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Once a financing strategy is in place, the BESS project moves from theoretical viability to concrete planning. This stage — Project Origination & Planning — is about getting the blueprints and permissions in order before the first shovel touches the ground. The ultimate goal is to reach a Ready to Build (RtB) state.

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1. Site Origination: Finding the Right Location

Finding the right place to build a grid-scale BESS is surprisingly difficult. Several factors must all align:
  • Local grid constraints: A BESS needs to be placed where it can alleviate, rather than contribute to, local grid bottlenecks. This means looking for areas with strong, under-utilised grid connections to reduce the likelihood of redispatch events during the asset’s operational life.
  • Grid connection proximity & capacity: The BESS needs to be suitably close to a medium or high-voltage grid connection point. Larger sites put higher demands on the grid and are therefore more restricted in where they can connect.
  • Scarcity in Germany: There are not many locations that satisfy all these requirements simultaneously. Finding them requires deep grid analysis and strategic thinking.

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2. Securing the Land: The Lease Agreement

Once a promising site is identified, the land must be secured. This involves contacting the landowner, negotiating terms, and signing a long-term lease agreement that grants the right to use the land. This lease is an ongoing cost that adds to the overall financial burden over the asset’s lifetime.

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3. Grid Connection Application

With the land secured, a formal application must be submitted to the relevant DSO or TSO, depending on the voltage level of the connection. Processing times can vary significantly depending on the specific grid operator, the complexity of the connection, and local grid conditions — introducing meaningful timeline uncertainty.

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4. Site Design & Planning Permission

Detailed designs for the BESS facility — its layout, appearance, and technical specifications — are developed and submitted to the local planning authority for approval.
Unlike traditional industrial facilities, BESS sites generally do not provide significant ongoing local employment once built. This can make planning approval more challenging, and it is important to engage positively with local communities throughout the process.
In practice, combining a suitable grid connection, an amenable landowner, and a supportive planning authority often involves difficult trade-offs. There is rarely a perfect solution, and compromises will almost always be necessary.

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Reaching Ready to Build (RtB)

The Ready to Build state is achieved when all the following are in place:
  • The BESS site has been fully designed.
  • The land has been leased for the long term.
  • A grid connection has been secured with the relevant operator.
  • The local planning authority has given approval for the development.
Once a project reaches RtB, it is shovel-ready — all preparatory paperwork is complete, and the project can move into physical construction.
Last modified on April 20, 2026