Market Trends of Germany Energy Storage Systems Industry
This section covers the major market trends shaping the Germany Energy Storage Systems Market according to our research experts:
Battery Systems for Storage of Renewable Energy to Witness Significant Growth
- The deployment of the battery energy storage system is anticipated to increase in the coming years due to the changes in the power sector. The country has witnessed a significant increase in renewable energy installation in recent years. Lithium-ion batteries are expected to have higher demand during the forecast period.
- With the declining costs of lithium-ion batteries, the demand for batteries registered a substantial rise for residential and commercial uses, especially in the electronics and vehicle markets. Battery costs in the country have declined by more than half, and this trend is expected to continue in the coming years.
- As of March 2021, there were over 300,000 residential battery systems in the country, with a majority of these connected to solar energy.
- With more than 58.4 GW of solar capacity and more than 63.7 GW of wind energy capacity in 2021, the requirement for a storage system is expected to grow during the forecast period.
- Such development in the renewable energy sector and reduction in battery prices are expected to significantly propel the demand for battery systems to store renewable energy.
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Upcoming Projects and Government Initiatives to Drive the Market
- Several public and private initiatives in the country are cooperating to develop energy storage technologies. To support the demand for storage systems and renewable energy, the federal government is making PV battery system investment highly attractive by providing unique incentives, including low-interest rates on loans and investment grants.
- The energy storage market in Germany has experienced a massive boost in recent years, majorly due to the country's ambitious energy transition project, Energiewende. The boom in batteries and other storage technologies is expected to impact Germany's energy transition significantly.
- Installed wind energy capacity in Germany has also witnessed significant growth in recent years, growing from 26.9 GW in 2010 to 63.7 GW in 2021.
- In October 2022, Fluence Energy and TransnetBW announced plans to develop a 250 MW battery energy storage (BES) as a transmission project in Germany. The Netzbooster project is expected to be completed in 2025.
- Such developments and government initiatives are likely to boost the demand for energy storage in the country during the forecast period.
