The era of unconditional network connection priority is facing a turning point. With the draft bill by the Federal Ministry for Economic Affairs and Energy (BMWE) – the so-called Network Package 2026 or also grid connection package – Katharina Reiche is planning a fundamental reorientation of the relationship between grid expansion and plant construction.
Behind the unwieldy title „Synchronization of Facility Expansion with Grid Expansion“ lies nothing less than a departure from previous principles of the Renewable Energy Sources Act (EEG). At the center of this planned reform is a term that has put the industry on high alert: the so-called. Capacity-constrained network area.
What are the planned „capacity-limited grid areas“?
The term is a new regulatory creation that has its roots in the overloading of low-voltage grids by heat pumps and wallboxes (formerly § 14a EnWG). The draft bill massively expands this term with the 2026 Network Package and applies it to the Input page (EE installations and storage).
Under the new draft of the 2026 network package, a network area is considered capacity-constrained for up to 10 years if:
- The stress limit has been reached If during the preceding calendar year the connected facilities exceeded 3 % of their potential power feed-in to be regulated.
- The official expulsion: The grid operators are to report this area to the Federal Network Agency (BNetzA) by March 31 of each year, where they will be published transparently.
The absolute claim from § 8 EEG on „immediate connection“ relativizes in these areas. In return, however, Section 11 of the EnWG obliges the grid operator to give priority to optimizing and expanding precisely these areas. Overall, this transforms a technical condition (overload) into a Legal status with far-reaching consequences for investors and operators.
The regulatory pillars of the 2026 network package
1. The „Redispatch Reservation“: The End of Compensation Guarantees
So far, the principle is: If the grid cannot absorb the power, the grid operators will reduce it, but the Operator receives compensation. The Network Package 2026 wants to break this principle and calls this „Redispatch reservation“.
- Connection only upon waiver: In capacity-limited areas, the immediate connection claim under Section 8 of the EEG is undermined. Grid operators are only required to offer a connection if the operator contractually agrees for the duration of the limitation to their Waiver of redispatch compensation.
- Economic consequences: This „redispatch reservation“ shifts the financial risk of slow grid expansion entirely onto the renewable energy sector. For many projects, this could mean the end of bankability.
2. Departure from the greyhound principle: „First Ready, First Served“
So far, the „first-come, first-served“ principle effectively applies in the grid connection procedure according to § 17 EnWG.First come, first served). Whoever inquires first secures the capacity – regardless of whether the project is ever realized. The planned grid package 2026 provides for a regulatory break here:
- Einführung des Reifegradverfahrens: Transmission system operators (TSOs) are to have a new system by January 1, 2027 Prioritization submit. Capacity allocation will in future be made on a „first come, first served“ basis.
- Project milestones as a condition According to § 17f EnWG-E, distribution system operators (DSOs) shall establish uniform criteria for Reservation of grid connection capacity develop. These reservations are tied to fixed milestones. If these are not met, the reservation will lapse in favor of projects nearing realization.
- Reservation fees: To deter purely speculative inquiries („phantom projects“), grid operators will in future be allowed Holding fees from connection capacities from a rated power of 135 kW rise.
3. Construction Cost Subsidies (BKZ) for Producers
One of the most controversial changes in the 2026 grid package concerns cost allocation. Previously, grid connection was largely free for renewable energy plant operators (aside from direct connection costs), as the grid operator was responsible for expansion (§ 17 EEG). The draft bill now proposes that grid operators also charge renewable energy plant operators appropriate construction cost subsidies be allowed to demand. The Federal Network Agency receives the authority to determine the amount and regional differentiation. The goal is clear: Regionalization. Investors should be guided there by financial incentives where the grid still has capacity.
4. BESS and Flexible Connection Agreements (FCA)
For Large-scale battery storage (BESS) the draft provides for a special regulation. Connection may not be refused due to a lack of capacity, provided that a FCA completed. The storage system may then only feed in or discharge as much as the grid allows at that particular moment – a model that is technologically advanced but makes it difficult to market the storage systems. This could affect the profitability of some BESS projects in Intraday Trading or Day-Ahead Trading influence.
5. Digitalization & Transparency as Counterweights
Despite the massive toughening, the 2027 network package also includes necessary modernization steps:
- Full digitization By 2028, all grid operators must have digital portals ready for connection requests for all voltage levels and system types.
- Network Information In the future, project developers should be able to check online in real time whether a location is in a capacity-limited area or where free capacities are available.
- Binding deadlines Network operators must in the future provide binding status updates on connection requests within three months (§ 17d EnWG-E).
