German Utilities Threatened by Storage Batteries

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Solar battery sales are booming in Germany, Clean Energy Wire reported on August 27, 2018. But there’s just one problem. The Energiewende system – or transition to a low carbon, environmentally sound, reliable, and affordable energy supply – is causing utilities to lose economies of scale. Who could have imagined German distributors would be threatened this way five years ago.

Does a Classic Pincer Movement Threaten German Utilities ?

german utilities threatened
Grafenrheinfeld Nuclear Plant: Christian Horvat: CC 3.0

Kai-Philipp Kairies, director of technical consulting at RWTH Aachen University says the utilities face a classic bind. Because with product demand contracting, their expansion plans are on hold and their power sales are shrinking. Moreover, demand is elastic and they cannot simply increase prices.

Lithium-ion batteries have been catching up since they cornered the consumer electronics market. Tesla and others are knocking at the door with household energy storage. German homeowners are more than the so-called “tinkerers hooked up to lead batteries in their garage. Because they did not want to be dependent on ‘evil’ nuclear energy companies” as they once were.

More About the Uptick in Renewable Energy Demand

german utilities threatened
Solar Powered Church: C. Löser: CC 3.0

Clean Energy Wire advises, “One in two residential systems is sold in conjunction with a battery in Germany. In wealthy Bavaria, it’s even nine in ten.” We understand a genuine interest in contributing to energy transition is a factor in increased battery sales. Although apparently this additional cost will at best break even.

Grid operators are less enthusiastic about the transition. Who could have imagined German utilities threatened this way? Since the home systems all come on and go off at approximately the same time according to the sun, and causing larger peaks and valleys…

Clean Energy Wire thinks, “Many utilities will be in trouble, given that the retail business is characterized by high fixed costs.” This is not good news, since householders need them to purchase power to pay their capital costs. We do not have a solution. Somebody influential needs to look into this.

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Electricity has always intrigued me. I have been writing about batteries and energy storage for more than ten years, and have published over 4,000 articles on this website. During that time, I have researched developments across lead-acid, lithium-ion, sodium-ion, flow batteries, and emerging energy-storage technologies. My goal is to explain complex battery concepts in clear, practical language that anyone can understand. My writing career began unexpectedly after leaving the corporate world. What started as a search for a new direction gradually became a fascination with batteries, renewable energy, and the science that powers modern life. Writing may not have made me wealthy, but it has given me the opportunity to explore an industry that continues to evolve in remarkable ways.

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