24.03.2026

What FCAs mean for the new grid tariff system

Flexible Connection Agreements (FCAs) are perceived as one of the solutions in addressing limited grid connection capacity, bottlenecks, and the integration of storage systems in general. They also play a role in the in the regulatory determination procedure of the General Electricity Grid Tariff Methodology (AgNes) of the German National Regulatory Authority (Bundesnetzagentur) as they determine how much room actually remains for storage systems to financially contribute to the grid tariffs – without stifling storage expansion. Additionally, they restrict the potential for flexibility of storage facilities, which is relevant for combining them with dynamic grid tariffs (incentive function).

As part of the process for establishing the General grid tariff system (AgNes), the FfE was presented with the opportunity to provide inputs on the configuration of grid tariffs for storage on two occasions:

During the discussion at the 30.01.2026 expert workshop on grid tariffs for storage, the BNetzA asked the industry for an overview of all existing FCAs. With the present document, we aim to provide such an outline on the current status of FCA utilization. Furthermore, we can come to preliminary conclusions regarding the interaction between FCAs and grid tariffs for storage.

Various configurations paint a complex picture

In practice, FCAs are not used exclusively to set power restrictions. Further limitations to ensure grid stability are common. These include restrictions on: power ramps, balancing energy trading, and schedule changes. Some of these are set long-term, whilst others are determined dynamically upon short notice. In certain grid areas, FCAs are required by the Distribution System Operators for connecting large-scale battery storage systems. In such cases, the initial goal of a faster grid connection shifts to that of “any grid connection at all”. As a result, the financial impact of an FCA ranges from minimal losses to exceeding the financial threshold.

Little room available for storage facilities to financially contribute to grid fees

Based on currently available information, we assume that, on average, there no longer exists leeway for a low double-digit capacity price (€/kW/a) in storage financing (based on total capacity and excluding payments from dynamic grid fees) when an FCA is used. Grid fee discounts for FCAs and a uniform approach to the reduction of construction cost subsidies should therefore be discussed.

FCAs could conflict with dynamic grid tariffs and hinder their effectiveness

In the near future, FCA restrictions and incentive signals from dynamic grid tariffs will eventually come into conflict with each other. For instance, should an FCA inhibit additional discharging during periods of negative grid tariffs, not only will the grid benefits of the storage system be reduced, but the financial strain imposed by the FCAs will also increase. It is therefore important that the respective connecting grid operators effectively respond with surcharges and discounts on the dynamic grid tariffs of the upstream grid operators to adequately reflect the local grid situation.