Battery storage as more than just a cost-saving measure: According to a Fraunhofer analysis, greater flexibility in the power system could yield savings amounting to billions for consumers—as well as for the federal budget. This could result in annual macroeconomic savings of around 3.9 billion euros. One reason for this is that a more rapid expansion of battery storage capacity would allow for better mitigation of so-called “bright breezes” (periods of high solar and wind generation).
“Bright breezy spells” are the opposite of a “dark doldrums” period; they occur when strong sunlight generates large amounts of solar power while the wind is also blowing. According to an analysis by the Fraunhofer Institute for Energy Economics and Energy System Technology (IEE)—seen by the AFP news agency on Wednesday—this phenomenon is leading to “increasingly frequent and severe price spikes involving negative electricity market prices” during hours of high generation.
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The analysis was commissioned by the German Renewable Energy Federation (BEE), the German Solar Association, and the German Wind Energy Association. According to the BEE, these potential savings amounting to billions are made possible because the market value of renewable energy rises with the accelerated expansion of battery storage, while simultaneously curbing EEG subsidy costs and spot market prices. Furthermore, the net balance of electricity costs in European trade improves.
The context for this is that very low or even negative electricity prices frequently occur during periods of high renewable energy generation. According to the BEE, this depresses the market value of renewable energy, increases the need for subsidies from the federal budget, exacerbates financing risks for new installations, and results in renewable electricity being curtailed at times or exported at very low prices.
According to the analysis, these unintended side effects of the energy transition can be significantly mitigated. Specifically, an additional 20 gigawatts of short-term storage capacity—with a four-hour discharge duration—available between January 2025 and the end of May 2026 would have enabled economic savings of 5.6 billion euros.
“The analysis shows that storage systems represent a cost-saving measure for electricity customers and the federal budget alike,” stated BEE President Ursula Heinen-Esser. “Policymakers must now accelerate the deployment of storage and flexibility solutions,” she urged.
Author: AFP – jm/pe
Sources: AFP Press Portal