Court rejects battery developer bid to be exempt from grid connection fees

Battery operators will not be exempt from a levy for the construction of the electricity grid if this is required for their connection, one of Germany’s highest courts has ruled.

“Even if they can relieve the overall grid, the installation of battery storage systems does not always benefit the local connection grid for which the construction cost levy is requested,” the Federal Court of Justice said.

Grid operators charge a one-off payment when a grid connection means that power lines need to be constructed or reinforced. This construction levy accounts for a significant portion of investment costs for battery operators, according to a report in energy newsletter Tagesspiegel Background.

The storage industry had hoped for preferential treatment compared to other end consumers, such as households or businesses, because batteries can contribute to grid stability by storing excess electricity and releasing it during shortages.

Storage operator Kyon Energy, which had filed a lawsuit to avoid paying the fee, said that “the consequences of the decision are far-reaching – for investment security in large-scale battery storage, for the planning practices of project developers and for the framework conditions of the energy transition.”

The German Energy Storage Systems Association told pv magazine that the ruling was “a setback for a future-proof energy system and, of course, especially for the storage industry”.

The court agreed that the construction cost levy has a greater impact on battery storage systems than on other end consumers, and that storage systems differ from households and businesses in that they feed electricity back into the grid, acting as both consumers and producers.

However, it concluded that equal treatment of storage systems and other end-consumers was “objectively justified” in accordance with the purpose of the construction levy.

Battery storage systems are a key technology in a renewable energy system, providing flexibility, grid stability, and the ability to bridge periods of low power generation.

However, battery storagesystems are taking up connection capacity, meaning that other grid users waiting to connect – such as industrial companies or data centres – may have to be put on hold.

Clean Energy Wire. Reproduced with permission.