German Energy Storage Market Booms Despite Grid Connection Hurdles
The German energy storage market is buzzing with activity, despite challenges around grid connections. Developers are registering projects as 'ready to build', but securing grid access remains a hurdle. Industry experts weigh in on the current landscape and future prospects.
The Federal Network Agency (BNetzA) has seen an influx of projects registered as 'ready to build', but the lack of specific developer names in search results hints at the complexities involved. Grid connection bottlenecks are driving co-location growth, with flexible connection agreements potentially slashing project revenues by up to 22%.
Tom Smout, Head of Storage at LCP Delta, advises developers to future-proof their designs and build in optionality to tap into multiple revenue streams. Hybrid systems, like solar + storage or wind + storage, may not guarantee high returns but can be strategically crucial due to limited grid access. Some developers are even labeling projects as 'ready to build' without secured grid connections, adding to the market's uncertainty.
Volker Hild, VP Energy Storage at Siemens Energy, describes the current market as a 'perfect storm' for energy storage, with investors actively seeking reliable partners. However, the BNetzA's recent update to its FAQs on battery storage grid connections has introduced new uncertainty for developers.
Despite challenges around grid connections and shifting revenue streams, the German energy storage market remains attractive. Developers are urged to design projects with future flexibility in mind, while investors are actively seeking reliable partners. The market's future depends on navigating these uncertainties and seizing strategic opportunities.
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