Germany's Grid Overwhelmed by Surge in Home Battery Demand
Economy / Finance

Germany’s Grid Overwhelmed by Surge in Home Battery Demand

The combined capacity of these potential storage projects totals approximately 390 gigawatts – exceeding the total generating capacity of all currently operational power plants in Germany These storage systems are intended to absorb excess energy produced by solar and wind farms and feed it back into the grid when demand is high, thereby bolstering supply stability

However, grid operators are struggling to process the sheer volume of applications EWE reported receiving over 2,000 connection requests since the beginning of 2024, but has only commissioned a “low double-digit” number of storage systems during the same period Netze BW received 902 requests, with only 34 projects reaching an advanced stage of development

Eon, which has nine distribution network subsidiaries, points to misaligned incentives as a contributing factor The company explains that because large-scale storage is legally classified as a generation facility, network operators are obligated to evaluate every connection application Eon estimates that over 90 percent of submitted projects lack sufficient technical maturity or secured funding, highlighting a need for minimum standards

Hamburger Energienetze notes that operators frequently submit inquiries for the same project at multiple locations Netze BW also warns that a concentration of storage systems in a single area could potentially strain grid stability due to simultaneous charging and discharging The company urges the federal government to incentivize grid-friendly deployments, suggesting closer integration of storage with generation facilities like solar parks

The German Association of New Energy Economy (BNE), representing many storage operators, dismisses the explanations as “excuses” BNE CEO Robert Busch asserts that even applications demonstrating solid technical viability and financing are often stalled or rejected He highlights the potential for grid and storage operators to collaboratively negotiate charging and discharging schedules through contractual agreements, but claims grid operators are failing to utilize this option