
Baseline
Energy storage systems are playing an increasingly important role in the realization of the energy transition in the system infrastructure, both in the electricity and heating sectors and now also in mobility — on roads, water, and in the air.
Electricity
In the electricity sector, the main focus lies on large generation facilities and transmission networks. The challenge regarding transmission networks is to optimize the existing capacities and balance load peaks, such as those caused by the generation peaks of photovoltaic (PV) installations. At the same time, it is crucial to maintain the grid frequency stability, which requires balancing generation, consumption, and reactive power to ensure a reliable power supply.
For decades, pumped storage has dominated this sector. Germany has more than 30 pumped storage power plants (PSW), with a total capacity of around 40 GWh and a power output of 6.4 GW. This still accounts for about 90 percent of the entire electricity storage capacity in Germany.
Market Composition and Overview

30 PUMPED STORAGE
POWER PLANTS (PSW)

6.4 GW CAPACITY

90% OF THE TOTAL
ELECTRICITY STORAGE
CAPACITY

GROWING SHARE OF LARGE BATTERY STORAGE (1GW)
Apart from that, large-scale battery storage is increasingly gaining importance in the system infrastructure. Their very fast response times mean that batteries can provide important system services particularly efficiently and optimize grid utilization. This means they are able to react to changes in the grid within milliseconds and supply or absorb power. Although there is still significant potential and demand for new high-performance pumped storage plants in Germany, battery storage systems offer more decentralized flexibility. Currently, about 1.1 GW of large-scale battery storage is installed in Germany. The Federal Network Agency has recently included a need for 27 GW in the grid development plan.
Storage systems are increasingly being used at large wind or solar PV parks to smooth out the feed-in of wind and solar power and capture generation peaks. This ensures a flexible and continuous power supply from renewable sources and avoids curtailments of wind power. These storage services drive the energy transition forward and save costs at the same time.
Heat
Large-scale thermal energy storage is typically used as part of district heating networks to ensure the heat supply to connected customers. Storing excess heat energy can compensate for fluctuations in heat generation from renewable sources such as solar thermal or biomass. They help reduce the use of fossil fuels and increase the share of renewable energies. At the same time, they enhance supply security and enable more efficient use of generation capacities.
Large-scale thermal energy storage can also function as buffer storage in electricity grids, playing an essential role in stabilizing the grid. In times of excess renewable energy, surplus electricity can be used for heat generation, for example, in heat pump operation or power-to-heat systems. This way, a more efficient coupling of the electricity and heat sectors can be achieved.
Mobile thermal storage systems are also increasingly being used in the system infrastructure. In particular, wherever the construction of a heating network encounters difficulties, mobile thermal storage systems can close supply gaps and deliver renewable heat to the customer in a precisely fitting manner
Hydrogen
The market entry of hydrogen as an energy carrier is imminent in the field of system infrastructure as well. First conversion measures for storage infrastructure in caverns have already begun, and electrolyzers are in the planning stage. Hydrogen offers significant potential as a long-term storage solution as a renewable energy carrier but is also increasingly being used in mobility and as a replacement for fossil fuels in the industry.
Mobility
Energy storage technologies are of particular importance for the mobility infrastructure. Especially for fast-charging stations and charging parks for multiple electric vehicles, they are becoming an indispensable component. Buffer storage or integrated batteries ensure high charging power and effectively reduce charging time. Expanding the power grid takes time and is costly, while storage solutions can offer a quick and flexible alternative, especially in urban areas.
Charging stations with integrated buffer storage now enable charging capacities of up to 350 kW. This means an electric vehicle can be recharged within about 15 minutes without putting an extraordinary burden on the power grid.
Batteries, in particular, are also used to supply ships and port infrastructure. The group of storage technologies, summarized under Power-to‑X (Power-to-Gas, Power-to-Liquids, Synfuels, etc.), also allows for the integration of renewable fuels in aviation and heavy-duty transportation, driving the energy transition in the transportation sector.
Market indicators: Sales of large-scale battery storage in Germany

2020

2021

2022

2023
Challenges and BVES’s Advocacy
BVES is actively promoting the broad use of energy storage systems as a provider of the necessary flexibility and as a guarantee of supply security in the system infrastructure of electricity, heat, and mobility. Many application areas are still new and urgently need regulatory consideration and simplification. A uniform approval practice would be an important first step.
The BVES working groups support and accompany the implementation of new energy storage projects in Germany, analyze the legal framework, and develop improvement proposals. Financing larger projects by banks, financial service providers, and insurers is a central issue in realizing the construction of large-scale storage facilities. Therefore, the Finance Working Group deals with the analysis of business models, and the development of incentive systems for flexibility solutions, and facilitates discussions between investors, banks, and insurance companies.
Additionally, the Norms and Standards department works on the development of independent technical connection regulations for storage systems to ensure a uniform and secure integration of storage into the energy systems.

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