How the Energy Transition is Shaped in South Hesse
Interview with Dipl.-Kfr. Ines Schultze and Dipl.-Ing. Holger Klein, Board Members of e-netz Südhessen AG
The e-netz Südhessen AG ensures the secure energy supply in the Rhine-Main-Neckar area and guarantees a functioning infrastructure for around one million people in the region. Wirtschaftsforum spoke with Ines Schultze and Holger Klein, the two board members of the distribution network operator of ENTEGA AG, about the challenges of the energy transition and the cooperation with the municipalities in the network area.
Wirtschaftsforum: Ms. Schultze, Mr. Klein, you lead the e-netz Südhessen AG as a team. How have you divided the tasks among yourselves?
Ines Schultze: We work across departments and make important decisions together. I am primarily responsible for the economic part: network economics, regulation, IT, network development and strategy, and concession management. In addition, I look after other municipal infrastructure business such as land development.
Holger Klein: I am the engineer on the team and responsible for planning, construction, and operation of the networks, but also for customer service related to the network connections. The latter is becoming increasingly important with the growing integration of power generation plants and through connection to heat pumps and charging stations.
Wirtschaftsforum: Three to four years ago, the e-netz Südhessen was more of an operational company for network infrastructure; then you transformed the company into a large network society, merging assets and operations.
Ines Schultze: It was a strategically important step. We started early to respond to the legal requirements of the energy transition and carried out a major reorganization. In doing so, we emphasized the important role of the asset owner and the key tasks of network strategy, asset management, network operations, and customer service. Another fundamental decision was to separate the operations of electricity and natural gas – in light of the fact that the networks are developing differently. This makes our organization fit for the restructuring of the power grids in the region. Thus, we are paving the way for over 50 concession municipalities into the energy transition. Heat generation in many smaller municipalities will primarily be electricity-based in the future. For this reason, we have developed a target network planning for the low and medium voltage level. From this, we derive municipality-specific investment plans.
Holger Klein: We set the course for this early on. The restructuring of the power grids requires a high level of financial volume. This needs to be used in a targeted manner to support the energy transition. That's why we completely revamped our asset management and sharpened the roles within it. Our concept will be certified according to DIN ISO 55001. Thus, we have created an instrument to optimally implement measures based on needs.
Wirtschaftsforum: You have more than 100 trainees. How important is in-house training for you?
Ines Schultze: We extensively train throughout the group, mainly for network operations. Currently, we have 118 trainees in the company. We clearly focus on our own junior staff to secure our know-how. This has proven to be effective against the background of demographic developments. Since the beginning of the year, we have also introduced a new tariff system, which allows more flexibility. Moreover, we maintain close contact with various universities. Working students thus have the opportunity to get to know the interesting new tasks of a network operator. They work on the implementation of strategic tasks, on the target network planning, or on the digitalization of the low voltage grid. After completing their studies, we want to hire them. We present ourselves as an attractive employer.
Holger Klein: Meanwhile, employees appreciate not only the crisis security that a network operator offers. The energy transition additionally makes us attractive because we offer the chance to actively shape it. The team spirit also plays an important role for us. Through various formats, we set impulses and regularly come together across departments, for example at colleague speed dating. This promotes togetherness and makes us faster and more efficient.
Wirtschaftsforum: How do you assess the government's energy policy?
Ines Schultze: What the policy intends to do is fundamentally important for the future. As a regional distribution network operator, we bear the responsibility of creating the infrastructure for the Rhine-Main-Neckar region and advancing the restructuring of the networks. We always proceed with a pre-concept and must recognize possible needs early in order to deliver as soon as these needs become concrete. This means that we also have to make financial pre-investments. For this reason, we need an energy policy with a forward-looking regulatory framework for network charges. Currently, the network charges are still based on the past. They do not reflect the future needs. This complicates the restructuring of the power grids.
Holger Klein: The policy of the federal government regarding the natural gas shortage situation must be positively mentioned. Here, they have taken the right course by showing a quick response through liquefied natural gas imports and managing the impending shortage situation. Thus, we were able to signal relief early in conversations with our industrial customers. The industry is heavily dependent on natural gas supply and would have been severely hit by a supply stop. The communication worked well.
Wirtschaftsforum: What are your focal points for the current year?
Ines Schultze: A key priority is the digitalization of the power grids. In this context, we are creating the tools for the implementation of the new § 14a in the Energy Industry Act. It allows network operators to control consumer installations such as heat pumps and private charging points for e-mobility when necessary, in order to avoid overloads in the network. We will also use our own 450-megahertz radio network in a solution-oriented manner.
Holger Klein: § 14a of the Energy Industry Act is a challenge. So far, operators have had no reason to monitor the low-voltage networks. Now we need to understand the energy flows precisely, require detailed measurements to detect load peaks. This is a prerequisite for dimming controllable consumer devices as needed. This is a major task that network operators throughout Germany have to face.
Wirtschaftsforum: And in the long term?
Ines Schultze: We will primarily manage the restructuring of the power networks for every municipality in our network area, which requires massive investments in the region. We have already made investment plans up to the year 2045. Thus, we fulfill the mission we have been given by the municipalities within the framework of concession contracts, and moreover, we continue to pursue our holistic approach: We stand by our municipal partners as service providers for land development, municipal heating planning, and street lighting.
Holger Klein: More medium term than long term, we will also become hydrogen network operators and plan the development of a needs-based infrastructure – for the industry and for heating supply. Wherever it makes sense, we will examine all options for transforming the existing natural gas network.