Energy research and consulting firm GTM Research has predicted that the German energy storage market will attain an annual value of US $1 billion by 2021.
In a report released last week, the firm forecast an elevenfold megawatt increase between 2015 and 2021. At the end of last year, Germany’s energy storage market was already worth $169 million with 67MW of energy storage installed.
The country’s declining feed-in tariffs, abundant installed renewable capacity and high retail electricity rates make it an excellent candidate for developing a thriving energy storage market. Germany is also offering an incentive for homeowners to pair energy storage with their existing solar installations. At present, the scheme, called KfW 27, will cover 22 percent of the cost of an energy storage system with the figure to decrease every six months from here on.
“Germany already possesses one of the world’s largest residential energy storage markets,” said Brett Simon, GTM Research Energy Storage Analyst and author of the report.
“A number of variables, including declining feed-in tariffs, high electricity prices, and the KfW 275 program, are fueling substantial interest in residential energy storage for self-consumption.”
The report also highlights opportunities in utility-scale energy storage, which is currently the second-largest energy storage segment. Six systems with a storage capability of 90MW will come online by the end of next year.
While non-residential storage is currently Germany’s smallest energy storage market, the report cites so-called ‘virtual’ power plants as an opportunity for growth.