Belgium to End Battery Park Financial Incentives from 2028

Belgium’s energy regulator, the Commission for Electricity and Gas Regulation (CREG), has announced that starting in 2028, new battery parks will no longer benefit from a financial exemption on high-voltage grid connection fees. The decision, embedded in the regulator’s new tariff methodology for the 2028-2031 period, marks a significant shift in the country’s approach to subsidizing energy storage infrastructure.

Since 2018, investors in large battery parks have enjoyed a 10-year exemption from high-voltage grid connection fees, a measure introduced under the Michel government to stimulate the sector’s growth. According to RTBF, this incentive has saved battery park operators millions of euros annually.

Why the Regulator Is Ending the Incentive

The CREG argues that the exemption is no longer necessary, pointing to a mature and competitive market. “Currently, we see that competition is quite high and it’s no longer necessary to support the construction of battery parks,” Annemarie Devreese, CREG spokesperson, told RTBF.

The regulator’s new tariff methodology, published on June 30, 2026, determines electricity transmission tariffs for the 2028-2031 period. In its rationale, the CREG states that continuing the incentive “would risk giving an advantage to projects that don’t need it and that the network doesn’t need.”

The decision also reflects a concern about cost distribution. “Every euro not paid by battery park producers must be paid by another user of Elia’s high-voltage network, so households and other industries,” Devreese explained. The regulator aims to spread the tariff burden across a broader set of actors.

Transition Period for Existing Projects

Projects already in the pipeline will not be affected. According to the CREG, all projects commissioned by the end of 2027, as well as those that obtained Elia connection contracts by mid-July 2026, will still benefit from the full 10-year exemption. Only new projects from 2028 onward will be required to pay high-voltage grid tariffs from the start.

The current state of battery deployment in Belgium is substantial. Battery parks already connected to the grid represent 2.1 GW of capacity, according to grid operator Elia, which says it can guarantee connection of 12 GW by 2034. The CREG reports that existing projects represent a total of 26 GW capacity, though Elia notes that not all may materialize as feasibility studies are still pending.

Industry Concerns Over the Decision

The decision has drawn criticism from the renewable energy sector. Marion Bouchat, an advisor at Edora, the renewable energy federation, called the move a “bad signal” for the industry. “The sector needs a clear, long-term framework,” Bouchat told RTBF. “Having a tariff modification creates insecurity, instability, and can undermine the business plans of projects that have been initiated.”

Bouchat warned that “we are clearly in a period of uncertainty where projects will not see the light of day, that’s certain.” She also noted that the effects of existing batteries are not yet visible on the ground, with many renewable production parks still being curtailed due to insufficient storage capacity.

Expert Analysis on Storage Capacity

Axel Coussement, professor of energy at the Université Libre de Bruxelles (ULB), offered a more measured perspective. He noted that the capacity planned by 2030 will be “equivalent to one hour of consumption for the whole country,” which he considers “a correct size if we’re aiming for storage over a maximum of 24 hours.”

Coussement highlighted the delicate balance involved: building too many parks would make storage costs unprofitable, while too few would force Belgium to rely on expensive gas plants during shortages. For full decarbonization, longer-duration storage spanning seasons would be needed, but the technology is not yet ready—a challenge that belongs to the 2050 horizon.

What’s Next

Despite the regulatory change, investment in battery storage continues. Miguel de Schaetzen, CEO of Eneco Wind Belgique, confirmed the company’s commitment to the sector: “We are very interested in continuing to develop this type of battery. Not far from here, in Courcelles, we will start construction at the end of 2027 of a 200 MW park.”

The CREG’s decision was first reported by De Tijd and L’Echo on August 11, with broader coverage following across Belgian media. The full details of the new tariff methodology are available in the CREG’s press release.

As Belgium transitions toward a more electrified and renewable-based energy system, the end of this incentive raises important questions about how the country will balance grid stability, consumer costs, and the continued growth of energy storage capacity. The coming years will reveal whether the market can sustain its momentum without state support.