Distribution network operators (VNB) in Germany – tasks, functions & structure

They operate the high-, medium-, and low-voltage networks that bring electricity to households, businesses, and industry over the final kilometers. This article explains the tasks, structure, and legal framework of the 846 VNB in Germany and shows what this means for companies with PV systems and battery storage.

Distribution network operators at a glance: Role in the electricity network

When transmission grid operators operate the „motorways of electricity,“ the distribution grid operators are responsible for the country roads and local roads. Households, commercial businesses, and industrial companies are connected to their networks, as are photovoltaic systems, wind farms, and battery storage systems.

The energy transition is fundamentally changing its role. The vast majority of renewable energy installations do not feed into the high-voltage grid, but into the distribution networks. At the same time, additional loads are added with heat pumps, charging infrastructure, and new large consumers. From the grid, which used to distribute electricity in only one direction, a network is emerging that must balance generation, consumption, and storage in both directions. Therefore, anyone who wants to implement a PV or storage project usually has to deal with a distribution network operator.

Brief overview

  • Definition: Distribution network operators operate, maintain and expand the electricity networks at high, medium and low voltage levels and distribute electricity to end consumers.
  • Number: In Germany there are 846 NGV operators (as of September 2026), but only four transmission grid operators.
  • Net length: The distribution networks comprise approximately 1.8 million kilometers of power lines, of which approximately two-thirds are in the low voltage range.
  • Key tasks: Grid operation and grid expansion, grid connection and grid access, congestion management (Redispatch 2.0), meter station operation and market communication.
  • Regulation: The network charges of the VNB are subject to incentive regulation. The Federal Network Agency or the state regulatory authorities are responsible.
  • Relevant for companies: The VNB decides on grid connection approval, connection point and connection conditions for PV systems and battery storage systems.

What is a distribution network operator?

According to the Energy Act (EnWG), a distribution network operator is a company responsible for operating, maintaining, and, if necessary, expanding an electricity distribution network. Each VNB operates its own network in a defined network area. Because it would not be economically sensible to build several parallel power networks, this is what is known as a so-called natural monopoly. Therefore, the VNB is subject to strict regulation and must grant all network users non-discriminatory access.

Voltage levels in the distribution network

The German electricity grid is divided into four main voltage levels. The distribution network covers three voltage levels from, which are connected to each other via substations and local network stations:

OperatorGrid levelTensionTypical connectionsCircuit length (approx.)
Transmission system operatorHigh voltage220 / 380 kVLarge power plants, offshore wind farms, connection to the European grid39,000 km
Distribution system operatorHigh voltage
typically 110 kV

Large industry, large wind and solar power plants, large battery storage systems
94,000 km
Distribution system operatorMedium voltagetypically 10–30 kVIndustrial and commercial enterprises, hospitals, larger photovoltaic systems, battery storage systems520,000 km
Distribution system operatorLow voltage230 / 400 VHouseholds, small businesses, rooftop PV systems, wallboxes, heat pumps1,190,000 km

The low voltage makes up the majority of the network length with around two-thirds. It is the level of „fine distribution“. In contrast, in medium and high voltage, commercial, industrial and large-scale facilities are connected.

Tasks of the distribution network operators

Operation, maintenance and expansion of the distribution network

The core task is to maintain the network safe, reliable and efficient To operate the grid. This includes monitoring network load, maintaining lines, cables, transformers and switchgear, and controlling the network in operation. Where the network reaches its limits, VNB must optimize, strengthen and expand it as needed. Each VNB also bears responsibility for Responsibility for the stability of its own network. In the event of impending overload or voltage problems, he is allowed and must intervene.

Power connection and network access

Distribution network operators are obliged to provide consumers and producers with electricity in their network area. to connect and all network users access without discrimination This applies to all customers, from the single-family home with a heat pump to the commercial building with a photovoltaic system, to the industrial plant or the battery storage system on the medium-voltage grid.

In practice, the connection process usually follows this sequence: The connection customer provides a Network connection request with the technical specifications. The VNB provides the Grid compatibility assessment It determines the connection point and connection power and then follows with the power connection approval and the power connection contract, which also includes costs such as the connection fee. Construction cost subsidy It is necessary to regulate this. Especially in the case of larger systems, this is not a purely formal process. The point of connection, the connection capacity, the schedule and the connection conditions are matters of negotiation. This increasingly also includes the question of whether the connection is to be provided with full capacity at all times or with certain restrictions within the framework of an Flexible connection agreement (FCA) is available.

