Dena shows ways for strong distribution grids

01.07.2025

Source: E & M powernews

The German Energy Agency has presented its new distribution grid study in Berlin, which describes four fields of action for the economic restructuring of electricity, gas and heating grids.

The German Energy Agency (Dena) published its Distribution Grid Study II on July 1. The study analyzes from a business perspective how electricity, gas and heating grids in Germany can remain efficient in the future. According to Dena, the study is based on a modeled sample distribution grid operator representing an average German municipality and considers the economic impact of grid expansion up to the year 2045.

The energy transition is primarily taking place in the distribution grids, emphasized Corinna Enders, CEO of Dena. "The path to climate neutrality in the distribution grid requires a reliable regulatory framework that enables investment as well as digitalization and cooperation at all levels," she said at the presentation of the study in Berlin.

Dena identifies four key areas of action to make the grids fit for the energy transition: attractive investment conditions, coordinated planning, increased digitalization and closer cooperation across all sectors.

More money needed for the conversion

The key finding of the study is the high financing requirement. According to Dena, the average annual investment of a model distribution grid operator must increase by 85 to 123 percent across all sectors by 2045 compared to 2024. This is due to the connection of new energy consumers and generation plants as well as increasing demands on grid stability.

Dena points out that financing poses a challenge, in particular the procurement of sufficient equity. According to the study, this could be achieved using various instruments, such as an increase in the regulated equity interest rate, strategic state equity or the establishment of external companies.

The study names coordinated planning as a second field of action. According to Dena, electricity grid and heat planning must be developed into an overarching energy master plan with uniform data standards in order to avoid parallel infrastructures. It is essential that European, federal and state authorities reduce bureaucratic hurdles and standardize and digitize approval procedures.

Digitalization opens up new scope

Digitalization also plays a key role. According to Dena, it can help to plan energy infrastructures with foresight and manage them efficiently. Smart metering systems make it possible to record the status of the grids in real time, which increases the security of supply and makes grid expansion more targeted. Digital systems also offer the opportunity to tap into flexibility potential and avoid grid bottlenecks.

Dena is in favor of allowing the permanent use of flexibility without a direct expansion obligation. In addition, the costs of digitalization should be recognized by the regulator so that grid operators can implement investments in digital technology economically.

Joint task of the energy transition

The fourth field of action identified by the study is more intensive cooperation between all stakeholders. According to Dena, cooperation between grid operators from all sectors needs to be strengthened, as do partnerships with universities, start-ups and regional associations. In this way, resources could be procured jointly, the shortage of skilled workers could be alleviated and knowledge could be put into practice more quickly. According to the study, the formation of competence clusters or joint ventures are also conceivable in order to make the conversion of the grids more efficient.

The Distribution Grid Study II was carried out between May 2024 and June 2025 under the leadership of Dena. BET Consulting GmbH from Aachen, the University of Wuppertal and BMU Energy Consulting GmbH from Cologne were involved in the partner-funded project. In addition, 26 distribution grid operators from all over Germany were involved, including municipal utilities and large group companies.

The Dena Distribution Grid Study II is available for download as a PDF.

Author: Susanne Harmsen