Network charge optimization §19 + §118 + AgNes
Three regulatory levers, one roadmap. For industrial operations from 1 MW peak — by the commissioning deadline on August 4, 2029.
End of the atypicity regulation
20 years of grid fee exemption
BNetzA GBK-25-01-1#3
on real half-hourly load data
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Network charges are not a minor item for energy-intensive industries. They are a major cost block — and the only one that can be influenced by regulation.
The Cost Trap: Peak Load Component of Network Charges
For industrial companies with 1 MW peak or more, the share of grid fees in electricity OPEX is typically between 30 and 40 percent. The driver is the power component (HLZ - peak load time window), which scales linearly with the annual peak load. A peak load of 1,000 kW for 15 minutes is sufficient to fix the power price for an entire billing year.
Three structural factors will worsen the situation by 2030:
- Network expansion delay Transmission grid investments are passed on to all consumers. Industrial sites bear the largest share through their performance-based prices.
- Volatility from renewable energy expansion — Fluctuating generation increases the need for flexibility. Those who cannot shift their load will pay for volatility as a grid fee surcharge.
- Rollout of proven optimization levers — §19 Para. 2 Sentence 1 StromNEV (Atypical Grid Usage) expires on December 31, 2028. The successor regulation, AgNes, will start on January 1, 2029, with a different mechanism and optionality.
Industrial companies without active load shifting optimization will lose between €50,000 and €200,000/MW/year in grid utilization fee differences by 2030 compared to optimized competitors.
Three Regulatory Levers at a Glance
For industrial companies with a peak load of 1 MW or more, there are three active levers for grid access charge optimization. They have different effects, different deadlines, and can be combined in different ways.
| Hebel | Mechanism | Scope | First | Advantage character |
|---|---|---|---|---|
| §19 Paragraph 2 Sentence 1 of the StromNEV Atypical grid usage | Load shift from peak load time windows. Reduces power component. | Medium/high voltage, suitable load profile | Application deadline 30.09.2028, Outlet 31.12.2028 | Network chargeReduction (to be re-certified annually) |
| §118 Paragraph 6 of the Energy Industry Act Storage network fee exemption | Complete exemption from grid fees for grid-fed electricity — for 20 years from commissioning. | Newly constructed battery energy storage systems (BESS), same connection point | IBN at the latest August 4, 2029 | Network charge advantage (20 years, predictable) |
| Agnes Incentive-compatible network tariff system | Grid-controlled or price-controlled marketing of flexibility. Active management instead of static tariffs. | Industrial companies with BESS or a controllable load portfolio | Entry into force 01.01.2029 (BNetzA GBK-25-01-1#3, final determination by the end of 2026) | Network chargeRelease lever Differentiation from competitors |
The three levers are combinable§19 can be used until the end, parallel to the §118 commissioning planning. From January 1, 2029, AgNes will take over ongoing optimization, while §118 will maintain the 20-year anchor.
Lever 1: §19(2) Sentence 1 StromNEV — Atypical grid usage
The atypicality regulation allows industrial companies with a load profile that runs counter to the peak grid load to benefit from a reduced basis for calculating grid fees. Prerequisite: Proof that consumption during the grid operator's peak load time windows (HLZ) is significantly below the annual average.
Mechanism
Instead of the standard calculation based on the individual annual peak load, a reduced calculation is used for proven atypical grid usage - typically based on the load during the peak load hours (HLZ) windows. The reduction in grid charges, depending on the grid operator, load profile, and voltage level, ranges from 20 to 80 percent compared to the standard calculation.
Prerequisites
- Voltage level Medium or high voltage. Low-voltage connections fall under different regulations.
- Backlash characteristic: The reference during the average load must be significantly below the annual average — to be demonstrated using half-hourly load data from the last 12 months.
- Application At the network operator, annually renewed. Application deadline September 30, 2028 for the last application in the accounting year 2028.
First and last
Expiration on December 31, 2028. The atypicality regulation in its current form ends at the turn of the year 2028/2029. From January 1, 2029, AgNes will take over as the successor mechanism, with a different mechanism (see Lever 3).
For the depth regarding §19 atypicality, including an isolated practical example with savings of €480,000 over four billing years: Atypical Network Usage — Deep Side.