Traffic management: Redispatch 2.0 and feed management

Since October 1, 2021, the so-called Redispatch 2.0. It has replaced the previous power-purchase management system and actively involves the distribution network operators in addition to the transmission network operators. Since then, they have been included in the system. Generation systems, CHP systems and storage units from 100 kW as well as smaller installations, if they can be controlled remotely by the grid operator. Previously, redispatch only applied to conventional large power plants of 10 MW or more.

For distribution grid operators, this means that they must predict network bottlenecks, coordinate the down- or up-regulation of systems, and manage the grid in a flexible way. bilateral and financial compensation to decommission. Operators whose systems are decommissioned receive compensation for this. This is important especially because over 90% of renewable energy installations are connected to distribution networks. The majority of the bottlenecks arise and are therefore also resolved there.

Network package: Capacity-limited network areas and redispatch reserve

With the network package, the German government wants to assign a new task to the distribution network operators: they are to capacity-constrained grid areas may be issued. The prerequisite is that more than 3% The potential feed-in had to be regulated due to network bottlenecks. These areas are subject to the redispatch reservation. This stipulates that new installations will receive a grid connection, but will not receive compensation for part of their annual production (up to 20%) under grid-based regulation. The provision is time-limited, according to the government draft, to six years with an option to renew. According to the government draft, it applies to new PV land-based installations and onshore wind turbines, but not to battery storage systems.

The German Bundestag is expected to adopt the controversial regulation in November 2026. For the VNB, this would be another task in congestion management: evaluating and identifying the network areas.

Site operation and market communication

According to the Metering Operations Act, the network operator is the first to operate. principal measuring station operator. He installs and operates meters and intelligent measurement systems, unless the connected user commissions another meter reading operator. In addition, the Market communication. In this process, the distribution network operators manage the master data of the network connection points, handle supplier changes, provide measurement data, and account for the use of the network with the electricity suppliers.

Collect network charges and regulate the electricity connection of controllable consumers

The VNB finances the costs of network operation through Grid charges, which every electricity user pays through their electricity bill. Since January 1, 2024, it also regulates Section 14a EnWG The control of heat pumps, wallboxes, air conditioners and similar controllable consumer devices in the low voltage range. The VNB may temporarily limit their connection to the grid in the event of imminent overload. In return, the system operators receive reduced network charges.

VNB in Germany: Number and structure

Unlike the transmission networks, which are operated by only four companies, the distribution network level is very large. fragmented. According to a recent evaluation, there are currently 846 Distribution network operators in Germany (as of September 2026). The Federal Network Agency counted a total of 851 electricity network operators in 2025, of which four were Transmission System Operators (TSOs). In 2015, there were still around 880 NMWs. The number is slowly decreasing, partly due to mergers and changes in concession agreements.

The VNB can be roughly divided into three groups:

  • Grid companies of large energy companies such as the network operators of the E.ON group or Netze BW, a subsidiary of EnBW. They often serve large, interconnected regions.
  • Municipal network operators and municipal utilities, For example, Stromnetz Berlin or EAM Netz, which often operate within a single city area or region.
  • Small local network operators, These include cooperatives and small municipal utilities that serve only a few municipalities or individual local networks.

The evaluation shows how large the differences are by state. The size classes refer to the network size, i.e., the maximum annual peak load or the installed power in the network area of the respective VNB:

Federal stateNumber of VNBof that more than 1 GWof that 100-1,000 MWof that 10-100 MWof that less than 10 MW
Baden-Württemberg1193178514
Bavaria22842113667
Berlin312
Brandenburg29263
Bremen4112
Hamburg11
Hesse57314319
Mecklenburg-Western Pomerania2213144
Lower Saxony662153910
North Rhine-Westphalia110638597
Rhineland-Palatinate50262319
Saarland1713131
Saxony3613311
Saxony-Anhalt3117221
Schleswig-Holstein42142611
Thuringia3113234
VNB total84629139532150

Particularities of the German VNB structure

  • Most VNBs are small to medium-sized. 532 of the 846 operators (about 63 percent) are in the class of 10–100 MW. Another 150 operators (about 18 percent) remain below 10 MW. Only 29 distribution network operators have a network size of more than 1 GW.
  • Operators are focusing on regional operations. Bavaria (228), Baden-Württemberg (119) and North Rhine-Westphalia (110) together account for around 54 percent of all VNB. In Bavaria alone, there are 67 very small grid operators with less than 10 MW.
  • Large networks are mainly located in the industrial regions. North Rhine-Westphalia has the most large-scale operators with 44 VNB over 100 MW, followed by Bavaria (25) and Baden-Württemberg (20). In the city states of Berlin and Hamburg, however, a single large VNB supplies the entire city.

