The states in the north of Germany produce excess renewable electricity. They export much of what they do not need, but they have been hampered by a lack of transmission lines going to areas in the country’s south.
Energy storage offers opportunities to reduce transmission demands, and new technologies are being examined. Grid power can be used to make hydrogen, which can then be used to generate electricity in times of high demand or to heat buildings. This technology is sufficiently developed that the states have agreed not to hold off on developing renewable power sources because of lack of transmission infrastructure. Instead, they will develop ways to use otherwise unwanted power, including for production of hydrogen for fuel. The hydrogen can also be used to produce other chemicals, such as other fuels or ammonia.