Germany’s grid operators are processing an unprecedented surge in applications for large battery storage systems, many exceeding 100 MW, yet projects continue to advance only in strict chronological order.
Under the Power Plant Grid Connection Ordinance (KraftNAV), these systems are treated as large generating assets, forcing network operators to process applications sequentially even as volumes far exceed administrative capacity. Developers argue the backlog is now delaying investment returns by months or years, creating a structural mismatch between deployment speed and regulatory sequencing.
Federal Minister for Economic Affairs and Energy Katherina Reiche signaled a break from that stasis this week, announcing that the government intends to revise the grid-connection rules for large battery assets before the end of the year. Her remarks, delivered at a parliamentary event hosted by Eon, marked the clearest indication yet that Berlin is willing to intervene in a process long viewed as overly rigid for fast-moving storage markets.
The following day, at a 50Hertz event in Berlin, Arne Genz—department head for energy storage policy at the ministry—outlined how a fast-track regulatory change could work. Because KraftNAV is a government ordinance, revisions do not require Bundestag approval. Instead, the amendment would undergo interministerial consultation and cabinet adoption before final approval by the Bundesrat. According to Genz, several states have already signaled openness to a revision, emphasizing that the legal pathway is far shorter than for changes requiring parliamentary debate. He added that “in theory, one sentence would be enough to remove energy storage from the current legislation,” highlighting how narrowly KraftNAV defines assets subject to the 100 MW rule.
The ministry later confirmed Reiche’s comments, indicating that a range of measures are under active consideration. These include modifying KraftNAV for large storage facilities, tightening application requirements, adjusting the first-come, first-served system, and improving transparency around available grid capacity. The ministry did not provide further detail, citing ongoing work on the proposals, with initial drafts expected for public consultation in early 2026.
Germany’s storage pipeline growth helps explain the urgency. Developers have lodged a wave of applications as market revenues for grid services and wholesale arbitrage remain strong, while transmission operators face rising pressure to integrate flexible assets needed to stabilize a renewables-heavy system. The existing procedural sequence, however, treats storage as generation despite its bidirectional operation—an approach critics argue slows down assets that could alleviate grid constraints rather than worsen them.
The discussion comes at a sensitive time for zoning and planning rules. Just days earlier, the Bundestag and Bundesrat approved an amendment to the Energy Industry Act (EnWG) granting preferential treatment for battery storage systems above 1 MWh in outdoor areas. The provision aims to simplify and accelerate permitting for utility-scale projects by expanding eligible siting options. Yet, at the same 50Hertz event, industry and state representatives questioned how long the preferential zoning would remain politically viable. Grid operators in particular warn that easing land-use constraints while grid-connection processes remain clogged risks further intensifying the application surge.
States had considered requesting the mediation committee ahead of the Bundesrat vote but ultimately allowed the EnWG amendment to pass unchanged, underscoring the political tension between accelerating storage deployment and managing grid-integration challenges.
Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.
