The direction of energy policy is changing
With the coalition committee’s latest decision, the federal government is tackling the next major restructuring of the electricity system. The core of the plan is a new power plant park in which there will be eight gigawatts of new gas-fired power plants that can run for up to ten hours at a time in an emergency.
1. Why storage is suddenly the focus of power plant strategy
These power plants are intended to step in when wind and solar do not provide enough. But the question now arises as to whether this role must still necessarily be reserved for gas. More and more voices are pointing out that 10-hour battery storage could also take on this function.
The dispute goes far beyond technical details. What is crucial is which technology will prevail in the long term and which investments really make sense for a climate-neutral energy system. One thing is clear: the political pressure to replace fossil fuel systems with renewable alternatives is growing. In this context, storage solutions are becoming increasingly important.
2. New approaches to security of supply
Many energy experts think big Battery storage has long been considered much more than just an option to cover peak loads. Systems that can provide energy for ten hours are now considered serious candidates for future tenders. In order for them to actually take on their role, clear framework conditions would have to be created – especially in terms of funding structures, approvals and market mechanisms.
Christian Schäfer from the analysis platform Regelleistung Online sees the potential clearly: “If politics and market mechanisms fit together, a 10-hour storage system is no longer a technical miracle, but a question of the right framework conditions. It’s not a question of whether storage systems are powerful enough, but whether we trust them in the tenders to achieve what has previously been automatically attributed to gas power plants.”
3. Why 10-hour memories are becoming more and more realistic
Economic development plays into the hands of storage projects. Falling battery prices are reducing investment costs while demand for flexible power is increasing. Analyzes suggest that large storage facilities could operate without long-term government subsidies in the early 2030s. Although the systems would be larger than common projects, their economic viability depends primarily on the relationship between capital costs and usable feed-in times.
At the same time, the share of renewable energies in the network is constantly increasing. More and more often there are times when there is excess green electricity, which can be stored in storage systems and later released again in a targeted manner. This is exactly where 10-hour batteries become interesting: They could close load gaps without requiring fossil energy.
4. Solutions to the cost issue
A look at the numbers shows why storage is receiving a lot of attention in authorities, companies and analysis offices. While new gas power plants, according to recent calculations, generate funding costs of more than 600 euros per kilowatt, the calculated costs for storage projects are lower in many models. Considered across the entire planned performance, this would save billions.
Storage systems can also generate revenue across several market segments: balancing energy, electricity trading and arbitrage between expensive and cheap hours. How stable these revenues will remain in the long term remains to be seen, however, because the electricity system becomes more dynamic and less predictable with every additional addition of renewable energy.
5. Consideration of strengths and weaknesses
One of the greatest strengths of battery storage is its responsiveness. They buffer grid fluctuations within seconds and can significantly improve the balancing of renewable energies. This becomes particularly valuable in an electricity system that is heavily dependent on the weather and time of day.
Nevertheless, their weakness is obvious: If there is hardly any wind and sun available for several days, even large storage systems reach their physical limits. For such periods, long-term storage such as hydrogen or other chemical storage remains indispensable. Another uncertainty factor is market conditions. The revenues of many storage projects depend heavily on the electricity price difference and the demand in the balancing energy market.
6. Tenders should become more flexible
The power plant strategy currently relies on a combination of gas power plants and storage. But more and more voices from the energy industry are calling for open tenders in which all technologies can compete on an equal footing. If storage systems are more cost-effective, they should be awarded the contract. Such a realignment would not only strengthen competition, but also accelerate the expansion of climate-friendly alternatives.
Many observers criticize the current relationship between planned gas capacity and planned storage share as unbalanced. As the share of renewable energies grows, the requirements are constantly shifting. It is therefore necessary to regularly review tender designs and make them more flexible.
7. What follows from this?
The answer to the challenge of whether 10-hour batteries can be the backbone of security of supply in the future depends on political decisions, market prices and technological progress. If storage prices continue to fall and tenders are designed to be open to technology, battery storage could become much more central to power plant planning.
However, it will not be possible without additional technologies. Additional solutions are required for very long lulls and exceptional load peaks. An energy mix of renewable energies, storage technologies and limited conventional back-up probably remains the most practical way to keep the electricity system stable.