German energy storage market: What does risky merchant revenue mean for the battery market?

This insight looks into the German energy storage market, aiming to answer whether front-of-the-meter batteries can make an attractive business case in the coming decades. And would ancillary markets remain the primary revenue source for these batteries? The insight includes financial modelling to calculate batteries’ net present value (NPV) on a lifetime basis for assets going into operation in 2021, 2025 and 2030. With a series of assumptions, we highlight how batteries' revenue stream will shift from ancillary markets to energy arbitrage in the next decade and shed light on future potential business cases for batteries.