Energy storage in Germany
Energy storage in Germany
Current regulatory developments
Updated September 2026
European BESS deployment leader (574 GW connection requests in 2025)
Grid usage fee reform expected to maintain 20-year exemption for BESS with FID before 2027 and commissioning by August 2029
Flexible grid connection agreements (cable pooling/overbuilding) might become conditional for connections to the transmission grid under the current “grid package” legislative proposal
Introduction of new privileges for BESS under planning law in 2025 allowing to achieve permissibility of certain projects without the need of a development plan
New capacity auction scheme allows for additional revenue stream also for BESS
Five things to know about BESS in Germany.
Revenues and other benefits principally derived from grid services, trading, and peak shaving. Sources include provision of positive and negative primary and secondary control reserve after participation in tenders (via regelleistung.net), electricity trading (arbitrage), combination with renewable energy plants (co-location) in particular to postpone feed-in during negative price periods, and reduction of grid usage fees for consumers through peak load shaving. In addition, BESS may be used to provide back-up power for consumers, including data centers. Finally, a new auction scheme introduced via the Law on Securing Electricity Supply and Providing New Capacity (StromVKG), which is still subject to EU State aid clearance, allows for remuneration for the provision of secured electrical capacity by power generation assets, including BESS, from 2031 as determined in tenders from 2027 to 2029.
No straightforward financial support scheme exists for commercial-scale BESS comparable to renewables. Unlike renewable energy plants, as the case may be in co-location with BESS (which receive financial support over a 20-year period), there is no direct subsidy for commercial-scale stand-alone BESS. Also, the current reform of the German Renewable Energies Act (EEG) foresees that no specific auctions for innovative combinations of renewable energy plants with BESS will be held from 2027 onwards. Further, increased revenues from the postponed feed-in of renewable energy plants combined with BESS will account for potential claw back payments under the future contract for difference (CfD) scheme of the EEG 2027. The grid fee exemption is, to the extent still available, the primary fiscal incentive.
BESS are regulated as "energy storage plants" under existing energy legislation, and will be subject to specific grid charge regulation from 2029 onwards. BESS qualify as "energy storage plants" within the meaning of the German Energy Industry Act (EnWG) and, if only using power generated by co-located renewable energy facilities, as "plants" within the meaning of the EEG. They are currently subject to general power consumption and generation-related provisions, including unbundling from grid operation, alongside specific provisions applicable to BESS. The proposal of the Federal Network Agency (BNetzA) for grid charges applicable from 2029 foresees the following: stand-alone BESS as well as BESS combined with a generation facility will pay an annual capacity-based feed-in charge, which can be expected to be in the region of EUR 5/kW in the first year; no additional consumption charges for electricity drawn from the grid will be payable. BESS combined with a consumption facility will be subject to the grid charges regime of the consumption facility, which includes a capacity charge and a two-tier energy charge; however, no energy charges are payable for electricity drawn from the grid and fed back in to prevent the deployment of electricity storage for arbitrage or system services purposes from being inhibited. In both configurations, there is also the payment of building cost contributions (BKZ) in accordance with the currently applicable rules of the various grid operators in line with the existing position papers of the BNetzA and any future requirements of the authority.
The 20-year grid fee exemption is a critical economic incentive, but comes with an FID deadline. BESS commissioned until 4 August 2029 benefit from an exemption from grid usage fees for a 20-year period from commissioning. However, the current reform of the grid charges regime provide that the exemption shall only apply to BESS with FID (final investment decision) before 2027, meaning projects must demonstrate commitment well ahead of the commissioning cut-off. FID is deemed to have been made if binding orders for components covering at least 50% of the investment volume have been placed and relevant contracts cannot be terminated without significant financial loss (in particular threatened contractual penalties) of at least 25% of the investment volume.
Grid saturation is an acute constraint, making early grid access a critical competitive advantage. German grid operators received 574 GW of new grid connection requests in 2025, far exceeding available grid capacity, and the overall German BESS capacity is expected to reach up to 175 GW by 2045. This makes securing grid access one of the most significant strategic considerations for any German BESS investment. Recent regulatory reforms also introduce flexible grid connection options, enabling cable pooling and overbuilding, allowing multiple assets to share a single grid connection point; flexible grid connection agreements might become conditional for connections to the transmission grid under the current “grid package” legislative proposal, and also be suggested by many distribution system operators during their grid connection processes. On the other hand, the introduction of new privileges for BESS under planning law in 2025 might allow certain projects to achieve permissibility without the need of a development plan. Finally, supply chain constraints (including anticipated supply shortfalls in battery minerals) and IP/technology developments remain obstacles.
Credentials
Amprion on the award for the operation of the decentralized 250MW grid booster battery energy storage project in Bavarian Swabia to EDF power solutions Deutschland
an international renewable energy solutions provider on the envisaged acquisition of a portfolio BESS projects under development in Germany
a German utility on the co-development of BESS projects
a European developer of green energy systems on the development of BESS projects in Germany
a German funder on proposed tolling and revenue floor products for BESS projects in Germany
Swiss Life Asset Managers on their acquisition of a 50% stake in BCP Battery Holdings, a company with several utility-scale BESS developments in Germany
a German developer on a tolling agreement with Engie for a 400MW+ BESS project in Germany
“Eversheds Sutherland combines a focus on transaction-related activities with regulatory expertise and operates predominantly in the field of renewable energies, most recently in matters related to photovoltaics, wind and solar energy. In cooperation with the firm's international network, Martin Weitenberg's group often operates across borders and was thus able to demonstrate strength in M&A mandates in particular during the reporting period.” Legal 500 Germany
Explore other key BESS markets
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.
Connect with us
