With new renewable energy capacity flooding onto the German grid at increasingly low costs, energy prices have become increasingly volatile, even falling to negatives at certain times. Particularly in the Winter and Spring there are drastic swings in the amount of renewable energy being generated. Battery energy storage systems are incredibly well placed to deal with this cheap intermittent power enabling residents to store this for use later in the day when energy demand is higher and prices increase.
It is great to be supporting the increase in energy storage deployment in Germany with clients sonnen, LG Chem and Hansol Technics.
Sonnen, the Bavarian residential energy storage specialist, is bracing for an uptick in German sales on the back of falling electricity costs. The company suspects electricity prices could hit new record lows in the coming weeks as renewable energy floods onto the system. “New records for renewable generation are usually set in late April or early May,” said Felix Dembski, Sonnen’s vice president of strategy. As a result, “we expect a continued uplift in storage due to falling prices for renewables in Germany,” he said. “In German renewable auctions, the reductions in price for solar -- and now offshore wind -- are staggering,” said Dembski. “It’s going to keep going.” Under these conditions the business case for batteries can only get stronger, he said. “Storage is the only technical solution to make sense of cheap, abundant, but intermittent electricity.”