On July 1, 2023, the new definition of energy storage facility pursuant to Section 3 number 15d EnWG1 came into force. This gives storage facilities a new status in energy law. The definition recognizes that essential characteristic of storage facilities for the energy system is the deferral of the final use of electrical energy to a later point in time than that of its generation and that storage facilities are not final consumption facilities and generation facilities. To address the new role of energy storage facilities in the energy system and remove barriers to storage, various changes are needed in the existing legal framework under energy law - created for the generation, transport and consumption of electricity.
Among other things, this affects the grid connection of storage facilities. Up to now, there have only been regulations for end consumers and generation plants, some of which are applied to storage facilities. This initially leads to a considerable degree of legal uncertainty, because the application of the regulations designed for end consumers and generation plants to storage facilities is often not possible or meaningful on a 1-to-1 basis. The resulting scope for interpretation and application is already an obstacle to investment per se. In individual points, the current legal framework also leads directly to disadvantageous effects for storage facilities, which put the brakes on an urgently needed expansion and set the wrong incentives from a systemic and economic point of view. In other areas, regulations for (multi-use) storage facilities are lacking. The following hurdles currently exist for grid connection and grid use of storage facilities:
1. charging storage facilities with the construction cost subsidy (designed for end consumers)
2. time limitation of the grid fee exemption in accordance with section 118(6) EnWG to storage facilities with commissioning by mid-2026
3. no applicability of the grid fee exemption in accordance with section 118(6) EnWG to multi-use storage facilities
4. excessively long processing time for grid connection applications
5. It takes too long to establish grid connections or even unavailability of grid connections due to unnecessary "worst case" consideration of the capacity of the storage system, because a permanent consumption and at the same time a permanent feed-in of the storage system at full capacity (as with an end consumer/generation plant) is assumed for grid planning purposes.
The hurdles and disincentives mentioned above under 1. to 3. can at least be partially countered with amendments to the Energy Industry Act. However, these issues are not the subject of this concept paper. Instead, the following outlines how, with regard to the problems mentioned above under 4. and 5., an "Energy Storage Facilities Grid Connection Ordinance" (SpeicherNAV) could look in order to do justice to the special features of storage facilities when connecting them to the grid and to remove the serious hurdles mentioned under 4. and 5.
The goals of the storage NAV must be defined from the perspective of the overall energy system, taking into account both the current state of the energy system in Germany and the expected further substantial addition of PV and wind energy plants.
Particularly worthy of mention are:
1. accelerating the connection of storage facilities to the grid
2. allocating storage facilities to locations that serve the system
3. ensuring that storage facilities are operated in a way that serves the system
4. ensuring that the economic benefits of storage operations are distributed fairly between storage operators and society.
With regard to the structure, it is obvious to be guided by already existing regulations, in particular the EEG, but also the KraftNAV.
a. Scope of application of the StorageNAV
The scope of application should include all grid connections of energy storage systems to electricity supply grids with a voltage of at least 10 kilovolts (medium-voltage grids and above).
b. Entitlement to priority and immediate grid connection
Due to their importance for the energy system, system-serving energy storage systems should generally be entitled to priority and immediate grid connection - comparable to renewable energy systems. In this respect, the regulations can be largely modeled on Section 8 EEG 2023. This applies in particular to the information to be provided by the grid operator, the obligation to provide a web portal, the response times and the determination of the most economically advantageous grid connection point, whereby the special features and capabilities of storage facilities must be taken into account.
In particular, the obligation to connect to the grid must also exist if the purchase of electricity is only made possible by the optimization, reinforcement or expansion of the grid. In many cases, however, storage facilities will have the effect of relieving the load on grids and avoiding or at least postponing higher-level measures to expand grids. This may and must be taken into account by the network operator when examining network connection requests under the Storage Ordinance.
c. Ensuring that the energy storage facility serves the system
The core of the Storage NAV should then be regulations that ensure that energy storage facilities that benefit from the privileges under the Storage NAV (and possibly other regulations) not only can, but must also make a significant contribution to system stability. We consider this to be necessary in order to create a sustainable basis - which is also in line with state aid law - for the privileged treatment of storage facilities compared to fossil generation plants and end consumers.
In view of the diverse technical capabilities of storage facilities and, at the same time, the many different situations in the distribution grid areas, we propose in this respect as a flexible and individual solution approach that distribution grid operators - according to predefined rules (see the following points) are allowed to define certain guard rails for the mode of operation ("operating concept") for each energy storage facility.
d. Procedure for the grid connection process
As a basis for the operating concept, the storage operator first specifies the technical capabilities and limits of the planned storage facility as part of its grid connection application. The grid operator then checks the connection point, connection lines, load flows and other effects on the grid - similar to the requirements of Section 3 KraftNAV. In addition, the grid operator shall examine the expected scope of use of the energy storage facility for redispatch measures, whereby the connectee may request that the grid operator also carry out tests based on assumptions made by the connectee, in particular with regard to the expected positive or grid-relieving effects of the storage facility on the grid.
