Germany plans to open up inertia service market access to promote optimization of energy storage profit mechanism
May 26, 2025
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Germany's Federal Network Agency is accelerating two key electricity market reforms, which are expected to effectively improve the profitability of battery energy storage systems.
The core of this reform is to open up market access to inertial services for energy storage systems, providing a new gain path for lithium iron battery energy storage projects. At the same time, the grid fee mechanism will also be redesigned, and the relevant draft is currently soliciting opinions from the industry, which is expected to reconstruct the business model and investment return structure of German energy storage lifepo4 battery projects in the future.
Driven by favorable policies, the German energy storage market has responded positively. Energy storage developer Green Flexibility has announced the official launch of its first large-scale project and is positive about the reform expectations.

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