Germany’s sprint into gigawatt-scale battery storage shows how big batteries, AI optimisation and recycled grid sites are reshaping the clean energy economy.
Most countries talk about green technology targets. Germany just filed 500GW of battery storage grid-connection requests.
That’s not a typo. On top of that pipeline, three new large-scale battery energy storage system (BESS) projects from EnBW, Vattenfall and Enertrag – each around 700–800MWh – make it clear: Germany has quietly tipped into the era of gigawatt-scale storage.
This matters because storage isn’t a side-show anymore. It’s becoming core infrastructure, the glue that holds high-renewable power systems together. And for businesses looking at clean energy, flexibility services, or AI-driven optimisation, Germany is basically a live case study unfolding in real time.
In this Green Technology series, we’ve been looking at how digital tools and smart infrastructure cut emissions while still making commercial sense. Germany’s BESS boom is the perfect example: big batteries + smart software turning intermittent renewables into reliable, tradeable, and bankable energy.
Below, I’ll break down what’s actually happening, why this scale is suddenly “normal”, and how companies can position themselves in this new energy storage economy.
Germany is now a large‑scale BESS market, not a pilot market
Germany has moved past experimentation and into industrial-scale battery deployment.
Recent announcements show the pattern:
- EnBW: 400MW / 800MWh BESS at Philippsburg Energy Park (FID taken)
- Enertrag + 50Hertz: Substation upgrade enabling a planned 200MW / 800MWh BESS
- Vattenfall: Planning consent for a 254MW / 700MWh BESS in Brunsbüttel
Add that to previous news:
- RWE and Eco Stor both started construction on ~700MWh projects in late 2025
- LEAG is working on a 1GW / 4GWh BESS (plus another 400MW / 1.6GWh project)
A couple of years ago, a 100MWh project was headline-worthy. Now, 700MWh is the new standard for serious players.
The reason is simple: business models have matured enough that merchant batteries can be financed at scale. These assets aren’t just for frequency response anymore; they’re multi-service platforms:
- Arbitraging prices across hours and days
- Avoiding curtailment of wind and solar
- Providing grid-stability services (frequency, inertia, reserves)
- Supporting transmission constraints at key substations
Wood Mackenzie expects 3.5GW of BESS to come online in Germany in 2025, rising to 7GW by 2034. That’s not future hype; that’s booked capacity.
Why Germany is the perfect testbed for big batteries
The German power system creates almost textbook-perfect conditions for large-scale storage.
1. Coal and nuclear are exiting, gas isn’t stepping in fast enough
Germany has already phased out nuclear power and is on a legal path to exit coal by 2030. New-build gas plants are struggling to pencil out, especially with policy and public pressure swinging towards renewables.
The gap this leaves isn’t just “megawatts lost”; it’s flexibility lost. Coal and gas plants used to provide dispatchable capacity and stabilising services. Solar and wind can’t do that alone.
Big BESS assets step into that gap by:
- Soaking up excess solar in the middle of the day
- Absorbing high wind output overnight
- Releasing energy during the evening peak
- Providing ultra-fast response to frequency deviations
In other words, batteries are becoming the new peaking plant, just cleaner, faster, and increasingly cheaper on a lifecycle basis.
2. Wholesale market volatility = opportunity
Germany’s power market is one of Europe’s most liquid and volatile:
- High shares of wind and solar
- Cross-border interconnections
- Dynamic intraday and balancing markets
BESS operators make money from that volatility. They buy when prices crash (often during high wind or solar), sell when prices spike, and stack multiple revenue streams on top.
From an investor’s perspective, this is why fully merchant BESS projects like EnBW’s Philippsburg system can go ahead with no subsidies. The combination of:
- Price spreads
- Ancillary service revenues
- Grid fee exemptions (more on that below)
…is enough to get projects financed, especially with modern optimisation software and AI-based trading strategies.
3. Strong grid, clever locations
Look closely at where these big batteries are going:
- Philippsburg (EnBW) – former nuclear site with a large DC converter, ideal for moving wind power from northern Germany to high-demand regions in the southwest.
- Brunsbüttel (Vattenfall) – another former nuclear site in Schleswig-Holstein, with land and grid connections ready-built.
- Bertikow (Enertrag + 50Hertz) – a key substation in the Uckermark region, upgraded from 220kV to 380kV to handle over 500MW of new wind and solar, plus a future 200MW / 800MWh battery.
All three projects show the same strategy: reuse existing grid nodes instead of building everything from scratch. That’s faster, cheaper, and much easier to permit – which is a huge edge in a crowded grid queue.
The business model: profit now, prepare for cannibalisation later
Here’s the thing about Germany’s BESS boom: it’s simultaneously a gold rush and a slow squeeze.
Wood Mackenzie expects BESS revenues to decline over the next decade due to price cannibalisation. As more storage comes online, the very price spikes that make storage profitable get smoothed out.
So why are developers racing to 2028?
Grid fee exemptions create a clear deadline
Right now, large-scale BESS in Germany benefit from charge-discharge grid fee exemptions. Those exemptions are set to expire in August 2028.
That date has effectively become a hard milestone for many projects:
- Developers are pushing to connect before 08/2028 to lock in more favourable economics.
- Over 500GW of BESS have submitted grid-connection requests – far more than will actually be built, but a good indicator of market appetite.
