The Rise of Large-Scale Storage Systems - Driving Growth in the Storage Market and an Indispensable Pillar of the Energy Transition

Press Release – Thursday, March 27, 2025

The energy transition has reached a crucial point. The steady growth in power generated by renewable sources of energy is, in turn, giving rise to greater demand for effective grid stabilization solutions. Large-scale battery storage systems play a vital role in this regard – they are not only the answer to grid integration challenges, but also a key driving force behind the enormous growth in the storage market. Over the next few years, the rapid increase in large-scale storage systems is set to drive European market growth by between 30 and 40 percent a year, according to a recent analysis from European industry association SolarPower Europe. This technology is essential when it comes to ensuring a flexible, needs-based and renewable 24/7 energy supply. Large-scale storage systems will therefore be firmly in the spotlight when the storage industry’s major players and visionaries meet, exchange ideas and network with decision makers and stakeholders from industry, science and politics from May 7–9, 2025 at ees Europe, Europe’s largest and most international exhibition for batteries and energy storage systems. ees Europe is part of The smarter E Europe, Europe’s largest alliance of exhibitions for the energy industry. Over 3,000 exhibitors and more than 110,000 visitors from all corners of the globe are expected to attend the event in Munich.

Germany is an excellent example of the tremendous momentum at play. According to the business consultancy firm Frontier Economics, large-scale battery storage systems totaling around 1.4 gigawatt hours (GWh) were installed in Germany at the start of 2023. According to the latest grid development plan, we will see an increase in installed capacity of large-scale battery storage systems up to 61 GWh by 2027 and up to 136 GWh by the target year of 2045. A study by the Fraunhofer Institute for Solar Energy Systems ISE backs up this trend, with forecasts of 104 GWh by 2030 and 178 GWh by 2040. At the end of 2024 and into early 2025, the four transmission system operators in Germany alone had 650 grid connection requests for battery storage systems with a total capacity of approximately 226 gigawatts. Even if it is not possible to implement anywhere near all of these planned projects, this clearly highlights the rapid expansion and growing importance of large-scale battery storage systems for the future energy transition in Germany.

Falling installation and operating costs as well as lower prices for batteries are boosting the large-scale storage boom.

Price erosion and fast amortization

The boom in large-scale storage systems is primarily driven by two factors. Firstly, installation and operating costs are falling significantly, largely due to the continuous and palpable decrease in battery prices. Secondly, commercially operated large-scale storage systems provide attractive market earning potential for operating reserves as well as intraday and day-ahead electricity trading. Leonhard Probst from Fraunhofer ISE considers a payback period of three years to be realistic. Assuming a battery service life of 15 years, that leaves a further twelve years to generate profits from the considerable amount of excess power.

Industry association calls for regulatory reform

SolarPower Europe expects large battery storage systems capable of storing electricity for longer than current systems to gain in popularity across Europe. According to a report from the industry association, this could lead to a significant increase in capacity duration from around 1.5 hours today to between four and eight hours. At the same time, the Vice-President of SolarPower Europe, Dries Acke, pointed out obstacles that are still hindering the boom’s progress, such as restrictions for storage systems connected to solar and wind farms, and varying technical norms and standards across different EU member states. Germany has already taken a major step forward. Large-scale storage systems that are connected to the grid by 2029 are exempt from grid charges for 20 years, meaning they no longer pay double charges for electricity fed into and withdrawn from the grid.

Integration and flexibility

Large-scale storage systems provide the key solution to efficiently integrate increasing renewable electricity flows into the grid. Storage on a large scale enables volatile and decentralized solar- and wind-generated electricity to be available precisely when it is needed. This means large-scale storage systems can be used in a way that is both grid- and system-serving. Using these systems enables producers and consumers alike to benefit directly and indirectly, for example through falling overall wholesale electricity prices and additional flexibility options in electricity trading. In Germany alone, Frontier Economics estimates the economic value of day-ahead trading to be at least 12 billion euros by 2050. This value stems primarily from saving fuel and the associated carbon emissions.

Grid boosters ease the burden on the power grid

Transmission system operators are also relying on grid boosters to make the grids fit for purpose within the energy system of tomorrow. From a technical perspective, these systems are no different to large-scale battery storage systems, but the difference lies in how they are operated. They are exclusively used to achieve grid stability. Two projects from Tennet provide excellent examples of this. A large-scale storage system in northern Germany is set to take in surplus wind-generated power, while its counterpart in the south simultaneously feeds electricity into the grid. In other words, two battery storage systems are acting as a transmission line hundreds of kilometers long, making huge construction cost savings in the process.

ees Forum and ees Europe Conference: Large-scale storage systems under the spotlight

During the first afternoon of the exhibition, visitors to the ees Forum in hall C2 (booth C2.230) can expect an informative session exploring promising business models and applications for large-scale storage systems. At the same time, numerous exhibitors from this sector will also showcase their latest solutions and products in the exhibition halls. In parallel to the exhibition, the ees Europe Conference takes place in the International Congress Center Messe München on May 6–7, 2025. During a series of high-caliber sessions, specialists and decision makers discuss various aspects of large-scale storage system technology. The first day tackles the question of the need for regulatory action in order to take advantage of the full flexibilization potential of large-scale storage systems. Meanwhile, a panel discussion shines the spotlight on areas of tension between investor preferences and project development. In a third session, participants take a look at the big picture and provide an overview of current future trends, market developments and relevant applications. On the second day of the conference, two sessions focus on the key quality characteristics of large-scale storage systems and the attractive business prospects they can open up.

Die ees Europe sowie die Parallelveranstaltungen Intersolar Europe, Power2Drive Europe und EM-Power Europe finden vom 7. bis 9. Mai 2025 im Rahmen von The smarter E Europe, Europas größter Messeallianz für die Energiewirtschaft, auf der Messe München statt.

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