BESS and Germany’s power market: will more batteries lower prices?

Germany is facing a rapid expansion of battery energy storage systems (BESS), driven by a growing project pipeline and increasing market participation across multiple electricity markets. While grid connection approvals point to a significant potential increase in storage capacity, not all projects will ultimately be realised, and not all available storage will be active in the Day-Ahead market.

In this webinar, we present the results of a sensitivity analysis based on our latest Q1 update of our European power price scenarios. We explore how different assumptions on battery storage deployment and flexible demand affect long-term Day-Ahead power prices for the next 20 years, like the base and capture prices, in Germany and discuss the implications for market participants.

Themes covered in the webinar:

• Current status of battery storage deployment in Germany

• The role of battery storage across electricity markets

• Modelling assumptions for BESS and flexible demand

• Overview of the “Central” scenario and the four sensitivity cases with different BESS and flexibility assumptions

• Impact of different BESS assumptions on Day-Ahead power prices and capture prices until 2045

What will you learn in the webinar:

In this webinar, you will gain a clear understanding of how battery energy storage systems are represented in long-term power price models and why modelling assumptions play a critical role when assessing future market outcomes. We will explain why grid connection approvals do not automatically translate into commissioned projects and why it is therefore unrealistic to assume that all approved BESS capacity will enter the market. You will learn how different levels of battery storage capacity and flexible electricity demand influence Day-Ahead price formation, and what sensitivity analyses reveal about market dynamics under conditions of high and low system flexibility. Finally, the webinar will provide guidance on how to interpret long-term power price scenarios in the context of a rapidly expanding battery storage pipeline in Germany.

Who should attend this webinar:

• Utilities and power market participants

• Investors and developers active in battery storage and renewable energy

• Energy traders and portfolio managers

• Analysts, consultants, and policy stakeholders interested in power market modelling and long-term price outlooks