As Germany undergoes its energy transition,, the need for flexibility in the electricity system is growing rapidly in Germany.
Battery energy storage systems (BESS) are considered a key technology in this context.
A new study (in German) by Frontier Economics on behalf of TenneT TSO GmbH examines how a system-beneficial dispatch of the growing stock of large- and small-scale BESS can be promoted.
In view of the increasing economic efficiency of battery storages, a strong increase is to be expected in the coming years. Against this background, the study discusses various regulatory and market instruments that can specifically promote a system-beneficial dispatch of BESS. The instruments are evaluated separately for large-scale and small-scale BESS on the basis of criteria such as effectiveness, cost efficiency, speed of implementation and distribution effects.
For large-scale BESS, we identify interruptible grid connections and facilitating participation in 13k of the German Energy Industry Act (EnWG) as particularly promising approaches to optimising the system-beneficial dispatch in the short term. For the medium term, the introduction of local flexibility markets via so-called flexibility platforms is identified as beneficial.
For decentralised small-scale BESS in the household and commercial sector, we recommend first incentivising market-oriented behaviour and then considering grid-supportive behaviour at the distribution grid level. A market-oriented dispatch can be particularly favoured by switching the funding from the current kWh-based to a kW-based funding and by increasingly establishing dynamic electricity tariffs (as already foreseen). Furthermore, kW-based network charges prevent a loss of solidarity in network charges, and the static time-variable network charges provided for in Section 14a of the EnWG promote network-beneficial behaviour.
For further information, please contact media@frontier-economics.com or call +44 (0) 20 7031 7000.
Author
Director
Consultant
08 April 2025
