Fraunhofer ISE Launches Price Simulator for Battery Storage

The Fraunhofer Institute for Solar Energy Systems (ISE) has released a cutting-edge price simulator on its Energy-Charts.info platform to model the profound impact of battery storage systems on German electricity prices. The innovative tool utilizes real daily buy and sell bids from the EPEX SPOT day-ahead auction, allowing researchers to simulate the addition of up to 20 GW of battery capacity with storage durations ranging from 2 to 6 hours.

Massive Reduction in Price Spreads and Extreme Prices

An initial analysis of 2025 market data using the simulator yields striking results. Deploying 20 GW of batteries with a 2-hour duration (equivalent to 40 GWh of capacity) in Germany reduces the average daily price spread between the most expensive and cheapest quarter-hours from 130 to 53 euros per MWh—a dramatic decrease of 60%.

Furthermore, the simulation shows that this level of battery deployment would reduce the number of hours with prices exceeding 200 euros/MWh from 169 to just 20. Similarly, hours with negative prices would drop significantly from 575 to 271, effectively capping extreme price volatility and enhancing overall market stability.

Boosting Solar Power Market Value

Beyond grid stability, the expansion of battery storage significantly enhances the economic viability of renewable energy. According to the Fraunhofer ISE simulator's 2025 analysis, the deployment of 20 GW of battery storage in Germany increases the market value of solar power by 35%. The value rises from 45.08 euros per MWh to 61.02 euros per MWh, as batteries absorb excess midday solar generation and discharge it during peak evening demand.

The deployment of 20 GW of battery storage in Germany increases the market value of solar power by 35%, playing a critical role in grid stability and capping price spikes.

The expansion of battery storage in Germany is accelerating, and these data-driven insights underscore its indispensable role in the future European energy system.

Source: Fraunhofer ISE

This article was assisted by AI analysis. Please refer to the original source for official information.