Decision on Germany's battery construction cost subsidies due July

Germany’s Federal Court of Justice has stated the judges will reach a decision relating to the status of construction cost subsidies levied by grid companies on grid-scale batteries, on July 15.

A hearing in the case, held on May 27, postponed the verdict, prompting the German Association of Energy Storage Systems (BVES) to describe the delay as “incomprehensible and detrimental to the necessary expansion of [grid] flexibility technologies in the energy system.”

Some followers of the dispute have suggested the delay may indicate the federal court decision will clash with that made by the Düsseldorf Higher Regional Court in an earlier stage of the case, necessitating a referral back to Düsseldorf.

The case dates back to May 2021, when developer Kyon Energy submitted a grid connection request for a standalone energy storage system with a maximum charging and discharging capacity of 1,725 kW and a storage capacity of 3.45 MWh. The local electricity distribution system operator assigned a grid connection point and demanded a construction cost subsidy calculated in line with a position paper published by utilities regulator the Federal Network Agency.

In June 2022, Kyon asked the regulator to either prohibit the subsidy payment or to recalculate it in accordance with Section 31 of Germany’s Energy Industry Act (EnWG). The regulator refused, in December 2022, and Kyon appealed that decision. In December 2023, the Düsseldorf Higher Regional Court overturned the Federal Network Agency’s refusal to grant Kyon’s request. The judges said the capacity pricing model used to determine the subsidy – as set out in the regulator’s position paper – was discriminatory against batteries and violated section 17 (1), sentence 1 of the EnWG.

The Federal Network Agency’s appeal against that decision, in Düsseldorf, took the case to the Federal Court of Justice.

The utilities regulator in the fall published a new construction cost subsidy position paper, in response to the Düsseldorf court ruling. The BVES, however, says the new publication contradicts the Düsseldorf court’s ruling on key points.

From pv magazine Deutschland.

Battery Business & Development Forum 2025

Would you like to meet the enervis team? Enervis consultants will be speaking at the Battery Business & Development Forum in Frankfurt on July 16, organized in partnership between Conexio, Solar Power Europe and pv magazine.

This one-day forum is tailored for professionals planning or investing in large-scale battery energy storage systems, offering insights into key topics such as grid connection, permitting, technical planning, trading, financing, and regulatory developments. The program will feature market deep-dives into Germany and Italy, alongside broader coverage of the European landscape.

Join us for a dedicated networking reception on the evening of July 15, where you can connect with project developers, investors, and industry experts.

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