Focus on electricity prices: Energy ministers are calling for better conditions in Stralsund

Focus on electricity prices: Energy ministers are calling for better conditions in Stralsund

The energy ministers of the federal states will meet in Stralsund on Thursday and Friday to discuss the pressing issues of electricity supply and electricity prices in Germany. Wolfgang Blank, the department head of Mecklenburg-Western Pomerania, clearly spoke out in favor of relief not only for large industry. He demands that small and medium-sized businesses and citizens also benefit from affordable electricity. In the current discussion, the need for a more flexible and digital electricity system is repeatedly highlighted in order to reduce costs Borken newspaper.

In this context, Blank emphasizes the role of battery storage as an example of innovative solutions. There are currently numerous applications for battery storage network connections, and the federal government should urgently ensure reliable framework conditions. Blank also calls for a reform of the procurement process and the establishment of clear criteria for the connection of projects. The goal is to store excess energy and feed it back into the grid when needed. Blank also criticized the current uncertainty in energy policy and the lack of planning security, as the expansion of renewable energies puts a strain on the electricity grid. This is also what she reports on Borken newspaper.

Challenges caused by negative electricity prices

Another relevant topic is the negative electricity prices, which have been occurring more and more frequently since the Corona pandemic. When production from renewable energies exceeds consumption, prices often fall negatively - a dilemma for operators of photovoltaic and wind systems who rely on predictable revenues. This phenomenon can now be observed all year round, no longer just on public holidays, but also regularly on normal weekdays. Operators of classic renewable systems are now increasingly being forced to pay for the electricity they feed in or to reduce production, for example Renewable energy reported.

This is where battery storage comes into play. You have the opportunity to consume electricity and receive money for it, which is particularly advantageous in times of negative prices. While 457 hours with negative prices were already registered in 2024, there were still 301 hours in 2023. This development shows that the market for large battery storage systems in Germany is booming and is expected to increase fivefold in the coming years.

Battery storage as the key to the energy transition

The integration of battery storage systems (BESS) is seen as crucial for a successful energy transition. Germany is expected to continue to play an important role in this area in the coming years. Strong political support and a variety of incentives, such as network fee exemptions, are driving investor interest. The market is divided into different segments: home storage, industrial storage and large-scale storage, with large battery storage in particular recording a rapid growth trend with an average annual growth rate of 31% until 2032, such as EY explained.

The driving forces behind this growth are the demand for cost savings and the desire for greater energy independence as well as the need to efficiently integrate renewable energies. The investment opportunities are also diverse, from manufacturing and operating battery farms to new business models and intelligent software solutions.

Given these challenges and opportunities, the upcoming meeting of energy ministers will be crucial in shaping the framework for a sustainable and affordable energy future.