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.