Large-Scale Batteries Emerge as Game-Changer in Germany's Energy Transition
The energy transition in Germany faces new challenges, with increasing shares of renewable electricity causing price fluctuations and 'cannibalization' effects. However, large-scale batteries emerge as a solution, offering significant benefits for the power grid and consumers.
Analyses of EPEX-Day-Ahead data reveal that a 100-megawatt, 100-megawatt-hour energy storage system can reduce the daily price range by over five percent on average. This is achieved by balancing fluctuations and shifting energy, making prices more predictable.
Founded in 2021, Kyon Energy, a specialist in large energy storage systems, is at the forefront of this development. Its founders, Philipp Merk, Florian Antwerpen, and Adrian Kapsalis, are driving the expansion of these systems to tackle the energy transition's new bottleneck – flexibility.
A study by Frontier Economics projects that continuous expansion of large-scale energy storage systems to around 72 gigawatts by 2050 could create an additional welfare gain of over 12 billion euros. Furthermore, expanding energy storage to around 15 gigawatts with 60 gigawatt-hours of capacity by 2030 could reduce wholesale prices by an average of around 1 euro per megawatt hour and reduce the need for new gas power plants by about 9 gigawatts.
Large-scale energy storage systems are crucial for a successful energy transition in Germany. They reduce redispatch costs, dampen prices, and support the grid's flexibility. With the potential to create substantial welfare gains and decrease the need for fossil power plants, investing in energy storage systems is a strategic move towards a more sustainable and cost-effective energy future.
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