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Glossary · Energy industry & energy transition

Flexible Connection Agreement

flexible connection agreement grid connection flexibility distribution grid Hosting capacity grid operation

A Flexible Connection Agreement (FCA, German: flexible Netzanschlussvereinbarung) is an agreement on a grid connection. It specifies when and to what extent a connection user may feed electricity into the grid or draw electricity from it. Unlike with a conventional, firm grid connection, the full capacity is not available without restriction at all times. The advantage: a facility can often be connected to the grid before lines, transformers or substations have been reinforced. EU law defines an FCA as agreed conditions for connecting electrical capacity to the transmission or distribution grid. These conditions include that feed-in and offtake can be limited and controlled.

The instrument is of particular interest where new facilities want to connect to the grid faster than the grid can be expanded. This concerns, for example, wind farms, photovoltaic installations, battery storage, charging parks, electrolysers or large industrial consumers. The 2024 EU electricity market reform explicitly refers to a non-firm, flexible connection in areas with limited or no grid capacity. Such a connection can, for example, take a storage facility into account, limit the feed-in times of a power plant or cap the exportable capacity. The facility is then only partially connected. In the English-speaking world this is also called non-firm access.

Capacity, energy and a worked example

An FCA limits capacity, measured in kilowatts or megawatts. It does not directly limit the amount of energy. An example: a solar park with storage has 20 megawatts of installed capacity. However, only 12 megawatts of connection capacity are firmly committed, while a further 8 megawatts are available only outside certain time windows. Assume the facility could deliver more than 12 megawatts for 200 hours per year. Then at most 8 MW × 200 h = 1,600 megawatt hours are lost. With storage, part of this can be fed in later. For economic viability, therefore, the capacity limit alone is not what counts. Also important are the frequency, duration, predictability and depth of the limitations, and the question of how well the facility can adapt to them.

Distinction from the firm connection and from operational measures

With a firm connection, the agreed capacity is in principle meant to be usable at all times. Exceptions are faults, maintenance and emergencies. The grid operator must dimension the grid accordingly. An FCA, by contrast, makes use of the fact that lines and transformers are usually not fully loaded permanently. The hosting capacity of a grid area is then not treated as a rigid limit but is used on a time-dependent basis. EU law distinguishes in this respect between firm and additional flexible feed-in and offtake capacity. The flexible capacity can be graded by time blocks over the year.

An FCA is neither an emergency measure nor redispatch. In emergency measures, the grid operator intervenes when grid security is acutely at risk. Redispatch resolves congestion during ongoing operation and comes with its own rules on balancing and costs. An FCA takes effect earlier, namely at the question of which capacity is contractually committed. The limitation is part of the connection relationship from the outset. Grid security measures and redispatch can additionally apply to facilities with an FCA.

EU framework: Article 6a of the Electricity Internal Market Directive

Directive (EU) 2024/1711 of 13 June 2024 inserted Article 6a into Directive (EU) 2019/944. Under it, the regulatory authority, or another authority designated by the Member State, must create a framework in which transmission and distribution system operators can offer FCAs. This applies to areas where, according to published capacity information, little or no grid capacity is available for new connections. The framework must ensure three things:

  • Flexible connections generally do not delay the necessary grid expansion in these areas.

  • After grid expansion, a flexible connection is converted into a firm connection according to defined criteria.

  • Where the authority does not consider grid expansion to be the most efficient solution, FCAs can also apply permanently, expressly including for energy storage.

The framework may also provide for minimum contents: the firm and the additional flexible capacity, the grid charges for both portions, as well as the term of the FCA and the expected date for the fully firm connection. Anyone connected via a flexible connection must install a certified power control system. According to the recitals, connection users should where possible also be informed of how much curtailment they can expect. In 2025, in a guidance on grid connections, the European Commission called for FCAs to be made fully usable. It names 15 Member States there that have already introduced some form of such agreements.

Germany: Section 17(2b) EnWG and Section 8a EEG 2023

In Germany there have been two statutory bases since 25 February 2025. They stem from the Act of 21 February 2025 on avoiding temporary generation surpluses, often called the “Solarspitzengesetz” (solar peak act). The general rule is in Section 17(2b) EnWG and applies to all connection users on the electricity supply grid. Grid operators can offer a flexible connection agreement. They may then require a static or dynamic limitation of the maximum offtake or feed-in capacity. Provisions are mandatory on the level, periods and duration of the limitation, on the technical requirements and on liability in case of exceedance. Because both offtake and feed-in can be limited, this rule also fits the charging and discharging of storage facilities.

Section 8a EEG 2023 applies to installations generating renewable energy. It permits only a limitation of feed-in: the maximum active power feed-in is capped at the connection, and the installation operator must technically comply with the limit at all times. The limit can be restricted to time windows and can be set at different levels per window. To be regulated by contract are the level of the limit, where applicable the time windows, and the duration of the limitation including the follow-on arrangement. In addition come technical assurance and liability. If several operators use the same grid connection point, their consent, joint responsibility and joint and several liability are required. This model is known as cable pooling. If the most favourable connection point is not the one nearest in a straight line, the grid operator must examine an FCA. It communicates the result together with the grid compatibility assessment.

Both provisions are discretionary (“may”) provisions. According to the Clearingstelle EEG|KWKG, the wording of Section 8a EEG 2023 does not give rise to any obligation to conclude an FCA. There is thus no general entitlement to one. In the Clearingstelle’s view, EEG acceptance and remuneration during the term are limited to the agreed feed-in. The support period is not extended, even if less or nothing at all may be fed in at times.

Design, incentives and limits

Whether an FCA is viable depends on its design. Important are a comprehensible data basis, reliable time windows or signals, and documentation of the limitations. Equally important are grid charges that fit the firm and the flexible capacity, as well as a clear path to the firm connection. If several flexible connections share a congestion, priority rules are needed. Proportional curtailment is simple but often inefficient. Curtailment by connection date rewards early movers. Congestion-based or market-based control is more efficient but requires good metering and forecasting. Anyone who needs a connection that is fully available at all times, such as a data centre without its own buffering, will find it hard to cope with an FCA. Storage facilities, electrolysers and hybrid installations, by contrast, can often absorb limitations well.

An FCA is not a hidden refusal of connection if the alternative would be waiting for years. Nor, however, does it make congestion disappear. The physical load capacity of the equipment remains the same; only the usage rights are distributed differently. In the case of frequent, structural congestion, grid expansion remains necessary. EU law therefore makes clear that FCAs must generally not delay it. An FCA is also not itself flexibility, but a contract for its use. The technical flexibility is provided by the facility. For security of supply in the overall system, an FCA can be neutral or even helpful, even if the individual connection is less reliable than a firm one. Well designed, an FCA shortens connection times and makes better use of existing grids. Poorly designed, it shifts congestion risks into contracts without addressing their causes.

Sources

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Edited by eCMS on 12.11.2026 05:05

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