There can be no energy transition without batteries

There can be no energy transition without batteries

Statement Jakob Bitner, CEO Voltstorage GmbH

Renewable energies are on the rise worldwide, both in terms of the expansion of wind and solar power plants as well as in terms of capacity and investment volume. While this is generally positive, we should not forget the fact that much more needs to happen. A holistic approach is crucial, encompassing not only on the generation and supply but also on the storage of renewable energy.

Many voices, one trend: Current market analyses and studies show progress in the expansion of renewable energies. The IEA Clean Energy Market Monitor reports a new record in the global use of non-fossil energies in 2023, with an annual increase of 85% for photovoltaic and 60% for wind power installations. Capacity expansion reached almost 540 GW. According to Frontier Economics, the stock of large-scale energy storage facilities in Germany alone is set to increase to up to 60 GW or 271 GWH by 2050. Additionally, the market research institute IDTechEx estimates that the market for long duration energy storage applications will reach a volume of USD 223 billion by 2044.

These are all encouraging figures, but they are far from sufficient for a real turning point. Even in the past year, global carbon emissions continued to rise, and a tipping point is not in sight. The expansion of renewables, therefore, needs to be much higher. In its latest report on the development of renewable energies, Bloomberg New Energy Finance BNEF still sees a huge need for investment. So, if we want to achieve carbon neutrality, investments will have to increase significantly and be diverted from fossil fuels.

It is all about a holistic view

A holistic approach entails that along with the expansion, a comprehensive transformation of the power grid must happen. There needs to be seamless interaction between the generation and distribution of energy. This will also require the integration of digital technologies and smart grid solutions. Through data analysis, artificial intelligence and the capabilities of the Internet of Things, grid control and energy management can be optimized to effectively manage fluctuations in the power grid and facilitate the integration of renewable energies.

However, it is also important to specifically address those key factors that act as the missing link between generation, supply, and consumption, namely energy storage systems. Their significance is undisputed. They play a crucial role in the integration of renewable energies by compensating fluctuations in the power grid and ensuring a continuous power supply.

Storage systems make the grid fit for renewables

This important role has also been recognized by politics. The currently discussed energy storage strategy in Germany is supposed to complement the government´s Solar Package 1 in key areas. It aims to define the conditions under which the power grid will be made resilient for more renewable energy through the expansion of energy storage systems.

This approach makes total sense as the expansion of renewables and the need to ensure grid stability cannot be considered in isolation. The growth of wind and solar power plants must go hand in hand with the expansion of energy storage systems and an improved grid infrastructure. Only through a holistic strategy can potential problems such as overload be avoided, and the benefits of renewable energies fully realized.

Energy security through long duration energy storage

Long Duration Energy Storage applications based on redox flow technologies, as implemented in our iron-salt battery, not only meet the capacity requirements to fulfil the demand. They also provide economic and environmental benefits, contributing to an overall cleaner energy supply.

They not only bridge short day-night requirements but can also store and release energy over a period of up to 100 hours. This ensures energy security across all seasons, contributes to maintaining grid stability, enhancing energy supply reliability and increasing the share of renewable energies.

The expansion of sustainable, renewable generation, energy storage and grid infrastructure are crucial to ensure an ecological and reliable energy supply for the future and to achieve the energy transition. A Long Duration Energy Storage solution such as our iron-salt battery, which is powerful, cost-effective, and environmentally friendly, is indispensable for a carbon neutral energy supply and serves as the link in the interplay of energy generation, availability and utilization.