The role of legal frameworks in enabling energy storage : comparative insights from Germany, Austria and Romania within the European context

Abstract

This master’s thesis investigates the pivotal role of energy storage in enhancing the flexibility of energy supply and demand, a crucial element for the successful integration of RES and the achievement of European decarbonization targets. The research specifically analyzes the complex inter play between energy storage deployment and the evolving legislative landscapes at both European Union and national levels comprising the legal framework in Germany, Romania, and Austria.The choice of Germany, Romania, and Austria as case studies for analyzing the legal framework for energy storage is driven by their complementary positions within the European Union’s energy landscape and their different stages of regulatory maturity. Germany represents a highly advanced and mature market for renewable energy and storage solutions. It has one of the most developed legal and regulatory frameworks in Europe, shaped by its ambitious Energiewende policy and strong commitment to decarbonization. Germany currently offers the most mature and predictable permitting regime for energy-storage projects. The inclusion of storage in the Renewable Energy Sources Act and in the Energy Industry Act clarifies that storage is an independent energy activity, not classified as generation or consumption. This allows German developers to benefit from standardized procedures at federal and Länder level, as well as clear environmental-impact and building-code guidance. Examining Germany provides valuable insights into how a sophisticated legal environment supports large-scale deployment of storage technologies, integration into electricity markets and incentivization through regulatory instruments. Romania, as an emerging market in the EU energy sector, stands at a different stage of development. While its renewable energy sector has grown significantly, the regulatory framework for energy storage is still evolving. Romania’s permitting process remains lengthy and involves multiple authorities, with no standardized procedures or clear timelines. Unlike Germany and Austria, Romania has a single legislative framework applicable nationwide; however, the absence of uniform processes and defined timelines continues to pose challenges. Additionally, there is still no functioning market for Guarantees of Origin (GoOs), as the regulation transposing the Electricity Market Directive has been adopted but lacks an implementing methodology. Austria offers an interesting comparative perspective, as it combines elements of a developed Western European regulatory framework with a strong focus on renewable energy and cross-border energy integration within the Central European region. Similar to Germany, Austria’s permitting process is divided between federal and regional levels, which can lead to variations from one region to another. However, the draft ElWG introduces simplified procedures and standardized forms. Austria plays a pivotal role as a bridge between Western and Central-Eastern Europe, making its regulatory approach highly relevant for understanding how storage frameworks can support regional electricity markets and cross-border balancing. 2 By analyzing these three countries together, the thesis can capture a spectrum of regulatory approaches: from a leading innovator (Germany) to a regional integrator with hybrid characteristics (Austria), to an emerging framework still in formation (Romania). This comparative approach will not only illustrate best practices and gaps but also provide a nuanced understanding of how different legal contexts influence the deployment of energy storage solutions across the EU.This workpaper examines the regulatory framework applicable to large-scale utility BESS, while providing only brief references—without extensive analysis—to other storage technologies such as pumped hydro storage, electrolysers, and decentralized storage solutions for small-scale community energy systems. The primary objective is to dissect the parameters influencing the legal framework governing the regulation of energy storage in terms of definition, permits and licensing, charges and guarantees of origins. To this end, the thesis will undertake a comprehensive comparative analysis of national laws, examining key criteria such as juridical status, network access and fiscal regimes applicable to energy storage. The envisaged outcome is to identify best practices, pinpoint existing blocking points within current regulatory structures and propose actionable directions for policy development to accelerate energy storage implementation and effectively meet the European targets for RES electricity.