For the practice, this diversity means: There is no „one“ distribution network operator. Network connection processes, contact persons, processing times, and technical requirements differ from network to network, sometimes significantly.

Legal and regulatory framework for distribution network operators

The operation of distribution networks is highly regulated. Here are the most important basics:

Energy sector law (EnWG) and European law

The EnWG sets out the rights and obligations of network operators, including the obligation to connect and access networks, network development and system responsibility within the own network. The European basis is provided by the requirements of the Single Market Package, in particular the Electricity Internal Market Directive, which also describes the tasks of distribution network operators.

Regulatory incentives for distribution network operators

The network charges of the VNB are not freely calculable. As part of the incentive regulation, the competent authority sets a maximum for multiannual regulatory periods. Maximum profit limit Fixed, which determines how much revenue a network operator may earn through network charges. Efficiency comparisons are intended to create incentives for operating the network cost-efficiently.

Competent authorities

For distribution network operators with more than 100,000 connected customers or networks across national borders, the Federal Network Agency responsible. For smaller operators whose network is within one federal state, the State regulatory authorities The oversight. That is one reason why regulatory practices can vary regionally.

Unbundling

As with transmission grid operators, VNB network operation and energy generation or energy distribution must be separated. This is required to ensure that grid operators do not use their position to the detriment of competition. For small distribution grid operators with less than 100,000 connected customers In this case, there is an exemption (the so-called de-minimis regulation). You do not have to implement the legal and operational separation to the full extent. Therefore, many network operators remain part of a municipal utility.

Concession agreements

Municipalities grant the right to use public transport routes for pipelines to a network operator through a concession agreement. The term of the agreement is limited to a maximum of 20 years. After that, the concession must be renewed. This partly explains why network areas change operators.

Challenges for distribution network operators

Hardly any level of the electricity system changes as drastically as the distribution network. Several developments are occurring simultaneously. These are:

Decentralized feed-in and back-feed

Millions of photovoltaic installations, wind farms and increasingly battery storage systems are feeding directly into the distribution network. Networks that were originally designed to carry electricity from top to bottom now also need to handle the opposite direction. This requires reinforcement, additional construction and significantly better monitoring, especially in the low voltage range.

New burdens of electrification

Heat pumps, electric vehicles, data centers, and electrified industrial processes increase the demands on the networks. Instruments such as the control according to § 14a EnWG are intended to prevent load peaks from unnecessarily inflating the network expansion costs.

High investment needs

Forecasts suggest total costs of around 301 billion euros By 2045, these costs will be eliminated. In the long term, these costs will affect network charges and are a central component of the debate on reforming the network charging system.

Power grid congestion in battery storage systems

The burden is particularly evident in requests for large battery storage systems. According to an evaluation by the Federal Network Agency, in 2025, around 17,800 grid connection requests for battery storage systems with a total of approximately 407 gigawatts were submitted. Just under 1,900 connections were approved with approximately 27 GW in total. One example illustrates the discrepancy: At Netze BW, peak load in the entire network is 7.3 GW. This is contrasted with open connection requests of more than 20 GW in the high voltage and 2.2 GW in the medium voltage networks, of which more than 90% are for battery storage systems.

In response, the ÜNB has set the date of April 1, 2026 as the maturity model process Introduced. It replaces the previous wind dog principle, under which applications were processed in the order in which they were received, and prioritizes projects based on their progress in implementation. Individual distribution network operators are withdrawing. Netze BW announced a separate maturity process in August 2026, and the northern German distribution network operators (VNEW) are also aiming for a Proof of realization They are also calling on storage operators to join FCAs, regarding area, financing and the status of permits.

Digitalization and cybersecurity

Intelligent measurement systems, remote control and data exchange make grid operation more efficient, but they also increase the attack surface for IT attacks on critical infrastructure. The networking of VNB systems with producers and consumers requires powerful Cybersecurity from substations all the way down to every connected inverter.

