Germany facing the battery wave
The scale of interest in large-scale energy storage in Germany has reached a level that, from the perspective of grid operators, is no longer manageable under the existing rules. According to the latest study by the German Association of Energy and Water Industries (BDEW), the system currently includes over 720 GW of grid-connection applications for battery energy storage systems — more than two and a half times the total installed capacity of the German power system, which is around 263 GW. For comparison, the annual maximum power demand on the transmission grid is only 80 GW. Even the already-approved connections, amounting to roughly 78 GW, significantly exceed the long-term development scenarios for the power system.
Energy storage as a system asset, but also in competition for grid access
According to BDEW president Kerstin Andreae, the rapid increase in grid-connection applications reveals a fundamental problem: the capacity of the medium- and high-voltage grid is becoming a scarce resource. Energy storage systems now compete for the same infrastructure as data centers, large heat pumps, EV-charging infrastructure, and energy-intensive industries.
At the same time, BDEW considers energy storage systems to be an essential component of a modern energy system. They enable shifting production over time, reducing peak loads, and increasing security of supply. The problem is therefore not the technology itself, but the lack of regulatory frameworks that take into account its massive scale and system impact. The long-standing “first come, first served” rule for grid connections increasingly fails to reflect the realities of the energy transition.
Regulations instead of gridlock: from connection queues to scarcity management
In response to growing tensions, BDEW has called for urgent regulatory changes. The organization advocates more transparent connection procedures that better reflect actual grid constraints. At the same time, it sees a need to move away from automatically processing all applications in chronological order. One of the first proposed steps is to exempt energy storage systems with a rated capacity of at least 100 MW from the current regulations applied to power plants.
Political signals indicate that these changes may be implemented quickly. The Federal Network Agency has already announced approval of 25 GW of energy-storage connections in 2024 alone, and representatives of the federal government are preparing amendments to the relevant regulations. Among the instruments under consideration are flexible connection agreements, reservation mechanisms, and controlled oversizing of grid connections.
The German case shows how quickly technological success can turn into a system-level problem. Energy storage remains a crucial pillar of the transition, but its further development will only be possible if the pace of investment is synchronized with grid realities and the new rules governing access to infrastructure. Otherwise, the “battery tsunami” may not only overload the grid but also slow down the very energy transition it was meant to support.
To conclude, it is worth quoting the words of the president of the German Association of Energy and Water Industries, which aptly capture the essence of the current situation in the German market:
“Energy storage technologies are an essential element of a modern power system. They help balance production and consumption and increase security of supply. But to fully play their role, they must be integrated into the system consistently and responsibly.”