Energy Transition

They represent the gold standard for harmonizing grid security and renewable energy: Virtual power plants combine decentralization, digitization, and democratization because almost every electricity consumer can also become a producer. Their future prospects are promising—provided they are intelligently linked with energy storage systems.

The energy storage market is experiencing rapid growth. In 2023, the global market nearly tripled, marking the largest year-over-year increase to date. In Germany, the sector saw a 46% increase compared to the previous year, driven primarily by the rising demand for home energy storage systems. To sustain this momentum, political frameworks for large-scale storage facilities must be adjusted to facilitate accelerated expansion.

It’s widely accepted that energy storage is essential for advancing the energy transition, but the range of energy storage options is vast—from residential systems to large-scale industrial storage. DRIVEN explores the key segments driving this crucial market.

Energy storage systems are key to the energy transition. Despite double-digit annual growth in market volume and storage capacity, numerous legal, technical, and bureaucratic obstacles still hinder their widespread adoption.

Good news: The share of renewable energy has reached a new high. In the first half of 2024, 58 percent of Germany’s electricity production came from renewable sources, up from 52 percent the previous year. However, the energy transition risks stalling due to lengthy approval processes and opaque funding measures, particularly for energy storage systems.

Energy storage is essential for the expansion of renewable energies. However, the variety of storage options is vast, ranging from large pumped storage power plants to decentralized battery stations. Which energy storage should one rely on?

Stationary power storage is essential for the energy transition. With the increasing share of renewable energies in power production, load management becomes increasingly important as power production and demand fluctuate over time. Integrated into local and municipal power grids, discarded drive batteries from electric cars can have a second life and play a central role in grid stability.

Fears loomed large when Germany’s last nuclear power plant was taken offline about a year ago. However, after the first winter without nuclear power in Germany, it can be confirmed: supply was consistently secure, prices significantly cheaper than in the winter of 2022/2023, and the share of renewable electricity has risen markedly again – a trend also observable in other European countries.

In 2023, Germany achieved a historic milestone: over half its electricity came from renewables, leading the EU with a 56% share. Wind energy now surpasses coal, highlighting the nation's green transformation. Despite progress, the expansion of wind turbines remains slow, underscoring the urgent need for enhanced storage technologies to secure a sustainable future.

The energy transition requires a paradigm shift in power supply: storage capacities for green electricity must be massively expanded. Electric car batteries can contribute to electric grid stability. They are particularly sustainable if the batteries are produced in Europe.

The US government has made a total of 12 billion US dollars available to car manufacturers and suppliers in the form of grants and loans for the expansion of electromobility out of a total volume of 370 billion dollars.

The German Federal Network Agency’s annual report points out the weak spots: In 2022, around 900 million euros had to be spent on stabilizing the electric grid because grid bottlenecks prevented the use of renewable energies.