Battery storage projects in Germany stalled over grid operator concerns

Germany is sitting on a backlog of nearly 10,000 unapproved applications to connect large-scale battery storage systems to its power grid, with experts saying the delay is costing consumers, writes Süddeutsche Zeitung.

The scale of the problem is visible in Bavaria, where grid operator Bayernwerk Netz has seen storage connection requests surge from a maximum combined output of around 1,000 megawatts (MW) in autumn 2023 to 80,000 MW at the start of 2026. More than 200 applications are pending in the Munich area alone.

Grid operators argue the caution is justified. Connecting all requested storage capacity would not be "sensible from a grid perspective," as it would overwhelm peak load in their networks many times over. Large batteries that operate on purely commercial incentives — buying cheap electricity regardless of local grid conditions — can also increase strain on the network rather than ease it, Bayernwerk, a subsidiary of energy company E.ON, told the newspaper. The grid operator said batteries become another major consumer on the grid and could increase electricity shortfalls in certain places.

But storage advocates say the gridlock is a policy failure and not a technical one: Georg Gallmetzer, managing director of large-scale storage developer Eco Stor, pointed to Bollingstedt in Schleswig-Holstein. He argued that Germany's largest battery storage facility located in the northern state is proof that grid operators and developers can agree on rules that keep storage commercially viable while protecting grid stability. Bavaria, he notes, ranks last among German states in its handling of storage applications.

Without adding significantly more storage capacity, Germany continues to rely on gas power plants to meet demand peaks that renewables cannot cover, said Gallmetzer. It will also keep paying wind and solar farms to switch off during periods of overproduction, both at considerable cost to consumers, he added. Stor told Süddeutsche that more electricity is consumed between 5pm and 10pm than is produced from renewable sources, and that storage systems can cover this window well. Grid operators can set contractual rules governing when large-scale storage systems are allowed to charge. 

The number of large-scale battery storage projects in the country rose by one third in 2025, bringing total battery storage capacity to 25.5 gigawatt hours (GWh). Storage operators have said the government must pull the right regulatory levers to ensure the energy system can absorb the expected surge in capacity in the next years.