Impact of large batteries on the market and grid

On behalf of Kyon Energy, LichtBlick, ECO STOR, Fluence

Publication date: 20.01.2026

The rapid expansion of large-scale battery storage in Germany is currently encountering a regulatory framework that provides few incentives for grid- or system-supportive operation. While batteries are today predominantly deployed in a market-oriented manner and thereby generate significant welfare gains, their potential contributions to alleviating network congestion remain largely untapped. At the same time, political and regulatory initiatives are proliferating under the heading of “grid friendliness,” discussing new requirements, constraints, and charges for battery storage, often in an uncoordinated manner and with substantial risks for investment.

Against this backdrop, the study analyzes the impacts of large-scale batteries on both the electricity market and the power grid and clearly delineates the key concepts of “system-supportive” and “grid-supportive” operation. It demonstrates where battery storage creates economic value, which external effects it generates in the grid, and why these effects have so far not been reflected in price signals.

Here you can find the study.