The analysis examines the benefits of large-scale battery storage in the German electricity system as well as the costs of a delayed expansion, which are gaining importance as fluctuating generation expands, dispatchable power plants are phased out, and electricity demand rises. Against the backdrop of uncertain investment conditions caused by ongoing adjustments to the market design, such as the grid fee reform, the grid package, and FCAs, the focus is on the question of which systemic effects a slower versus a faster ramp-up of large-scale battery storage triggers. The effects are structured along three areas: market effects, grid effects, and other effects on security of supply and resilience.
First, two expansion paths of differing speed are defined that differ threefold in their pace of expansion and, while all other framework conditions remain constant, vary exclusively the installed battery capacity. Building on this, the market effects are determined in a model-based manner using the electricity market model MELI and quantified by means of selected indicators such as variable system costs, electricity price effects, and the market value of renewable electricity. The grid-side effects on congestion management and grid expansion needs, as well as the contributions to security of supply and resilience, are examined and assessed on a literature basis. Finally, the effects on end-consumer prices are considered, which illustrate the benefits of an accelerated expansion beyond the purely market-related effects.
