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The German Federal Network Agency (Bundesnetzagentur) (“BNetzA”) has provided important clarity on the future treatment of battery energy storage systems (“BESS”) under Germany's ongoing grid fee reform (Allgemeine Netzentgeltsystematik Strom) (“AgNes”).
Most importantly, the regulator has stepped back from earlier proposals that raised concerns across the storage sector and has confirmed its intention to preserve the existing grid fee exemption for operational projects and certain advanced-stage developments. At the same time, it has outlined a comparatively moderate grid fee framework for future storage facilities.
Taken together, the proposals are likely to be welcomed by investors, lenders and developers and may further increase interest in the German BESS market, particularly for projects capable of securing grandfathering protection.
Grandfathering protection preserved
Under the current legal framework, electricity storage facilities commissioned before 4 August 2029 benefit from a full exemption from grid fees for twenty years following commissioning pursuant to Section 118(6) EnWG.
In a January 2026 orientation paper, BNetzA suggested that BESS could in future become subject to grid fees, potentially including projects already in operation or under development. This created significant uncertainty across the market.
At a stakeholder workshopon 27 May 2026, BNetzA now confirmed that the existing exemption will continue to apply not only to operational projects but also to projects under development, provided that:
- a final investment decision (“FID”) is reached before the final AgNes determinations enter into force (currently expected at the end of 2026 or beginning of 2027); and
- the project is commissioned no later than 4 August 2029.
Projects meeting these criteria are expected to retain the existing twenty-year exemption from grid fees.
For these purposes, BNetzA currently considers FID to require binding procurement commitments covering approximately half of the project investment volume, contracts that cannot be terminated without substantial financial loss and a binding grid connection commitment.
Future grid fees for BESS
For projects that do not benefit from grandfathering protection, BNetzA proposes a capacity-based charging model.
Storage facilities would pay a fee linked to their contracted grid connection capacity, currently expected to amount to approximately EUR 4–7/kW/year. BNetzA has abandoned earlier considerations of introducing an additional energy-based charge, meaning storage facilities would only be subject to a single capacity-related fee.
The proposed framework would apply nationwide, avoid separate charges for charging and discharging activities and continue to exempt residential and small prosumer storage systems below 30 kW.
What does this mean for the German storage market?
Although the proposals do not yet constitute a final regulatory decision, they provide a much clearer indication of the regulator's direction of travel.
The preservation of grandfathering protection significantly reduces regulatory uncertainty for projects already under development and should allow many developers to proceed on the basis of existing investment assumptions. At the same time, the proposed level of future grid fees appears considerably less burdensome than many market participants had anticipated and is unlikely to fundamentally undermine the economics of utility-scale BESS projects.
Important questions nevertheless remain. BNetzA has announced further work from 2027 onwards on both Flexible Connection Agreements (“FCAs”) and construction cost contributions (Baukostenzuschüsse) (“BKZ”). It therefore remains to be seen whether, and to what extent, future reforms in this area could also affect the treatment of BESS projects.
Developers seeking to benefit from grandfathering protection will need to ensure that a qualifying FID is reached before the final AgNes determinations enter into force and that projects are commissioned by 4 August 2029.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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