Munich, January 20, 2026 — A new study by energy consulting firms Neon New Energy Economics and Consentec has investigated large battery storage systems from the point of view of system usability. The result is clear: Large-scale battery storage systems have a clearly positive welfare effect in the German electricity system. They reduce system costs, reduce price fluctuations and support the integration of renewable energies. As a result, they make a significant contribution to the efficiency and stability of the power system. However, coordinated adjustments in the regulation of the electricity market and power grid are required to be fully effective.
The economic benefits of large battery storage systems today arise primarily from their market-oriented use. Battery storage systems move electricity in times of high demand, replace expensive conventional power plants and increase short-term flexibility in the system. This lowers generation costs, reduces CO₂ emissions and strengthens supply security. These effects are already largely reflected in market prices.
At the same time, the study shows that large battery storage systems have so far only had a limited effect on the grid due to a lack of signals from grid operators. Network bottlenecks and grid relief are not reflected in economic signals for storage operators today. The existing potential for targeted relief of power grids has therefore not been systematically used, but has so far been used primarily to optimize energy costs.
Blanket regulatory interventions do not solve this problem. Instead, the approaches used today, such as restrictions on short-term marketing, inconsistent connection rules or rigid operational requirements, significantly reduce the market-serving flexibility of battery storage systems. The associated loss of welfare effects may exceed potential network benefits.
Network service must therefore not be an isolated goal. Instead, system efficiency must be regarded as a yardstick, i.e. the overall contribution of battery storage systems to market and grid efficiency, and thus to reducing energy system costs. Targeted, transparent and investment-friendly adjustments to the electricity market design are required. These include price signals that vary in time and location, uniform connection rules throughout Germany and market mechanisms that properly represent and compensate for network and system-supporting behavior.
“The results speak for themselves: battery storage systems are an asset for the entire power system,” says Prof. Dr. Lion Hirth, founder and managing director of NEON. “It is now crucial to adapt the regulatory framework so that networks also benefit even more. ”
The complete study “System usability of large batteries” will be presented in a NEON webinar on January 26, 2026 at 1 pm. Interested people can here Dial in.
Note on the database
The study “System usability of large batteries” is an economic-analytical impact analysis. The basis is publicly available electricity market data, applicable market and network regulations and existing empirical studies.
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