On May 27, 2026, regulator presented an update on the intended changes to electricity network tariff regulation. While the first discussion paper was published in May 2025, the process is now expected to be concluded by the end of 2026. The new rules will presumably apply starting in 2029.
Following past signals to impose higher network usage costs on users such as BESS projects, the German energy regulator now backtracked considerably and envisaged increased protection of trust for existing projects.
Background
The German legislator has decided to repeal the current electricity network tariff regulation1 effective on 31 December 2028.2 The decision is part of the implementation of the 2021 ruling by the European Court of Justice ("ECJ") regarding the independence of the national regulator.3 The redesign of the future electricity network tariff regulation from 2029 onwards is now the sole responsibility of the German Federal Network Agency (Bundesnetzagentur, "BNetzA"). The BNetzA launched a reform process in May 2025 ("AgNeS"),4 in which it proposed substantial changes to the current electricity network tariff system that has been in place for more than 20 years. On May 27, 2026, the BNetzA presented the interim status of its considerations to kick off the final consultation and decision-making phase.5
Contrary to what was suggested in January 2026 by BNetzA, existing BESS plants will not be subject to network tariffs for the time being. Projects in the development phase can also expect to be exempt from network tariffs if they hit FDI and go into operation in time.
Proposed changes
In the Agnes process BNetzA suggested to introduce feed-in tariffs and dynamic tariffs for electricity suppliers, storages and electrolyzers,6 new price components7 and a new cost allocation mechanism between network operators.8 The new system would mainly affect suppliers, storages, electrolyzers and industrial consumers on the high and medium voltage level. Some of these propositions could alter the economic viability of assets and thus have a significant impact on future investments in energy transition projects.
Suppliers, storages and electrolyzers
Feed-in tariffs
Suppliers, storages and electrolyzers will be subject to feed-in tariffs. The feed-in tariffs will consist of a moderate annual capacity price (Kapazitätspreis) in Euro/KW/year, which is based on the agreed upon network connection capacity. The capacity price for suppliers is estimated to initially range between four and seven EUR/KW/year.
However, contrary to what was suggested in January 2026 by BNetzA, existing plants will not, for the time being, be subject to feed-in tariffs. Also, there shall be no double tariffs for feed-in and withdrawal for electricity for BESS projects.
Dynamic tariffs
Additionally, the BNetzA intends to subject suppliers, storages and electrolyzers to dynamic network tariffs which could vary locally and temporarily to incentivize grid-friendly network behavior. The dynamic network tariffs are set to be introduced for storages between 2030 and 2033, and for suppliers between 2032 and 2035. However, offshore wind power plants will be exempt from the dynamic tariffs. Also, the final decision on dynamic tariffs for electrolyzers is deferred awaiting further decisions on a European level.
Building cost subsidies
The BNetzA will establish regulation regarding building cost subsidies (Baukostenzuschüsse, "BKZ") for suppliers, storages and electrolyzers. Currently, suppliers are legally exempt from BKZ9 but the BNetzA is entitled to differ.10 As regards storages, their eligibility of BKZ has recently been confirmed by the German Federal High Court of Justice (Bundesgerichtshof, "BGH").11
20-year-exemption
Suppliers, storages and electrolyzers will be subject to a protection of confidence (Vertrauensschutz) provision.12 Under the provision, existing facilities will be exempt from the network tariffs for 20 years after commissioning. For projects in the planning phase to fall under the exemption, the final investment decision ("FID") must be made before the AgNeS framework determination enters into force (presumably end of 2026/beginning of 2027) and the project must be commissioned before August 4, 2029.
Large-scale consumers
Large-scale grid users with an annual electricity consumption exceeding 100,000 kWh will also be subject to the new annual capacity price in Euro/KW/year, which will replace the current peak-load based price component (Leistungspreis). If the consumer exceeds the agreed capacity, a surcharge in Euro cents per kWh will be due. The second demand-based price component (Arbeitspreis) will remain unchanged.
The future of the reduced network tariffs for large-scale consumers due to atypical or reliably high grid usage (Bandlast-Privileg) has not been decided yet.13 However the privilege for atypical grid usage will generally be phased out, with a transitional period for consumers whose annual consumption is at least 10 GWh. The band load privilege will be extended for existing customers until December 31, 2031.
The BNetzA has opted for a new cost allocation mechanism between network operators which the BNetzA estimates will widely lower the network tariffs for end consumers on the high- and medium voltage level.
Next steps
The BNetzA intends to have a draft on the new AgNes framework determination ready by summer 2026 for public consultation. The draft is set to be finalized by the end of 2026 and may enter into force any time from January 1, 2027, onwards. The stakeholders then have a two-year preparation period until AgNes will start to apply in 2029. The BNetzA will also approve a number of sub-determinations to the AgNes framework determination in 2027. Those concern the details on dynamic network tariffs, including a regulation for Flexible Connection Agreements ("FCA"), the BKZ regulation, and the reduced network charges for large-scale consumers.
1 Mainly layed down in the Electricity Network Tariff Ordinance (Stromnetzentgeltverordnung, "StromNEV") from July 25, 2005.
2 See Art. 15 para. 3 of the Act on the Adaptation of the Energy Law to EU Requirements, inter alia, from December 22, 2023, BGBl. 2023 I Nr. 405 ("EnWG-Novelle 2023").
3 ECJ, September 2, 2021 – C-718/18; for further information please refer to our Client Alert on the "European Court of Justice on Independence of German Energy Regulator," available at: https://www.whitecase.com/insight-alert/european-court-justice-independence-german-energy-regulator (last accessed 2 June 2026).
4 See the Discussion Paper BNetzA: Diskussionspapier – Rahmenfestlegung der Allgemeinen Netzentgeltsystematik Strom (AgNeS) – Stand: Mai 2025, available at: https://www.bundesnetzagentur.de/DE/Beschlusskammern/1_GZ/GBK-GZ/2025/GBK-25-01-1x3_AgNes/Downloads/Diskussionspapier_AgNes.pdf?__blob=publicationFile&v=9 (last accessed June 2, 2026); for further information please refer to our Client Alert on the "German Energy Transition - The impact of future electricity network tariff regulation," available at: https://www.whitecase.com/insight-alert/german-energy-transition-impact-future-electricity-network-tariff-regulation?s=agnes (last accessed June 2, 2026).
5 See the Presentation BNetzA: Vorläufiger Meinungsstand im Festlegungsverfahren AgNes – Aktueller Stand der Überlegungen – 27. Mai 2026, available at: https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/20260527_AgnesKurzInfo.pdf?__blob=publicationFile&v=3 (last accessed June 2, 2026) and the Background Paper BNetzA: Hintergrundpapier vom 27. Mai 2026, available at: https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/20260527_AgnesPapier.pdf?__blob=publicationFile&v=1 (last accessed June 2, 2026).
6 See Discussion paper, pp. 25 et seqq., pp. 34 et seqq. and pp. 43 et seqq.
7 See Discussion paper, pp. 30 et seqq.
8 See Discussion paper, pp. 39 et seqq.
9 See section 8 para. 3 of the Power Plant Grid Connection Ordinance (Kraftwerks-Netzanschlussverordnung, "KraftNAV").
10 See section 17 para. 4 sentence 2 of the Energy Industry Act (Energiewirtschaftsgesetz, "EnWG").
11 See BGH, Beschluss vom 15. Juli 2025 – EnVR 1/24.
12 See Section 118 para. 6 EnWG.
13 See section 19 para. 2 StromNEV.
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