- Home
- News & insights
- Insights
- Impact of the ECJ ju…
- On this page
31 March 2025
Publication series – 40 of 84 Insights
Impact of the ECJ judgement on customer systems under Section 3 no. 24a Energy Industry Act on the expansion of renewable energies
- In-depth analysis
Where do customer systems play a role in the expansion of renewable energies?
The expansion of renewable energies is becoming increasingly complex. Whereas in the past a system was usually connected to the public grid through a direct line, today there are a variety of constellations in which the grid connection is shared. For example, either a common cable or a common route is used or various renewable energy systems are connected to a common substation or a battery storage system is installed at the sub-station or along the cable route. In addition, the rights to the renewable energy system, the connection infrastructure to the substation and the substation itself are increasingly being split between different companies.
In practice, the classification under energy law of the park cabling, the connection infrastructure and the substation has hardly been relevant to date, as the term “customer system” has been used in cases of doubt. In this context, the legislator only clarified at the end of 2023 that this also includes direct lines with a length of up to 5 km (Section 3 no. 24a(a) Energy Industry Act (EnWG)).
What does the categorisation as a customer system mean?
German law distinguishes between (unregulated) customer systems (Section 3 no. 24a and b EnWG) and direct lines (Section 3 no. 12 EnWG), whereby the direct line requires use by only one person/company (single use) and (partially or fully) regulated electricity grids. The law does not (yet) recognise a special category for connection infrastructures, meaning that these also generally fall into one of the three categories. The operation of a customer system or direct line is significantly less costly than grid operation and is also economically more attractive. According to Section 3 no. 16 EnWG, customer systems are not part of the energy supply grid and the operators of such systems are accordingly exempt from the grid operator obligations. In contrast, regulatory requirements apply to grid operation, grid fees must be calculated and charged (along with grid-related levies and charges) and grid operation requires approval from the regulatory authority.
What did the ECJ decide?
In its ruling of 28 November 2024 (preliminary ruling procedure), the ECJ ruled that there is no model in European law for the customer system provision created in Germany in accordance with Section 3 no. 24a EnWG. The German regulation is therefore contrary to European law because it provides for additional exemptions from the obligations of a network operator over and above those provided for by the Internal Electricity Market Directive.
The Federal Court of Justice is expected to rule in May 2025, whereby there is virtually no room for argument in the constellation to be decided. However, it remains unclear whether the BGH and the BNetzA will apply the decision to all constellations or whether there will be special regulations due to the reversed constellation in the feed-in instead of withdrawal sector. This also applies to avoid jeopardising the clarification regarding direct lines that was only included in Section 3 no. 24a (a) EnWG.
It is still unclear whether Section 3 no. 24a EnWG will even be retroactively declared contrary to European law (meaning that grid fees, levies and charges will have to be charged retroactively), but this seems rather unlikely.
What does this mean for the renewable energy sector?
Particularly in constellations in which there is no single use of the connection lines or the sub-station, the question arises as to whether the ECJ’s decision will result in the infrastructure becoming a (regulated) network and its operator becoming a network operator subject to authorisation. This could have far-reaching consequences, particularly for contractual constructs for line or sub-station (shared) use and turn previous cost distribution mechanisms on their head.
Due to the far-reaching consequences of an infringement (fines and illegality of contractual provisions), it is not recommended to wait for a possible (positive) clarification for the renewable energy sector, but to consider the issues for new projects and projects in the planning stage.
We generally recommend the following steps in this regard:
- Appraisal of the status quo to identify the problem
- Determine whether possible alternative concepts are available that can solve the problem
- Determination of the need for adaptation to develop a legally secure and economically viable supply concept (if necessary, grid operation by third parties)
- Communication with the authorities namely the Federal Network Agency and, if applicable, the energy regulator (as soon as the Federal Court of Justice has ruled in May 2025)
If you have any questions, please do not hesitate to contact us.
