Thinking outside the box for the energy transition
GESI_Blog_Benchmarking
Contents

Thinking outside the box for the energy transition

GESI_Blog_Benchmarking

International benchmarking: Other countries are much further ahead when it comes to electricity storage and BESS strategies. We took a look at who we can learn from.

Capacity market: Create market-based incentives – as in the UK.

The Federal Ministry of Economics has announced that it will establish a capacity market in 2027. It is worth taking a look at the United Kingdom, which has already established a functioning mechanism that creates market-based incentives for the provision of storage capacity.

The concept could easily be transferred to Germany. In our view, it is crucial to value storage services appropriately and to integrate large-scale batteries into capacity mechanisms in a way that is open to all technologies. Entrepreneurial initiative must be rewarded and it must be ensured that subsidized providers do not crowd out privately financed storage facilities.

Grid connections: Simplifying and speeding up procedures – as in California

Following the fundamental classification of large-scale batteries as installations “in the overriding public interest”, corresponding clarifications are required, above all in construction law. We also need standardized, transparent connection and approval procedures with defined deadlines in order to quickly connect more storage systems to the grid.

It is worth taking a look at California, which ensures planning and investment security with transparent connection processes to the transmission grid and standardized distribution grid connections (Rule 21) – with great success.

Grid serviceability: increase predictability, minimize restrictions – as in Australia

Australia scores with a test- and measurement-based frequency control system, precise requirements for storage specification and operation as well as customized offers for large batteries (“Very-Fast-FCAS”). This increases predictability and reduces grid-side restrictions.

Both are also important in this country. Investments in the grid, in additional connection fields and in digitalization are therefore essential. In our view, it also makes sense to develop dynamic price signals for grid-friendly operation and to ensure transparent access to grid status forecasts.

Grid fees: Create a separate category for storage – like the UK

In its grid fee system, the UK classifies storage facilities under “generation” (in a separate sub-category). According to German building cost subsidy regulations, however, storage facilities are considered pure consumers, which is contradictory, often leads to exorbitant charges and fails to achieve the desired control effect.

We therefore need an independent definition for storage and a permanent solution for participation in grid connection costs. Constructive proposals from the industry, such as dynamic grid charges, provide impetus for further discussions (AgNes process).

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