The demand for energy storage in Germany is on the rise

Germany has a high number of installed renewables and a supportive policy structure that is driving the energy storage market. The market offers opportunities for players across the energy storage value chain as Germany needs reliable and efficient technologies to transform the energy system.


Photo: © Fraunhofer IWES | Energiesystemtechnik

Based on the Paris climate agreement from October 2016, Germany has set the goal to increase the share of renewable energy to at least 80 percent of the electricity consumption by the year 2050. There are already days where the renewable electricity production can cover up to 100 percent of the demanded electricity. On other days, fossil power plants are the main source of electricity. The integration of fluctuating renewable energy from wind and solar into the energy system requires innovative storage solutions.

Does your competence, value proposition or innovative idea fit into the developing storage market?

The German market is open for new concepts to be tested. Just recently a novel pumped storage concept for storing large amounts of electrical energy offshore began. There have been several years of research work and the project was financed by the Federal Ministry for Economic Affairs and Energy. Funding from national research programmes or through Horizon2020 is supporting further development. Contact us or a local EU adviser for further information about support.

Photo credit : © Fraunhofer IWES | Energiesystemtechnik

Photo : © Fraunhofer IWES | Energiesystemtechnik

The drivers behind the storage market

Electricity from the solar panels, locally produced and consumed, reduces transmission losses and grid constraints on the national grid. But home owners also see the economic benefits behind small scale batteries. There are more than 1 million installed solar panels on private rooftops.

The prices for solar panels and for batteries are falling and more than 35 000 households have invested in solar panel – battery systems. A driving ambition behind this is further self-sufficiency and self-consumption. The potential of self-consumption of the electricity in households will increase based on new business models and offerings.

Communities have started to develop rental and leasing models to connect private, local, rooftop solar systems and to store surplus electricity in large-scale batteries in order to stabilize the local grid.

A growing market segment

A growing market segment for solar and battery installation is targeting the real estate industry. With local, financial government support this market segment is growing quickly. The support is combined with the requirement that the owner of the real estate and the investor make sure the tenants get a better price for electricity from the solar systems on their rooftops compared to the price from the utility. Metering concepts and databased billing systems that are adjusted to the above-described requirements, are needed for the system. This is an open field for proven concepts that can be implemented in the German market right away.

Further developments are the storage concepts such as power-to-gas and power-to-heat. Price reductions and improved economics will drive the development further. Storage concepts will be an important part of a stable and reliable energy system, to meet climate goals and transform the energy system to be based on at least 80% renewables in 2050.


If your service and proposition could help to solve problems and improve storage technology or smart metering concepts, check out the market conditions and market access to Germany. To discuss your product solution with us or ask for more information, please contact:

Gerda Geyer
Market Adviser
Innovation Norway, Germany

(Originally published 16.12.2016, revised 15.04.2019)

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