Fraunhofer IEE Study Puts Annual German Storage Savings at EUR 3.9 Billion
A modeled scenario from the Fraunhofer Institute for Energy Economics and Energy System Technology (Fraunhofer IEE) estimates that a larger fleet of battery storage and greater grid flexibility could trim roughly EUR 3.9 billion a year from costs borne by German electricity consumers and the federal budget.
The work was commissioned by three trade bodies: the German Renewable Energy Federation (BEE), the German Solar Association (BSW-Solar), and the German Wind Energy Association (BWE).
In the central case, the modelers set 20 GW of battery power capacity running for four hours, an energy volume of 80 GWh. Applied across the window from January 2025 through the end of May 2026, that build-out would generate EUR 5.6 billion in economic savings.
Swapping the four-hour systems for two-hour units lowers the payoff but does not erase it. That configuration still yields about EUR 2.5 billion in yearly savings over the same window, the study found.
The extra capacity also reshapes the market picture. It would shrink stretches of negative wholesale power prices by almost 70% and pare renewable curtailment by roughly 3.3 TWh, close to 55%.
On the financing side, the researchers said the added storage would lower the risks tied to Germany's renewable support scheme by about 75% for solar, nearly 55% for onshore wind, and close to 60% for offshore wind.
The three associations pressed the government to quicken grid connection approvals, permit multi-use operation of battery systems, and open congestion management and redispatch services more widely to storage assets.
Source: ess-news.com (opens in a new tab)1 sourcePermalink