This is how network operators assess future BESS projects

Bayernwerk, E.DIS, Schleswig-Holstein Netz and Netze BW are introducing new allocation procedures for grid connection capacities. Instead of the traditional first-come, first-served approach, project maturity, co-location concepts, and the use of existing infrastructure are moving to the forefront.

 A battery energy storage project may be fully developed, the site identified, and the business case promising. Yet one critical question often remains unanswered for months, or even years: where and under what conditions can the storage system actually be connected to the grid?

This uncertainty has slowed down many storage projects in recent years. The high number of grid connection requests for large-scale battery storage systems has led to significant processing delays at many distribution system operators (DSOs). At the same time, available grid capacity was often reserved for long periods by projects whose realization remained uncertain.

Bayernwerk, E.DIS, Schleswig-Holstein Netz (all part of the E.ON Group) and Netze BW are now responding to this challenge with new allocation procedures. The core message is clear: in the future, the timing of an application alone will no longer determine whether a grid connection is granted. Instead, the quality and maturity of a project will play a decisive role.

Where Does the Problem Come From?

Until now, grid connection requests were often processed according to the so-called first-come, first-served principle.

As the number of grid connection applications for large-scale battery storage systems has increased significantly in recent years, this approach has become increasingly problematic. In some cases, developers had to wait up to two years to receive a grid connection offer.

For project developers and asset owners, this creates several challenges. The economic viability of a storage project can only be assessed once key parameters have been clarified:

• The specific grid connection point available for the project

• The associated connection costs

• The actual import and export capacity available

These factors define the boundary conditions for optimally sizing the battery storage system.

At the same time, grid connection points were sometimes reserved for extended periods even though project realization was far from certain. As a result, well-prepared projects often had to wait for available capacity or were effectively rejected through the allocation of grid connection points that could not be connected economically.

What Exactly Is Changing?

The goal of the new procedures is to allocate available grid capacity preferentially to projects with a high likelihood of realization and a strong contribution to efficient and stable grid operation.

To achieve this, applications will no longer be processed continuously. Instead, they will be collected and evaluated against predefined criteria.

For project developers and asset owners, one distinction becomes particularly important:

Is the project a green electricity storage project or a grey electricity storage project?

The answer determines whether the new allocation procedure applies at all.

Green Electricity Storage: Not Subject to the New Allocation Procedure

At Bayernwerk, E.DIS and Schleswig-Holstein Netz, the new rules apply exclusively to grey electricity battery storage systems exceeding 300 kW of connection capacity.

Green electricity storage projects are explicitly excluded from the new allocation process.

For project developers, this means:

• No participation in the new allocation rounds

• No prioritization through the scoring system

• No competition within the semi-annual application windows

At the same time, the new evaluation framework demonstrates that combining storage systems with existing renewable energy infrastructure is becoming increasingly attractive. Projects located at existing wind and solar sites benefit from existing grid connections and established infrastructure.

Grey Electricity Storage: Good Planning Pays Off

The framework conditions for grey electricity battery storage projects are changing significantly.

The new regulations at Bayernwerk, E.DIS and Schleswig-Holstein Netz apply to:

• Grey electricity battery storage systems with more than 300 kW connection capacity

• Increases of existing connection capacity for industrial customers exceeding 1,000 kW

Applications will be collected on a semi-annual basis and subsequently prioritized.

In addition, a realization deposit of €1,500 per MW will be introduced.

Timeline of the First Allocation Round

• From 12 October 2026, available grid capacities will be published via an interactive map.

• Applications can then be submitted during a six-week window ending on 23 November 2026.

• Beginning on 15 March 2027, applicants will receive feedback according to their ranking.

The key element is the new evaluation system.

How Do Bayernwerk, E.DIS and Schleswig-Holstein Netz Evaluate Projects?

Projects are ranked using six transparent and equally weighted criteria.

The evaluation logic is straightforward:

• Mature projects are prioritized.

• The use of existing infrastructure is rewarded.

• Co-location concepts receive explicit recognition.

• Flexible and grid-supportive operating concepts receive additional benefits.

This creates a strong incentive to develop projects technically and economically at an early stage.

Netze BW Takes a Similar Approach

Netze BW is also introducing a scoring-based allocation process.

The application window runs from 1 November 2026 to 31 December 2026, with the first allocation round starting on 1 March 2027.

The primary focus is on project maturity and site security.

A particularly important requirement states:

Among the documents evaluated are:

The highest weighting is therefore assigned to the use of existing infrastructure.

Why Does This Matter?

Both the E.ON Group distribution system operators and Netze BW are moving in the same direction:

The efficient use of existing infrastructure is becoming a priority.

Particularly attractive are:

• Expansions of existing grid connection points

• Co-location concepts using existing grid infrastructure for wind farms, solar parks, industrial sites and conventional power plants

Although such combined projects are generally more complex to design and implement than greenfield developments, they also offer a wide range of promising revenue opportunities.

As a result, comprehensive project preparation and planning are becoming increasingly important for bringing projects into operation. Developers who have already secured land rights, completed technical concepts and initiated permitting or procurement activities will significantly improve their chances of obtaining a grid connection.

Our Assessment

The new procedures send a clear signal to the market: grid capacity is a scarce and valuable resource. In the future, it will increasingly be allocated to projects that are likely to be realized and that support efficient grid operation.

From Kumandra's perspective, three key implications emerge:

1. Early-stage planning becomes a decisive success factor.

2. Co-location projects become significantly more attractive.

3. Existing grid connections become a strategic competitive advantage.

Particularly in regions with large numbers of existing wind and solar assets, substantial opportunities for new storage projects are emerging.

Conclusion

With these new allocation procedures, the first distribution system operators are moving away from a pure first-come, first-served approach. Instead, project maturity, grid-supportive characteristics, and the use of existing infrastructure are taking center stage.

The evaluation systems introduced by Bayernwerk, E.DIS, Schleswig-Holstein Netz and Netze BW all point in the same direction: well-prepared projects should have a faster and more realistic path to securing grid connections.

In our view, this is a positive development. The new rules increase transparency, reduce speculative reservation of grid capacity, and strengthen projects with clear implementation strategies.

For project developers, the message is simple: good planning is no longer just recommended. It is increasingly becoming a prerequisite for securing a successful grid connection.

Note: This article reflects our practical experience and observations and does not constitute legal advice.