INTERVIEW: Eco Stor aims for 2 GWh German battery project pipeline

Eco Stor is scaling up its utility-scale battery projects in Germany with a 207 MWh project "ready to build" and a 600 MWh battery park heading for a final investment decision next year, managing director Georg Gallmetzer told S&P Global Commodity Insights.

The developer operates over 100 MWh of battery storage across seven sites in Bavaria and Eastern Germany and is aims to have up to 2 GWh in its pipeline in the next five years.

Eco Stor's 103.5 MW, 207 MWh project at Bollingsted near the Danish border is its most advanced in-development system.

"Increased volatility on short term power markets allow for improved profitability of battery projects with rising wind and solar capacities feeding into these markets," Gallmetzer said.

At Foerdersted in Eastern Germany, Eco Stor plans a 600 MWh battery park next to a 380-kV substation owned by transmission system operator 50Hertz.

The full scale project would be Germany's biggest battery to date, at an investment of around Eur250 million, the Bavaria-based developer said, noting potential for a modular approach.

Successful permitting by summer 2024 and a final investment decision would allow for start of construction late next year, ahead of operation in 2025 with full scope operations by 2026.

The company, backed by Norway-based A Energi, has built up data science experience for battery optimization, Gallmetzer said.

Assuming up to 700 load cycles per year, a large-scale battery system will have 15 years of full operation until end of life battery degradation, he said.

Volatile power prices

Germany currently has around 1 GWh of large-scale battery storage installed, according to Eco Stor's energy storage monitor.

The company plans to optimize its battery assets across various platforms from Germany's reserve markets to intra-day and day-ahead power markets.

"Electricity prices are becoming increasingly weather-sensitive. More and larger storage facilities are needed to balance this imperfection and ensure more stability in the network and affordable prices," Gallmetzer said.

Battery assets have a dampening impact on prices, especially the spread between hourly and quarter-hourly prices, he said.

Assets dispatched in wholesale markets would aim to fully cycle twice daily between the lowest and highest priced hours.

"In Germany, short term market price curves show two to three hours of higher-priced hours twice a day, which allow adequate cycling potential for a two-hour sized battery system," Gallmetzer said.

Access to market is expected to come via energy trading houses, with Eco Stor's data science teams helping to develop business models and operation guidelines.

24 GW by 2037

German grid operators forecast some 24 GW of battery storage capacity by 2037, according to 2023 grid development plans.

Gallmetzer said there was little visibility on expansion plans for battery projects in Germany amid underreporting - in sharp contrast to hydrogen electrolyzer plans.

"There are more than 300 high voltage converter stations across Germany that would offer an attractive location for battery site development," Gallmetzer said.

In addition to the 1 GWh of large-scale commercial batteries installed in Germany, the country leads the home storage battery market with over 7 GWh installed.

Europe's biggest power market plans to triple solar and double wind capacity to a combined 360 GW by 2030.

Daily capture prices for German solar ranged from minus Eur145/MWh to Eur108/MWh in July, according to Platts assessments for S&P Global Commodity Insights.

SELECTED BATTERY PROJECTS ACROSS NW EUROPE

Source: Developers, S&P Global Commodity Insights