The expansion targets for renewable energies are ambitious worldwide. However, electricity from the sun and wind also causes problems as it is not permanently available and, for example, is generated in excess during strong wind events or in summer in the midday sun. But we need stable power grids in terms of voltage and frequency. Many renewable energy sources are not plannable, they are volatile and thus represent a burden for the grids. The fluctuations must be balanced and overproductions are lost unused.

Battery storage systems have been identified as a central solution to this problem. They provide the necessary flexibility because the battery storage systems can provide their full capacity in seconds. If there is an excess of electricity from renewable sources, the storage systems absorb it. The technology is so sophisticated that an efficiency level of around 90% can be achieved.

The effective lifespan of large batteries is around 15 years. Thanks to advances in technology over the last 10 years, BESS systems have become 80% cheaper and thus economically viable.
The problem and demand for a stable solution and the fact that battery storage technology has become profitable will have the positive effect of increasing the market to 120 to 150 billion US dollars by 2030.

According to a study by the Fraunhofer Institute for Solar Energy Systems ISE, Germany alone will have to expand its battery storage capacity by a factor of 200 to 104 gigawatt hours by 2030 in order to be able to obtain 80 percent of its electricity from renewable sources. The European Court of Auditors sees Europe as clearly lagging behind in a global comparison of battery storage capacities and therefore calls for a new strategic action plan in the special report 15 (year 2023), with a special focus on ensuring access to sufficient raw materials, the rare earths.

The greatest demand and growth in BESS is expected in the so-called FTM (front of the meter) area, the area of electricity generation and distribution. This is estimated at around 29 percent. The commercial and industrial and residential sub-segments in the so-called BTM (behind the meter) area will each grow by 13 to 14 percent by 2030. This is the result of research by McKinsey & Company.

The key FTM area includes the players involved in renewable energies, developers, utilities and grid operators. Most of the money invested in BESS is still spent on services that increase the flexibility of energy suppliers. In the future, investments will focus on systems and large-scale battery storage that meet the demand for short-term storage of solar and wind energy.

To successfully enter the BESS market, you have to think big and act fast. The market is in a real boom phase, with the major players dynamically positioning themselves in prime locations. At some point, it becomes difficult for smaller developers and technology companies to keep pace or even enter the market.