The Future of Grid Fees and Battery Storage in Germany
In May 2025, the Federal Network Agency (BNetzA) initiated a significant dialogue surrounding the redesign of grid fees by releasing a comprehensive 57-page discussion paper. This new framework, referred to as the General Grid Fee System (AgNes), primarily aims to adapt grid charges to align more effectively with the energy transition goals of Germany. One of the pivotal issues highlighted in the paper is the grid fees levied on battery storage systems. Notably, it is anticipated that the current exemption for electricity storage facilities, in effect until August 2029, may soon be reconsidered.
The Role of Eco Stor and Neon Neue Energieökonomie
Eco Stor, a prominent developer and operator of battery storage solutions, is actively engaging in this consultation process. They have enlisted the expertise of Neon Neue Energieökonomie, a consulting firm led by the esteemed economist Lion Hirth. Their collaboration focuses on analyzing various grid fee options to gauge their impact on storage systems and the overall energy market. Using a sophisticated battery deployment planning model, Neon has thoroughly assessed how a representative large-scale storage system might behave under different fee structures—both static and dynamic.
Measuring Grid Benefits from Battery Systems
Neon’s thorough investigation uncovers that large-scale battery storage systems, even when operated on market principles, yield quantifiable benefits for the electrical grid. The firm asserts that the notion of market-driven storage operations being detrimental to grid stability is unfounded. Through careful comparison of battery dispatch in the day-ahead market and historical redispatch activities over a year, the analysis reveals a slight reduction in overall redispatch costs attributable to battery storage. However, the study notes that this positive impact arises largely out of coincidence with the current pricing mechanisms, which do not adequately reflect grid congestion.
The Case for Dynamic Pricing
So, what incentivizes battery storage to behave in a grid-friendly manner? According to Neon, static grid fees are typically counterproductive. Although traditional energy and capacity-based charges provide necessary revenue for grid operators, they fail to encourage the desired behavior from storage systems. In fact, the study posits that static grid fees lead to inefficiency, diminishing overall economic welfare. Conversely, the analysis advocates for dynamic energy pricing—where fees vary by time and location—as a progressive alternative. Such a pricing model could reduce redispatch costs by up to 500% compared to static fees, enabling storage systems to actively mitigate grid congestion.
Minimal Economic Impact for Operators
Interestingly, the introduction of dynamic energy pricing for grid charges is projected to have only a minor impact on the economic performance of market-driven storage facilities. The synergistic benefits between grid considerations and market performance could yield overall economic welfare gains of approximately 40% relative to current conditions. This dual benefit underscores the potential shifts that dynamic pricing could facilitate in the energy landscape.
Call for Recognition of Grid-Friendly Behavior
Like many stakeholders in the energy sector, Eco Stor has long advocated for the acknowledgment of grid-supportive actions by large-scale battery storage systems. With a growing consensus on the necessity of rapidly expanding storage capacity, the discussions underscore the critical role these systems will play in integrating increasing amounts of renewable energy—particularly from solar and wind sources—into the broader energy framework.
Georg Gallmetzer, Managing Director of Eco Stor, emphasizes the urgency of reforming the existing grid fee structure to encourage rather than penalize grid-friendly practices. The findings from Neon’s study advocate for dynamic grid charges, portraying them as a mutually beneficial solution for both grid management and market functionalities.
Alternative Measures for Greater Benefits
In their analysis, Neon has also proposed an alternative scenario that could potentially deliver even greater benefits: the implementation of a price zone split. According to Lion Hirth, this measure would provide the most significant advantages for all relevant stakeholders, effectively supporting large-scale battery storage in enhancing grid reliability. However, this politically sensitive approach is not favored by the Federal Network Agency, making dynamic energy pricing the next best option.
For industry professionals, networking opportunities abound as Eco Stor prepares to present its findings at the upcoming Battery Business & Development Forum 2025 in Frankfurt, scheduled for July 16. This forum will delve into critical topics impacting the future of large-scale battery storage, offering a valuable platform for discussion and collaboration among key players in the field.
The ongoing discourse on grid fees and battery storage systems marks a pivotal moment in Germany’s energy transition. As the nation grapples with the complexities of integrating renewable energy sources, the direction taken in these consultations will undoubtedly have lasting impacts on the future of energy production and consumption across the country.