22 January 2026, Germany launched the first fixed-price period for market-based procurement of inertia – a milestone for security of supply and grid stability in the energy transition.

System Stability with Increasing Share of Renewable Energy in the Grid

As the power plants landscape continuous to transform, grid-forming technologies are becoming increasingly important. Thanks to the new market, the instantaneous reserve (inertia)—once exclusively supplied by synchronous generators—can now be provided by all types of generation units, allowing battery energy storage systems (BESS) and renewable generation plants to actively support grid stability.

Market Design Overview: Transparent Procurement of Inertia with Fixed-Price System

The procurement concept is based on a fixed-price system that remunerates the provision of inertia. The remuneration level depends on three factors: the unit’s availability in the respective settlement period, the procurement region, and the product offered.

Four product categories are available: premium and base, each in positive and negative directions. Fixed prices for the first period until January 21, 2028, are set at €805/MWs/year (FP0) for premium products and €76/MWs/year (FB0) for base products, with additional remuneration for increased availability of the units.

In the first fixed-price period, procurement regions correspond to the control areas of Germany’s four transmission system operators. Long-term plans include adjusting the regions based on residual demand.

Regulatory Foundation: VDE FNN Guideline and Federal Network Agency Determination

The Federal Network Agency established the regulatory foundation for transparent, non-discriminatory, and market-based procurement with its final determination of 22 April 2025 (BK6-23-010).

A crucial milestone was the publication of the VDE FNN Guideline “Grid-Forming Capabilities” in June 2024, followed by the extended version 2.0 in May 2025. This guideline establishes harmonized requirements for grid-forming units in Germany for the first time and describes the procedures for measurement-based testing and simulation-based assessment.

With the official launch of the inertia market, VDE FNN released a revised version of the guideline on 23 January 2026. The new version 2.1 focuses on plant certification and addresses the entire grid connection process for grid-forming installations.

Competitive Advantages for First Movers

With the complete regulatory framework now in place, manufacturers can rely on clear technical requirements, defined verification procedures, and transparent remuneration mechanisms. Companies that strategically invest in grid-forming technologies now secure decisive advantages: early market participation with attractive fixed prices, technological leadership through early certification and reference projects for European markets.

Energynautics: Your Partner in the Certification Process

As the market leader for simulation models in the certification process in Germany, Energynautics supports manufacturers throughout the entire path to market participation.

Our Service Portfolio:

• Creation of detailed simulation models according to VDE FNN requirements
• Examination of models and pre-validations
• Preparation of compliance studies
• Seamless integration of grid-forming verifications into comprehensive certification processes

To contact our experts directly, please use the contact form or send a massage to the following email: gridforming@energynautics.com