The grid operator should then be obliged to complete the tests within a specified period of no more than three months, name the connection point and the possible connection time and provide the storage operator with the operating concept. This must include a detailed explanation of the benefits for the distribution grid of the operating limits specified in the operating concept and that the requirements of the Storage Ordinance have been taken into account.
Within the operating concept, the network operator should have the possibility to provide, on the basis of the specific needs in the respective network area, that, in each case within a predefined framework,
a) can adjust the operating mode of the storage facility provided for by the system operator in terms of time, both in the direction of withdrawal and in the direction of injection,
b) can also adjust the operating mode of the storage facility provided for by the system operator in terms of amount, both in the direction of withdrawal and in the direction of injection,
c) can contract operating periods and operating cycles of the storage facility at predefined conditions, also on a long-term basis, and can freely dispose of the storage facility in limited periods of time, and
d) can prohibit the storage facility operator (capacity, periods of time) from providing balancing energy to the responsible transmission system operator.
The grid operator's right to specify operating limits should be limited to the minimum required for the secure operation of the distribution grid.
The storage dispatch made possible by the operating concept on the basis of the operating concept reduces the overall need for redispatch measures in the respective grid area.
Grid-serving energy storage facilities with a corresponding operating concept in accordance with the requirements of the Storage Ordinance must also be excluded from the scope of redispatch (Sections 13, 13a EnWG).
e. Connection commitment and legal obligation
The result of the procedure would then be a connection commitment by the grid operator, including the operating concept, which establishes a legal obligation. This corresponds to the - tried and tested - concept of the EEG.
f. Right to refuse grid connections
As under the EEG, the grid operator has the right to refuse grid connections in the event of technical impossibility or economic unreasonableness, although the legislator should - unlike in the EEG - define more precisely when a case of economic unreasonableness exists.
g. Arbitration body for disputes
By means of an unbureaucratic and time-limited arbitration or mediation procedure, both storage system operators and grid operators should have the opportunity to reach a constructive agreement on the grid connection itself, the details of the grid connection and, in particular, the operating concept. Corresponding procedures should be carried out at the regulatory authority responsible for the grid operator - preferably online.
h. Deadline for implementing the grid connection
The storage system operator's right to an immediate grid connection should be accompanied by a standard deadline ("without delay, but within 12 months at the latest"), whereby the grid operator has the option of extending the deadline for reasons for which it is not responsible. The burden of presentation and proof for these reasons should be placed on the grid operator. This proposal takes into account the fact that the lack of implementation deadlines for grid connection in other ordinances and laws (EnWG, EEG, StromNZV, GasNZV) has so far meant that the right to immediate grid connection has de facto come to nothing, because it is regularly not possible for connection recipients themselves to prove that a certain period was too long or that the grid operator was responsible for delays.
i. Cost allocation for grid connection and grid expansion
In accordance with the regulations on cost allocation under Sections 16 and 17 EEG, the storage system operator should bear the costs of grid connection and the grid operator the costs of optimizing, reinforcing and expanding the grid.
The costs of examining the request for grid connection on the basis of the Storage Ordinance should be borne by the storage system operator. This would ensure that grid operators are only involved in serious projects.
The costs of compensation must be able to be taken into account by the grid operator as part of incentive regulation - as well as costs from redispatch.
j. Financial compensation for the restrictions on storage operation
The costs of compensation must be able to be recognized by the grid operator within the framework of incentive regulation - just like costs from redispatch. The financial compensation for the restrictions on storage operation can essentially be based on the provisions of Section 13a EnWG (redispatch measures). The financial compensation must be carried out in such a way that the storage system operator is not economically worse off than it would be without operating restrictions. Appropriate financial compensation must therefore include the following components:
a) Necessary additional costs of the energy storage system due to the specifications of the operating concept
b) Necessary expenses for the adjustment of the purchase or the feed-in of the energy storage system due to the operating concept
c) The value consumption of the system for the adjustment of the purchase or the feed-in of the energy storage system due to the operating concept
d) The lost revenue opportunities due to the restrictions of the operating concept
e) The necessary expenses for the establishment of operational readiness or the postponement of a planned revision.
k. No building cost subsidy
Finally, the Storage NAV should also stipulate that no construction cost surcharge may be levied when energy storage systems are connected to the grid.
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