According to the German Solar Industry Association (BSW-Solar), the installed capacity of large-scale battery energy storage systems in Germany could increase fivefold in the next two years. This is the conclusion of a recent market analysis conducted by consulting firm Enervis on behalf of the association.
The expansion of solar energy storage capacity is considered essential for a successful energy transition. In order to further accelerate the expansion of energy storage, solar and energy storage industry interest groups call for further removal of barriers to the construction and operation of energy storage systems during this legislative period.
In addition to the more than 1.5 million household and commercial energy storage systems that have already been installed, large-scale battery energy storage systems will play an increasingly important role in photovoltaic grid-connected power generation. The expansion of large-scale energy storage facilities is mainly driven by the dynamic strengthening of the electricity market and the price difference between low and high electricity prices. BSW-Solar said that this business model enables energy storage facilities to shift cheap solar energy from high production periods to high electricity demand periods without additional capital.
According to the latest market research, by 2026, around 7 GWh of new energy storage capacity will be added to the previously installed 1.8 GWh capacity of large-scale energy storage systems (connected loads of more than 1 MW). The market analysis, conducted with the support of the ees Europe trade fair, evaluated energy storage projects that were pre-registered by project developers in the Federal Network Agency's market master data register and announced in media reports.
"The increasing price of solar power is making increasingly cheap electricity storage an interesting business model. The addition of large-scale battery energy storage systems will help to better integrate the rapidly growing photovoltaic power generation into the power system," explained Carsten Körnig, managing director of the Federal Solar Industry Association.
According to BSW, more than 80% of small-scale photovoltaic rooftop systems are already installed in combination with battery energy storage. By the end of the first half of 2024, 1.51 million household energy storage units with a capacity of 13 GWh had been installed. There were also 1.1 GWh of commercial battery spring capacity and 1.8 GWh of large-scale energy storage capacity. By the end of the first half of 2024, a total of nearly 16 GWh of energy storage capacity will be installed.
Carsten Körnig said that in addition to household and commercial storage, there is still huge potential for large-scale storage to be exploited: "Large-scale battery storage should be expanded faster as an ideal system supplement to solar and wind power. To ensure a more uniform and even supply, making it more reliable. This makes it possible to better balance the generation and consumption of electricity and avoid generation peaks that put pressure on the network. The goal must be to rationally utilize the generation peaks of solar and wind power plants and equip them with flexible consumers, battery storage and electrolyzers instead of simply shutting down the system."
Carsten Körnig called: "Politicians are now required to improve the framework conditions for storage operators so that the high willingness to invest actually leads to a significant increase in storage capacity. Disproportionate construction cost subsidies must be reduced and regulated in a uniform and legal manner. The legislature has temporarily extended the exemption from the double network rate for stored electricity, and the Federal Network Agency must extend this exemption to create planning security. In addition, the flexible use of electricity storage must finally be implemented. Finally, an important expansion booster for large-scale energy storage will be the construction law in the BSW-Solar The approval process proposed for the upcoming building code amendment privileges battery storage systems, which has long been common practice for other energy transition technologies and the energy industry.