Why battery storage systems are becoming increasingly relevant

Battery storage systems offer a robust, future-proof and cost-effective solution to these challenges. They make it possible for electricity to be stored, used in a targeted manner and to react flexibly to volatile market conditions – in both a technical and economic sense.

Political and regulatory conditions are also increasingly favoring the use of intelligent storage solutions. The sharp decline in storage prices, the development of efficient battery technologies and simplified approval procedures mean that large-scale storage systems can now be installed and refinanced more quickly than just a few years ago. But what do specific applications look like in practice?

flexible management of peak loads

Charging support

Operators of charging parks in particular regularly face a problem: the existing grid connection is often insufficient to provide the required charging power at peak times. 

A typical scenario: A charging park for electric trucks or buses has a grid connection with an output of 1 megawatt (MW). However, at peak times – such as when several vehicles are charging at the same time – total output of up to 2 MW may be required.

A practical example illustrates this: Operating five 400-kilowatt (KW) fast charging stations, each with two charging points, results in a potential total load of up to 4 MW – far above what many grid connections in existing commercial parks can provide at short notice. Even with parallel operation of just five 400 kW truck charging points, 2 MW would be required.

This is where battery storage systems come in: They cushion peak loads and provide additional power without the need to expand the grid connection. In this way, large investments in grid  expansion can be avoided and demand charges reduced at the same time. Thanks to intelligent load management, the battery prioritizes charging when electricity tariffs are favorable, which further reduces operating costs.

In addition, the integration of an intelligent energy management system (EMS) makes it possible to automate the management of charging and discharging behavior. The battery therefore automatically detects when low tariffs are available and can react to this in a targeted manner. At the same time, it contributes to grid stability – a double benefit for charging infrastructure operators.

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Thinking ahead about the cost-effectiveness of biogas plants and staying flexible with battery storage systems

Many biogas plants in Germany reach the end of their EEG funding after 20 years. For operators, this raises the question: carry on – but how? Retrofitting a battery storage system is an interesting option. Where a grid connection is already available, an economically viable concept can be implemented without great effort.

While the biogas plant continues to provide a reliable base load, the storage system offers the necessary system flexibility. Surpluses can be stored temporarily and fed in when electricity prices are particularly high. This demand-oriented feed-in – also known as flex trading – opens up new marketing options beyond traditional direct marketing.

A modern energy management system (EMS) takes over the intelligent control. It not only takes price signals on the electricity market into account, but also responds to internal requirements – for example by optimizing self-consumption or targeted peak shaving. At the same time, the storage system can be used as a standalone unit for trading purposes – an advantage especially for locations with solid technical infrastructure.

The model also pays off financially. In addition to savings brought about by lower grid charges and the application of dynamic electricity prices, construction subsidies are often eliminated as no new grid connection is required. This quickly makes getting started with storage technology profitable for many systems.

Smart use of existing potential

Co-location with wind and sun

For many solar and wind power plants, the guaranteed feed-in tariff expires after 20 years. But this does not necessarily mean the end of profitable operation.

Quite the opposite: Combining it with a battery storage system – known as co-location – opens up new prospects.

The principle is simple and effective: Instead of feeding in electricity immediately, it is first stored in the storage system. Only when prices are attractive will it be fed into the grid. In this way, existing plants can continue to be operated efficiently and revenues increased significantly – without any fees set by the government.

The storage system also performs other functions: It serves as a buffer during peak loads, increases self-consumption in neighboring commercial spaces or provides additional power for charging infrastructure. In combination with an intelligent EMS, the energy flow can be precisely controlled – in the interests of economic efficiency and grid stability.

This strategy is particularly relevant in the context of increasing grid bottlenecks. The storage system can support the grid by shifting loads or providing balancing energy. Its ability to respond rapidly ensures that even short-term requirements are reliably met – a service that is becoming increasingly important in the context of the volatile energy market.

This model is further boosted by innovation tenders that specifically support projects with storage system components. Taking early action in this area not only secures a stable revenue structure, but also provides a real advantage in the competition for available grid connections.

Act flexibly, keep energy costs under control

Industrial companies

Industrial companies with high energy consumption are often under double pressure: rising electricity prices on the one hand, and ambitious climate targets on the other. This is exactly where battery storage systems offer a viable solution that is economically convincing and technically proven.

One particularly effective approach is to optimize self-consumption:

  • Self-generated electricity – from PV systems, for example – is stored and used when needed. This reduces the amount you draw from the grid and increases your independence from external price fluctuations.
  • Targeted peak shaving prevents costly peak loads. This is achieved particularly efficiently with dynamic registered load management (RLM), in which not all short-term peaks are smoothed out, but the average value is controlled at 15-minute intervals. In this way, both operating costs and strain on the storage system can be reduced.
  • At the same time, the storage system can be integrated into electricity trading. Surplus energy is sold, while cheap electricity is purchased and stored. In combination with an EMS, price advantages in intraday trading or short-term flex trading can be exploited in a targeted manner.

This gives many companies strategic freedom. Intelligent use of storage systems not only ensures cost advantages, but also the security of supply – even in the event of impending grid bottlenecks. And this doesn’t always require a big solution: intelligently controlled smaller storage systems also have a noticeable effect – thanks to fewer charging cycles, longer service life and lower investment costs.

For more scope in the energy system

The future belongs to intelligent storage systems

Today, energy is not only produced and consumed – it needs to be proactively managed, used in a specific way and economically optimized. Battery storage systems are much more than a technological addition – they are a strategic tool for designing a flexible, resilient energy system.

The four application scenarios demonstrate: Be it for charging parks, biogas plants, renewable energy parks or industrial companies – large-scale storage systems provide companies with room for maneuver, cost-effectiveness and independence. Accurate peak shaving, intelligent optimization of self-consumption, load shifting to support the grid and targeted participation in electricity trading create added value that pays off both technically and financially.

Modern systems are significantly more cost-efficient, durable and flexible in application than they were just a few years ago. Especially in view of volatile electricity markets and rising grid charges, the strategic use of storage systems offers an attractive solution – both as an independent source of revenue and to safeguard operational processes.

What’s particularly exciting: Battery storage systems enable targeted marketing of electricity at periods of high costs and can also be operated profitably as standalone units. Combined with a powerful energy management system (EMS), storage systems can be controlled even more precisely – whether in conjunction with dynamic tariffs, registered load management (RLM) or virtual power plants.

Large-scale storage systems are also a key element from the perspective of the energy transition: they stabilize the grid, increase the security of supply and make the integration of volatile generators such as wind and solar power scalable in the first place. The high reaction speed, coupled with management to support the grid, makes it possible to make better use of existing grid connections and avoid unnecessary investments in expensive extensions to infrastructure.

Investing in battery storage systems today lays the foundation for a scalable, robust and market-oriented energy system – while at the same time benefiting from increasing government support, a better funding framework and growing social tailwind.

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