Dynamic Electricity Pricing for Battery Grid Feed-in Subsidies

This document, commissioned by ECO STOR GmbH, explores the integration of large batteries into the grid fee system through dynamic electricity prices. It highlights the multiple values of large batteries in the power system, including balancing power for wind and solar, and ensuring energy supply security. The paper addresses the controversial impact of batteries on grid bottlenecks and redispatch costs, noting that current battery usage can reduce costs but lacks systematic incentives. The authors propose a dynamic electricity price mechanism adjusted daily by grid operators to reflect supply and demand tensions, which can significantly reduce redispatch costs more effectively than fixed fees. The document also discusses the investment boom in large battery projects driven by falling costs and market price differences, despite the absence of subsidies. It aims to provide a scientific basis for policy-making and promote grid-friendly behavior through optimized grid fee structures, ultimately enhancing the national economic value of battery storage.