Reasons for a Battery Storage System in Your Municipality
- green flexibility
- May 21, 2024
- 4 min read
Updated: Apr 30
The use of renewable energy not only contributes to climate protection, but also offers structural and economic opportunities. Large-scale battery storage systems make it possible to use renewable energy more efficiently, help regulate excessive electricity prices, and stabilize the grid. This provides added value not only for the environment, but especially for the residents of your municipality.
1. Reliable Supply and Reduced Electricity Costs for Residents
As explained in the previous section, battery storage systems help stabilize our power grid and increase the integration of renewables. This also brings tangible benefits to the residents of your municipality: with the help of battery storage systems, you can protect local households and businesses from electricity shortages and power outages, thereby improving supply reliability. At the same time, residents can benefit from lower electricity prices, since renewables no longer need to be curtailed as frequently and excess electricity can simply be stored for later use. This increased supply of electricity has a positive impact on overall electricity costs and can reduce the financial burden on the population.
2. Better Green Power Supply and Certified CO2 Savings
Battery storage systems enable one key advantage: a better and greater integration of renewable energy into the power supply. This not only means that residents can be supplied more frequently with green electricity, but also improves the overall carbon footprint of the municipality. All municipalities that host one of our storage systems can also receive an annual TÜV certificate verifying their CO2 savings.The use of battery storage systems helps municipalities meet their climate protection goals in the areas of energy and electricity in a sustainable way and makes them pioneers in the energy transition.
Climate change and the associated energy transition are issues of concern to many people. By implementing battery storage systems, municipalities signal to local policymakers and residents alike that climate protection is a priority and that they are making a verifiable contribution to it.
3. Generating Predictable Business Tax Revenue
In addition to the residents, your municipality can directly benefit from a battery storage project. As the long-term operator of the storage system, we establish a local project company in each municipality, which naturally pays business taxes based on the location. This provides you with a stable source of revenue, strengthens the local economy, and creates new investment opportunities.
The 2024 Annual Tax Act also states that, similar to PV and wind power projects, 90% of business tax revenue from battery storage systems should go to the host municipality in the future. This local allocation of tax revenue supports structural transformation in your region and enables new investments. At the same time, higher revenues increase public acceptance of large-scale infrastructure projects.
4. Strengthening the Local and National Power Infrastructure
Battery storage systems are highly versatile and contribute significantly to the success of the energy transition thanks to their specific capabilities. While the expansion of renewables is critical to achieving climate targets, the growing share of wind and solar energy also presents challenges to our power infrastructure. The volatility of renewable energy sources regularly causes imbalances in the power grid – overloading or underutilization – that can threaten both supply security and the technical functionality of the infrastructure. As a result, renewable energy sources are frequently curtailed to avoid stressing the grid. However, this not only wastes green electricity but also results in significant costs – amounting to €4.2 billion in 2022 alone!
Through their storage function battery storage systems can counteract this problem: during periods of electricity overproduction, they absorb excess energy and feed it back into the grid when demand increases. This strengthens the grid, helps prevent blackouts, and improves the integration of renewables. Over time, this also reduces the need for conventional power plants, decreasing dependency on fossil energy sources.
Battery storage also offers another key advantage for local infrastructure: better use of existing systems and reduced need for costly grid expansion. Locally produced renewable energy no longer needs to be transported to other federal states during periods of overproduction; instead, it can be stored locally and consumed later. This saves costs and also contributes to long-term energy independence at the local level.
5. Increasing the Attractiveness of Your Municipality for New Businesses
Beyond improvements to power infrastructure, large-scale battery storage systems offer another decisive benefit: they sustainably increase your municipality’s attractiveness as a business location.
On one hand, our battery storage systems – classified as safe technology by the German Firefighters Association – ensure a reliable power supply in the long term. This is especially attractive to businesses, which typically have a higher energy demand than private households and are therefore more affected by potential power outages. Battery storage systems improve operational security for companies, making them less dependent on fluctuating energy production.
On the other hand, battery storage enhances not only supply security but also the reputation of your municipality. Municipalities that choose to invest in battery storage today demonstrate foresight and a strong commitment to the energy transition in the face of climate change. It also reflects an openness to new technologies – an appealing signal to innovative and younger businesses.
6. Opportunities for Project Participation
Success is best achieved as a team – so we place great value on collaborative partnerships. As a municipality, we offer you the opportunity to participate in the construction and operation of our battery storage systems. This opens up additional sources of income for you and gives us the chance to work with a knowledgeable local partner. Participating in such a project makes you a leader in the energy transition, and your forward-looking actions become a proud symbol of your municipality’s vision.
Conclusion
Battery storage systems already offer a wide range of use cases for municipalities. With the continued expansion of renewable energy, they will become essential to a successful energy transition. By hosting a battery storage project, your municipality not only demonstrates foresight but also provides real benefits for its residents – financially, ecologically, and in terms of a secure energy future.
Comments