A Day in the German Power Grid – and What It Teaches Us

Between Power Price and Grid Constraints – Why Regional Grid Signals Are Crucial for Battery Storage Systems

The expansion of battery energy storage systems (BESS) is essential for the energy transition. But as the market grows, so does its complexity: national market mechanisms increasingly collide with regional grid realities. The following example illustrates why battery storage must be operated not only economically but also in a grid-supportive way:

National Context:

• Electricity Exchange (EEX): Across Germany, demand peaks in the early afternoon. Wind output is low in the north, and a dense cloud front moves in from the west. Prices rise above €150/MWh.

• Signal to BESS: From a national market perspective, the incentive is clear: inject energy into the grid – high prices offer attractive returns.

Regional Challenge (Example: Eastern Bavaria):

• In one region in Eastern Bavaria, skies remain clear and photovoltaic (PV) output is high. Local distribution networks are already heavily loaded.

• Injecting additional energy would further strain the system and potentially trigger costly redispatch actions.

  
  

➡️ What’s actually needed: Locally buffer the energy – rather than injecting it into the grid.

This example clearly demonstrates the tension between national price signals and local grid requirements – and how they can be misaligned.

Our Answer: Battery Storage with a Regional Operating Profile

The foundation: The white paper “Grid-Compatible Expansion of Large-Scale Battery Storage” by the Research Center for Energy Economics (FfE) provides a scientifically sound framework for why battery storage systems must be operated with grid compatibility in mind – not just based on market signals.

[Launch on May 27, 2025 – Link]

Our approach:

The energy transition can only succeed if battery storage systems do not operate solely based on national price signals but actively respond to regional grid conditions.

At green flexibility, we combine technological expertise, genuine cooperation with grid operators, and a long-term operational concept to deliver exactly that.

Referring back to our example: a battery storage unit optimized for regional operation would not inject power into the grid during high-stress periods, but instead support grid stability by holding back or absorbing power:

Based on the findings of the FfE white paper, we have developed a practical framework for grid operators to optimize regional dispatch strategies – with minimal effort required on their end.

We are taking the next step and actively seeking concepts and solutions!