Ancillary Services in Germany: Present, Future and the Role of Battery Storage Systems

Abstract

The growing integration of renewable energy sources poses significant challenges to the existing power system infrastructure. These challenges include reducing power system inertia, resulting in faster dynamics and deterioration of frequency stability margins. Additionally, the limited capacity of power electronics-based inverter units reduces the sources of reactive power generation, jeopardizing voltage stability. To address these issues, system operators are increasingly required to procure ancillary services to ensure reliable power system operation. This paper presents a comprehensive literature review of the current state of the ancillary services market in Germany, examining the various procurement schemes currently employed and the economics of services. It also highlights the insufficiency of existing ancillary services and identifies potential services that may be necessary to stabilize Germany’s future power systems, particularly as renewable energy sources continue to gain prominence. Furthermore, the paper explores the current status of battery storage technology in Germany and highlights its potential to provide ancillary services across different time resolutions. This review aims to benefit academics, researchers, practitioners, and policymakers by enabling them to make informed decisions and effectively navigate the changing energy landscape in Germany.