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Markets March 2026 5 min read

New Regulatory Relief for
Battery Storage in Germany.

What the 2025 BauGB Amendment Means for the Market

Germany's Regulatory Shift

Germany has taken an important step toward accelerating its energy transition. With the latest amendment to Section 35 of the German Building Code (BauGB), large-scale battery storage systems above 1 MWh have been classified as "privileged projects in outdoor areas."

Under the BauGB, outdoor areas (Außenbereich) are defined as areas outside the contiguous built-up part of a municipality — not necessarily undeveloped or empty land. This is essential: the new regulation applies to projects located outside existing buildings, not exclusively to open fields or non-built zones.

What Has Been Changed Legally

Under the amended BauGB, energy storage systems — including battery, thermal and hydrogen storage — are now considered privileged projects if they provide at least 1 MWh of storage capacity. This change gives large-scale BESS installations a similar status to other essential infrastructure projects that receive preferential approval outside built-up areas.

Key effects of the amendment include:

  • Simplified and accelerated permitting procedures
  • Clearer legal classification for energy storage systems
  • Greater planning certainty for developers and investors
  • Improved framework for selecting sites outside existing buildings

The decision was adopted by the German Bundestag with broad support and aligns with Germany's long-term energy infrastructure strategy.

Why This Matters for the Energy Transition

Battery energy storage systems are becoming a core component of Germany's energy infrastructure. They stabilize the grid, integrate renewable energy sources and provide essential flexibility services. Until now, however, permitting processes for outdoor-area projects have been slow and complex.

The new regulation reduces approval times, lowers regulatory risk, facilitates investment decisions, and accelerates the build-out of flexibility assets. Germany is thus creating a legal framework that keeps pace with the dynamics of other European markets.

Opportunities for Investors, Industry and Utilities

The updated legal framework creates clear advantages for companies across the energy sector:

  • Faster development of large-scale storage projects
  • Legal certainty for projects in outdoor areas
  • Easier integration into existing grid and industrial infrastructure
  • Reduced planning and development risks

For medium- and large-scale storage systems (2–100+ MWh), the amendment unlocks substantial new potential for streamlined implementation.

Why Volthein Is a Strong Partner for Battery Storage in Germany

As a pan-European BESS system integrator, Volthein supports the entire lifecycle of a battery storage project — from early design and engineering to EPC delivery, commissioning, O&M and asset management.

Why Volthein is particularly well-suited for the German market:

  • Extensive experience with MV stations, cable routes, grid connections and German TSO/DSO requirements
  • High flexibility through Tier-1 technologies (e.g., CATL, REPT, EATON, SMA and others)
  • Technical and regulatory consulting already in the early design and dimensioning phase
  • Fast project preparation and transparent communication with planning authorities

Germany demands technical precision, regulatory clarity and reliable project partners. This combination forms the core of Volthein's approach.

Sources & References

Bird & Bird – "Privilegierung für Energiespeicheranlagen im Außenbereich geschaffen"
Energie-Experten – "Neuregelung § 35 BauGB: Batteriespeicher ab 1 MWh künftig privilegierte Vorhaben im Außenbereich"
BMZ Recht – "Bundestag beschließt Privilegierung von Großbatteriespeichern im Außenbereich"
Taylor Wessing – "Bundestag decides on the privileging of battery storage facilities"
Renewables Now – "Germany changes law to facilitate energy storage expansion"