Energy Storage Will Reduce Grid Modernization Cost in Germany

Investment in the transmission of energy is one of the most expensive items facing utilities. It is also a long and involved process of permitting and approvals. By increasing distributed energy, the theory was that less energy would have to be transmitted over power lines, since more could be produced and used at the point of generation.

Now a new study in Germany predicts very significant savings on grid modernization by virtue of the growing use of energy storage batteries. This will also, of course, reduce variability in the availability of electricity, allowing production and storage combined to meet the demand as necessary.

Since about 40% of generation capacity in Germany, as in Poland, is normally sitting there idle except for some peak periods, the savings to the cost of maintaining the national power system will also be major. Studies have already demonstrated that energy storage is more cost-effective than "peaker plants."

The next generation of utility will combine distributed energy and storage to reduce the scope of transmission improvements and to optimize the ability to meet the energy demand curve at lower costs.

It seems to be happening in almost every advanced industrialized country....except Poland.