The German Federal Network Agency (Bundesnetzagentur, BNetzA) has presented its latest preliminary position on the AgNes reform (Allgemeine Netzentgeltsystematik Strom), a comprehensive redesign of Germany's electricity network tariff framework. The reform is intended to modernize the country’s network charging system to better reflect the realities of an increasingly decentralized, renewable, and flexibility-driven power system. According to BNetzA, the current legal basis for network tariffs, the Electricity Netwrok Charges Ordinance (the StromNEV), will expire on 31 December 2028, making a successor framework necessary. For battery energy storage systems (BESS), renewable energy producers, industrial consumers, and prosumers, the AgNes reform could significantly influence future network costs, investment decisions and flexibility business models.
What is the AgNes reform?
The AgNes reform is BNetzA's initiative to redesign how electricity network costs are allocated across grid users in Germany. The reform seeks to create a more cost-reflective and future-proof tariff framework as well as effective investment signals, and secure the long-term financing of the electricity network. Some of the key objectives of the AgNes reform include:
- more cost-reflective allocation of network costs,
- efficient price signals for scarce network capacity,
- sustainable financing of grid operation and expansion,
- reduction of congestion management and redispatch costs.
- promotion of flexibility,
- fair contribution to network financing,
- system optimization and reduced need for grid expansion.
How does AgNes impact BESS operators and investors?
Existing battery storage assets receive stronger protection
For battery storage operators and investors, the most important update is that BNetzA has moved away from its earlier idea of imposing network charges more broadly across storage assets. Under the latest proposal, existing storage facilities will continue to benefit from the current exemption arrangements and won't be required to pay the new capacity-based tariffs until the expiration of the current special arrangements under section 118(6) of the Energy Industry Act (EnWG), where applicable. This means that battery storage projects which qualify under the existing special rules are expected to retain their protected status for the applicable period. This approach provides greater investment certainty and strengthens the protection of existing projects and investors.
New battery storage systems will pay capacity-based charges
With regards to new battery energy storage systems, those are expected to contribute by paying a moderate capacity-based charge (€/kW/a) starting from 1 January 2029, while no energy-based charges (€/MWh) will be applied. According to BNetzA, the distinction between existing and new storage is linked to whether a Final Investment Decision (FID) is made before the AgNes framework determination enters into force and whether the asset is commissioned by 4 August 2029.
Residential battery storage systems connected to the low-voltage grid will continue to be exempt from separate network changes. And grid connection charges (BKZ) for storage systems will be further specified.
What does this mean for BESS investors and owners?
From an investment perspective, the latest AgNes proposal represents a more balanced approach than previous concepts. Key implications include:
- greater planning certainty for advanced battery storage projects,
- preservation of existing investment protection mechanisms,
- continued recognition of the flexibility value of battery storage,
- moderate network cost contributions for new assets rather than energy-based tariffs.
For many storage developers and investors, this reduces regulatory uncertainty while maintaining long-term participation in network financing.
Impact on household customers and prosumers
For most households, network tariffs will remain largely unchanged. Customers will continue to pay a fixed annual charge and a usage-based fee.
However, prosumers with their own generation, such as rooftop solar systems, will pay a slightly higher fixed charge to reflect their continued use of the grid as a backup supply. The additional cost is expected to be less than €100 per year, depending on the location. Plug-in solar systems will remain exempt from this higher charge.
What changes for industrial and commercial electricity consumers?
Large electricity consumers (>100,000 kWh/year) will move to a new tariff model based on capacity-based price in euros per kilowatt (kW) per year, with a surcharge in cents per kWh when the ordered capacity is exceeded. Additionally, there will be an energy-based price in cents per kWh for consumption up to the ordered capacity. This is intended to encourage flexibility for commercial and industrial consumers and remove economic restrictions for temporary consumption increases when electricity prices are low. Existing conditions for permanent-load customers and large consumers with atypical network use will largely continue until the end of 2031, while the long-term framework will be finalized in 2027 based on the results of ongoing pilot projects.
How will the AgNes reform affect electricity generators?
Under the proposal, future generation assets would contribute to network costs through a moderate annual capacity-based charge of around €4–7 per kW. Existing assets would benefit from a 20-year exemption period from the date they were first put into operation, while plug-in solar systems and prosumers would remain unaffected. The charge is expected to have little impact on market prices but could provide significant support for grid financing in the long term, specifically could contribute up to €2 billion annually to network costs, according to the preliminary considerations of the AgNes reform.
Dynamic network tariffs
Dynamic network tariffs are also part of the AgNes reform, but they are not expected to apply immediately in 2029. BNetzA states that the detailed concept still requires further analysis, including effects on the wholesale market, redispatch, redistribution between market participants and practical feasibility.
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