The Benefits of Battery Storage for End Consumers

In recent years, battery energy storage systems have evolved into a revolutionary technology that is transforming the way we consume and manage electricity. From improving energy independence to optimizing cost savings, battery storage offers a wide range of advantages – not only for industry and the economy, but also for individual end users. In this article, we highlight the key benefits battery storage systems provide for consumers.

Combating Climate Change 

Climate change is a well-known issue and now affects each and every one of us. To reach the 1.5-degree target, the highly energy-intensive electricity sector must drastically reduce its CO2 emissions. The German government has already taken the right steps by expanding wind and solar power. However, in the long term, merely expanding renewables will not be enough to successfully complete the energy transition. Our power infrastructure still lacks the flexibility needed to effectively integrate wind and solar energy into the grid. Large-scale battery storage systems can finally solve this issue. Thanks to their ability to store energy, they can balance out fluctuations in renewable electricity generation and ensure that large volumes of green energy are used efficiently. With widespread use of battery storage, we can eliminate the need for fossil fuel power plants and move closer to meeting the 1.5-degree target.

Stabilizing Grid Infrastructure  

The growing share of renewable energy is putting increasing pressure on our electricity infrastructure. Wind and solar power bring strong fluctuations in generation, making it difficult to accurately forecast production and keep electricity flows balanced. How can your grid operator know exactly when a cloud will block the sun from a solar panel?

This variability regularly causes imbalances – either overloading or underloading our electricity grids. In extreme cases, this can result in power shortages or even outages. Power providers use various mechanisms to counteract these fluctuations. One of them is the provision of balancing power, which stabilizes the grid when imbalances occur.

However, to permanently prevent supply shortages, we need more flexibility in the power grid. Battery storage can provide that flexibility. Energy storage systems play an increasingly important role in balancing services and grid stabilization, as they allow excess electricity to be stored and released when needed. This stabilizes the power grid, ensures continuous electricity supply, and helps prevent blackouts and other grid disturbances.

Want to learn more about grid stabilization?

Check out our blog article on regulating power! 

Click here to read the blog post: “Regulating Power”

Avoiding Curtailment of Renewables 

The use of renewable energy inevitably leads to variable electricity supply depending on the time of day and weather conditions. As a result, many energy providers offer time-of-use tariffs, where prices vary depending on the availability of electricity. At times when renewables generate a lot of electricity, prices are usually lower than at times of low solar and wind intensity. However, consumer demand does not always align with electricity production. As a result, consumers often have to buy expensive electricity during peak demand times in order to maintain their usual daily routines. Battery storage can solve this issue by storing green electricity during periods of surplus and feeding it back into the grid when demand is high. This allows energy providers to supply their customers with a steady amount of electricity and prevents volatile price fluctuations. 

Reducing Electricity Production Costs  

In the long term, expanding renewable energy and using battery storage systems can help lower electricity prices overall. This is because, under favorable conditions, producing electricity from wind and solar is cheaper than generating it in fossil fuel power plants. Wind and sunlight are inexhaustible resources, and wind turbines and solar panels do not require a constant supply of expensive raw materials like coal and gas. The reason electricity remains expensive despite growing renewables is the lack of flexibility in our power grids. Unfortunately, a large portion of renewable electricity is still curtailed – turned off – because the grid cannot handle the surplus. Curtailment and the related need to stabilize the grid incur significant costs, which are passed on to consumers by energy providers. In addition to expanding our power infrastructure, battery storage offers an ideal solution. Instead of transporting wind energy from northern to southern Germany or solar power in the opposite direction via expensive transmission lines, some of that energy can be temporarily stored locally and used on-site. This storage function reduces grid stress during times of overproduction and, in the long run, helps lower electricity prices.  

Conclusion 

Battery storage offers numerous benefits for end consumers. On one hand, it enables the integration of renewable energy sources like solar and wind, reducing greenhouse gas emissions and improving environmental impact. On the other hand, it stabilizes grid infrastructure and enhances the energy independence of cities, municipalities, and communities. But above all, battery storage offers one key advantage: cost savings for consumers.