Germany considers making producers contribute to electricity grid costs

German regulator BNetzA has launched a consultation on a major grid tariff reform that could require electricity producers to pay access fees, thus altering the current funding structure.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

Germany’s Federal Network Agency (Bundesnetzagentur, BNetzA) has presented a structural reform proposal for electricity grid usage fees. The consultation paper, published on May 12, introduces the possibility that electricity producers, who are currently exempt, will contribute financially to covering grid costs.

Towards a broader distribution of grid charges

According to BNetzA, grid fees are currently borne exclusively by end-consumers, which creates an imbalance amid rapidly rising infrastructure investments. The expansion of renewable energies, particularly wind and solar, is driving high grid extension costs, while producers do not participate in the funding. The regulator outlines several options, including a usage-based fee for injected electricity or a flat base fee for grid access.

“We need to reform the system for collecting grid fees,” said Klaus Müller, President of BNetzA. “The aim is to prepare this system for upcoming challenges.”

Flexibility and strengthened price signals

In addition to broadening the funding base, BNetzA proposes introducing capacity-based pricing mechanisms rather than relying solely on consumption. Current fees, entirely indexed to consumption above the low-voltage level, do not reflect the actual infrastructure costs. The paper suggests implementing a fixed fee, independent of consumption, to more accurately reflect system expenses.

The rise of prosumers, who reduce their dependence on the grid while injecting self-generated electricity, is contributing to the erosion of the funding base. According to BNetzA, this situation reduces economic efficiency and limits incentives to adjust demand to network needs.

Dynamic scenarios and differentiated pricing

The reform could also include time-variable tariffs applied on a regional or national basis, according to pre-set schedules. These tariff structures aim to reflect the grid load at different times of day or year. Another, more advanced, option would involve dynamic, localised fees providing real-time price signals to encourage behaviour aligned with grid capacity.

Energy storage facilities are addressed separately in the reform proposal, with the goal of ensuring their optimal integration into the system without distorting tariff structures.

Regulatory timeline and public financing

The public consultation is open until June 30. This process complies with a 2021 ruling by the European Court of Justice, requiring BNetzA to autonomously define grid fee regulations. The reform is expected to replace the current provisions under the Electricity Grid Fee Regulation (Stromnetzentgeltverordnung, StromNEV).

In parallel, the federal government plans to invest EUR23bn ($24.74bn) between 2025 and 2029 to halve grid fees, which in recent years have exceeded EUR60/MWh.

The U.S. Department of Energy has extended until November the emergency measures aimed at ensuring the stability of Puerto Rico’s power grid against overload risks and recurring outages.
Under threat of increased U.S. tariffs, New Delhi is accelerating its energy independence strategy to reduce reliance on imports, particularly Russian oil.
With a new $800 million investment agreement, Tsingshan expands the Manhize steel plant and generates an energy demand of more than 500 MW, forcing Zimbabwe to accelerate its electricity strategy.
U.S. electric storage capacity will surge 68% this year according to Cleanview, largely offsetting the slowdown in solar and wind projects under the Trump administration.
A nationwide blackout left Iraq without electricity for several hours, affecting almost the entire country due to record consumption linked to an extreme heatwave.
Washington launches antidumping procedures against three Asian countries. Margins up to 190% identified. Final decisions expected April 2026 with major supply chain impacts.
Revenues generated by oil and gas in Russia recorded a significant decrease in July, putting direct pressure on the country’s budget balance according to official figures.
U.S. electricity consumption reached unprecedented levels in the last week of July, driven by a heatwave and the growth of industrial activity.
The New York Power Authority targets nearly 7GW of capacity with a plan featuring 20 renewable projects and 156 storage initiatives, marking a new phase for public investment in the State.
French Guiana plans to achieve a fully decarbonised power mix by 2027, driven by the construction of a biomass plant and expansion of renewable energy on its territory.
The progress of national targets for renewable energy remains marginal, with only a 2% increase since COP28, threatening the achievement of the tripling of capacity by 2030 and impacting energy security.
A Department of Energy report states that US actions on greenhouse gases would have a limited global impact, while highlighting a gap between perceptions and the economic realities of global warming.
Investments in renewable energy across the Middle East and North Africa are expected to reach USD59.9 bn by 2030, fuelled by national strategies, the rise of solar, green hydrogen, and new regional industrial projects.
Global electricity demand is projected to grow steadily through 2026, driven by industrial expansion, data centres, electric mobility and air conditioning, with increasing contributions from renewables, natural gas and nuclear power.
Kenya registers a historic record in electricity consumption, driven by industrial growth and a strong contribution from geothermal and hydropower plants operated by Kenya Electricity Generating Company PLC.
Final energy consumption in the European industrial sector dropped by 5% in 2023, reaching a level not seen in three decades, with renewables taking a growing role in certain key segments.
Réseau de transport d’électricité is planning a long-term modernisation of its infrastructure. A national public debate will begin on September 4 to address implementation methods, challenges and conditions.
The Spanish Parliament has rejected a package of reforms aimed at preventing another major power outage, plunging the national energy sector into uncertainty and revealing the fragility of the government's majority.
The U.S. government has supported Argentina’s request for a temporary suspension of an order to hand over its stake in YPF, a 16.1 billion USD judgment aimed at satisfying creditors.
The United States Environmental Protection Agency extends compliance deadlines for coal-fired power plant operators regarding groundwater monitoring and the closure of waste ponds.
Consent Preferences