VNBs as local contact points for energy projects

For companies, the distribution network operator is the central contact point when it comes to Power connection, network charges and Grid operation goes:

  • Power connection for photovoltaic systems and battery storage: Whether, where, and at what performance an installation can be connected to the grid is decided by the VNB after its network feasibility assessment. For larger projects, the connection point, connection capacity, and schedule are decisive factors for profitability. Therefore, early clarification is crucial, as are reliable documents on the status of the project, land area, and permits. Increasing requests for connections indicate that the proof of project maturity is becoming increasingly important.
  • Network charges The network charge of a company depends on the network area, the voltage level and the power, in particular on the Annual peak load (Performance award). There are significant differences between the 846 network areas. The Federal Network Agency is currently reforming the network fee system using the procedure. AgNes, This is also relevant for companies with storage and production facilities.
  • Redispatch: Systems with an output of 100 kW or more participate in Redispatch 2.0 and must be controllable for the network operator. Those who need to provide data and accept billing for this should take this into account in their economic calculation.
  • Redispatch reservation: Should the network package come in this form, the risk would be relevant primarily for full and large-scale feed-in projects in areas with limited capacity. Projects with high self-consumption and grid-connected battery storage are significantly less affected. Targeted expansion of the grid connection in accordance with § 8a of the EEG can also be a solution.
  • Negotiation room: More can be arranged when connecting to the grid than many expect, for example at the connection point, in the distribution of connection power, or through flexible connection agreements. CUBE CONCEPTS supports companies with connection requests and in discussions with the distribution network operator.

ÜNB and VNB compared

Transmission System Operators (TSOs)Distribution network operator
Number in Germany4 (50 Hertz, Amprion, TenneT, TransnetBW)846 (as of September 2026)
Level of tensionHigh voltage (220 and 380 kV)High, Medium and Low Voltage
TaskPower transmission over long distances, combined with neighboring countriesDistribution to end consumers, uptake of decentralized feed-in
ResponsibilitySystem responsibility for the control zone, frequency maintenance (50 Hz)Responsibility for the stability and operation of one's own network area
Typical connectionsLarge power plants, offshore wind farms, large consumers, large battery storage systemsHomes, businesses, industry, photovoltaic systems, wind farms, battery storage systems
Power connection for storageReifegrad procedure since April 1, 2026Individual NBs are implementing their own procedures
RegulationFederal Network AgencyFederal Network Agency or State regulatory authority

FAQ

What is a Distribution Network Operator (VNB)?

A distribution network operator operates, maintains, and expands high-, medium-, and low-voltage electricity networks and distributes electricity to households, businesses, and industry. It connects consumers, generation facilities, and storage systems to its network and provides non-discriminatory access to all network users.

How many distribution network operators are there in Germany?

According to the current evaluation, there are 846 distribution network operators (as of September 2026). According to the Federal Network Agency, there were a total of 851 electricity network operators in 2025, of which four were transmission network operators. The number is slightly decreasing; in 2015 there were still around 880 network operators.

What is the difference between distribution network operators and transmission network operators?

Transmission grid operators operate the high-voltage grid, transport electricity over long distances, and bear system responsibility for their control area. Distribution grid operators operate the networks below and distribute electricity to the end customer. In Germany there are four ÜNBs, but 846 VNBs.

Who is my distribution network operator?

This is the network operator whose network area the connection is located in. Unlike the electricity supplier, you cannot choose it. The responsible VNB is usually listed on the electricity bill.

Who is responsible for the power connection of a PV system or a battery storage system?

In most cases, the distribution network operator is responsible for the area where the facility is located. Only very large facilities that are directly connected to the transmission network apply to the transmission network operator for connection.

Do PV systems and battery storage need to participate in redispatching?

Yes, if they have a capacity of 100 kW or more. Since the introduction of Redispatch 2.0 on October 1, 2021, generation facilities and storage units of this size have been included, as well as smaller units provided they can be controlled remotely by the grid operator. In the event of outages, facility operators receive compensation.

Sources

  • Federal Ministry of Economics: „The German electricity grid“ (length of voltage levels)
  • Federal Network Agency/Federal Cartel Office via Statista: Number of electricity network operators in Germany 2015–2025
  • Federal Network Agency: Information about Redispatch 2.0
  • pv magazine: Maturity assessment procedures for transmission grid operators (05.02.2026); Netze BW implements maturity assessment procedures (13.08.2026); Norddeutsche VNB for proof of implementation (14.08.2026)
  • cleanthinking.de and ZfK: Evaluation by the Federal Network Agency of network connection requests for battery storage systems in 2025
From practice

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