Potential and investment opportunities for battery storage projects

published on March 19, 2025

The energy transition and the transition to renewable energies have significantly increased the importance of battery storage systems. This technology offers diverse potential and opens up numerous investment opportunities. German legislators have recognized the importance of battery storage for the energy transition and are actively providing incentives to promote investment in this technology. Battery storage systems not only offer a solution for storing surplus energy, but can also enable considerable savings in grid charges and grid levies if optimally designedUS

Potential of battery storage systems

grid stability and frequency control - Battery storage systems play a decisive role in stabilizing the electricity grid. They can compensate for frequency fluctuations and provide energy quickly when needed. This is particularly important to ensure the reliability and efficiency of the electricity grid.
integration of renewable energy - The storage of excess energy from renewable sources such as wind and solar energy enables a continuous and reliable energy supply. Battery storage helps to reduce dependence on fossil fuels and maximize the use of renewable energy.
emergency power supply - For businesses and critical infrastructure, battery storage provides a reliable emergency power supply during power outages. This is particularly important for hospitals, data centers and other facilities that rely on an uninterrupted power supply.

Investment opportunities

energy trading and arbitrage - battery storage offers the opportunity to buy and store electricity at times of low prices and then sell it at peak times with higher prices. This opens up lucrative business opportunities in energy trading.
optimization of self-consumption - Companies can maximize their self-consumption of self-generated electricity by storing excess energy and using it later. This leads to cost savings and greater independence from the electricity grid.
provision of reserve capacity - battery storage systems can serve as reserve capacity and are paid to provide energy quickly when needed. This creates additional sources of income and contributes to the stability of the electricity grid.

Energy-economic potential of battery storage systems - with optimal design

full exemption from grid fees under the Energy Industry Act (EnWG) - Battery storage systems can be fully exempt from grid fees under certain conditions in accordance with the EnWG. This exemption applies in particular to storage systems that have no final consumption and are used exclusively for the intermediate storage of electricity. This prevents the stored electricity from being charged twice with grid fees, which significantly improves the economic efficiency of battery storage systems.
reduction of grid charges (Electricity Grid Charges Ordinance / StromNEV) - If a complete exemption from grid charges cannot be considered in the context of the specific storage project, there are alternative options for reducing the grid charges. Controllable consumption devices such as battery storage systems can benefit from so-called individual (limited) grid charges if they are used for feed-out - intermediate storage - and feed-back into the general supply grid.
grid-friendly operation (StromNEV) - Companies that organize their electricity use flexibly and avoid peak loads can achieve further reductions in grid fees through this “grid-friendly operation” - on top, so to speak. This is referred to as atypical grid usage. Battery storage systems play a key role here, as they minimize electricity consumption during peak load times and thus enable direct cost savings. By intelligently controlling the storage systems, the main power consumption can be shifted to off-peak times.
exemption from grid levies under the Energy Financing Act (EnFG)- Battery storage systems can also be exempted from grid levies under the EnFG. This exemption applies to the electricity used for the purpose of intermediate storage. This further reduces operating costs and increases the attractiveness of battery storage systems.

Grid connection costs

costs of establishing the grid connection - In principle, the connection recipient bears the costs of the grid connection (for the battery storage system). Grid connection costs are the costs for the technical connection or modification of the subscriber's system to the grid of the grid operator at a suitable connection point, including all directly attributable equipment required in this context for secure grid operation. Cost determination - principle of appropriateness and full cost reimbursement: reimbursement of the costs of establishing or modifying (if initiated by the subscriber) the grid connection necessary for economically efficient operation - follows from the legal concept of § 9 Para. 1 NAV and § 9 Para. 1 NDAV (low voltage), which are not directly applicable to grid connections in accordance with § 17 EnWG.
construction cost subsidy - In addition, the NB can charge a BKZ for the network expansion that is not necessary directly at the connection point, but elsewhere in the operator's network. One-off (performance-dependent) expenses for the expansion (creation and/or reinforcement) of the upstream network when establishing or reinforcing a network connection.

Cost calculation - The calculation is based on the so-called performance price model, which is specified by the Federal Network Agency and published in an official position paper (position paper on the levying of construction cost subsidies for grid connections at grid levels above low voltage of BNetzA/BK 8 of 20 Nov. 2024).

This cost calculation could change for battery storage systems. The Federal Court of Justice is currently dealing with the permissible amount and determination of the construction cost subsidy for battery storage systems. It is worth following these proceedings.

Legal framework conditions

legal approval requirements - The construction and operation of battery storage systems are subject to various legal approval requirements. Depending on the size and location of the storage facility, different permits may be required, such as building permits or environmental impact assessments.
energy industry law requirements - Battery storage systems are considered energy systems and are therefore subject to the provisions of the Energy Industry Act (EnWG). This includes, among other things, the requirements for grid connection conditions and the regulations on grid integration.
funding opportunities and regulatory incentives - There are various funding programs and regulatory incentives that support the use of battery storage systems. These include subsidies from the Federal Ministry for Economic Affairs and Climate Protection and specific regulations in the Renewable Energy Sources Act (EEG).

Battery storage systems offer both technological and economic advantages. They are key to the successful integration of renewable energies and to ensuring a stable and reliable energy supply. Investments in battery storage systems open up a wide range of opportunities and contribute to the sustainable development of the energy industry.

We support you with our interdisciplinary expertise in the profitability analysis of your battery storage project - on the way to identifying the best option in terms of costs, benefits and risks.