On this page
    Authors
    Markus Böhme

    Dr. Markus Böhme, LL.M. (Nottingham)

    Partner

    Duesseldorf
    Read More

    Dr. Christian Ertel

    Salary Partner

    Munich
    Read More
    Authors
    Markus Böhme

    Dr. Markus Böhme, LL.M. (Nottingham)

    Partner

    Duesseldorf
    Read More

    Dr. Christian Ertel

    Salary Partner

    Munich
    Read More
    • On this page

    26 March 2025

    Publication series – 42 of 84 Insights

    CJEU judgement on customer installations in accordance with Section 3 No. 24a Law on the Energy Industry EnWG

    • Briefing

    What is the legal background to the decision?

    When operating electricity and gas grids, German law distinguishes between (unregulated) customer systems (Section 3 No. 24a and b EnWG) and (partially or fully) regulated electricity and gas grids. The operation of a customer system 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 authorisation from the energy supervisory authority.

    What did the CJEU decide?

    The subject of the dispute was the connection of two residential areas with 96 and 160 residential units respectively and CHP plants connected to them, as so-called customer plants, to the local electricity grid.

    In its ruling of 28 November 2024 (preliminary ruling procedure), the CJEU ruled that there is no model in European law for the customer installation 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 and there will be virtually no room for argument following the CJEU judgement (no grandfathering for old cases). It seems rather unlikely that Section 3 No. 24a EnWG will even be retroactively declared to be contrary to European law (and thus grid fees, levies and charges will have to be charged retroactively).

    Who is affected by the decision and what does it mean for those affected?

    Many companies are likely to be affected, especially those that have previously relied on decentralised energy solutions. This can include:

    • neighbourhood developers in the real estate sector,
    • distribution systems (campus concepts)
      • in shopping centres,
      • universities,
      • research institutions,
      • hospitals and clinics, rehabilitation centres, nursing homes (especially with third-party use such as outsourced canteen, laundry)
      • wind or PV farm operator 

        • In all these cases, it is questionable whether the customer system is still compliant and the following steps are therefore typically required:

      • Appraisal of the status quo to identify 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 in relation to the Federal Network Agency and, if applicable, the energy regulator (in particular as soon as the Federal Court of Justice has ruled in May 2025)
    Services and Groups Projects, energy & infrastructureEnvironmental, planning & regulatory
    Sectors Energy & infrastructureReal estateConsumer & retail

    In this series

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    14 January 2026

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    19 December 2025

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    CBAM: Expansion of CO₂ border adjustment in the pipeline

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    by Dr. Markus Böhme, LL.M. (Nottingham), Fiammetta Kremer

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    15 December 2025

    by Johannes Simon, LL.M. (Durham), Dr. Tim Eickmanns

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    2 December 2025

    by Multiple authors

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    Offshore wind in Germany: from market premiums to Contracts for Difference?

    28 November 2025

    by Multiple authors

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    Energy Sharing under Section 42 of the German Energy Industry Act (EnWG)

    26 November 2025

    by Fiammetta Kremer, Dr. Markus Böhme, LL.M. (Nottingham)

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    12 November 2025

    by Dr. Julia Wulff, Dr. Christian Ertel

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    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)

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    22 October 2025

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    26 September 2025

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    23 September 2025

    by Sabine Meister

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    25 September 2025

    by Multiple authors

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    German-Dutch Treaty on Cross-Border Energy Projects

    18 September 2025

    by Multiple authors

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    Energy communities in Austria and the new Electricity Industry Act (ElWG)

    15 September 2025

    by Peter Solt, LL.M.

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    8 September 2025

    by Dr. Christian Ertel

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    8 September 2025

    by Dr. Michael Brüggemann, Johannes Schaadt-Wambach, LL.M. (Prag)

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    18 August 2025

    by Johannes Schaadt-Wambach, LL.M. (Prag), Dr. Markus Böhme, LL.M. (Nottingham)

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    Regulatory Framework for Transmission System Operators in Germany

    18 August 2025

    by Multiple authors

    Battery Storage

    Federal Court of Justice decision dated 15 July 2025 confirms that construction subsidies for battery storage systems based on the performance price model are permissible

    11 August 2025

    by Dr. Christian Ertel

    Energy & infrastructure

    Court ruling on the effectiveness of availability guarantees for wind turbines

    31 July 2025

    by Kerstin Bär, LL.M. (Bristol, UK)

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    New Legal Framework for the Commercial Use of Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU)

    11 July 2025

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    17 June 2025

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    17 April 2025

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    The special fund for infrastructure and climate protection - what is next?

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    Changes to CBAM through Omnibus legislative package

    10 April 2025

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    Impact of the ECJ judgement on customer systems under Section 3 no. 24a Energy Industry Act on the expansion of renewable energies

    31 March 2025

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    The role of heat probes in the energy transition: Authorisation procedures and potential

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    CJEU judgement on customer installations in accordance with Section 3 No. 24a Law on the Energy Industry EnWG

    26 March 2025

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    Decision day: Grid fee exemption in customer systems and energy price brake put to the test

    28 November 2024

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    BGH: Balance sheet allocation of electricity withdrawals at higher voltage levels in the event of supplier failure - recommended action for grid operators

    11 November 2024

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    27 September 2024

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    10 September 2024

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    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

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    Municipalities to share profit in wind turbines and ground-mounted photovoltaic systems

    11 July 2024

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    Solar Package I - Overview of Changes to Ground-Mounted and Building-Mounted PV Systems

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    Mandatory special charge for open space photovoltaic systems in Brandenburg

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    A new era for wind energy investments in Hungary

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    26 January 2024

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    Updating the National Hydrogen Strategy

    6 November 2023

    by Dr. Niels L. Lange, LL.M. (Stellenbosch), Dr. Janina Pochhammer

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    The new CO2 border adjustment mechanism (Carbon Border Adjustment Mechanism - “CBAM”) - first statutory reporting obligations set for January 2024

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    3 November 2023

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    1 September 2023

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    16 August 2023

    Environmental, planning & regulatory

    The amending law to strengthen digitisation in the urban land use planning process and the further expansion of renewable energies

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    6 July 2023

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    Challenges for data center operators - The federal government’s draft bill for an energy efficiency act

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    27 January 2023

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    10 June 2022

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    5 May 2022

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    27 April 2022

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    15 March 2022

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    Fit for 55 – Hydrogen and the Reform of the European Gas Market

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    11 January 2022

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    Renewable Energy Wrap-Up – Netherlands

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    5 November 2021

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    Renewable Energy Wrap-Up – Poland

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    21 September 2021

    by Olav Nemling

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    Renewable Energy Wrap-Up – Austria

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    18 August 2021

    by Peter Solt, LL.M.

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    Renewable Energy Wrap-Up - Germany

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    12 July 2021

    by Carsten Bartholl

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    8 June 2021

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    13 October 2025

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