Facilitating large-scale electricity storage solutions in the German electricity system

How can the institutional framework in Germany be improved?

Academic Paper from the year 2014 in the subject Economics - Industrial Economics, grade: 92/100% ('excellent'), Hertie School of Governance (Deutsches Institut für Wirtschaftsforschung (DIW)), course: Executive Master of Public Administration (EMPA course), language: English, abstract: This paper poses the research question: How can the institutional framework in Germany be improved to facilitate large-scale electricity storage solutions in the German electricity system? In the first section, the paper starts with the rationale for improving the institutional framework of large-scale solutions by pointing out the increased need for PHES, CAEG, P2G and other storage technologies in Germany. In the second section, the paper investigates the current institutional framework on both the EU and German level of currently discussed large-scale electricity storage solutions. This investigation includes a discussion of both regulatory frameworks and market developments. Based on this analysis, the third section examines the major institutional barriers for the effective roll-out of PHES, CAEG, P2G and other large-scale storage solutions in Germany. The paper concludes in the final and fourth section with concrete policy recommendations, targeted at German policy-makers.