Three reasons why 2025 will be a great year for the German battery energy storage market!

Germany's Battery Energy Storage System (BESS) market is poised for significant growth in 2025, driven by three key factors:

1. Increased Renewable Energy Integration: Germany's renewable energy capacity, especially solar PV, continues to expanding rapidly, with over 14GW additional PV installations in ‘24, for a total soon exceeding 100GW. This growth necessitates efficient energy storage solutions to manage intermittent supply and demand, positioning BESS as a critical component in stabilizing the grid.

2. Attractive investment metrics for Grid-Scale Battery Storage: With increased price volatility in energy markets and increased prices for balancing capacity, the BESS investment - for now - continues to improve and solidify. As investors and banks get more comfortable with the investment case, expect the financial close announcements to accelerate.

3. Advancements in Market Design and Regulations: Also in the project development phase, the German market is improving and streamlining: 2025 is likely to see additional DSO BESS-grid-support project tenders, accelerated grid connections from the improved treatment of BESS as grid-supporting, more clarity on grid-connection costs and more widely applied preferential treatment of BESS for building permitting. 2025 is likely to see BESS projects reach ready-to-build status at scale.

These developments highlight 2025 as a pivotal acceleration year for the German BESS market, offering promising prospects for stakeholders ready to capitalize on the evolving energy landscape.