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  • BESS update: Grid charges for BESS and re-evaluation of grid-charge exemptions

    BESS update: Grid charges for BESS and re-evaluation of grid-charge exemptions

    CLIENT ALERT

    BESS update: Grid charges for BESS and re-evaluation of grid-charge exemptions

    February 5, 2026

    Read time: 6 min

    Key takeaways

    As part of its process of establishing the new Regulation for a General Electricity Grid Charges System (Festlegung der Allgemeinen Netzentgeltsystematik Strom (AgNes Regulation), case no. GBK-25-01-1#3), the German Federal Network Agency (Bundesnetzagentur, or BNetzA) recently published the ‘Guidelines for Storage Grid Charges’ (Orientierungspunkte Speichernetzentgelte) on 16 January 2026. The AgNes Regulation will replace the existing statutory provisions of the Electricity Network Access Ordinance (Stromnetzentgeltverordnung, or StromNEV) as of 1 January 2029 and will introduce a new grid-charges system for Germany. Under the current legal framework, grid charges have been paid by end consumers who draw electricity from the public grid. This system will change in the future: As part of the AgNes Regulation process, the BNetzA has outlined a target vision for a new grid-charges system, taking into account the changed framework conditions of the energy transition. The regulator has indicated that, inter alia, cost carriers will broaden, possibly through grid charges imposed for feeding electricity into the grid and that new grid-charges components with a conceptual separation between components with financing and those with an incentive function (basic model) will be introduced.

    The recently published ‘Guidelines for Storage Grid Charges’ addresses special topics concerned with battery energy storage systems (BESS) and the new grid-charges system. Topics include the introduction of possible special storage grid charges, considerations regarding an early discontinuation of BESS’s current exemption from grid charges, promotion of BESS’s grid-friendly behaviour via grid charges, and BESS participation in financing grid costs. Even though the regulator recognises that different technical connection situations and different commercial operating models must be distinguished in the case of BESS, the BNetzA considers it reasonable that in principle BESS should also be subject to the new general system of charges.

    According to the BNetzA, the basic model outlined for the new general grid-charges system should also be applicable to BESS with certain BESS-specific modifications, so that BESS participate in grid financing via grid charges with a financing function. This is to be achieved via a capacity price (Kapazitätspreis) for the capacity the connecting user selects for the BESS (the ordered capacity) and via static working prices (Arbeitspreis, or AP): If the BESS’s consumption remains within the selected capacity, only a lower working price could be charged. However, if the consumption exceeds the ordered capacity, a higher working price could be charged. The BNetzA emphasises that in cases where grid charges for feeding electricity into the grid will be imposed, BESS should not be charged twice (as producers and consumers). In addition, the working price would only be payable for net quantities (saldierte Mengen), i.e., for the quantities that are consumed and not fed back into the grid. In addition, a dynamic working price with an incentive function should also be applicable to BESS. The BNetzA has announced that such a dynamic working price should first be applied to BESS in order to encourage grid-friendly, or at least grid-compatible, use.

    In its new guidelines, the BNetzA also emphasises that the new grid-charging regulations for storage facilities should apply to all types of storage facilities. What is particularly critical for the BESS industry is that the BNetzA is also explicitly questioning the existing statutory rules for BESS’s exemption from grid charges. Under the current legal framework, BESS are exempt from grid charges for 20 years, provided they are commissioned by 4 August 2029 at the latest (cf. Section 118 (6) Energy Industry Act). However, the BNetzA has announced a change of direction regarding this exemption. According to the BNetzA, the coexistence of the current grid-charges exemption until 2049 and the AgNes Regulation’s new charge system is not economically reasonable and constitutes a significant unequal treatment of connecting users. The BNetzA therefore is considering discontinuing the BESS grid-charge exemption early with the goal of ensuring that BESS will no longer be exempt from grid charges for 20 years. In the opinion of the BNetzA, the existing grid-charges exemption for BESS does not contain any incentives for grid-friendly behaviour. Pursuant to Section 118 (6) sentence 12 Energy Industry Act, the BNetzA is authorised to amend the duration of the grid-charge exemption and is now apparently willing to use this right to deviate from these rules. Although the BNetzA stated taking into account the German constitutional principle of trust (Vertrauensschutz), which generally prohibit retroactive cuts of advantageous positions, it is also of the opinion that such protection of trust is no longer applicable with regard to the exemption from grid charges, following the decision of the ECJ dated 2 September 2021 (case no.: C-718/18) on the independence of the BNetzA as a national regulatory authority, but at the latest with the introduction of the BNetzA’s right to deviate pursuant in Section 118 (6) sentence 12 Energy Industry Act with effect from 29 December 2023.

    The Guidelines for Storage Grid Charges and, in particular, the statements on the possible abolition of grid-fee exemptions for BESS are particularly important to all BESS project developers and investors who currently intend to invest in BESS projects in Germany, because the end of grid-fee exemptions would have a material impact on BESS project financial models. Investment and financing decisions are already being made for BESS projects that are to be realised in the coming years, and these decisions are generally based, inter alia, on the assumption that BESS will be exempt from grid fees until 2049. The BNetzA’s statements on the possible abolition of the full exemption from grid fees, even for BESS projects that have been planned or are in operation, are therefore causing considerable uncertainty and are already having an immediate economic impact. Accordingly, the BNetzA’s statements on this issue were viewed critically by industry and sector representatives at an expert workshop on the guidelines that took place at the BNetzA on 30 January 2026.

