New rules for the allocation of the scarce resource ‘grid connection capacity’

In February 2026, the German transmission system operators (TSOs) published their concept for the maturity-based procedure (in German Reifegradverfahren) for grid connections to the transmission network. In doing so, the TSOs have addressed the problem of increased grid connection requests that significantly exceed the planning assumptions of the current scenario framework of the grid development plan. On 1 April 2026, the maturity-based procedure for grid connection applications from energy storage facilities and large-scale consumers was introduced by the TSOs, thereby replacing the first come, first served principle. Distribution system operators are now also considering applying the concept of a maturity-based procedure for grid connection requests in their distribution networks. The maturity-based procedure is intended to meet both the requirements of the energy transition and the obligations under Section 17 of the Energy Industry Act (EnWG). Furthermore, the latest draft legislation on the grid connection package provides for far-reaching amendments to Sections 17 seqq. of the EnWG.

Current situation: Increased grid connection requests and the first come, first served principle

In addition to the accelerated expansion of renewable energies as well as the construction of electrolysers and data centres, which will significantly increase electricity demand in the future, the growing integration of energy storage systems is leading to a marked rise in grid connection requests to grid operators. For TSOs, the total capacity requested in grid connection requests has even significantly exceeded the planning assumptions of the current scenario framework of the 2037/2045 grid development plan. Furthermore, in view of the widely applied first-come, first-served principle, project developers have submitted grid connection requests at very early stages of development – often even before there were any concrete prospects of implementation – which is one of the reasons why secondary markets for grid connection reservations have emerged, on which plots of land with requested or secured grid connection capacity are traded or strategically held back by connection applicants.

Background

Under Section 17(1) EnWG, the legal framework for grid connection obliges grid operators to facilitate connection to their grid in a manner that is, in particular, reasonable, non-discriminatory and transparent. Under Section 17(2) EnWG, a refusal to grant a grid connection is only permissible if the grid operators can demonstrate that granting the connection is not possible or not reasonable for operational, economic or technical reasons, taking into account the public’s supply interests. For the grid connection of power plants with a capacity of 100 megawatts (MW) or more to electricity supply grids with a voltage of at least 110 kilovolts (kV), the Power Plant Grid Connection Ordinance (KraftNAV) stipulates in Section 4 that grid connection requests received by the grid operator earlier in time must be granted a connection commitment as a matter of priority; the so-called ‘first come, first served’ principle. Until the legislative amendment in December 2025, which clarified that energy storage facilities are not covered by the scope of the KraftNAV, grid connection requests for energy storage facilities were also frequently processed based on the first come, first served principle due to legal uncertainty.

In its ten-point paper ‘Becoming climate-neutral – remaining competitive’ from September 2025, the Federal Ministry for Economic Affairs and Energy emphasises that further developing the instruments for the regional management of the expansion of renewable energy plants and energy storage facilities will accelerate the connection of these plants, increase usable feed-in and optimise grid expansion in line with demand. Furthermore, digital queue management systems for bundling connection requests, grid traffic lights, connection pooling, capacity-based grid tariffs and regionally differentiated construction cost subsidies are cited as incentives, amongst other things, for the efficient use of existing grid capacity.

To date, neither the Federal Ministry for Economic Affairs and Energy nor the legislature has provided detailed guidelines on how grid operators are to ensure fair, non-discriminatory and transparent grid access, in accordance with Section 17 EnWG, despite the sharp rise in grid connection requests and the simultaneous scarcity of grid connection capacity. However, a draft bill on the grid connection package is now available, containing far-reaching amendments to Sections 17 seqq. EnWG.

Structure of the maturity-based procedure

The maturity-based procedure for consumption, storage and hybrid plants developed by the TSOs is based on three principles. According to these, all applications are to be processed on a cyclical basis. For the current cycle, application documents must be submitted by 30 June 2026. Applications must meet minimum requirements, and a flat-rate application fee and a realisation deposit will be charged by the TSOs. Finally, grid connections will be allocated on the basis of maturity criteria, whereby projects ready for implementation are given priority.

Grid connection applications are only exempt from this maturity-based procedure if they concern an adjustment to the already agreed grid connection capacity, if the previous grid usage behaviour does not fundamentally change, no construction measures are required by the TSO, and if an individual technical assessment shows that there are no grid-related bottlenecks. As far as is known, the TSOs take the view that ongoing grid connection requests must be resubmitted in accordance with the rules of the maturity-based procedure by 30 June 2026 in order to be considered for the allocation of available grid connection capacity in the current first cycle.

The maturity-based procedure is divided into three phases:

• Information and application phase (three months), during which transparency regarding the grid situation is provided on the TSOs’ website, informal and non-binding grid connection enquiries are processed, and the application must be submitted together with a flat-rate application fee of EUR 50,000.00 payable to the TSOs;

• Cluster study with maturity-based prioritisation (five months), during which the admissibility of grid connection applications is assessed, maturity is evaluated and prioritisation carried out, capacity is allocated and grid calculations are performed;

• Offer phase (two months), during which, in the event of a positive response, the grid connection applicants may accept the offer within one month by paying a realisation deposit of EUR 1,500.00 per MW of grid connection capacity.

