Construction subsidy (BKZ): What will change in 2025

Financing network expansion is a central issue in the context of the energy transition. So-called construction subsidies (BKZ) in particular play a decisive role in this. These are collected by the network operator for network connections from new consumers in order to adapt the network to additional power requirements. More information about BKZ's background can be found in our blog article from 06.05.2024.

Status quo: Dispute over BKZ obligation

In accordance with their dual function — battery storage systems can both feed in electricity and absorb load — they are also classified as consumers in Section 3 No. 15d of the Energy Industry Act (EnWG). Network operators therefore also collect the BKZ for energy storage systems. Your feed-in function is not included in the BKZ calculation. Experts criticize this as a potential violation of freedom of discrimination under Section 17 of the Energy Industry Act. The Düsseldorf Higher Regional Court therefore declared the calculation method used so far to be illegal. However, the Federal Network Agency maintains its legal opinion. A final decision from the Federal Court of Justice is currently pending.

Changes in 2025

While the decision is still pending, network operators are adjusting BKZ in line with expected network expansion requirements. For example, at Avacon and E.DIS, there are massive BKZ increases in all voltage levels. BCZ in the medium-voltage grid rose by over 96% from 55.70 to 109.37 €/kW at Avacon, and by 137% from 50.00 to 118.66 €/kW at E.DIS. In contrast, the BKZ at Pfalzwerke and EWE Netz fell by 20% and 28% (medium voltage), respectively. All changes in BKZ at the distribution network level are summarized in Figure 1.

Modification of the calculation basis

In its position paper dated 20.11.2024, the Federal Network Agency commented on the BKZ levy. This reforms the BKZ calculation basis, but the BKZ obligation for battery storage systems remains in place, contrary to many expectations.

The aim of the new regulations is to increase planning security for network operators and project developers and to ensure that costs are incurred where they actually arise as a result of network investments. The new calculation basis should be based on a five-year average of service prices in order to cushion the price fluctuations outlined above and to increase planning security for battery storage projects.

The following graph shows the current regional distribution of BKZ in Germany at the distribution network level.

Regionalization and transparency at transmission level

Within a distribution network, the BKZ is uniform in accordance with Section 17 EnWG, which means that all network connections of the same quality receive the same BKZ. However, transmission system operators (TSOs) have the option of adjusting the BKZ differentiated into five stages from 100% to 20%. This adjustment takes into account a so-called regionalization factor (see Figure 3), which takes into account regional differences in network expansion costs. The BKZ for the four TSOs is calculated using the formula:

As a result of this differentiation, grid connection points, which contribute to relieving the load on the overall system, can benefit from a reduced BCZ. Based on the BCZ published by transmission system operators of 99.29 €/kW at the high-voltage level and 114.19 €/kW at substations between high-voltage and high-voltage, BKZ for 2025 is:

conclusion

The BNetzA position paper certainly provides for exciting changes with the new calculation basis based on the five-year average and the regional scale of the service price at transmission system level. For battery storage systems, however, the hoped-for abolition of the BKZ has not been achieved, although a final clarification by the Federal Court of Justice remains to be awaited.

In dvlp web GIS, our users will therefore continue to find the currently valid BKZ and regionalization factors of all network operators at all voltage levels.