EP.188 Anna von Bremen on Storage Systems and Renewables in Germany
Apr 9, 2024
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Anna von Bremen, Partner at Osborne Clarke, discusses battery co-location for renewables, green vs. grey power impact on business models, regulatory treatment of grid curtailment, and subsidies for renewable assets in Germany. The podcast delves into revenue optimization, challenges in subsidy legislation, technical requirements for renewable assets, and the complexities of home storage under German renewable energy laws.
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Quick takeaways
Renewables in Germany rely on various subsidies like feed-in tariffs and market premiums, with some operating without subsidies through PPAs.
Battery energy storage systems in Germany rely on revenue stacking from wholesale markets, control reserve power, and other sources in the liberalized energy market.
Deep dives
Overview of Renewable Energy Subsidies in Germany
Renewables in Germany receive various forms of subsidies, including feed-in tariffs and market premiums. Approximately 20% are subsidized by feed-in tariffs, while 70-80% receive state funding through the market premium model, participating in tendering procedures. About 10% operate without subsidies, with some marketing their production through PPAs.
Revenue Stacking in Battery Energy Storage Systems
Standalone battery energy storage systems in Germany rely on revenue stacking from various sources in the liberalized energy market. They participate in wholesale markets for capacity, serve as insurance for trading companies, and engage in the exterior market for control reserve power like FCR and AFRR. Other revenue streams include reactive power markets and avoided network charges.
Legislative Considerations for Co-Located Renewable Assets with Batteries
Co-locating batteries with renewable assets presents challenges due to the exclusivity principle in German law. Generating green power can forfeit subsidies if mixed with grid power. Proposed changes aim to distinguish between green and gray power, possibly allowing switching between them or using technology to differentiate. Legislative amendments may focus on co-location benefits and system stability.
On this Energy Unplugged episode, we welcome Anna von Bremen, Partner and Head of Energy Innovation at Osborne Clarke, discussing the integration of storage systems with renewable energy sources with Thaddäus Kreisig, Project Leader in our Berlin Advisory team.
As the Head of Energy Innovation at Osborne Clarke, Anna advises companies in the energy industry on regulatory and energy law issues and aspects of digitalisation in the energy sector. Additionally, she conducts complex regulatory litigation on behalf of her clients which range from energy producers, energy trading houses, industrial companies, and utilities. In 2023, she was included in the renowned JUVE list of "40 under 40", an accolade reserved for 40 leading lawyers across all sectors.
Main topics include the following:
Economics and policy of battery co-location for renewables projects in Germany
Green and grey power, and the impact of their definitions on their respective business models
Regulatory treatment of grid curtailment for co-located projects