As energy policy in Germany often influences developments in the Czech Republic, we would like to draw attention to the fact that there has been a fundamental shift in the regulation of energy storage facilities, known as battery energy storage systems [1] (hereinafter referred to as “BESS“). Until now, BESS have been virtually exempt from grid fees for up to 20 years, with the costs of grid expansion and maintenance being borne mainly by end consumers of electricity, which was a key condition for the economic viability of BESS projects. However, the German network regulator [2] has now published “Guidelines for fees related to the connection and operation of energy storage facilities” [3] (hereinafter referred to as the “Guidelines”), which indicate the possibility of introducing network charges for existing or ongoing projects, among other things.
Current regulatory framework and support for BESS
The energy reform package adopted by the German Bundestag on 31 January 2025 responded to the growing need for flexibility. For BESS, the introduction of Flexible Capacity Agreements, enabling more efficient use of limited grid capacities, was particularly important. The concepts of “superstructure” (Überbauung) and cable pooling, enabling the sharing of connection capacities between multiple facilities, were also introduced. The changes also affected the Renewable Energy Sources Act (EEG) and the operation of co-located BESS, i.e. battery storage facilities operated in conjunction with electricity generation from renewable sources, thereby expanding the possibilities for BESS participation in the market.
In addition to the legislative changes mentioned above, the exemption from network charges has also been crucial for the development of BESS. Until now, network connection charges have been paid by end consumers who purchase electricity from the network. Under current legislation, BESS that will be commissioned by August 2029 at the latest are exempt from network charges for a period of 20 years, but no longer than until 2049 (Section 118(6) of the Electricity and Gas Supply Act (EnWG)).
New development: AgNes
On 16 January 2026, the German network regulator published the above-mentioned Guidelines as part of the AgNes regulation. [4] This new regulation, which is to replace the existing regime under the Network Charges Ordinance [5] with effect from 1 January 2029, introduces new tariff structures.
In the document, the German network regulator assumes that the current model, in which costs are mainly covered by end consumers of electricity, no longer reflects the changed conditions resulting from the ongoing energy transition. It therefore signals its intention to expand the group of entities contributing to network financing in the future.
The German network regulator is also considering the possibility of so-called false retroactivity, i.e. the premature termination of the exemption even in relation to existing or ongoing projects. The regulator is relying on its authority to intervene in the exemption under Section 118(6) sentence 12 of the EnWG and indicates that investor protection is limited in this case.
Impact on investors and further developments
The German network regulator’s considerations have potentially significant economic and legal implications. A number of BESS projects are currently being prepared or financed on the assumption that the exemption from network charges will apply for the entire period provided for by law. Any premature termination of this exemption could have a significant impact on their economic return, financeability and overall investment attractiveness.
An expert workshop on the German network regulator’s guidelines was held on 30 January 2026, followed by the publication of an online chat.[6] During the discussion, industry representatives raised significant reservations, particularly regarding the possible retroactivity of the proposed changes and the disruption of investor confidence.
The deadline for submitting comments expired on 27 February 2026. The regulator announced that it would publish the comments received on its website. [7] However, as of the beginning of March 2026, a complete and centralised collection of comments had not yet been published.
Nevertheless, individual energy associations published their comments separately. Their content emphasises, in particular, the preservation of investment protection, the rejection of retroactive interventions, the requirement for the predictable and gradual introduction of the new system in terms of investment, and the need to take into account the actual contribution of storage facilities to the electricity system.
We will continue to monitor the situation and keep you informed of further developments.
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