Large battery storages will play a crucial role

The installed capacity of large-scale battery storage could increase by a factor of 40 by 2030, according to a study by the consulting firm Frontier Economics. If the necessary regulatory conditions are met, the study suggests that the installed capacity of large battery storage in Germany could rise to 57 gigawatt-hours by 2030, compared to the current capacity.

The study, commissioned by companies such as Baywa re, Eco Stor, Enspired, Fluence, and Kyon Energy, also predicts that by 2050, the total capacity of large-scale battery storage in Germany could reach up to 60 gigawatts or 271 gigawatt-hours. The expected growth is driven by increasing demand for flexibility in the power system and falling costs of the storage facilities.

‍

The study indicates that large battery storage could provide significant economic value by shifting the availability of electricity from times of surplus to times of scarcity. Frontier Economics estimates potential savings of about twelve billion euros on the wholesale market by 2050. The study highlights the role of large battery storage in reducing CO2 emissions, stating that by 2030, these storage facilities could help avoid around 6.2 million tons of CO2, and by 2040, approximately 7.9 million tons.

‍

In addition, the study suggests that large battery storage projects could help stabilize the power grid and lower wholesale prices. The reduction in growth rates of bioenergy generation since 2015, as well as the potential to decrease the reliance on backup power plants, is emphasized in the study. The authors stress the need for policy support to ensure investment security in the construction of large battery storage facilities and call for the removal of bureaucratic obstacles and regulatory barriers in the approval process. The study participants urge the German government to promptly implement the provisions from the current reform of the European electricity market to establish indicative storage targets.

‍

Frontier Economics sees large battery storage as a crucial element for the energy transition in Germany, playing a central role in providing flexibility to the power system. The results of the study are seen as confirmation that large battery storage will be essential for the success of the energy transition, demonstrating that environmental sustainability and economic viability can go hand in hand.