E-Control Presents Draft for Winter Grid Discount for Large Storage Facilities

What the winter grid discount specifically means

According to the draft, the grid fee exemption is aimed at large storage facilities with a capacity of at least one megawatt (MW) as well as at aggregators who bundle medium-sized batteries of at least 50 kW into a large storage facility. This means that smaller, bundled systems can also benefit from the regulation, provided they jointly reach the large storage facility threshold.

The goal of the ordinance is to distribute the costs for grid expansion more fairly. "Die – je nach Energierichtung – benötigte, gleichzeitige Leistung ist der Hauptkostentreiber", as E-Control states in the ordinance. Storage facilities that act in a system-friendly manner are therefore to be financially relieved because they smooth peak loads.

Background: Fair distribution of grid costs

According to the draft, E-Control plans to exempt up to 5 gigawatts (GW) of system-friendly storage facilities from grid fees. According to the authority's own calculations, this would make it possible to cover almost half of Austria's electricity consumption even during high-demand periods if the storage facilities are deployed in a targeted manner.

Demand from the PV industry

The photovoltaic interest group PV Austria had previously advocated for battery storage facilities to be exempted from grid fees for the first 20 years, just like pumped-storage power plants. According to experts, the construction of large battery storage facilities at wind and PV parks as well as near substations makes it possible to store surplus electricity during the day and thereby dampen the high wholesale prices in the evening hours.

E-Control emphasises that the ordinance is not yet final. The final version will only be published after the completion of the consultation and evaluation of the comments. Observers expect that the exact threshold values as well as the definition of system-friendly storage facilities will in particular be points of discussion.

The introduction of the winter grid discount is part of a package of measures that also includes the social tariff for electricity already launched in April, from which around 290,000 households benefit. The regulatory authority intends to distribute electricity costs more fairly overall and to create incentives for grid-friendly use – for example, when charging electric vehicles during the nighttime hours.