Lever 2: §118 Para. 6 EnWG — Grid Fee Exemption for Storage
Mechanism
Newly constructed battery energy storage systems (BESS) that qualify under Section 118, Paragraph 6 of the Energy Industry Act (EnWG) will receive a full Grid fee exemption for over 20 years from commissioning. The exemption applies to electricity drawn from the grid connection point and fed back in – meaning for the energy quantities that pass through the storage system.
Important: §118 is a Network charge advantage — no revenue component and no subsidy. The exemption reduces the storage's OPEX, which has a proportional impact on LCOS and IRR. In multi-use configurations (BTM self-consumption + FTM marketing), Section 118 is the basis for making the storage economically viable at all.
Co-location on the same foundation
For combined PV+BESS systems, PV inverters and BESS containers on the same foundation must be dimensioned so that the storage facility is qualified as part of the generation facility for grid fee legal purposes. This structural and technical assignment is a mandatory component of the §118 application.
IBN - Deadline and planning lead time
§118 exemption is tied to the Commissioning until August 4, 2029 bound. Anyone who starts operation after this date will be excluded from the 20-year exemption.
- System installations (with BESS expansion): Planning lead time 6–12 months
- Greenfield Development 40 months from investment decision to IBN - due to grid connection approval, transformer station, substation connection
Monthly loss upon default
For delays beyond the IBN deadline, per month of delay €16,000–€25,000/MW grid fee advantage lost — over the 20-year term, this adds up to a magnitude that dominates any discounting effect in the investment case.
For in-depth investment case modeling including IRR / NPV / LCOS per storage technology (LFP, ZnBr, Sodium-ion battery): Costs & ROI — Deep Dive. For a specific site model with IRR / NPV / LCOS comparison: Submit last run
Lever 3: AgNes from January 1, 2029 — From static to dynamic marketing
Entry into Force and Regulatory Status
AgNes (Incentive-Based Network Charge System) comes into effect January 1, 2029 in Kraft. The BNetzA regulation is the basis GBK-25-01-1#3. The discussion paper was published on September 24, 2025; the final determination is expected at the end of 2026.
Agnes replaces the static atypia regulation (§19 para. 2 sentence 1 StromNEV) with an incentive-based system: Grid fees become the control variable for load flexibility — those who shift load benefit; those who place peak load in critical time windows pay more.
Network-led vs. price-led
AgNes has two management modes:
- Network-guided — The load follows grid signals from the regional grid operator. Use preferably in regions with strained grid expansion. Compensation through reduced grid fees and flexibility surcharges.
- Price-regulated — The load follows day-ahead and intraday price signals in the electricity market. Higher marketing potential, but also higher modeling requirements. A prerequisite is a BESS or a controllable load portfolio.
Compatibility with BESS and mFRR
BESS are the natural grid-balancing infrastructure: their response time (≤ 1 second) meets every requirement, their capacity is predictable, and the §118 exemption can be applied in parallel. mFRR (minute reserve) remains as Auxiliary channel relevant – not as a primary channel – because the remuneration per megawatt-hour procured is below the AgNes price-driven marketing revenues.
For depth into reserve energy markets and FCR/aFRR revenue components: Ancillary Services — Deep Side. For location-specific AgNes marketing modeling: Schedule an appointment
Case Study — Saxony Industrial Location, Three Regulatory Scenarios
- Bess: 1 MW / 2 MWh (LFP Container, Co-Location on the same foundation as PV)
- PV Inventory 1.895 kWp
- Annual consumption 6,795 MWh
- Peak Load: 1.284 kW
- Network Fee Bill (before optimization): ~€310,000/year
The following table shows three regulatory scenarios at the same location: Status quo (StromNEV 2026, without AgNes), AgNes grid-controlled (BESS follows grid signal), AgNes price-controlled (BESS follows market price signal). The economic key figures are modeled based on real half-hourly load data; the assumptions are consistent with KPMG's investment case for stationary battery storage (February 2026).
| Constellation | Total cashflow | CUBE 75 % | Customer 25 % | Payback | IRR | Net Present Value |
|---|---|---|---|---|---|---|
| Status quo (StromNEV 2026) | €97,200/year | €72,900 | 24,300 euros | 5.3 J. | 17.2 % | 328,000 |
| Agnes Netzgeführt | €226,500/year | €169.875 | €56.625 | 2.2 J. | 58.6 % | €1.66 million |
| AgNes guided | 320,100 €/year | 240.075 € | €80,025.00 | 1.5 J. | 94.0 % | 2.70 million € |
Reading aid: In the BESS-Contracting model, CUBE and the customer split the net market revenues 75 % / 25 %. The customer makes no investment (€0 CapEx); CUBE finances, builds, operates, and markets the system—in exchange for the 75 % share. In the BESS purchase model, the customer retains 100% of the proceeds and bears the full investment cost (in the range of ~€250/kWh up to 2 MWh; from 5 MWh onward, €175–200/kWh).
