Energy storage is the temporary holding of energy for later release, with batteries as the best known form. A storage facility both draws and feeds in, and therefore occupies a distinct position in grid management and on the energy market.
Legal basis
Directive (EU) 2019/944 defines energy storage and provides that grid operators may in principle neither own nor operate storage facilities, so as to preserve the separation between grid management and market activities. The Energy Act, in force since 1 January 2026, implements this and gives storage a place alongside generation and supply. The same connection rules apply as to other connected parties, including the queue where there is congestion. On tariffs, what matters is that a battery both draws and feeds in; with time-bound transport rights an operator can agree to charge only outside peak hours, which attracts a discount on the transport tariff.
How it works in practice
A battery project rests on four contracts: the connection and transport agreement with the grid operator, an agreement with the party handling trading and balancing, the supply and maintenance agreement with the manufacturer, and the property right or lease for the site. An environmental permit is also required, with external safety and fire safety as the main points of assessment.
Where it goes wrong
Projects are developed on the basis of a transport indication that confers no right to capacity. A second error is a trading contract in which the allocation of imbalance risk and availability guarantees is insufficiently worked out. Third, the permit procedure is underestimated, particularly near housing.
Related terms
Storage connects to congestion management, programme responsibility and the environmental permit.
Developing a battery project? Our energy law specialists assess the contract structure.