Criticism of the Network Package 2026
While the BMWE defends the 2026 grid package as a necessary instrument for cost containment and efficiency improvement, the draft is meeting with massive resistance from associations, project developers, and parts of the political sphere. The criticisms can be divided into four core areas:
Slowing down instead of synchronizing
Industry associations such as the Federal Network for Renewable Energy (BEE) and the Federal Wind Energy Association (BWE) warn against the package not synchronizing the expansion of renewables with the grid, but rather stifling it. The classification as a „capacity-limited grid area“ for up to ten years is particularly criticized as an „investment stop through the back door.“ Projects at affected locations are practically no longer financeable due to the incalculable risk of lost revenue (redispatch reservation).
One-sided load distribution
Critics complain that the risk for the sluggish grid expansion is being shifted unilaterally from grid operators to plant operators by the planned Grid Package 2026. While grid operators will experience financial relief through the new regulations (including construction cost subsidies and the abolition of compensation liability), investors will now have to answer for shortcomings in the infrastructure. The renewable energy provider Green Planet Energy called this a „frontal assault“ because the cause of the bottleneck – the lack of grid expansion – would no longer be penalized.
3. Threat to Actor Diversity & Citizen Energy
The Genoverband warns that small players and citizen energy cooperatives in particular could fall by the wayside. The new prioritization possibilities (maturity assessment process) and the looming reservation fees would favor large investors with strong legal departments. Small projects, which are crucial for local acceptance of the energy transition, could be put on the „sidelines“ or fail due to financial hurdles.
4. Doubts about conformity with European law
A legal opinion from the BWE also considers the compatibility of Redispatch reserve with EU law in question. Since EU internal electricity market law provides clear rules for the prioritization of renewables and compensation, experts warn that the 2026 network package could lead to a wave of lawsuits, causing considerable legal uncertainty. Furthermore, it violates the EU's principle of non-discrimination and leads to more bureaucracy through the creation of new individual prioritization rules.
Industry Association Alternative Proposals for the 2026 Grid Package
Instead of effectively preventing the connection of new facilities in „capacity-limited areas,“ associations such as the BEE and the BWE propose „Acceleration Agenda“ This focuses on technical innovation and market-based incentives rather than regulatory bans:
Consistently implement „Use Instead of Curtailing 2.0“
Critics see the greatest potential in the strategy "Use instead of regulating" (§ 13k Energy Industry Act). Instead of shutting down wind turbines during grid bottlenecks, the excess electricity should be used locally – for example, for:
- Power-to-Heat: Conversion of electricity to heat for district heating networks or industrial steam.
- Electrolyzers On-site green hydrogen production.
- Industrial Loads: Targeted activation of large consumers in regions with high electricity generation.
2. Network Optimization following the NOXVA Principle
The associations are demanding strict adherence to the NOXVA Principle (Nit'sooptimization before flexheavy loads Vreinforcement before Aconstruction). These include:
- Overhead line monitoring Sensors measure wind and temperature along power lines. In cool winds, existing cables can carry up to 50% more electricity than during normal operation.
- Intelligent Local Grid Stations (iONS): Digital transformer substations that control power flows in real-time, thus preventing local bottlenecks.
3. Network-optimized tenders („penalty proposal“)
An interesting counter-proposal to the blanket redispatch reservation in the 2026 Grid Package is Network-optimized tenders. This would mean that projects in already congested network areas would receive a financial penalty (deduction) when receiving funding. The advantage would be that investors could decide for themselves whether they wanted to take the risk of a „full“ grid in exchange for lower funding opportunities. However, they would retain their Claim for compensation, should they receive the contract. This protects the bankability of the projects.
4. Right to overbuild utility connections
Power connections are often reserved for maximum (theoretical) peak performance, which is only reached a few hours a year. The associations are demanding a clear Right of overbuilding, Cable Pooling and the To better utilize the network interconnection point. This way, wind and solar farms could use the same grid connection, as they rarely feed in at full capacity simultaneously. Combined with on-site battery storage, the feed-in could be smoothed out without overloading the grid.
The 2026 Network Package as a High-Political-Risk Project
The Grid Package 2026 is an attempt to break the regulatory rigidity of grid connection. However, it will become a high-risk political project. While digitalization and transparency are long overdue improvements, the planned combination of a mandatory grid connection charge and the abolition of connection priority in limited areas represents a significant shift in risk. This is especially true for project developers Full feed-in systems location selection no longer be based solely on wind strength or solar radiation, but primarily on the regulatory map of network operators align.