Large-scale battery storage can accelerate energy transition in several ways. Firstly, batteries can alleviate grid problems, because battery-powered solar projects require a smaller grid connection. In addition, batteries can also offer protection against price risks for solar and wind farms because the electricity no longer needs to be delivered at the same time as it is generated. The issue, though, is when battery storage will become profitable on a large scale. This study aims to provide insight into the structure of the business case for large-scale battery storage, both now and in the period up to 2030, and to show what contribution batteries can make to energy transition, with and without incentive policies.
Targeted incentives for battery storage at current and planned solar parks would make it possible to connect 7.5 GWp of extra solar panels to the electricity grid. Batteries allow much more solar energy to be connected to the current grid capacity, i.e. without increasing the grid capacity. This would produce 5 TWh/y of additional renewable electricity and a reduction of around 2 Mton/y of CO2 in 5 to 10 years in time. Grid batteries are profitable for grid balancing even with current policies and do not need further incentives.