State of Policy and Market of Storage in Germany

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Recording of Tuesday, June 18, 2024 | The smarter E Europe | Conference Program | Language: English | Duration: 8:19 .

German Energy Policy Shifts: Reduced Hydrogen Targets, New Storage Strategy, and Capacity Mechanism Announced

Claudia Günther, leader of Aurora's Northwestern research team, provides an update on Germany's evolving energy policy and battery storage landscape. Over the past year, significant changes have occurred in government strategy. Initially ambitious plans for over 20 gigawatts of hydrogen-fueled gas assets were scaled back to 10 gigawatts by early 2023. Additionally, a new capacity mechanism set to be implemented by 2028 signifies a major shift from previous policies that maintained the energy market as the sole capacity reserve. Battery storage has seen substantial growth in Germany with an elevenfold increase in capacity over five years driven largely by behind-the-meter installations and utility-scale assets. Despite this growth, there are no definitive official targets for future battery capacity; guiding scenarios suggest potential capacities ranging from negligible additions to more than 270 gigawatts by 2045. The German government's newly released storage strategy outlines numerous initiatives including regulatory improvements for hybrid renewable-battery systems, facilitated through recent legislative packages like the solar package passed by parliament. Another focus is market-based procurement of ancillary services influenced heavily by EU legislation under the clean energy package which could yield high revenues for battery storage initially. In summary: while positive steps are being taken towards better integration and support for battery storage within Germany’s energy framework; clear long-term objectives remain undefined.

Automatisierte Zusammenfassung durch AI Conver

Claudia Günther
Research Lead
Aurora Energy Research
Germany

In the first quarter of 2023, the EU Commission produced a veritable torrent of favorable policy proposals, with the Electricity Market Reform (EMR) at its core and backed by recommendations to the EU Member States to ensure the more wide-spread deployment of energy storage. At the last ees Europe Conference, we discussed these proposals in detail - but what has happened since then? What actions and measures have followed and how effective will they be in unlocking the potential of energy storage?In this panel, we will discuss the state of implementation of the EU energy storage policy, what has gone well, what has not, and what more should be done.

Further Talks of this session:

Speaker

Lars Stephan
Senior Manager Policy & Market Development
Fluence
United Kingdom

To Talk

Speaker

Elodie Perret
Head of EU Affairs
BayWa r.e.
Belgium

To Talk

Speaker

Luz Carmen Perez Sanchez
Head of CAPEX Management
Iberdrola
Spain

To Talk

Speaker

Aleksandra Radwanska
Country Manager Next Kraftwerke Poland
Next Kraftwerke GmbH
Germany

To Talk

To Talk

Speaker

Lars Stephan
Senior Manager Policy & Market Development
Fluence
United Kingdom

To Talk

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