Why battery energy storage is essential for Germany’s solar targets

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From ESS News

Germany’s renewable energy industry is in full swing and delivering new generation capacity to the grid at unprecedented levels. With 90 GW of installed capacity, as of mid-2024, of which 7.5 GW were newly installed in the first six months of 2024, the solar market is likely to crack the 100 GW mark sometime in 2025. Despite that pace, Germany’s solar target of 215 GW of capacity by 2030 will require an even swifter run rate than the current 15 GW per annum.

Yet, at the same time, solar developers face increasingly unfavorable economic conditions which could lead to reduced enthusiasm to keep up this pace. A generally lower energy price outlook, relatively low guaranteed prices from (oversubscribed) FIT [feed-in tariff]/EEG [German renewable energy law]-auctions, and the increasing prevalence of negative power prices during the day are seen as the main culprits.

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