Source: CUBE CONCEPTS Modeling on real half-hourly load data · Assumptions based on KPMG-audited market benchmarks (Investment Case for stationary battery storage, February 2026). Anonymized industrial site in Saxony.
Who benefits? — Qualification and Process
ICP Profile
- Peak 1 MW — below this threshold, the leverage effect of the performance component is too small to justify the §118 IBN investment over 20 years
- Medium or high voltage level Low-voltage connections fall under different regulatory regimes, which are not covered here.
- Backlog with optimization potential — counter-cyclical profile to peak grid load (for §19) or controllable load portfolios (for AgNes)
- Investment horizon 5-20 years — the §118 exemption pays for itself over the 20-year term, with IRR-relevant effects from year 5
Four-stage process
CUBE CONCEPTS works through each location in four stages — from cold aisle analysis to IBN planning. Throughout all four stages, over 250 operating variants into the modeling, based on the site's real-time half-hourly load data.
Half-hourly load data for the last 12 months. HLZ identification. Volatility profile. Identification of relevant leverage: §19, §118, AgNes—individually and in combination.
mind. 3 comparative offers, LCOS-rated. No vendor lock-ins, no opaque margin structures. LCOS per storage technology as the central benchmark.
Selection from over 250 modeled operating variants — status quo, AgNes grid-controlled, AgNes price-controlled, multi-use with BTM self-consumption, FTM pure marketing. Decision based on IRR, NPV, risk profile.
Backward planning from the §118 IBN deadline (August 4, 2029): grid connection agreement, transformer substation, permits, construction, IBN. Buffer times against supply chain risks.
Area of Application Check – Which legal levers apply to industry?
Not every energy law paragraph circulating in public debate is relevant to industrial companies with a peak load of 1 MW or more. The following overview separates applicable leverage points for medium/high voltage from regulations that have a different target audience.
- Section 11c of the Energy Industry Act — Establishment and operation of storage facilities by grid operator-independent market participants. Industrial leverage for BESS establishment.
- §35 BauGB — Outdoor privilege as of January 1, 2026. No. 11 (Co-location from 1 MWh + renewable energy facility) OR No. 12 (stand-alone from 4 MW + 200 m substation).
- §118 Paragraph 6 of the EnWG — 20-year network charge exemption for newly constructed storage facilities with commissioning by August 4, 2029.
- § 19 Paragraph 2 Sentence 1 of the StromNEV — Atypical grid usage. Application deadline September 30, 2028, expiration December 31, 2028.
- §42c EnWG — refers to tenant electricity constellations. Not relevant for industrial PV/BESS self-consumption at industrial sites.
- §14a EnWG — Low-voltage end-user regulation for controllable loads (heat pumps, wallboxes, private storage). Does not apply to industrial medium/high voltage. Anyone offered this regulation in an application for industrial load profiles should critically review the offer.
This assignment is regulatorily delimited and not final legal advice. In specific individual cases, the scope of application must be clarified with a lawyer and tax advisor.
CUBE Models - Implementing the Three Levers
CUBE CONCEPTS offers two models for implementing the network charge levers presented here. Both use §118 as the basic anchor, both address §19 atypicality (until expiration) and AgNes (from entry into force). They differ in investment logic and revenue distribution.
- €0 CapEx Customer — CUBE fully funded
- Revenue split: CUBE 75% / Customer 25% net market revenues after OPEX
- CUBE bears CapEx risk, operates, markets
- The customer retains 100% of the BTM for personal use (undivided)
- Full Investment Customer — Order of magnitude ~€250/kWh up to 2 MWh, from 5 MWh €175–200/kWh
- 100 % Revenue from customers
- Customer operates themselves or engages CUBE as the operator
- Turnkey delivery with warranty
The decision between Contracting and purchasing depends on the investment horizon, the balance sheet strategy, and the risk appetite. CUBE CONCEPTS evaluates both models for each location.
