Germany’s Federal Court Delays Ruling on Energy Storage Subsidies, Sparking Industry Frustration

Germany’s Federal Court of Justice (BGH) has postponed a critical decision on the legality of construction cost subsidies (BKZ) for electricity storage systems under the performance-based pricing model. The German Energy Storage Association (BVES) has sharply criticized the delay, arguing that the lack of clarity harms all stakeholders and undermines the energy system’s stability. According to the BVES, further postponements are unjustifiable and detrimental to the urgent expansion of flexibility technologies in the energy sector.

At the heart of the legal dispute is whether storage systems should be classified as electricity consumers. Under current German regulations, consumers bear network expansion costs—a category the Federal Network Agency (BNetzA) insists includes energy storage.

Legal Clarity Needed for Energy Storage’s Role

Urban Windelen, BVES’s Managing Director, emphasizes that existing energy laws (EnWG) already define storage systems as tools for shifting energy usage. "The legal implications of this definition must finally be enforced," he states. "Grid regulations must evolve to reflect storage’s modern role in the energy system. Further delays are unacceptable for the industry."

Düsseldorf Court Ruling Favors Storage Operators, But Uncertainty Persists

In December 2023, the Higher Regional Court of Düsseldorf (OLG) ruled in favor of a storage operator contesting a BKZ calculated under traditional pricing models. The decision provided BNetzA with a well-reasoned framework for reevaluating subsidy structures. Instead of embracing this opportunity, BNetzA opposed the ruling and released a conflicting policy paper, fueling months of uncertainty, stalled investments, and disputes over storage subsidy design.

Industry Warns of Consequences: Delays, Rising Costs, and Missed Opportunities

Windelen highlights the broader impact: "This uncertainty doesn’t just hinder storage projects and private investments—it complicates grid operators’ work. Planning drags on, costs escalate, and vital flexibility solutions fall by the wayside—despite political promises to accelerate storage deployment and reduce bureaucratic barriers."

BVES Calls for Immediate Action to Avoid Years of Delays

The BVES urges BNetzA and lawmakers to collaborate with industry players to establish legally sound and practical solutions—without waiting for a final court ruling. Sending the case back to the Düsseldorf court could prolong the deadlock for months or even years. "We cannot afford this delay if we’re serious about building a resilient energy future," Windelen concludes.