Aachen University of Technology in Germany and Forschungszentrum Jülich evaluated relevant data, which showed that the demand for photovoltaic energy storage systems in 2019 is increasing, and the positive market atmosphere continues into 2020.
The JARA Energy scientists, composed of RWTH Aachen University and the research institute Forschungszentrum Jülich, released a detailed analysis and comprehensive data set on the development of the German energy storage market in 2019. They investigated the market development and prices of residential photovoltaic energy storage, industrial energy storage, and utility-scale energy storage facilities last year.
In the residential energy storage segment, including all battery systems with a capacity of 30KWh and below, the growth situation of the previous year has continued. In 2019, Germany added 60,000 household photovoltaic energy storage systems with a total capacity of about 250MW and an energy storage capacity of 490MWh. Therefore, as of the end of 2019, about 185,000 systems with a cumulative capacity of 750MW and an energy storage capacity of 1,420MWh have been installed. Between 2018 and 2019, the price of lithium-ion, the mainstream energy storage technology in the market, further dropped by 6 percentage points, reaching about 1,100 euros/kWh. According to scientists’ calculations, the price drop is mainly in the 5-10kWh of medium-sized household energy storage devices. Due to more favorable prices and growing demand for rooftop photovoltaics, researchers predict that the residential energy storage market will continue to grow significantly this year. “Despite the continuation of the new crown pneumonia epidemic, this industry will continue to grow and be able to meet the high demand for household photovoltaic energy storage systems,” said Jan Figgener from RWTH Aachen University. Starting in 2021, the industry will benefit from systems that exceed the German grid tariff subsidies and systems that use energy storage devices.
According to analysis, as of May 2020, the Federal Network Agency Bundesnetzagentur has registered more than 90,000 energy storage devices in the market master data book, and all energy storage devices must be filed in the data book. For industrial energy storage facilities with a capacity of 30kWh-1MWh, as of the end of 2019, there are about 700 registered, with a total power capacity of about 27MW and a cumulative capacity of more than 57MWh. However, a comprehensive market estimate cannot be derived from these records. All in all, about half of the industrial energy storage devices listed in the market data book were installed in 2019, and researchers predict that demand will continue to grow this year and in the coming years.
In 2019, only 9 new large-scale energy storage facility projects with a capacity of 1MWh and above were registered. Correspondingly, a system with a power of 50MW and an energy storage capacity of 60MWh was put into operation last year. These data show that the number of new projects in this segment has decreased significantly. As of the end of 2019, Germany had 68 large-scale energy storage facilities with a cumulative power of 460MW and a total energy storage capacity of 620MWh. The researchers explained that the slowdown in market growth was due to lower market prices, which mainly control reserves. The average weekly price has dropped from less than €1,500 per MW last year to around €1,000 per MW at the beginning of 2020. The researchers said in their analysis that this makes the market less attractive for new players. In addition, the Federal Network Agency has approved two pilot projects called “Network Boosters”, one is a 100MW/100MWh project and the other is a 250MW/250MWh project. These projects are expected to be put into operation in 2022, which can once again promote
Significant development of large-scale energy storage facilities. “According to the EEG draft, in the next few years, the innovative bidding for procurement for the first time in September 2020 will also become a fixed item in the bidding process and will once again bring significant improvements to the large energy storage market, so the prospects are still promising. “Figgener said. One finding of this analysis is that lithium-ion batteries are still the leading technology in all market segments. The new battery technology currently only plays a minor role in the project.