Germany has had a record number of applications for grid connections for battery storage. The total applications is above 500 gigawatts (GW), well over previously anticipated amounts, signalling the importance of energy storage in energy transition. It also indicates the value but challenges in integrating renewables into the grid.

Unusual Demand for Grid Connections

The Regelleistung (Control Power) Online platform shows that the four transmission system operators in Germany and the three major distribution system operators, Edis, Westnetz and Mitnetz, have received applications for large-scale battery energy storage systems (BESS) totaling 470.5 GW. Including other distribution system operators and the demand will be greater than 500 GW. What was only 340 GW on February 2025 has rapidly ballooned to signify a ‘battery tsunami.’

Market Forces and Growth Areas

The evolution of Germany’s storage market has gained momentum, with utility-scale storage projects driving recent developments. From January to May 2025, installs of utility-scale storage increased 96.52%, year-on-year, in installed capacity, indicating an overall trend of movement from the residential storage tribute to large (grid) scale. The impetus for this shift in market dynamics is attributed to reduced battery prices and increased activity (buying) from industry and commercial users. By July 25, 2025, Germany had installed 2 million battery storage systems (14 GW storage capacity, 22.5 GWh storage volume). The IWR expects that 318,000 (318k) additional systems were installed in the first seven months of 2025. The total installations of new systems are expected to reach 230,000 units (+31% from 2022).

Obstacles for Grid Integration and Regulation

The great number of applications shows significant inefficiencies in Germany’s grid infrastructure and regulatory mechanism. There are around 900 distribution grid operators across Germany that each apply different connection rules and planning approval processes. It has long since been recognized that standardization is lacking, resulting in excessive timeline and uncertainty for applicants to connect to the grid. Many operators face chronic deficits in digitalization and human resources to respond to complex applications, leading to onerous approvals timelines up to one-year.
Secondly, the “first-come, first-served” supply of grid connections has fostered speculative or even redundant applications to the grid. In other words, developers submitting multiple applications for the same project to multiple operators has further compounded the overwhelmed operator backlogs. With peak electricity demand in Germany around 80 GW, the total of almost 500 GW of applications does not reflect realizable capacity on the grid itself, prompting questions of project viability and the market itself.

Policy Drivers and Economic Incentives

Germany’s ambitious renewable energy targets—360 GW of renewable capacity by 2030—are a major underpinning of the storage boom. Storage systems will be required to balance intermittent solar and wind power, reduce curtailment, and stabilize the grid. Policy drivers have also influenced this market:

1.Innovation Auctions: Germany’s innovation tenders are promoting co-located storage and renewable projects.

2.Subsidies/Exemptions: Since 2025, the subsidy for storage projects with over two hours of duration, has increased from €60/kWh to €90/kWh. Grid fee exemptions for storage systems/economic viability.

3.Digitalization and Reform: More calls that connection processes should be standardized, transparent, and digitized. Solutions suggest merging duplicate applications, flexible pricing mechanisms, etc.

Industry & Global Perspectives

German and international companies are benefiting from proceeding of developments in this area. Chinese producers, specifically Jinko Solar, CATL and Haideneng, have undertaken significant projects, cooperations and technology transfers in Germany contributing to the the roll out of more projects. Simultaneously, Germany´s development of storage is consistent with global expansion. For example, California (the leading storage market in the U.S.) installed 15.8 GW of storage capacity in the storage market alone, just through April 2025!

The Path Forward

Experts are calling for immediate regulatory reform to expedite approvals and to prioritize projects based on grid needs rather than speculative applications. Options include:

1.Standardized Engineering: Developing technical and procedural standards across the country for connecting to the grid.

2.Digital: Automated platforms for tracking applications and managing the grid.

3.Market-driven approaches: Congestion pricing and incentives to operate storage in a way that supports the grid.

Norbert Allnoch, director of IWR, states, “Probably, it is still early to see actual growth in the market from the planning projects for utility scale systems.” But, he asks “when will structural changes happen so that the boom in storage delivered does not end up creating inefficiencies and delaying the transition?”

Final thoughts

Germany has received battery storage grid-connection requests exceeding 500 GW, indicative of strong confidence by investors and the vital role that storage will play in the country’s renewable energy targets. Nevertheless, overcoming regulatory fragmentation, and unavoidable grid capacity will be important in order to enable the full potential of battery storage systems. While the world is watching, there is much to be learned from Germany’s lessons for other global markets facing the challenges of energy storage integration.