In many regions of Germany, demand for grid connections now exceeds the available capacity of the distribution network, exposing the limitations of the existing “first-come, first-served” approach. The four German transmission system operators (TSOs) have already introduced a maturity-based procedure – which prioritises grid connection requests based on project planning status and likelihood of implementation – for transmission grid connections (see our article here). The draft of the so-called Grid Package (Netzpaket) now requires distribution system operators to establish uniform, structured award procedures for grid connection capacity (see our article here). The system of awarding capacity based solely on the order in which applications are submitted is to be replaced by a prioritisation process based on predefined criteria. Several distribution system operators have already introduced their own procedures ahead of any legislative requirement.
Criteria-based allocation procedure introduced by E.ON distribution system operators
On 13 August 2026, the E.ON subsidiaries Bayernwerk Netz, E.DIS Netz and Schleswig-Holstein Netz announced a new criteria-based procedure for allocating grid connection capacity.
Scope: The procedure applies to offtake customers requiring (additional) capacity exceeding 1 MW and to battery energy storage systems with offtake requirements of more than 300 kW. It does not apply to household customers, green electricity storage systems, generation-only installations, or certain providers of essential public services, such as hospitals, emergency services and educational institutions, which will remain subject to the first-come, first-served approach.
Process: The criteria-based allocation procedure is divided into four phases. Available grid connection capacity is first identified by the distribution system operator and published on a grid map (9 weeks). Grid connection applications can then be submitted via an online portal (6 weeks). In the next step, all applications are automatically evaluated based on fixed assessment criteria (16 weeks). Finally, all applicants are informed of the outcome.
Assessment criteria: The procedure uses an automated scoring system based on six equally weighted criteria (maximum 10 points each, 60 points in total). If two or more applications achieve the same score and seek capacity in the same area, allocation is decided by drawing lots.
- Project maturity – assesses the planning and approval status of the project at the time of application. The more advanced the project, the higher the score;
- Contribution to regional scenario (section 14d Energy Industry Act (Energiewirtschaftsgesetz, “EnWG”)) – measures the extent to which the project advances the climate and energy policy targets set out in the applicable regional scenarios;
- Co-location with renewable energy installation – awards points for the shared use of a grid connection point with a renewable energy installation;
- Flexibility commitment – awards points for an applicant’s willingness to conclude a flexible connection agreement (FCA), requiring the adjustment of grid connection capacity during periods of grid congestion;
- Local infrastructure dependency – evaluates the extent to which the project relies on local water, heat, transport, gas or data infrastructure, with projects tied to a specific location receiving a higher score;
- Existing grid connection point – assesses whether the project makes use of an existing grid connection point, with preference given to applicants that have already made location-specific investments.
All three distribution system operators will launch their first application phase on 12 October 2026, with applicants expected to be notified of the outcome by 15 March 2027. In future, there will be two application phases each year. Once the first allocation cycle has been completed, the operational experience gathered will be reviewed. The results will also serve as a basis for deciding whether the scheme should be rolled out to other E.ON distribution system operators.
Netze BW introduces deadline-based points procedure
Netze BW, Baden-Württemberg’s largest distribution system operator, introduced a deadline-based award procedure on 13 August 2026 in consultation with the Baden-Württemberg Association for Energy and Water Management (Verband für Energie- und Wasserwirtschaft Baden-Württemberg).
Scope: The procedure applies to projects scheduled for implementation within the next three years and covers all offtake connections and capacity increases in medium- and high-voltage grids with a total requested capacity of at least 950 kW, as well as grey electricity storage systems with grid offtake that require an increase in capacity or a new grid connection. It does not apply to connections for installations under the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz) or the Combined Heat and Power Act (Kraft-Wärme-Kopplungsgesetz) (including co-located green electricity storage systems without grid offtake), grey electricity storage systems with grid offtake but without an increase in the contracted capacity, offtake connections and capacity increases below 950 kW, as well as connections serving essential public services under section 53a EnWG (e.g. residential buildings, hospitals, schools, emergency services, fire brigades, the Bundeswehr). These all remain subject to the first-come, first-served approach.
Process: The deadline-based procedure also replaces the individual processing of grid connection applications with predefined application periods in which applications are collected and assessed together. Netze BW has yet to provide specific details, however.
Assessment criteria: Applications are assessed based on three main criteria:
- Project maturity (weighting: approx. 50%): The more advanced a project is in terms of preparation and development, the higher its score. The assessment takes into account whether land has been secured (16%), the project’s approval status (19%) and the status of the delivery point (15%).
- Location-specificity (weighting: approx. 34%): Preference is given to projects tied to a specific location, such as expansions of existing facilities or connections to district and local heating networks.
- Timing (weighting: approx. 16%): This takes into account how early a request was submitted. Projects with an expected implementation horizon of more than three years may benefit from making an early expression of interest, which is rewarded under the assessment criteria.
Netze BW intends to open the initial application phase between 1 November and 31 December 2026, with the first awards of grid connection capacity envisaged for March 2027. Information on further application/award rounds has not yet been released.
Assessment and outlook
After the rollout of the maturity-based procedure by Germany’s transmission system operators, a similar reform of grid connection processes at distribution grid level was widely expected. Given the strong demand for distribution grid connections and the limited availability of capacity in many areas, a move away from the first-come, first-served approach towards criteria-based award procedures appeared inevitable. Irrespective of any future statutory obligation under the proposed Grid Package, distribution system operators are already required to award grid connection capacity on a non-discriminatory basis. Any award procedures introduced independently by individual distribution system operators must therefore already be measured against this benchmark.
For those seeking grid connections, the situation is becoming more complex as operators plan to implement different award procedures and assessment criteria. Given the fragmented nature of Germany’s system operator landscape, it is likely that connection procedures will vary considerably from region to region. It will be particularly interesting to see what allocation practices become established amongst system operators, how decisions are communicated and justified, and how unsuccessful connection applicants respond. Unlike the first-come, first-served approach, which was based on a clearly defined if somewhat simplistic criterion, the newly established assessment criteria create greater scope for potential legal challenges by unsuccessful applicants.
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