Storage revolution in Germany: Are we ready for the future?

Storage revolution in Germany: Are we ready for the future?

A lot is currently happening in Germany in the area of ​​battery storage systems (BESS). Over 1.8 million of these systems are now registered with the Federal Network Agency - almost exclusively, because 99 percent of them are in single-family homes. As Focus reports, these home storage systems can reduce individual electricity costs, but their role in grid stability remains rather marginal. Typical operation involves charging during the day and discharging in the evening, regardless of current electricity prices or actual network load.

Large-scale storage systems, on the other hand, which have capacities of over 1,000 kWh, can react to such market signals and are crucial for a stable electricity grid. After all, according to the network development plan, the capacity of these large storage facilities is expected to increase from the current 2.7 GWh to an impressive 136 GWh by 2045. Despite these promising numbers, many storage projects face challenges such as overloaded power grids and long approval processes that delay implementation.

Battery storage in focus

Interest in battery storage remains unbroken. Germany's pioneering role in the field of BESS also results in political support and financial incentives. The EY sees home storage, which will account for around 85 percent of new installations in 2023, as the largest segment. Their average annual growth rate will be 0.2% in the coming years, while commercial and industrial storage is much more dynamic with a forecast growth rate of 9% and 31%, respectively.

Commercial storage, which is usually installed behind the electricity meter, only accounts for around 4 percent of the market. They could be integrated quickly because a grid connection for a PV system is often already available. These storage systems reduce costs, cap load peaks and react flexibly to market prices, which makes them indispensable in the storage strategy of the energy transition.

The contribution to the energy transition

BESS make a crucial contribution to storing excess electricity from renewable sources such as wind and solar systems and feeding it into the grid as needed. [Ossler Solar]. Germany's goal is to obtain 80 percent of its energy from sustainable sources by 2030 and to be climate neutral by 2035.

Battery storage systems play a central role on the way there. As early as 2024, the installed capacity amounted to 16 GWh, with home storage accounting for almost 13 GWh and thus representing 81 percent of the total capacity. The coming years will be filled with technological advances and government funding programs that will further stimulate the market. In this way, Germany can continue to set standards in the energy industry.