Recording of Tuesday, May 06, 2025 | The smarter E Europe | Conference Program | Language: English | Duration: 14:53 .

German Energy Sector Faces Challenges with Grid Fees and Flexible Connection Agreements as Battery Storage Projects Expand

The discussion centers on the challenges and opportunities within Germany's energy sector, particularly focusing on grid fees, access issues, and Flexible Connection Agreements (FCAs). Kyon Energy is a project developer with nine active projects in Germany. The company highlights changes in legislation affecting business models for battery storage systems, such as the end of Vermiedene Netzentgelte (Avoided Grid Tariffs), which previously allowed batteries to profit from demand peaks. Current projects are exempt from grid tariffs under paragraph 118 of the Energy Industry Act until 2029 but face potential legal disputes over connection surcharges. FCAs offer solutions by allowing restricted operation during peak times; however, they can reduce profitability significantly—up to 30%, potentially undermining business cases for battery investments. The speaker advocates against static restrictions imposed by grid operators and suggests more flexible agreements that allow market-based redispatching to ensure efficient system operations without compromising revenue streams or discouraging investment in storage capacity expansion.

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Speaker

Benedikt Deuchert
Head of Business Development and Regulatory Affairs
Kyon Energy Solutions GmbH
Germany

Talk of session: The Most Important Regulatory Developments for the Energy Storage Industry

To provide much-needed flexibility to the increasingly renewables-dominated power systems, energy storage requires suitable market schemes and fair market conditions. Although authorities are increasingly recognizing the benefits of storage, regulations are still lagging behind. Lack of contracted revenues, barriers to co-location with PV, and an uneven playing field for European cleantech manufacturers are only a few examples of where storage needs regulatory action.In this panel, experts discuss the most exciting developments in regulatory frameworks, their suitability for unlocking the full potential of energy storage as well as the improvements that need to be made.

Further Talks of this session:

Welcome & Introduction

Speaker

Lars Stephan
Director Marketing, Policy and Public Affairs (EMEA)
Fluence
United Kingdom

To Talk

Unlocking Energy Storage Potential: Regulatory Reforms for Eastern Europe

Speaker

Anna Darmani
Principal Analyst, Energy Storage Europe
Wood Mackenzie
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To Talk

Manufacturing BESS in Europe - Mission Possible!

Speaker

Mariyana Yaneva
Chief Operating Officer
International Power Supply (IPS)
Bulgaria

To Talk

Regulatory Framework for ESS - Stay Safe for the Future

Speaker

Marvin Müller
Senior Project Engineer
PEM Motion GmbH
Germany

To Talk

Panel Discussion

To Talk