Battery storage holds vast potential to strengthen the energy system as a whole — by balancing intermittent renewable electricity generation, stabilising electricity prices, and improving overall system reliability.
Markus Krebber on the potential of batteries
Markus Krebber, Chief Executive Officer (CEO) RWE AG
What we are seeing in California offers a glimpse of this potential being realised in practice.
With 13 GW of battery storage capacity, the state consistently supplied more than a quarter of its electricity from batteries during this year’s spring and summer demand peaks. Storing excess power, in case of California especially solar, produced during the day and delivering it during later peak-demand hours helps better align generation with consumption. Besides that, the combination of renewable energy systems and battery storage enhances grid stability and can mitigate volatile wholesale electricity prices.
This transformation is in part driven by lower global battery prices, which have significantly improved the competitiveness and affordability of battery storage, resulting in exponential capacity growth worldwide. Batteries are increasingly recognised as one vital element in the wider set of flexibility solutions. But of course, adopting a technology-neutral approach is indispensable, considering regional and weather-dependent differences.
At RWE, we develop, build and operate battery systems across the US, Europe and Australia. Currently, we already have 1.2 GW (2.7 GWh) of battery capacity worldwide in operations and have additional 2.7 GW under construction.
