ERLANGEN, Germany, Jan. 09, 2024 (GLOBE NEWSWIRE) -- A study by Frontier Economics - commissioned by Fluence, BayWa r.e., ECO STOR, enspired, and Kyon Energy - provides valuable insights for advancing the energy transition in Germany. The new analysis underlines the pressing need for the electricity Contact online >>
ERLANGEN, Germany, Jan. 09, 2024 (GLOBE NEWSWIRE) -- A study by Frontier Economics - commissioned by Fluence, BayWa r.e., ECO STOR, enspired, and Kyon Energy - provides valuable insights for advancing the energy transition in Germany. The new analysis underlines the pressing need for the electricity storage strategy recently put forth by the Federal Ministry of Economics and urges its prompt completion and implementation.
Storage is crucial to the advancement of the energy transition.
The recognition of energy storage''s role in power systems will increase significantly in the coming years. The analyses conducted by Frontier Economics show that the capacity of storage deployed in Germany will rise to 15 GW / 57 GWh by 2030, if a supportive policy framework is in place. This means a forty-fold increase compared to today.
By 2050, the capacity of large-scale battery-based storage systems in Germany can reach 60 GW / 271 GWh. This increase is driven by the growing demand for flexibility services in the electricity system and falling costs of storage.
Dr. Christoph Gatzen, Director at Frontier Economics, sees the study results as clear indicators for the future role of storage in Germany: "Large-scale battery storage is critical for the energy transition in Germany. Without the flexibility provided by storage, the country will face higher economic costs caused by increasing gas imports and expensive curtailment of renewable generation."
The deployment of storage is expected to follow a growth trajectory similar to the one photovoltaic (PV) technologyexperienced in recent years, both in terms of cost degression and the expansion rate. However, the deployment of storage is purely market-driven, as new projects can be built and operated economically without government funding.
"Ensuring investment security for storage and green generation assets through the introduction of a clear and reliable regulatory framework should be a priority for policymakers."
The initiators of Frontier Economics'' study call on policymakers to ensure investment security for the development of new large-scale battery-based energy storage systems.
Bureaucratic and regulatory barriers in Germany, such as complex approval processes for new storage projects, should be reduced. All markets for energy trading, capacity, and ancillary services should be market-based and open to all technologies, including storage.
The Federal Government should meet the requirements set by the European Commission in the current reform of the European Electricity Market and set indicative storage targets for Germany as quickly as possible. Building on this, the Federal Government should present an expansion strategy for energy storage in Germany. With the recent publication of the electricity storage strategy, the Federal Government has taken the first step that must now be translated into concrete legislative proposals without delay.
The study on the value of large-scale battery-based energy storage in the power system in Germany1 was developed by Frontier Economics and commissioned by Fluence Energy GmbH, BayWa r.e. AG, ECO STOR GmbH, enspired GmbH and Kyon Energy Solutions GmbH. The study used the modelling of the European Electricity Market with Frontier''s Combined Investment and Dispatch Model in three different scenarios: (1) a reference modelling in which the endogenous expansion of batteries and gas-fired power plant is implemented in the model, and two simulation variants in which the expansion of energy storage is not possible in Germany, and the capacity replacement of missing energy storage by the endogenous expansion of gas-fired power plant is permitted (2) or not permitted (3).
About Frontier Economics
Frontier Economics is a microeconomic consulting firm that provides economic advice to public and private sector clients on competition policy, public policy, regulation, business strategy, behavioral economics, and energy and climate change. The Frontier Economics network consists of separate companies based in Europe (Berlin, Brussels, Cologne, Dublin, London, Madrid and Paris) as well as Australia (Melbourne, Sydney and Brisbane) and Singapore.
Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader in energy storage products and services, and optimization software for renewables and storage. With a presence in 47 markets globally, Fluence provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and the Fluence IQ Platform, which delivers AI-enabled SaaS products for managing and optimizing renewables and storage from any provider. The Company is transforming the way we power our world by helping customers create more resilient and sustainable electric grids.
For more information, visit our website, or follow us on LinkedIn or Twitter. To stay up to date on the latest industry insights, sign up for Fluence''s Full Potential Blog.
_________________________________________________1 ''Wert von Großbatteriespeichern im Stromsystem in Deutschen Stromsystem''
Storage is a key component for the energy transition
Energy generation from renewable sources such as wind and solar creates fluctuations in the electricity market. This volatility impacts the energy market with significant price fluctuations and increases the risk of blackouts. By expanding storage systems, these fluctuations in the grid can be mitigated. In Germany alone, the tripling of existing solar energy production capacity is planned by 2030. Without massive expansion of storage capacity, the energy transition and the shift to 100% renewable energy are not feasible – and volatile markets and the risk of blackouts remain commonplace.
Untapped potential in commercial grid connections
In recent years, battery storage projects have experienced a strong upward trend, primarily focusing on centralized large-scale storage projects. However, a crucial aspect remains overlooked: the majority of existing grid connections in the commercial sector have a high proportion of unused capacity. At commercial sites, as much as 90% of potential connection capacity goes unused.
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Financial benefits for commercial sites without capital expenditure
High benefits for the power grid through decentralization
With Scale Energy's decentralized network, the power grid is sustainably stabilized. The focus on existing infrastructure enables shorter connection times for storage to the power grid, further accelerating the energy transition. Elias Aruna, CEO of Scale Energy, emphasizes: "Our approach significantly contributes to advancing the development of the new energy system. Through our collaborative partnership model, we empower large consumers to enhance their energy independence utilizing our storage solutions."
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In the development of turnkey battery storage systems, Scale Energy, together with a European partner network, takes over the entire investment, complete regulatory submission, and technical planning: project sizing, measurement and connection concept, building permits, and system integration (monitoring, control, andmaintenance).
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Scale Energy's storage systems, based on advanced lithium-ion technology, are sourced in high-quality, standardized containers from global leading manufacturers. These robust units are renowned for their longevity and excellent safety standards, can be easily adapted to various locations, and allow for quick installation.
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