Dynamic Battery Grid Fee Proposal for Grid Compatibility

This consultation paper, commissioned by ECO STOR GmbH and authored by Lion Hirth and Clemens Lohr, proposes a special dynamic energy charge for large-scale batteries to enhance grid compatibility. Large-scale batteries already perform critical roles in the electricity system, such as providing balancing power and compensating for forecast errors of renewables, but their grid impact is currently coincidental due to the lack of congestion pricing in the German market design. The paper evaluates various grid fee structures and finds that a dynamic energy charge, set daily by grid operators based on expected congestion, can reduce redispatch costs five times more effectively than static fees. This charge incentivizes batteries to adjust operations to grid conditions, increasing their macroeconomic value. The proposal aims to structure the debate on battery grid fees, which is a key topic in the BNetzA grid fee reform. The paper also notes that batteries, unlike gas plants or renewables, receive no subsidies, making investor interest encouraging despite grid connection challenges.