Recent proposals to amend German energy legislation, particularly the Energy Industry Act (EnWG) and the Electricity Tax Act (StromStG), introduce several notable improvements for storage assets.
A key change is the clarification of what overriding public interest in §11c EnWG means for energy storage, which is covering not only BESS but also other storage technologies. Storage facilities are now explicitly given priority when legal interests are weighed against each other, and this priority will apply until the electricity supply is deemed “almost greenhouse gas neutral”. In practice, this means storage projects will generally take precedence over most other interests, even those that are also classified as overriding public interest. This shift could make permitting procedures for BESS considerably easier, though some uncertainty remains due to the undefined threshold of what counts as “almost greenhouse gas neutral”.
Another change concerns electricity tax for utility-scale BESS. Under §5, the rules now clarify how stored electricity and its re-injection must be accounted for in order to qualify for the tax exemption. To benefit from this exemption, BESS must be registered in the Core Energy Market Data Register (Marktstammdatenregister), which results in them being treated as part of the grid. In this framework, stored electricity that is re-injected is considered as having “flowed through the grid” rather than as new generation.
In addition, the EnWG introduces a nationwide digital platform for grid access under §20b. Distribution system operators will be obliged to create a unified online portal through which grid connections can be applied for. This marks an important step towards a more digitalized and standardized grid connection process, offering benefits not only to storage projects but also to renewable generation technologies more broadly. However, the insecurity around the “Baukostenzuschuss” for BESS remains in place.
Finally, the proposals provide for the continuation of reduced electricity tax rates for companies in industry, agriculture, and forestry. The tax will be set permanently at the EU minimum of 0.5 EUR/MWh (previously 20.5 EUR/MWh), whereas under the current framework the reduced rate would have expired at the end of 2025. This change offers long-term certainty for the benefitting sectors. No reduction, however, is planned for other companies or private consumers.
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