Debate on grid fees for storage intensifies

Municipal utilities warn of investment risks due to new storage grid fees and call for reliable framework conditions

25.03.2026

Source: E & M powernews-

The VKU criticizes the Federal Network Agency's proposals on storage grid fees and calls for protection for existing projects so as not to jeopardize investments by municipal utilities.

The German Association of Local Utilities (VKU) is clearly critical of the orientation points for storage grid fees presented by the Federal Network Agency in the so-called AgNeS process. According to the VKU, the proposals outline a complex system that is associated with additional costs without having a sufficient steering effect.

In its statement, the association criticizes in particular the high implementation costs. The authority's proposals would require additional forecasts, extensive IT adjustments and complicated accounting delimitations. At the same time, the benefits are limited, as storage facilities are already predominantly operated on a price and system-oriented basis. The VKU therefore does not see sufficient added value from the planned regulations.

Maintaining the protection of legitimate expectations

The association is particularly critical of the Federal Network Agency's plans to retroactively restrict the existing grid fee exemption for battery storage systems in accordance with Section 118 (6) of the German Energy Industry Act (EnWG). According to the VKU, companies currently assume that storage systems that go into operation by August 4, 2029 will be exempt from grid fees and that this regulation will then apply for 20 years. A similar regulation also applies to hydrogen electrolysers. The German Bundestag recently extended the scope of the regulation by three years.

According to the VKU, a retroactive change would deeply interfere with existing business models. The association warns of considerable economic risks for already planned or ongoing projects. A non-representative survey of member companies has shown that projects with a capacity of around 1,800 MW could be at risk. This is in contradiction to the political expansion targets for storage technologies. The VKU emphasizes the importance of reliable framework conditions for municipal companies.

According to the association, many storage and hydrogen projects are being planned or have already been implemented by municipal utilities and municipal energy suppliers. Stable long-term investment conditions are crucial for these players in order to be able to finance and operate projects. Against this backdrop, the VKU is calling for a transparent and predictable grid fee system. This should secure the financing of the grid infrastructure, but at the same time support the system-friendly operation of storage facilities and not impair the economic viability of the projects.

Alternative model

As an alternative to the Federal Network Agency's proposals, the association has presented its own model. This provides for capacity prices for storage above low voltage that are based on the contractually agreed connection capacity. These fees could be significantly reduced for grid-friendly operation. Storage facilities in private households and small businesses connected to the low voltage would not be affected by this model.

The VKU rejects an additional energy price for storage facilities. The association is calling for hydrogen electrolysers to be treated equally to storage facilities. According to the VKU, the proposed model should both promote the system integration of storage facilities and ensure investment security for the companies involved.

The VKU statement on storage network charges in the AgNes process is available for download as a PDF.

Author: Susanne Harmsen