The pace of deployment of batteries in Germany and across Europe is ramping up, but will the level of deployment ever catch up to the rate in which solar is being built out?
Based on our simulations with hourly optimization of battery storage and renewable production, the average daily spread between the lowest priced and the highest priced hour in the spot market for April to September will increase gradually.
Towards 2030 the rate of new renewable generation will outbuild the increase in battery capacity, putting pressure on capture rates and profitability of investments exposed to the spot market. The price spread is expected to reach its peak in 2030, climbing from 86.2 EUR/MWh in 2025 to 101.63 EUR/MWh in 2030, implying an increasing gap between solar generation and battery storage.
How much will the pace pick up of deployment of batteries and how much battery capacity is needed to handle the fluctuating, volatile prices?
