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First-come, first-served principle

First-come, first-served principle

Definition

The first-come, first-served principle describes an allocation process for grid connection capacities based on the principle of chronological order. Grid connection requests are processed in the order in which they are received. Whoever submits a complete application first and meets the requirements for reserving grid connection capacity is given priority in the processing and allocation of grid connection points.

For many years, this process was the standard for allocating grid connections for generation plants and, increasingly, for battery storage systems. It is characterized by an easily understandable allocation mechanism in which, in principle, all applicants are processed sequentially according to the same criteria.

However, with the sharp rise in demand for grid connection capacity from various stakeholders, discussions have emerged as to whether a purely time-based allocation process still enables the most efficient allocation in every case when grid capacity is scarce. Since the first-come, first-served principle is primarily based on the timing of a request eligible for reservation, differences in project progress or maturity are only taken into account to a limited extent. Particularly in the case of scarce grid connection points and grid connection capacities, it has therefore been debated whether supplementary or alternative allocation procedures could contribute to a higher probability of project realization.

With the 2026 amendment to the Energy Industry Act (EnWG), the legislator has created new possibilities: in the future, grid operators will be able to use alternative allocation procedures in addition to the classic first-come, first-served principle. These can focus more on the maturity of a project and are intended to ensure that scarce grid connection capacities are preferentially assigned to projects with an advanced stage of development.

At the same time, such procedures shift part of the development risk onto project developers. They may have to invest additional resources in planning, permitting, and project development before they have a more binding assessment of their grid connection options. The choice of allocation procedure thus influences the distribution of risks between grid operators and project developers.