Knowledge

Germany is entering a decisive phase in the reform of its electricity network tariff system. With growing pressure to make grid charges more efficient, transparent and system-oriented, the German regulator, Bundesnetzagentur (BNetzA), is reviewing how network tariffs should be structured in the future.

Germany’s first market-based inertia procurement is live, unlocking a new fixed revenue stream for BESS with grid-forming inverters. Here’s what inertia is, why it matters, and what asset owners need to know.

In this first part of our mini-series, we’ll explore the framework for evaluating grid constraints, starting with the three crucial steps every developer and investor should follow. Future installments will dive deeper into real-world examples of how these constraints play out.

In this second part of our series, we apply our grid constraint framework to a real BESS project, showing how seasonal effects can reduce the financial impact of restrictions and outlining strategies to safeguard revenues.

In this third part, we analyze a scenario where grid operators impose a maximum of 1,000 constrained hours per year. Unlike in our previous example, where constraints had a limited financial impact, this case poses a greater challenge to BESS feasibility.