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Grid Package 2026: Final draft passes Federal Cabinet

3 % becomes 5, and 10 years becomes 6: The BMWE has slightly relaxed the requirements for capacity-constrained grid areas. However, this does nothing to change the fundamental shift in risk at the expense of plant operators—and the criticism under European law also remains.

On Wednesday, July 29, 2026, the Federal Cabinet adopted the final draft for the Network Package 2026 – together with the 2027 EEG amendment – passed. After months of waiting for the official version, the changes are scheduled to pass the Bundestag and Bundesrat after the summer break. The schedule is tight nonetheless, as the current version of the EEG expires at the end of 2026 and the EEG amendment still needs to be approved by the EU.

For project developers and plant operators, this is a good time to compare the current status with the original draft bill to reconcile, which we had analyzed in February 2026. The good news first: the BMWK has relaxed the requirements in some places. However, the fundamental architecture of the reform—and its central criticism—remains unchanged.

What has changed since the leaked draft

At its core, the final draft of the 2026 grid package resembles the leaked ministerial draft from the winter. However, the Federal Ministry for Economic Affairs and Climate Action (BMWK) has made adjustments to three crucial control levers—likely also due to pressure from coalition partner the SPD:

Leaked draft
(February 2026)
Final draft (consultation of associations)
curtailment threshold for capacity-limited area> 3 % of the potential feed-in from the previous year> 5 % of the potential feed-in in the previous year
Period of validity of the limitationup to 10 yearsup to 6 years
Automatic cancellationunspecifiedObligation to repeal if threshold is not reached for 3 consecutive calendar years

For practical purposes, this means: In the future, a grid area must be more severely overloaded before grid operators can designate it as „capacity-limited“ and demand that plant operators waive redispatch compensation. And even then, the classification will no longer automatically apply for a full decade, but for a maximum of six years—with a built-in exit clause in case the grid situation eases.

Further specifications in the 2026 grid package

In addition to the three central parameters, the final draft contains further clarifications that were still open in February:

  • Prioritization of grid connection capacities: Transmission system operators (TSOs) are now given an explicit principle according to which they may prioritize and reserve grid connection capacities.
  • Digitalization of grid connection requests: The draft pushes the digitization announced as early as February even further.
  • Construction cost subsidies (BKZ) via BNetzA determination: The collection of construction cost subsidies is to be regulated in the future via a specification by the Federal Network Agency. The authority can specify procedures or criteria according to which network operators levy construction cost subsidies either on a lump-sum basis or differentiated regionally according to network parameters. Although this was fundamentally intended in the original draft, it is now being institutionally anchored.

Deactivating the explosive device does not solve the legal problem

As welcome as the relaxation of the thresholds may be from the industry's perspective, it does not dispel the European law concerns that we already raised in our contribution to the Redispatch reservation had classified. Exactly this question was raised again by the Foundation for Environmental Energy Law just a few days before the association hearing: In a study, it came to the conclusion that grid connection restrictions are only compatible with EU law under certain conditions—and that even a five percent curtailment quota is not necessarily sufficient to legally withhold redispatch compensation from plant operators.

This is an important point to consider: While the BMWE did respond to political pressure from industry associations by raising the ratio from 3 to 5 %, it did not address the core legal criticism —namely, that requiring a waiver of compensation as a condition for connection could contradict the EU legal principle of non-discriminatory, fair network access. Project developers or investors who want to play it safe should continue to factor this legal uncertainty into their risk assessment—regardless of whether the threshold is now set at 3 or 5 %.

What this means for self-consumption and BESS projects

The update changes little about our basic assessment. The higher the self-consumption rate of a project, the less frequently power is fed into the grid at all—and the lower the economic risk of being affected by a classification as a capacity-limited area. Furthermore, the shortened validity period of 6 instead of 10 years makes the planning situation for affected locations somewhat more predictable, even if it does not eliminate the fundamental risk. For Battery storage, which are operated in a grid-serving manner and smooth out peak feed-in, the approach of actively contributing to avoiding the curtailment threshold remains a relevant argument vis-à-vis grid operators.

EEG transition payments for small PV systems in the 2026 Grid Package

Since the EEG Amendment and the 2026 Grid Package went to hearing together, a brief side glance is worthwhile. The fixed feed-in tariff for private rooftop systems does not drop off abruptly, but is phased out via a reduced 36-month transition payment – while the full-feed-in tariff bonus is eliminated. The direct marketing obligation applies in stages:

  • from 50 kW immediately
  • from 2028 also under 50 kW
  • from 2029 under 25 kW
  • from 2030 for all new systems, including those under 7 kW.

The only exceptions are plug-in solar and mini-PV devices up to 2 kW. The transition is flanked by grid operator acceptance for systems up to 25 kW and a direct marketing bonus of 1.5 ct/kWh for the first four years. New and relevant for all segments: a power limit for rooftop PV systems at the grid connection of a maximum of 50 percent – regardless of smart meter or form of marketing.

How to proceed from here

Following the expiration of the three-day consultation period, prompt discussion in the federal cabinet is to be expected. After that, the draft will go through the regular legislative process via the Bundestag and Bundesrat. What is striking is the pace: Following the leak at the beginning of the year and the ensuing storm of indignation from the industry, the ministry had taken its time. Now, things are apparently supposed to move quickly.

Briefly summarized (FAQ)

What has changed in the 2026 network package update since February?

The threshold for capacity-constrained grid areas has been raised from 3 to 5 % curtailment, and the maximum duration has been reduced from 10 to 6 years. In addition, there is now a requirement to lift the restriction after three years if the target has not been met.

Is the redispatch reservation off the table with this?

No. The principle – connection only in exchange for waiving redispatch compensation in affected areas – remains in the final draft. The BMWE has merely raised the trigger threshold.

Does the regulation comply with EU law?

This remains a matter of debate. A study by the Environmental and Energy Law Foundation concludes that even the 5-% quota is not necessarily sufficient to legally require a waiver of compensation.

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