Grid package threatens to put storage at a disadvantage

25.03.2026

Source: E & M powernews

The Climate Neutral Germany Initiative discussed the grid connection package in a webinar and proposed options for more efficient grid use and upgrading.

The draft for a so-called grid connection package from the Federal Ministry for Economic Affairs and Energy (BMWE) has triggered a technical and political debate, according to the Initiative Klimaneutrales Deutschland (IKND). According to sources close to the ministry, the paper will be discussed by the cabinet in the foreseeable future.

The discussion often centers on a conflict of objectives between cost-efficient grid expansion and the further expansion of renewable energies. According to the IKND, the fact that instruments already exist today to better utilize the existing grid infrastructure and reduce bottlenecks without building additional lines is being overlooked.

The initiative discussed these approaches with experts at a webinar. The focus was on the current state of regulation and possible changes resulting from the planned grid connection package. It also looked at supplementary measures for grid expansion, practical hurdles for more flexibility in the electricity system and the question of how cost efficiency and flexibility can be combined.

Removing regulatory obstacles

Andreas Jahn from the Regulatory Assistance Project (RAP), an internationally active non-governmental organization based in Montpelier in the US state of Vermont, pointed out various options for overcoming existing grid restrictions.

Among other things, the grid package provides for the overbuilding of grid connections, in which feed-in peaks are limited, as well as so-called co-location concepts, in which storage is used behind the grid connection point. Flexible grid connection conditions, redispatch reservations without compensation and grid-friendly control of expansion should also help to reduce bottlenecks.

However, these transitional measures require clear framework conditions and standardization as well as guidelines as to where they should lead, according to Jahn. The goal must be a long-term perspective for the electricity system. A completely congestion-free grid - often referred to as a "copper plate" - is neither realistic nor economically feasible. "Instead, it is important to use existing grid capacities more efficiently and increase flexibility," he said. Jahn currently sees deficits particularly in digitalization and the operation of distribution grids.

According to him, economic instruments also play a key role. For example, the existing incentive structures for grid operators have so far not focused sufficiently on accelerating measures. Grid charges differentiated by time and location as well as local electricity prices could help to control grid utilization and make investments more efficient.

Simon Steffgen from the German Energy Storage Systems Association (BVES) emphasized the role of storage as a flexibility option. "Storage systems can contribute to smoothing fluctuating feed-in on the generation side as well as providing system-stabilizing services in the grid," he said. At present, however, storage projects often only pay for themselves through grid withdrawal and energy trading.

According to Steffgen, a key problem is that in many cases, renewable systems or storage facilities are not connected to the grid. In practice, models such as the overbuilding of connections are often associated with complex contractual structures, particularly in the case of behind-the-meter solutions. There is a need for adjustment here in order to make flexibility economically viable.

At the same time, Steffgen pointed out the special role of distribution grids for local authorities. Revenues from grid fees are an important source of funding. At the same time, municipalities would have to fundamentally restructure their energy infrastructure, for example by replacing fossil fuel supply systems in the heating and transport sectors. This could lead to conflicting objectives, as investments in flexible and efficient systems are not directly reflected in the existing revenue structures.

During the discussion, it became clear that greater use of existing grids and the expansion of flexibility options are seen as a supplement to grid expansion. From the perspective of the experts involved, the prerequisites for this are adapted regulatory requirements, economic incentives and a clear target perspective for the energy system.

The IKND factsheet "The grid connection challenge: from bottleneck to efficiency" is available online.

Author: Susanne Harmsen