points are concentrated.
The situation is different in many rural regions, where energy requirements are often much lower and the grids are weaker, but also less utilized. New cables or additional connection points are not always economical or necessary. Instead, local storage systems, virtual power plants or targeted load management can make more sense – and can be implemented much faster.
This is particularly evident in the development of fast charging infrastructure. If you still want to enable ultra-fast charging at a location with limited grid capacity, you’ll need alternatives. Battery-based fast charging solutions can make a critical contribution in this regard – by preventing the peak loads that make grid expansion necessary in the first place. This not only saves time and money, but also opens up new locations that were previously considered unsuitable.
Technological alternatives to reduce the need for grid expansion
Not every challenge in the electricity grid requires a new cable or an additional transformer station. There are now effective approaches to reducing the need for network expansion in a goal-oriented manner – technologically, digitally and economically.
Grid charges that vary depending on the time are an important lever in this sense. Since 2024, the Federal Network Agency has been promoting new tariff models in which electricity prices change depending on the time of day and grid load. In other words, managing consumers – such as charging stations – in a grid-friendly way not only saves money, but also contributes to grid stability. Known as load management, this is becoming a genuine alternative to traditional grid expansion.
A second building block is the digitalization of the energy system. Smart grids use sensors, data and automation to monitor and control current flows in real time. This allows for better distribution of peak loads and avoids bottlenecks.
The prerequisite for this is modern measuring devices such as smart meters that not only record consumption but also provide feedback – for example on current grid capacity. This opens up new opportunities for dynamic tariffs, load shifting and grid-friendly behavior of consumers and generators.
These solutions make one thing clear: The need for grid expansion can be satisfied not only with excavators and concrete, but also with data and control systems. Intelligent use of existing infrastructure will largely become the key.
Storage rather than cables: how ADS-TEC Energy is reducing the load on grids
When high output is required for short periods – for the fast charging of electric vehicles, for example – many grid connections reach their limits. This is where battery storage systems come in. They store electricity over a long period of time and then discharge it again in a few minutes. This allows them to significantly reduce the load on the grid.
This is where ADS-TEC Energy can help. Our battery storage system solutions enable fast charging, even in locations with low grid connection capacity.
Particularly effective: The storage systems buffer peak loads and decouple the charging capacity from the grid.
Here’s an example: with the ChargeBox, a charging point can be operated up to 300 meters from the actual grid connection – making it ideal for locations that are confined or have a weak grid such as rest stops, grocery stores or commercial sites.
At the same time, the battery-buffered ChargePost system offers bidirectional functions so that energy can be fed back into the grid when needed.
The economic benefits are obvious:
- No costly grid reinforcement necessary
- Shorter project duration due to simpler permit requirements
- Additional sources of revenue through arbitrage or advertising (e.g. via displays on charging points)
Such solutions afford flexibility – and reduce the load on the grid where conventional expansion reaches its limits.
Involvement creates acceptance
Public involvement is an often underestimated aspect of grid expansion. The Federal Network Agency is increasingly relying on transparent procedures, citizen consultation and digital participation platforms. Those who are involved at an early stage understand the necessity better – and can make a constructive contribution.
We at ADS-TEC Energy also see it as our responsibility to communicate our projects openly. Whether it’s new charging stations, storage systems or pilot projects, the more transparent the implementation, the higher the acceptance – among residents, partners and customers alike.
This shows that a modern energy system is created not only on a technical level, but also through conversation.
European and international comparison: where does Germany stand on this?
When it comes to the energy transition, Germany is often one of the pioneers – but how successful is the expansion of renewable energies compared to other European countries? The answer: it depends on where you look.
The graph shows that in terms of total installed capacity from renewable energies per capita, Germany is in the middle of the playing field in Europe. Countries like Norway, Sweden and Austria are performing considerably better – often due to geographical advantages and a high proportion of hydropower. Norway, for example, uses almost 100% renewable electricity in its mix thanks to its topography and reservoirs.
And yet, Germany is one of the leaders in Europe when it comes to the concrete expansion of wind power and photovoltaic plants. Together with the Netherlands, Denmark and Sweden, Germany is well ahead in terms of installed wind and solar capacity per inhabitant – especially when you consider that neither nuclear power nor significant hydropower potentials are used here.
International analyses, such as those carried out by ENTSO-E and the Regulatory Assistance Project (RAP), also show that while many countries are making better use of their existing grids and increasing digitalization, Germany is still struggling with regional bottlenecks – particularly in the distribution grids. Projects such as SuedLink and SuedOstLink in the high-voltage range are making progress, but wide-ranging conversion is complex and time-consuming.
Another point: While countries such as Denmark and the Netherlands are focusing specifically on bidirectional charging, load shifting and smart grids, Germany is often still in the pilot phase. At the same time, there is growing interest in modular storage solutions, off-grid charging points and time-variable tariffs – technological approaches that have long been established in other countries.
Conclusion: Compared to other European countries, Germany is doing better than many people think – particularly in terms of the expansion of wind and solar energy. But there is room for improvement, especially when it comes to grid integration, flexibility and digitalization. Looking across the border shows which technologies and political frameworks we can use to make the energy transition not only climate-friendly but also grid-compatible.
Outlook and recommendations: what’s important now
Grid expansion remains a key issue in the energy transition – but it is not an end in itself. What’s critical is how targeted, efficient and sustainable it is designed. The coming years will show whether traditional expansion models will suffice or whether a more radical rethink is needed.
Here’s what will help:
- Taking a differentiated view of needs: Accelerating grid expansion where it is actually required – such as in urban centers, industrial areas or along major transport routes.
- Using technological alternatives: Storage systems, load management, smart grids and digital control offer practical ways to solve grid bottlenecks locally.
- Speeding up planning processes: Less bureaucracy, better coordination and clear responsibilities help with the faster implementation of expansion projects.
- Strengthening involvement: Transparent communication and early dialogue with citizens and companies increase acceptance and reduce resistance.
- Sharing experiences: Draw on best practices from other countries and adapt them to German conditions.
ADS-TEC Energy will play an important role in this regard – for example through intelligent storage solutions, economically viable charging infrastructure or technical advice for site development.
The electricity grids of the future will not be created on a drawing board alone. They will be the result of clever planning, new technologies and close cooperation between business, politics and society. Taking this into account will not only create greater security of supply, but also economic benefits and acceptance.