The development of battery storage systems in Germany: A market review (status 2023)

TL;DR

This paper provides a comprehensive review of the rapidly growing battery storage market in Germany, analyzing recent data, market trends, and prices to inform policy and model development.

Contribution

It extends previous work by offering detailed market figures, growth analysis, and price estimates for various storage systems in Germany as of 2023.

Findings

Home storage systems grew by 52% in 2022

Large-scale storage increased by 910% in 2022

Over 650,000 stationary BSS and 1.88 million EVs operated in Germany by 2022

Abstract

The market for battery storage systems (BSS) has been growing rapidly for years and will multiply in the future. With this extension of our previous works, we contribute key figures for model parametrization and political decision-making and depict the market development in Germany, one of the leading storage markets worldwide. In empirical analyses, we evaluate and combine all major public databases on national stationary and mobile storage as well as our databases from subsidy programs and extend the insights by literature research and bilateral industry exchange. In comparison to 2021, the market for home storage systems (HSS) grew by 52% in terms of battery energy in 2022 and is by far the largest stationary storage market in Germany. We estimate that about 220,000 HSS (1.9 GWh / 1.2 GW) were installed solely in 2022. The emerging market for industrial storage systems (ISS) grew by 24% in 2022, with a total of 1,200 ISS (0.08 GWh / 0.04 GW) installed. The market for large-scale storage systems (LSS) increased strongly by 910% with 47 LSS (0.47 GWh / 0.43 GW) commissioned. The electric vehicle (EV) market grew with 693,000 new EV (27 GWh / 43 GW (DC) / 4.5 GW (AC)) by 34% in terms of battery energy. System BSS prices increased significantly in 2022 and were estimated at 1,200 EUR/kWh for HSS. LSS prices ranged on average from 310 EUR/kWh to 465 EUR/kWh. In total, we estimate that over 650,000 stationary BSS with a battery energy of 7.0 GWh with an inverter power of 4.3 GW and 1,878,000 EV with a battery energy of 65 GWh and a DC charging power of 91 GW (12 GW AC) were operated in Germany by the end of 2022. The cumulative battery energy of about 72 GWh is therefore nearly twice the 39 GWh of nationally installed pumped hydro storage demonstrating the enormous flexibility potential of battery storage for the energy system.