1. Project inquiries reach new dimensions

In 2024, almost 10,000 battery storage systems from the medium-voltage level were submitted for examination – a record number that underlines the growing importance of flexibility options in the energy system. The requested output amounts to around 400 gigawatts, supplemented by around 661 gigawatt hours of planned storage capacity. Many of these requests come from earlier planning phases and remain in ongoing processes.

The network operators are currently examining around 4,200 projects with around 274 gigawatts of output. A further 3,800 projects have already received a follow-up commitment, although these commitments only provide the opportunity to continue planning. In many cases it remains unclear whether this will be implemented. The high number of open applications shows how strongly the market is growing and how much network operators are organizationally challenged.

The development makes it clear that storage solutions are increasingly becoming an integral part of new business models. Project developers of wind and solar parks in particular are examining battery systems as a supplementary flexibility option. At the same time, new concepts are emerging, such as storage for industrial load management systems or for regional electricity marketing. This explains why more and more projects are being reported, even if many of them do not make it to implementation.

2. Real expansion lags behind significantly

Compared to the extensive requests, the actual number of large storage installed is small. According to the market master data register, only 921 systems are currently in operation. Together they deliver around 2.3 gigawatts of power and 3.2 gigawatt hours of capacity. The discrepancy between planning and actual construction is therefore considerable.

Not every follow-up request leads to a project. Rather, changes, relocations or complete cancellations of planning often occur. Some projects are also submitted multiple times if technical or economic conditions need to be adjusted. Despite these uncertainties, the Association of Municipal Companies (VKU) emphasizes the relevance of the trend and explains: “We welcome the increasing number of grid connection requests and the massive expansion of large battery storage systems because they can contribute to the stability of the power grid and thus to security of supply.”

3. Storage becomes key in the energy system

The modeling of the Federal Network Agency show what influence large battery storage systems can have in the future. With high feed-in volumes from wind and solar, storage systems would be able to absorb around 76 percent of the excess energy. On days with very low or negative electricity prices, the proportion could even be increased to around 86 percent. At the same time, storage could compensate for around 80 percent of any load gap during times of low generation.

In addition to industrial and commercial solutions, the home storage market is continually growing. More and more households are relying on photovoltaics with a battery system to increase their own consumption and reduce supply peaks in the grid. In the long term, the increasing spread of private storage creates a decentralized network of energy storage that can play an important role in intelligent distribution networks.

4. Procedures slow down expansion

The slow expansion has various reasons. Grid connection procedures vary from region to region and are often time-consuming. In regions with low network capacity, projects must be postponed until appropriate expansion options are available. This leads to long waiting times and makes planning difficult for investors.

In addition, there are still regulatory uncertainties. Many specifications for storage, for example with regard to network fees, flexibility markets or multiple uses, have not yet been fully clarified. Many projects remain economically difficult because the revenue situation is heavily dependent on price fluctuations on the wholesale market and long-term models are missing.

5. High expectations but unclear prospects

The current data clearly shows that battery storage should play a central role in an energy system with growing renewable generation. At the same time, the real expansion remains far behind the target values. The Federal Network Agency’s figures are therefore an important instrument for targeting political measures and making bottlenecks visible.

Whether the battery storage market will transition from a boom in applications to real expansion momentum in the coming years depends on several factors. This includes simplified administrative processes, investment security, stable market mechanisms and rapid network expansion. The coming years will show whether Germany can actually use the existing potential or whether the big lead on paper will remain.