German Bundestag passes temporary solution for self-consumption facilities

The ECJ ruling of November 28, 2024, and the subsequent German Federal Court of Justice’s (“BGH”) case law fundamentally called into question the legal concept of self-consumption facilities. This created considerable legal uncertainty for operators and users of decentralized energy supply systems. 

Now, for the first time, there has been a legislative response: on November 13, 2025, as part of the latest amendment to the German Energy Industry Act (“EnWG”), the German Bundestag passed a transitional regulation designed to cushion the abrupt change in the system. However, it does not provide definitive clarification of the future legal framework. 

Background: Self-consumption facilities lose their previous special status 

In our previous articles, we had already explained that the ECJ had declared the German customer installation regulation to be incompatible with EU law. In its ruling, the ECJ expressly emphasized that the definition of a distribution network in Directive (EU) 2019/944 is exhaustive. Member States may therefore only apply two criteria when classifying an energy facility as a distribution network: 

1. Voltage level 
   The grid must be used to transmit electrical energy at high, medium, or low voltage. 
2. Purpose of transmission / type of customers supplied 
   Transmission must be used to supply customers, i.e., wholesalers or end customers. 

Additional national characteristics – such as the degree of competitive impact, spatial context, size or number of connected users, the private nature of the operator, or special technical features – are not permitted under EU law. According to the ECJ’s interpretation, they must not be used to exclude a network from the scope of the Directive. 

This clarification is key to assessing the German self-consumption facility scheme to date, as Art. 3 No. 24a EnWG in particular is based on several criteria that are not permitted under EU law. 

The BGH has continued this line of reasoning and emphasized that the previous exemption from grid operator obligations for certain system configurations is not tenable. For many operators of decentralized supply solutions – such as landlord-to-tenant electricity supply, district, or campus concepts – this created an immediate need for clarification. 

Legislative response: transition period until the end of 2028 

The current draft law now provides for a transitional arrangement until January 1, 2029. For existing facilities which have been operated as self-consumption facilities to date, the new regulatory requirements will only apply after this deadline has expired. 

The transitional arrangement has two objectives: 

• Avoiding an immediate regulatory system change 
  Operators should be given time to adapt their facilities and business models. 
• Creating planning security for ongoing supply concepts 
  The economic impact can be assessed in an orderly manner during this period and structural alternatives can be prepared. 

The regulation expressly refers to installations that were already connected to a public supply network before the new regulation came into force. 

What does this mean for operators and energy suppliers? 

The transition period eases the situation, though it does not resolve it. The ECJ’s fundamental assessment remains unchanged and, based on the current legal situation, there is much to suggest that many of today's self-consumption facilities will be classified as distribution networks in the future. 

Existing facilities 

The following applies to existing supply concepts:  
The privilege will remain in place for the time being, but only for a limited period. Operators should: 

• review technical and regulatory structures; 
• develop possible transition scenarios (e.g., network transfer to the distribution system operator); 
• analyze the economic impact of losing the privilege. 

New projects  

Caution is advised for new or planned projects.  
Since the legislator is not continuing the structure of self-consumption facilities unchanged, the following should be taken into account from the outset when planning projects: 

• Privileges may be eliminated in the future; 
• Grid operator obligations may apply; 
• Business models (especially economic calculations) may need to be adjusted. 

Unanswered questions: What will happen after 2029? 

The draft bill only addresses what will apply until 2029 – but not what the final legal framework will look like. In particular, the following remains unclear: 

• Which facilities will be classified as distribution networks in the future, 
• whether and in what form the legal concept of self-consumption facilities will continue to exist, 
• whether structured exceptions (closed distribution networks, company self-supply) will be revised, 
• how the German Federal Network Agency and network operators will handle the change processes. 

This leaves the strategic question of how operators should position themselves in the long term. 

Recommendation: Start preparing in a structured manner now 

Even though lawmakers are granting a respite, operators should actively use the period until the end of 2028. In our view, a structured approach makes sense: 

• Status analysis of all supply concepts 
• Classification of facilities with regard to possible grid operator obligations 
• Model comparison (retention vs. grid transfer vs. change of operator model)  
• Review of economic impacts (grid fees, investment requirements, contract changes) 
• Coordination with distribution system operators and authorities to clarify practical scenarios 

Depending on the law’s final version, this could determine the course of action with regard to investments and approvals. 

We will be happy to support you 

We closely monitor developments and support you with: 

• the legal and technical assessment of your existing facilities, 
• the development of robust strategies for the period after 2029, 
• the preparation and restructuring of supply concepts, 
• contract and model adjustments, 
• discussions with grid operators and authorities. 

We are happy to discuss these issues with you and keep you up to date on further legislative and regulatory developments. Feel free to contact us – we will advise you personally, focusing on solutions and your business goals.