In this series
Revision of energy efficiency requirements for data centres: an overview of the amendment to the Energy Efficiency Act
29 April 2026
Geothermal Energy in Germany: technology, current status and the legal framework for the heat transition
24 April 2026
by Multiple authors
Industrial electricity price: Approval by the European Commission (as of April 2026)
24 April 2026
by Johannes Schaadt-Wambach, LL.M. (Prag), Dr. Markus Böhme, LL.M. (Nottingham)
EEG 2027 – Overview of the Planned Amendment to the Renewable Energy Sources Act
10 March 2026
by Dr. Markus Böhme, LL.M. (Nottingham), Dr. Christian Ertel
The NIS2 Directive: Challenges Renewable Energy Companies
18 February 2026
EU specifies certification of permanent CO₂ removals
11 February 2026
by Dr. Janina Pochhammer, Dr. Niels L. Lange, LL.M. (Stellenbosch)
Electricity Tax Amendment 2025/2026: New rules for BESS, charging infrastructure and renewable energies
14 January 2026
Battery storage systems in outdoor areas - current classification in accordance with § 35 BauGB
19 December 2025
HR compliance in the energy sector – customs authorities step up the fight against sham-employment
15 December 2025
The Current Challenges for Offshore Wind Energy in Germany
2 December 2025
by Multiple authors
Offshore wind in Germany: from market premiums to Contracts for Difference?
28 November 2025
by Multiple authors
Energy Sharing under Section 42 of the German Energy Industry Act (EnWG)
26 November 2025
Bundestag Decides on the Privileging of Battery Storage Facilities in Outdoor Areas under § 35 (1) BauGB
12 November 2025
Industrial electricity price: Initial assessment and opportunities for companies
21 November 2025
by Dr. Markus Böhme, LL.M. (Nottingham), Johannes Schaadt-Wambach, LL.M. (Prag)
FIDIC – An introduction to the FIDIC Suite 2017
22 October 2025
by Multiple authors
The Renewable Energy Expansion Acceleration Act – a boost for the energy transition in Austria?
23 September 2025
Federal Network Agency discussion paper on reforming grid fees for industry and commerce
25 September 2025
by Multiple authors
German-Dutch Treaty on Cross-Border Energy Projects
18 September 2025
by Multiple authors
Energy communities in Austria and the new Electricity Industry Act (ElWG)
15 September 2025
New amendment to the Energy Industry Act (EnWG) introduced in July and August 2025
8 September 2025
Clean Industrial Deal State Aid Framework (CISAF) – a new state aid framework for the green transformation of industry
8 September 2025
by Dr. Michael Brüggemann, Johannes Schaadt-Wambach, LL.M. (Prag)
Industrial electricity prices: initial assessment and opportunities for businesses
18 August 2025
by Johannes Schaadt-Wambach, LL.M. (Prag), Dr. Markus Böhme, LL.M. (Nottingham)
Regulatory Framework for Transmission System Operators in Germany
18 August 2025
by Multiple authors
Court ruling on the effectiveness of availability guarantees for wind turbines
31 July 2025
New Legal Framework for the Commercial Use of Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU)
11 July 2025
by Multiple authors
Are offshore wind converter platforms a bottleneck in the energy transition? New German government wants to create production capacities at German shipyards
17 June 2025
by Multiple authors
Speeding up the energy transition - the new German government’s plans for gas and steam power plants and its quest for the right technology for renewable energy
8 May 2025
by Multiple authors
Update - Change of government opens the door to carbon capture and storage and carbon capture and utilisation
17 April 2025
by Multiple authors
The special fund for infrastructure and climate protection - what is next?
10 April 2025
by Multiple authors
Changes to CBAM through Omnibus legislative package
10 April 2025
The role of heat probes in the energy transition: Authorisation procedures and potential
26 March 2025
CJEU judgement on customer installations in accordance with Section 3 No. 24a Law on the Energy Industry EnWG
26 March 2025
by Dr. Markus Böhme, LL.M. (Nottingham), Dr. Christian Ertel
Will the new German government open the door for carbon capture and storage?
