Local Electricity Regulation in Germany

An important feature of the presently ongoing electricity transition in Germany is its strong decentralising character. Especially the local level has gained increasing importance. Renewable energies in Germany are predominantly small-scale installations owned by private citizens, farmers, local companies, etc. Local governments both try to re-engage themselves in the area of energy as well as play a pivotal role in spatial planning to determine over-potential sites for electricity generation. Due to the historical development of the electricity field in Germany, local governments furthermore play an important role in handing out local and regional network concessions. The activities of local action groups and local governments challenge the position of the big utilities and are difficult to bring in line with changing political priorities on the state and federal levels. Energy thus has become an important contentious policy field on the local level in Germany.