If you’re planning projects in this environment, you need to:
- Model revenue not just for year 1–3, but years 5–15
- Stress-test cases with lower price spreads and reduced ancillary prices
- Consider how regulatory changes (e.g., extended exemptions, capacity mechanisms) might alter upside/downside
AI and optimisation are no longer optional
With more batteries bidding into the same markets, who optimises best wins.
Modern large-scale BESS portfolios in Europe are increasingly managed with AI-driven trading platforms that:
- Forecast prices on sub-hourly timescales
- Predict asset degradation under different dispatch profiles
- Optimise bidding across multiple markets simultaneously (day-ahead, intraday, balancing, ancillary services)
If you’re a utility, IPP, or investor moving into BESS, the lesson from Germany is blunt:
Owning the hardware isn’t enough. The edge sits in the optimisation layer.
Companies that treat BESS as “dumb batteries” will see returns erode faster as competition grows.
Project snapshots: how utilities are using storage as strategic infrastructure
The big German projects are more than just capacity numbers; they show different strategic plays.
EnBW: Philippsburg 400MW / 800MWh – flexibility without subsidies
EnBW’s Philippsburg battery will use a former nuclear site as a flexibility hub for moving northern wind to southern demand.
Key points:
- No subsidies – fully merchant, which sends a strong signal to the market
- Co-located with existing DC converter infrastructure
- Commissioning target: 2027
From a green technology lens, this is a textbook example of asset recycling: turning legacy nuclear infrastructure into modern storage capacity instead of building on fresh land.
Enertrag + 50Hertz: Bertikow – substation-first strategy
Bertikow shows how smart grid investments prepare the ground for storage.
- Two-year upgrade from 220kV to 380kV
- New 400MVA and 45MVA transformers replacing 50-year-old equipment
- Hub for over 500MW of wind and solar in the region
- Basis for a planned 200MW / 800MWh BESS (2027 target)
This approach flips the usual thinking. Instead of asking “Where can we stick a battery?”, Enertrag and 50Hertz asked, “Where will the grid need flexibility the most?” and then upgraded that node first.
Vattenfall: Brunsbüttel 254MW / 700MWh – strategic foothold in northern Germany
Vattenfall’s Brunsbüttel project also uses a former nuclear power plant site. Planning approval is in place; final investment decision is still pending, with a latest operation date of 2028.
For Vattenfall, this is about:
- Securing a high-quality grid connection in wind-rich northern Germany
- Building out a portfolio of solar + storage and stand-alone BESS assets
- Creating a platform for future flexibility services as the region builds out more offshore wind
Kyon / TotalEnergies: 100MW / 200MWh as part of a wider portfolio
On the slightly smaller but still significant end, Kyon Energy (backed by TotalEnergies) is progressing a 100MW / 200MWh BESS due for commercial operation in October 2026.
- Hardware and medium-voltage station delivered in late 2025
- Grid connection expected in Q2 2026
- Part of a broader 321MW BESS portfolio in Germany
TotalEnergies is reportedly exploring selling a stake in Kyon and its pipeline – a move that looks like capital recycling rather than exit. Build, prove performance, then bring in new investors.
What this means for businesses in the green technology space
Germany’s BESS build-out isn’t just a national story. It’s a template other markets are already starting to follow.
If you work in clean energy, AI, or infrastructure, here’s how this translates into practical opportunity.
1. For developers and IPPs
- Target grid hotspots: Substations like Bertikow are the real bottlenecks. Map where congestion, curtailment and new renewables overlap.
- Design for multi-service: Don’t size and configure a battery only for arbitrage or only for frequency response. Bankable projects stack revenues.
- Plan for post-2028 economics: In Germany specifically, model scenarios where grid fee exemptions end and price spreads shrink.
2. For software and AI companies
BESS projects at this scale cannot be run manually in spreadsheets.
There’s a growing market for:
- Forecasting and trading algorithms tailored to storage
- Fleet-level dispatch optimisation across sites and markets
- Degradation-aware dispatch that preserves asset value
- Risk tools that can simulate thousands of price and policy paths
If you build AI tools, Germany’s BESS fleets are exactly the kind of complex, data-rich systems where good models create direct, measurable value.
3. For corporates and large power consumers
You don’t need to own a 700MWh battery to benefit from this trend.
- Explore tolling agreements or long-term storage contracts
- Use storage-backed PPAs to stabilise energy costs while increasing renewable content
- Look at co-locating behind-the-meter batteries at energy-intensive sites for peak shaving and resilience
The direction of travel is clear: flexible, storage-backed clean power will become the new standard for serious decarbonisation strategies.
Where Germany’s battery story goes next
Germany has moved from pilot projects to portfolio thinking on battery storage. Former nuclear sites are turning into flexibility campuses. Substations are being rebuilt around renewables and BESS. Utilities are taking final investment decisions on hundreds of megawatts with no subsidies on the table.
For the broader green technology landscape, this is a strong signal: storage has graduated from niche to necessary.
If you’re building or investing in green technology – from AI optimisation to hardware, software, or project development – now’s the moment to decide where you fit into this ecosystem. The projects racing to connect before 2028 will shape power markets, trading patterns and data infrastructure for the next decade.
The question isn’t whether large-scale storage will be built. Germany has already answered that. The real question is: who will own, optimise and benefit from the new flexible grid?