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 ?
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
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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Preview Image: Gross Power Generation Mix in Germany