Stand & Hints
As of May 6, 2026 · No guarantee for regulatory developments · No legal, tax, or energy industry consulting · The Section 118 IBN deadline of August 4, 2029, the Section 19 application deadline of September 30, 2028, and the AgNes effective date of January 1, 2029, are current legal and BNetzA statuses that must be clarified on a case-by-case basis with a lawyer, tax advisor, or energy market consultant. The cash flows, IRR, and NPV mentioned in Practical Example A are model calculations based on real half-hourly load data from an anonymized industrial site; actual values depend on load profile, grid operator, voltage level, and market development.
Sources
- KPMG — Stationary Battery Storage Investment Case (February 2026): kpmg.com/de — Investment Case
- BNetzA — AgNes Specification (GBK-25-01-1#3): bundesnetzagentur.de
- BMWK — §118 EnWG: bmw.de
- BMWE - Industrial electricity price (Announcement April 16, 2026): bmw.de
- §118 EnWG Full Text: gesetze-im-internet.de - §118 EnWG
- §19 StromNEV Full Text: gesetze-im-internet.de — §19 StromNEV
Realized Projects with Industrial Companies
Frequently Asked Questions
Sentence 1 regulates the Atypical grid usage for industrial companies with a counter-cyclical load profile to the grid peak load. Sentence 2 regulates the Individual network tariff agreement for particularly large electricity consumers with full utilization hours exceeding 7,000 hours per year and consumption over 10 GWh. Both regulations will expire in their current form on December 31, 2028.
The commissioning must be completed no later than August 4, 2029 completion. Those who commission after this date will be excluded from the 20-year grid fee exemption. For existing systems, we expect a 6-12 month planning lead time, and for new builds, an average of 40 months from investment decision to commissioning.
The atypicality regulation in its current form is expiring. Starting January 1, 2029, AgNes will take over as a successor mechanism with different mechanics (incentive-compatible grid charge system instead of static atypicality reduction). Anyone wishing to use §19 in 2028 must submit their application by September 30, 2028.
The following are applicable: Section 11c of the Energy Industry Act (EnWG) (BESS construction), Section 35 of the German Federal Building Code (BauGB) (outdoor privilege), Section 118 Paragraph 6 of the EnWG (storage exemption), and Section 19 Paragraph 2 Sentence 1 of the StromNEV (atypicality until expiration). Tenant electricity regulations (Section 42c) and low-voltage end-customer regulations for controllable loads are not applicable to industrial operations in the medium/high voltage range. Details in the scope of application check above.
In grid-controlled mode, the load follows the control signals of the regional grid operator. Compensation is provided through reduced grid usage fees and flexibility premiums. In price-controlled mode, the load follows the day-ahead and intraday price signals on the electricity market—higher marketing potential but higher modeling requirements. In the practical example above, the cash flow in price-controlled mode is around 40 percent higher than in grid-controlled mode.
For §19 atypia, an inverse profile to the peak grid load is required, demonstrable via half-hourly load data from the last 12 months. For §118, a BESS configuration is sufficient without further load profile requirements. For AgNes, a controllable load portfolio (BESS or switchable industrial processes) is a prerequisite.
As of May 2026, yes — 40 months lead time from the investment decision will lead to an IBN by August 2029, just before the deadline. The crucial point is that the investment decision must be made by May 2026 at the latest; any further delay will push the IBN beyond August 4, 2029, and jeopardize the 20-year grid fee exemption. For existing facilities with a 6–12 month lead time, there will be significantly more buffer time.
Industrial electricity prices and grid fee optimization are two separate regulatory clusters. The industrial electricity price affects the electricity purchase (energy component), while grid fee optimization affects the grid usage component (power and work share). Both clusters can be combined—and both have common ICP requirements (≥1 MW peak, medium/high voltage). In-depth on industrial electricity prices: Knowledge - Industrial electricity price.
Further
There are 6 to 40 months remaining until the §118 deadline on August 4, 2029, depending on the investment.
Last step analysis in 30 minutes. Modeling over 250 operational variations. Decision paper with IRR / NPV / LCOS per configuration.
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