    The deadline for submitting statements on the guidelines is 27 February 2026. The first draft of the AgNes Regulation is expected in mid-2026. Until then, the BNetzA is still in an intensive consultation phase on these and other aspects of the AgNes Regulation procedure. It remains to be seen whether and how the BNetzA will further adapt and specify its current principles for storage grid charges. Affected companies and investors should consider making use of the current opportunity to submit statements to the BNetzA. From a legal perspective, there are likely to be considerable concerns about the BNetzA’s view that there is no protection of trust regarding the abolition of grid-charges exemption, and legal disputes are likely to follow if the exemption is actually abolished.

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  • McDermott Will & Schulte adds CFPB and FTC leader Teresa Kosmidis to firm’s Transactions group

    McDermott Will & Schulte adds CFPB and FTC leader Teresa Kosmidis to firm’s Transactions group

    PRESS RELEASE

    McDermott Will & Schulte adds CFPB and FTC leader Teresa Kosmidis to firm’s Transactions group

    February 4, 2026

    Read time: 4 min

    International law firm McDermott Will & Schulte announced that Teresa Kosmidis has joined as a partner in its Transactions Practice Group, based in Washington, DC. Having most recently served as Senior Counsel at the Consumer Financial Protection Bureau (CFPB), Teresa brings extensive experience in consumer financial services regulation, compliance, enforcement, and litigation.

    “Teresa’s combination of CFPB and FTC experience is extraordinarily powerful for our clients,” said Harris Siskind, Global Head of McDermott’s Transactions Practice Group. “She understands how regulators think, how they sequence decisions, and how enforcement and supervision interact behind the scenes. Her ability to translate that insight into practical, actionable guidance will be invaluable for companies navigating increasingly complex regulatory and enforcement landscapes.”

    Teresa counsels financial institutions, payments companies, fintechs, and other consumer-facing enterprises on complex federal and state regulatory matters and high stakes interactions with government agencies. She brings end-to-end regulatory experience shaped by significant roles at both the CFPB and the Federal Trade Commission (FTC), where she worked across rulemaking, supervision, enforcement, and litigation.

    At the CFPB’s Offices of Regulations, Enforcement, and Supervision, Teresa helped formulate and draft federal consumer financial regulations, advised senior leadership on regulatory strategy, and served as a subject matter expert on key statutes and rules, including the Consumer Financial Protection Act of 2010, the Electronic Fund Transfer Act of 1978 and Regulation E, and the Truth in Lending Act of 1968 and Regulation Z. Prior to her role at the CFPB, Teresa served as an attorney in the FTC’s Bureau of Consumer Protection, where she represented the agency in federal court litigation and investigations involving nonbank financial institutions.

    “I’m thrilled to join McDermott, whose strength in financial services and robust global platform make it an ideal place for my practice,” Teresa said. “Financial services firms are operating in one of the most dynamic regulatory environments we’ve seen in years. I look forward to collaborating with a team of market-leading lawyers advising innovative, fast-growing clients in payments, fintech, and financial services.”

    Teresa’s arrival follows that of Leel Sinai to the firm’s Bank Regulatory platform in New York earlier in 2026. McDermott’s Bank Regulatory Group helps clients create value at the complex intersection of financial services and private capital; this includes assisting financial institutions in establishing or investing in private funds, as well as helping private funds with their investments in financial institutions. The group’s interdisciplinary approach brings together the experience of former banking regulators, M&A dealmakers, investment management lawyers, and other practitioners to help clients achieve business objectives.

    About Us

    Leading organizations turn to global law firm McDermott Will & Schulte for a better way to address legal challenges, connect with those at the forefront, and drive stronger outcomes. Working across more than 20 offices globally, our 1,750+ lawyers act on data-driven insights, deep relationships, and unmatched industry experience to deliver on our commitment of Always Better.

    Teresa Kosmidis

    Partner

    Washington, DC

    Leel Sinai

    Partner

    New York – 919 Third Avenue

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    The Supreme Court Rules On The Scope Of Section 423 Of The Insolvency Act 1986: El-Husseiny & Another v Invest Bank PSC [2025] UKSC 4

    January 29, 2026

    Read time: 2 min

    London-based senior consultant Marcia Shekerdemian KC, along with senior associate Harry Denlegh-Maxwell and associate Andrew West, contributed an article to International Corporate Rescue. This piece delves into the Supreme Court’s ruling on Section 423 of the Insolvency Act 1986, specifically in the case of El-Husseiny & another v Invest Bank PSC [2025] UKSC 4.

    About Us

    Harry Denlegh-Maxwell

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    London – 22 Bishopsgate

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    January 28, 2026

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    London-based partners Alexander Wood and John Burge, along with senior associate Victoria Kuhn, contributed a two-part article series to International Corporate Rescue. This series delves into liability management exercises in Europe, focusing specifically on their implications for lenders.

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    Alexander Wood

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    London – 22 Bishopsgate

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    London – 22 Bishopsgate

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