Accepting the offer concludes the maturity-based procedure and is followed by the pre-project phase, comprising preliminary design and negotiations on a connection construction contract and/or a grid connection contract. Should a grid connection applicant fail to agree on a negotiation schedule with the TSO within three months, the TSO shall submit a binding negotiation schedule, which the grid connection applicant may accept within 14 days. Should acceptance not be provided within the specified time limit, the grid connection reservation shall lose its validity. With regard to the construction cost subsidy, the TSOs’ maturity-based procedure provides that this is payable in three instalments – upon signing the grid connection agreement and/or the connection construction agreement, 18 months after the first instalment, or upon commencement of construction, and upon commissioning of the grid connection –; moreover, the realisation deposit paid previously is offset against the construction cost subsidy.

For the maturity assessment and prioritisation of grid connection requests, the TSOs have established four criteria and a total of nine sub-criteria. If there are too many admissible requests for the available grid connection capacity, the requests are prioritised on the basis of the following maturity criteria:

• Site acquisition and approval status
• Technical plant and connection concept
• Capacity of the grid connection applicant
• Grid and system benefits

The first three criteria each account for 30% of the maturity assessment, whilst the fourth criterion (grid and system benefits) accounts for 10%. Should grid connection applications for a site receive the same score following the maturity assessment, the decision shall be made in accordance with the TSOs’ maturity-based procedure, initially based on waiting time and site-specificity, and finally – if there is still no difference – by means of a transparent lottery procedure.

Grid connection requests in the distribution network

Following the introduction of the TSOs’ maturity-based procedure for grid connection applications from energy storage facilities and large-scale consumers on 1 April 2026, the first distribution system operators have already indicated that they too are considering moving away from the first come, first served principle and instead applying a (modified) maturity-based procedure for grid connection applications.

The draft bill on the grid connection package has been published – far-reaching changes to grid connection under Sections 17 seqq. EnWG

In addition to the TSOs’ maturity-based procedure, the grid connection package is set to introduce far-reaching legislative changes regarding grid connection under Sections 17 seqq. EnWG. The latest draft bill (E-EnWG) provides, among other things, for the following amendments to the energy industry regulations on grid connection:

• Adjustment of the capacity to be maintained for each grid connection to the highest measured capacity value of the past three years, if the connection capacity has not been utilised, or not utilised to the agreed extent, over a period of more than three years; Section 17(1a) E-EnWG.

• No priority for grid connection for energy storage facilities, but also no refusal on the grounds of lack of capacity, provided that the previous maximum withdrawal and feed-in capacity remains unchanged following the additional connection of the energy storage facilities, subject to the conclusion of a flexible grid connection agreement; Section 17(2a) E-EnWG.
• Development of a uniform, transparent and efficient procedure for non-discriminatory grid connections to the transmission grid by TSOs, to be confirmed by the Federal Network Agency, as well as the conditionality of grid connection on the conclusion of flexible grid connection agreements; Section 17a E-EnWG.
• Prioritisation of grid connection requests – including for the purpose of reserving grid connection capacity for prioritised expected grid connection requests – based on the criteria
  • safety and reliability of the electricity supply system,
  • existing statutory targets for the expansion of generation facilities, energy storage facilities and consumers,
  • assumptions from the scenario framework for grid development plan approved by the Federal Network Agency,
  • requirements of adjacent or downstream grid operators,
  • efficient use of grid interconnection points, in particular by multiple connection customers, and
  • designations of areas in regional planning or local development plans; Section 17b E-EnWG.
• Grid operators shall publish on their website, on a geographical map, the grid connection capacities available in their electricity supply network at the voltage levels from extra-high to high voltage and from high to medium voltage, and shall provide non-binding information on grid connections; Section 17c E-EnWG.
• Grid operators must provide grid connection applicants with clear and transparent information on the status and further processing of the grid connection application; Section 17d E-EnWG.
• In future, grid connection applications and the information required for their processing should be able to be submitted via a digital grid connection portal on the respective grid operator’s website; Section 17e E-EnWG.
• Grid operators must reserve grid connection capacities on the basis of common, objective, transparent and non-discriminatory guidelines confirmed by the Federal Network Agency; Section 17f E-EnWG.

Outlook

It requires a detailed examination to determine the extent to which the implementation of the TSOs’ maturity-based procedure is in line with the (future) legislative requirements in Sections 17 seqq. EnWG, and whether distribution system operators may process grid connection requests in accordance with their own concepts, as does the question of whether the rules may be amended retrospectively and whether TSOs may exclude ongoing grid connection requests that are not converted to the maturity-based procedure from capacity allocation. Overall, the concept of the TSOs’ maturity-based procedure, as well as the grid connection concepts to be developed by distribution system operators, will be closely monitored not only by the Federal Network Agency but, expectedly, by the entire energy sector, and will be scrutinised – including, where necessary, from a legal perspective.

Our Energy & Infrastructure team supports and advises you, whether as a grid operator or as a grid connection applicant, on the legally compliant submission and processing of grid connection applications. Furthermore, we are monitoring the legislative proposals relating to the grid connection package, will keep you informed about these developments, and will be offering a workshop focusing on grid connections.