Direktstrom

Direktstrom is a term used in the energy sector to describe a direct electricity supply arrangement, where a consumer sources power directly from one or a small number of producers, rather than via the standard electricity retail chain. The concept is most often discussed in liberalized electricity markets, where bilateral contracts complement or substitute the conventional wholesale-to-retail model.

Under a Direktstrom arrangement, the buyer and seller establish a bilateral agreement that specifies price, volume, delivery schedule, and metering responsibilities. The electricity may be delivered over the regulated grid, in which case the contract defines who pays grid charges and how balancing and settlement are handled, or it may involve a dedicated connection. Direct arrangements can support targeted procurement of specific generation attributes, such as renewable energy, and may offer price transparency and reduced intermediary costs.

Advantages cited for Direktstrom include enhanced price visibility, potential support for local or new generation projects, and flexibility in contract terms. Disadvantages include procurement complexity, limited supplier choice relative to standard retail markets, counterparty credit risk, and the need for robust measurement, accounting, and regulatory compliance.

Regulatory treatment varies by jurisdiction. In some markets, Direktstrom-type contracts coexist with competitive retail supply and are subject to energy market rules, consumer protection laws, and metering standards. Questions typically addressed include contract enforceability, risk management, and how grid charges and balancing costs are allocated.

See also: bilateral contract, power purchase agreement, green electricity, energy procurement.