Battery storage is considered the indispensable backbone of the energy transition. However, while the technology has long been mature, political uncertainty is currently plaguing the market. The Federal Network Agency (BNetzA) plans to introduce a new grid fee regulation (“AgNes”) through the revision of Section 118(6) of the Electricity Network Act (EnWG). Until now, storage facilities have been exempt from grid fees for 20 years under Section 118 of the EnWG. However, the Federal Network Agency is planning to end this exemption for new facilities and is discussing the possibility of pseudo-retroactivity for existing storage facilities. This creates new uncertainties and could have a significant impact on the energy transition. In its current position paper, NOVUM warns of the consequences of the “AgNes” determination procedure and calls for urgent adjustments.
Storage facilities are infrastructure, not mere electricity consumers
Large battery storage facilities perform an important task: they reduce the need for expensive redispatch measures and absorb extreme price fluctuations through arbitrage. Thus, they act as an important link between renewable energies, the electricity grid, and consumers. Because of their system-stabilizing role, storage facilities should be considered infrastructure and not charged grid fees like traditional grid users.
The problem: weakened planning security (Section 118 (6) EnWG)
To date, investors have been able to rely on a stable regulatory framework. According to Section 118(6) of the German Energy Industry Act (EnWG) , storage facilities that began operating before August 4, 2029, were exempt from grid fees for 20 years. Based on this regulation, investments in the double-digit gigawatt range were planned and financed.
However, the guidelines outlined by the Federal Network Agency in the “AgNes” proceedings now threaten this foundation. Currently, regulatory uncertainty is the biggest non-technical project risk, as technological risks and the operation of the plants are manageable.
Fatal consequences for the market
As experts who evaluate projects as an independent monitoring partner, we believe that a subsequent change to these framework conditions would have drastic consequences.
- Financing models would be shaken as business cases would have to be completely reevaluated.
- Risk premiums would rise, which would artificially increase the cost of investment.
- There is a threat of investment postponements, which would create a dangerous gap between the expansion of renewables and the necessary flexibility infrastructure.
- Ultimately, delayed storage expansion will lead to higher overall system costs for everyone.
5 guidelines for the future
To avoid stifling expansion, NOVUM calls for clear regulatory rules:
- Safeguard legitimate expectations: Projects for which investment decisions have already been made must be protected.
- Transparent transitional arrangements: Clear deadlines are needed for ongoing project developments.
- Differentiation: A clear distinction must be made between grid-friendly infrastructure storage and pure consumption applications.
- Incentives for grid serviceability: The new remuneration systems should offer dynamic incentives that reward grid-friendly behavior.
- Long-Term Guidelines: Investment security must be guaranteed beyond individual legislative periods.
Conclusion: The technology is ready, now regulation must follow suit and create reliability instead of slowing down ongoing projects.
