LAUSR

This paper investigates the interplay between the German incentive regulation and renewable capacity integration. A comprehensive review of the current incentive regulation scheme and its 2016 amendment is first presented. Then, results of ten representative interviews with large-scale distribution system operators are analyzed. Firstly, all necessary grid integration measures could so far be implemented. Secondly, creating proper incentives for intelligent operating equipment to partly substitute conventional grid expansion remains a challenge. Thirdly, the new curtailment regulation of 2016 is welcome, but will not become a substitute for grid expansion as long as renewable integration rates are high. Moreover, the discussions on further improvements to the incentive regulation scheme reveal a distribution conflict between grid operators and grid users.