26 February 2025
by Multiple authors
Waste heat from data centres - new reporting obligations under the EnEfG
6 February 2025
by Multiple authors
Oman and Belgium Sign Landmark MoU on Green Hydrogen Cooperation
11 December 2024
Decision day: Grid fee exemption in customer systems and energy price brake put to the test
28 November 2024
by Dr. Christian Ertel, Dr. Markus Böhme, LL.M. (Nottingham)
Hydrogen core network - The Federal Network Agency’s strategy for the energy transition
11 November 2024
by Multiple authors
Amendment to the Energy Industry Act: changes for energy supply companies and grid and system operators
18 September 2024
by Dr. Christian Ertel, Dr. Markus Böhme, LL.M. (Nottingham)
Standard Essential Patents: A new challenge for the IoT and smart meter world
10 September 2024
Land acquisition and data protection: The importance of the GDPR when project developers request owner data
18 July 2024
by Dr. Patrick Vincent Zurheide, LL.M. (Aberdeen), Dr. Julia Wulff
Municipalities to share profit in wind turbines and ground-mounted photovoltaic systems
11 July 2024
Solar Package I - Overview of Changes to Ground-Mounted and Building-Mounted PV Systems
27 May 2024
Mandatory special charge for open space photovoltaic systems in Brandenburg
21 February 2024
A new era for wind energy investments in Hungary
Power Play: Renewable Energy Update
26 January 2024
Updating the National Hydrogen Strategy
6 November 2023
by Dr. Niels L. Lange, LL.M. (Stellenbosch), Dr. Janina Pochhammer
The new CO2 border adjustment mechanism (Carbon Border Adjustment Mechanism - “CBAM”) - first statutory reporting obligations set for January 2024
Power Play: Renewable Energy Update
3 November 2023
New IT security requirements for the energy sector
Power Play: Renewable Energy Update
1 September 2023
by Dr. Paul Voigt, Lic. en Derecho, CIPP/E, Alexander Schmalenberger, LL.B.
Does monument protection hinder the expansion of renewable energies?
Power Play: Renewable Energy Update
16 August 2023
The amending law to strengthen digitisation in the urban land use planning process and the further expansion of renewable energies
Power Play: Renewable Energy Update
6 July 2023
Challenges for data center operators - The federal government’s draft bill for an energy efficiency act
Power Play: Renewable Energy Update
12 April 2023
by Multiple authors
The Energy Charter Treaty in the Light of the Electricity Price Brake: An opportunity for investors to litigate?
27 January 2023
Ordinance for Determining Critical Infrastructures (KritisV): Renewable energy plants as critical infrastructure and requirements for IT protection
Power Play: Renewable Energy Update
12 July 2022
by Dr. Paul Voigt, Lic. en Derecho, CIPP/E, Dr. Markus Böhme, LL.M. (Nottingham)
Liquefied Natural Gas Projects in Germany: The LNG Acceleration Act
Q&A series: Energy & Infrastructure
10 June 2022
Participation of local municipalities in the context of wind and photovoltaic projects
Power Play: Renewable Energy Update
5 May 2022
Renewable Energy Wrap-Up – France
Power Play: Renewable Energy Update
27 April 2022
Renewable Energy Wrap-Up - United Kingdom
Power Play: Renewable Energy Update
15 March 2022
Building energy performance: the revised Energy Performance of Buildings Directive
Power Play: Renewable Energy Update
14 February 2022
Fit for 55 – Hydrogen and the Reform of the European Gas Market
Power Play: Renewable Energy Update
11 January 2022
Renewable Energy Wrap-Up – Netherlands
Power Play: Renewable Energy Update
2 December 2021
Renewable Energy Wrap-Up – Poland
Power Play: Renewable Energy Update
21 September 2021
by Olav Nemling
Renewable Energy Wrap-Up – Austria
Power Play: Renewable Energy Update
18 August 2021
Renewable Energy Wrap-Up - Germany
Power Play: Renewable Energy Update
12 July 2021
Floating Foundations for Offshore Wind Farms
Power Play: Renewable Energy Update
8 June 2021
Species protection exemption: Significance for wind energy
Power Play: Renewable Energy Update
25 May 2021
Power-to-Hydrogen
Power Play: Renewable Energy Update
6 April 2021
Focus PV – Floating Solar and Agrivoltaics
Power Play: Renewable Energy Update
23 March 2021
Related Insights
Revision of energy efficiency requirements for data centres: an overview of the amendment to the Energy Efficiency Act
EEG 2027 – Overview of the Planned Amendment to the Renewable Energy Sources Act
by Dr. Markus Böhme, LL.M. (Nottingham) and Dr. Christian Ertel
