1. Power generation and grid operation are drifting apart

The German electricity infrastructure was created at a time of large central power plants. Energy flowed from the power plant to the consumer in a predictable manner. This system is reaching its limits today.

Thousands of photovoltaic systems, wind farms and memory supply power or absorb electricity decentrally. As a result, load flows are constantly changing. Network operators are increasingly having to intervene to ensure balance.

2. Virtual networks as a new control level

Virtual networks do not rely on building new lines, but on digital intelligence. Storage, generation systems and consumers are linked together via software and combined into a controllable overall system. This creates an additional control level that works independently of the physical network infrastructure.

The focus is on the intelligent coordination of production and consumption. Excess electricity is not necessarily fed into the grid immediately, but is first temporarily stored in storage or used flexibly. In this way, load peaks can be avoided and local network bottlenecks reduced without having to invest immediately in new networks.

Virtual networks also make it possible to specifically activate flexibility and postpone it over time. Stored energy is then available exactly when it is needed from the grid perspective. Virtual networks thus make an important contribution to the integration of renewable energies and to the stabilization of an increasingly decentralized energy system.

3. Battery storage plays a key role

Battery storage forms the backbone of virtual networks. They not only buffer energy, but also take on active tasks in network operation.

Uwe Dahlmeier, a mathematician with a doctorate and an expert in the energy industry, summarizes this approach as follows:

“Batteries expand the use of existing grid capacities and thus create virtual grids through free capacities in off-peak times, which further reduce the costs of renewables.”

The statement makes it clear that battery storage has grown far beyond its classic function as pure temporary storage. By specifically absorbing electricity during times of low network load and releasing it again during periods of high demand, they create additional scope for action in the existing network. This temporal decoupling of generation and consumption makes it possible to use existing network capacities more efficiently without the need for physical expansions.

4. Use existing networks more efficiently

Virtual networks enable significantly better use of the existing network infrastructure. Digital control and intelligent coordination increase the utilization of existing lines without the immediate need for new network expansion projects. Generation, memory and consumption are coordinated in such a way that critical stress situations can be avoided.

A central effect is the reduction of load peaks, which previously often required costly interventions in network operations. If flexibility is activated in a targeted manner, bottlenecks can be alleviated before they arise. This not only increases operational reliability, but also postpones investments in new lines until the future or makes them partially unnecessary.

At the same time, virtual networks can help limit complex and expensive redispatch measures. If generation, storage and consumption work better together, the need to ramp up or shut down power plants at short notice decreases. This reduces system costs and makes the energy system overall more efficient and easier to plan.

5. Flexibility as the key to further growth in renewable energies

Renewable energies bring a high level of dynamism to the electricity system. Weather-dependent generation from wind and solar leads to fluctuating feed-in quantities, which the grid must flexibly compensate for. Virtual networks create precisely this flexibility by intelligently linking generation, storage and consumption and making them controllable.

By digitally bundling decentralized systems, loads can be shifted in a targeted manner and surpluses can be used efficiently. This means the power system responds more quickly to changes without the need for additional physical infrastructure. Virtual networks therefore act like a buffer that compensates for fluctuations and increases system stability.

International experience shows that intelligent grids can make the expansion of renewable energies much easier. Countries with a high proportion of renewable generation are increasingly relying on digital control and flexibility markets to ensure security of supply and grid stability, even with rapid expansion.

6. Technical requirements and long-term prospects of virtual networks

The successful use of virtual networks places clear demands on technology and regulation. High-performance battery storage, reliable software solutions and secure communication interfaces are central requirements so that virtual networks can function stably and efficiently. Transparent rules for data exchange and market integration are just as important.

In addition, a regulatory framework is needed that rewards flexibility and enables new business models. Virtual networks only develop their full potential when storage, flexible consumers and digital platforms can be integrated in an economically sensible way. Adjustments to existing market and network fee structures are necessary here.

In the long term, virtual networks will be at the center of the energy transition and are therefore its central component. They combine cost-effectiveness with security of supply and make it possible to integrate renewable energies more quickly and cost-effectively. In doing so, they make a decisive contribution to the transformation of the energy system towards greater sustainability and resilience.