On 27 May 2026, Germany’s Federal Network Agency (Bundesnetzagentur – BnetzA) updated its plans for a new network tariff system (Rahmenfestlegung der Allgemeinen Netzentgeltsystematik Strom – AgNes), which will set new principles for electricity network tariffs in Germany. Under the revised plans, existing battery energy storage systems (BESS) are, for now, not expected to be subject to network tariffs, reversing signals from January 2026 – a development welcomed by operators. Projects currently under development may also benefit from an exemption from network tariffs, provided they meet two key deadlines.
Background
The AgNes proceedings stem from a ruling by the European Court of Justice of 2 September 2021, in which the Court found the Bundesnetzagentur to have too little discretion when setting network tariffs and insufficient independence to act effectively. In response, the Bundestag voted to repeal the existing Electricity Network Tariffs Ordinance (Stromnetzentgeltverordnung) and Incentive Regulation Ordinance (Anreizregulierungsverordnung) with effect from 31 December 2028. This prompted the Bundesnetzagentur to launch proceedings in May 2025 to develop a new network tariff system that would take effect from 1 January 2029.
Current legal framework
Under current law, BESSs commissioned by 4 August 2029 are exempt from network tariffs for 20 years from the date of commissioning (section 118(6) Energy Industry Act (Energiewirtschaftsgesetz)). This provision was introduced in 2009 to encourage the expansion of storage facilities in response to the sharp growth in wind power feed-in at the time.
In an orientation paper dated 16 January 2026, the Bundesnetzagentur questioned this exemption and signalled that all storage facilities could be subject to network tariffs in the future, including those already in operation or soon to be commissioned. The announcement caused considerable uncertainty in the industry, as it affected previous investment decisions: installations planned and financed without factoring in network tariffs might have become subject to them in the future. It also raised constitutional concerns, because investment decisions made in reliance on the legal framework applicable at the time would have been eligible for protection under the principle of legitimate expectations. The Bundesnetzagentur has now addressed these issues by limiting network tariffs to new installations for the time being. For installations already in operation and for projects where a final investment decision (FID) is reached before the AgNes determination enters into force (expected in late 2026/early 2027) and the installation is commissioned by 4 August 2029 at the latest, the current exemption from network tariffs will continue to apply for 20 years from commissioning.
Announcements by the Bundesnetzagentur
On 27 May 2026, the Bundesnetzagentur presented the following key proposals for electricity storage facilities (battery and pumped storage):
Capacity-based tariff to replace energy-based tariff: In future, storage facilities will pay a capacity tariff based on their contractual network connection capacity, which is expected to range between 4 – 7 EUR/kW per year. No additional energy-based tariff will be payable, as the Bundesnetzagentur has abandoned its original proposal in this regard.
Uniform nationwide application: The capacity-based tariff is to be applied uniformly across all network operator voltages nationwide.
- No double tariff: No double capacity tariff (for feed-in and withdrawal) will be levied.
- Home energy storage: No storage fees will be charged for home energy storage in prosumer systems (< 30 kW).
- Protection of legitimate expectations for existing installations/installations with an FID: Installations commissioned after 4 August 2011 and within 18 years will also be exempt from tariffs. Projects currently under development will only be exempt if an FID is reached before the reform enters into force (planned for late 2026/early 2027) and the installation is commissioned by 4 August 2029 at the latest. An FID is deemed to have been reached if a binding order for components covering approximately half of the investment volume has been placed, the relevant contracts cannot be cancelled without significant financial loss, and a binding grid connection commitment has been secured. Installations protected by the principle of legitimate expectations are to be exempt from network tariffs for 20 years from commissioning.
Outlook
These plans reflect the Bundesnetzagentur’s preliminary conclusions and remain subject to change. The full draft framework determination will be issued shortly and will be followed by a formal market consultation. The final determination is expected by late 2026 or early 2027. For projects currently under development, it is important that an FID is reached within this timeframe. This requires, in particular, placing orders for installation components amounting to around half of the total investment volume.
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