The sun and wind provide clean energy, but not always exactly when it is needed. This is where battery storage comes into play. In combination with photovoltaic and wind power plants, they serve as a buffer, which absorbs production peaks - for example at lunchtime or in strong winds - and feeds in electricity as required. As a result, battery storage systems increase the time availability of renewable energies and contribute to security of supply.
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Three benefits of battery storage:
- Cost-effective: Operators can bridge low price periods in the spot markets and market the electricity at higher prices. This stabilises the yield profiles
- Grid stability: Battery storage systems balance power generation with power consumption, cap power peaks and thereby reduce the need for grid expansion. They can also be used for emergency power supply
- Environmentally compatible: Compared to pumped storage power plants, the construction effort and the associated impact on nature are relatively low
Overview of the market: Rapid growth
High costs, regulatory hurdles and limited demand have slowed down the expansion of battery storage for a long time. However, recent figures show: The technology has left the niche:
- According to the German Solar Industry Association, the installed battery capacity has increased fivefold over the last four years: At the end of 2025, it totalled around 25 gigawatt hours (GWh)
- The majority of the approximately 2.4 million battery storage units in Germany are operated in combination with photovoltaic systems.
- In 2025 alone, 600,000 new storage units with a capacity of around 6.5 GWh were added.1
- Large-scale battery storage systems are growing particularly dynamically: Its installed capacity increased by around 71 percent to 4.0 GWh in 2025.2
Technological advances and cost efficiency drive growth
The massive build-up of production capacities, especially for global electromobility, has triggered enormous economies of scale. As a result, prices per kilowatt hour for lithium-ion batteries fell by almost 80 percent between 2013 and 2023.3
The challenge: The imbalance between generation and storage
The rapid expansion of battery storage is also crucial, as electricity generation from renewable energies is currently growing faster than the grid infrastructure - including storage capacities. Consequences: In the event of local surpluses of electricity, plants have to be partially reduced, which means that generated energy is lost. Conversely, in periods of high demand, the risk of bottlenecks increases, which today still often have to be compensated for by fossil power plants. This imbalance increases the cost of security of supply and thus slows down the energy transition.
Despite dynamic growth, storage capacity is currently insufficient. The Fraunhofer Institute for Solar Energy Systems ISE forecasts a storage requirement of 100 to 170 gigawatt hours for 2030 in order to achieve the German climate targets.4
Investment opportunities and klimaVest’s contribution
The storage boom is opening up new investment opportunities. klimaVest invests primarily in tangible assets from the areas of renewables, electricity grids and - in the future - storage, thus opening up private access to the energy transition. By pooling capital, klimaVest is accelerating the expansion of this system-critical infrastructure and at the same time making a contribution to climate change mitigation - according to the criteria of the EU Taxonomy, which defines which investments are considered sustainable.
Outlook: How the market continues to grow
In order for battery storage systems to unleash their full potential, in addition to further investments, the right regulatory framework conditions are particularly important: faster approvals, incentives for systemic network use and increasingly digital network management. Where these components come together, storage systems can flexibly absorb overloads instead of letting clean electricity go unused.
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1https://www.solarwirtschaft.de/2026/01/12/batteriespeicherkapazitaet-binnen-5-jahren-verfuenffacht/
2 https://www.energy-charts.info/downloads/Stromerzeugung_2025.pdf
3https://www.comedia.cloud/asset/9ed362ab-4039-458f-9fd2-5e436564df2c/2025-02-commerzreal-whitepaper-infrastructure-teil2-de.pdf
4https://www.energy-charts.info/downloads/Stromerzeugung_2025.pdf