Germany is simplifying the rules for large energy storage facilities. The new regulations are intended to accelerate the energy transition.

Germany is significantly simplifying the construction of large battery, heat, and hydrogen storage installations outside urban areas. The Bundestag has adopted an amendment classifying these investments as privileged within the planning process. The industry calls it a breakthrough for the development of BESS and other flexibility technologies.

The German parliament approved an amendment to the Federal Building Code (BauGB), which classifies energy storage as a privileged investment in rural and suburban areas under §35 BauGB. This means shorter procedures, fewer formalities, and a faster permitting path — previously identified as one of the biggest bottlenecks for large BESS projects.

Although the act has passed the key vote in the Bundestag, it still requires confirmation by the Bundesrat. It will enter into force after publication in the Federal Law Gazette (Bundesgesetzblatt).

BESS outside cities – now with full regulatory support
Parliamentary groups CDU/CSU and SPD emphasize that large energy storage facilities require access to transmission infrastructure — transformer stations and high-voltage nodes — which are mostly located outside built-up areas. The new regulation therefore removes a key barrier to locating such projects.

The German Solar Association (BSW-Solar) describes the changes as “removing serious procedural obstacles” to the development of large-scale energy storage.

The German Energy Storage Systems Association (BVES) notes that the amendment aligns the law with the realities of a modern power system.

An end to the “legal flaw” for multifunctional storage systems
In addition to planning changes, the government has introduced a correction to grid fee regulations. Previously, the exemption applied only to storage systems charged exclusively from the grid and feeding all energy back into the grid.

The new regulation extends the exemption to multifunctional systems — those able to charge both from renewables and the grid — which are most desirable in modern hybrid projects.

Industry: this is a big step, but more are needed
Although the changes are seen as long-awaited acceleration for BESS development, sector representatives stress that Germany’s coalition government faces a broader challenge — increasing large-scale investments in system flexibility and accelerating the integration of storage into system service markets.

The sector expects, among other things, balancing-market reforms, full implementation of European regulations on storage, and further simplifications in the area of grid connections.