German consumers will pay less. The rapid development of large-scale batteries means savings running into the billions.

Accelerating the construction of large‑scale energy storage systems in Germany could deliver up to €2.8 billion in savings for households and businesses in 2035 alone. According to a new report by the Institute of Energy Economics at the University of Cologne, grid‑scale batteries will significantly reduce electricity price volatility and limit the waste of renewable energy.

Regulatory uncertainty vs. implementation of the plan

The report, commissioned by the energy storage developer and operator Green Flexibility, comes at a challenging moment for investors. The sector in Germany is currently facing major uncertainty related to evolving market rules — including reforms of grid tariffs, antitrust regulations, and the introduction of flexible grid‑connection agreements.

Researchers at EWI analyzed two extreme scenarios for the development of the energy storage market through the mid‑2030s:

• Accelerated scenario (aligned with the grid development plan) – assumes rapid expansion, reaching 32 GW of installed battery capacity by 2030 and 57 GW by 2035.
• Delayed scenario (reflecting current risks) – predicts that administrative barriers, permitting delays, and grid‑connection issues will limit capacity to 12 GW in 2030 and 19 GW in 2035.

Price stabilization and a lifeline for solar power

The analysis shows that a dynamic increase in battery capacity will directly translate into lower wholesale electricity prices — by €2/MWh in 2030 and €3/MWh in 2035. As a result, end‑user electricity bills could fall by up to 5% by the mid‑2030s. This aligns with conclusions for the Polish market presented in the article “Anatomy of High Energy Prices in Poland.”

Energy storage will stabilize the market by absorbing surplus electricity during low‑price hours and releasing it during peak demand. This will reduce daily price volatility by 26% by 2035. The difference between the highest and lowest hourly price will fall by 18% in 2030 and 25% in 2035.

The main beneficiary will be the solar PV sector. Batteries will shift consumption of green energy from cheap midday production peaks to more expensive evening hours, increasing the market value of PV electricity by nearly €4/MWh — an 18% jump by 2035. The impact on wind power will be more mixed: the market value of onshore wind is expected to fall by 5%, and offshore wind by 12%, as batteries will discharge during periods of strong wind and relatively higher prices.

Ending renewable energy waste and reducing fuel imports

The greatest structural advantage of rapid deployment of large‑scale batteries is the reduction of renewable energy curtailment. Under the accelerated scenario, curtailment of clean energy would fall by 36% in 2030 and 48% in 2035. These systems will also reduce redispatch costs, although researchers note that Germany’s current structure as a single price zone provides limited financial incentives for batteries to respond to local grid bottlenecks.

Beyond financial benefits for consumers (a reduction of 0.3 cents/kWh in 2030 and 0.4 cents/kWh in 2035), mass deployment of batteries will significantly strengthen the country’s energy security. Large storage systems will replace fossil‑fuel power plants during periods of high residual demand. As a result, Germany’s natural gas imports will fall by 4% in 2030 and 5% in 2035, while hard coal imports will decrease by 9% and 1%, respectively.