The demand for electricity storage in Germany will continue to develop considerably over the coming years. Germany has the potential to remain one of the leading store markets. This is the result of a recent analysis by the market researchers of GTM Research. As a reason, they call the appropriate political framework conditions and the support program, which will continue to support storage in the coming years, until they are ready to reckon without funding. In addition, many innovative manufacturers are located in Germany, what drives the demand. "Other storage markets can learn a lot from Germany, while the German market itself offers some promising opportunities for suppliers along the entire value chain of the energy storage sector," analyst Brett Simon says.
Starting 2019 the market takes more drive
In the coming two years, however, storage producers will have to cope with only a minor market growth. The build-up for this year is predicted by around 170 MW, forecasts for the next year are around 200 MW. In 2018, the market is expected to grow by 220 MW. By 2019 the market will take more drive with a build-up of 300 MW, GTM predicts. A further 430 megawatts of storage capacity is expected in 2020 and demand will rise to about 700 megawatts in 2021.
Main demand from the residential sector
The capacity expansion is mainly driven by the demand of residential home owners, while the construction of storage in commercial and industrial enterprises is moving forward only at a slow pace. This is mainly due to the limitation of storage support to small systems. The construction of new large storage facilities will be slightly reduced even in the coming two years, after almost half of the extension of the German storage market this year accounted to this segment. However, with the increasing energy demand, electrical network operators will increasingly depend on keeping the grids with storage stable. From 2019, this will continue to drive the expansion of large storage systems. In the weaker years in Germany, however, these vendors will find their customers, especially in the USA, where the construction of large storage will dominate the market. However, in 2020, the large storage applications will also gain in importance again in Germany, and in 2021 the commercial segment again accounts for about one third of the yearly build-up.
Reduction of connected load as driver for commercial storage
However, the demand of the homeowner for storage will continue to evolve over the next five years more steadily. They will be the main application installed in Germany. With decreasing prices, they will continue to meet the rising electricity prices, even if the subsidies are terminated in a few years. For commercial applications the market conditions will remain rather difficult. This will remain the smallest segment since the load profiles of the companies and commercial enterprises are more consistent with the production profiles of the solar systems than in the private sector. However, demand will continue to rise here. The main driver here will be the capping of peak loads in order to reduce the connected load. Another driving factor for the construction of commercial storage is the demand for an uninterrupted power supply. (SU/HCN)
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