Overview

• The Bundesnetzagentur will reduce 'avoided network charge' subsidies starting in 2026, fully phasing them out by 2029.
• This move aims to save electricity consumers €1.5 billion over three years by eliminating outdated compensation mechanisms.
• The subsidies, originally introduced to support decentralized conventional power plants, are now considered obsolete due to changing grid usage patterns.
• Solar and wind installations are excluded from the phase-out, maintaining their current compensation structure.
• The existing regulatory framework for these subsidies is set to expire on December 31, 2028, aligning with the planned transition.