German Energy Storage Operator Study: Static Grid Constraints Could Cause Up To 25% Revenue Losses For Large-Scale Battery Storage

 

German Energy Storage Operator Study: Static Grid Constraints Could Cause Up to 25% Revenue Losses for Large-Scale Battery Storage

 

A study commissioned by Green Flexibility and conducted by BET Consulting suggests that static operating constraints imposed by grid operators on large-scale battery storage systems in flexible grid connection agreements could lead to revenue losses of up to 25%. The study simulated the operational performance of a 10 MW/20 MWh cross-market optimized energy storage system under various operating constraints in 2024.

 

The study shows that static power output constraints resulted in 5,840 hours of operational limitation across the observed grid area, reducing energy storage operator revenue by approximately 25%. In contrast, dynamic constraints, while affecting only 240 hours annually and achieving similar grid planning effects, resulted in only about a 1% revenue loss. Grid operator constraints also reduce frequency regulation service revenue; the model energy storage system, which originally provided 15 GWh of frequency regulation power, saw its planned extraction reduced by up to 50% under these constraints.

 

Flexible grid connection agreements typically combine multiple constraints, and the study indicates that in the most severe cases, this could reduce energy storage operator revenue by 50%, jeopardizing the project's commercial viability. Christina Hepp, Director of Strategy at Green Flexibility, stated that constructive dialogue is needed to balance the interests of all parties. The company has already put its first battery energy storage system using the REGIOlink concept into operation in Immenstadt, aiming to provide regional grid support through large-scale energy storage facilities.