Energy company VPI will invest up to €450m ($496m) in battery storage projects in Germany, the company’s chief executive told Reuters.
The investment is focused on developing up to 500MW of battery storage capacity across the country over the next three to five years, contributing to the German Government’s target for renewables to generate 80% of the country’s electricity by 2030.
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In 2023, wind and solar combined accounted for around 40% of Gemany’s total electricity generation. However, increasing renewables penetration still further will require a significant increase in battery energy storage technologies to help balance electricity supply and demand.
VPI expects to build ten battery storage projects in Germany, mostly in the north-east of the country, which has an abundance of wind power.
The company’s first investment in Germany will be through a joint venture with Quantitas Energy, an energy storage company. Jorge Pikunic, chief executive of VPI, told the news agency: “In Germany a lot of the opportunity (for batteries) is on the wholesale market… and that is because a lot of the renewable base is solar, which creates price differentials within the day.”
Most of the projects will be 60MW in capacity, Pikunic said.
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By GlobalDataGermany is considered a market leader in the rollout of solar and wind, but this has led to its energy market suffering from increased market volatility.
Increasing the deployment of battery storage technologies will mean they can benefit from selling stored electricity at times of demand.
According to a report published by Power Technology’s parent company, GlobalData, Germany’s battery storage capacity reached 4.78GW by the end of 2023.
