Markets
Policymakers are increasingly recognizing the value of energy storage for building a greener, flexible, and reliable energy system. In a growing number of markets, energy policies are being introduced to support both deployment and local manufacturing.
Be it through procurement exercises or other market mechanisms, policymakers have intensified efforts to drive the development and deployment of all energy storage solutions.
However, in most markets, some barriers still exist.
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Germany may curtail preferential treatment of large battery storage facilities near substations
The recently introduced preferential treatment for large battery storage facilities within a 200-meter radius of substations may soon be scaled back under the next amendment to the building code. At a minimum, lawmakers are considering tightening the eligible zone by introducing a minimum setback of 100 meters, effectively limiting the preferential treatment to projects located within a narrower band of 100 to 200 meters around substations.
Long-duration battery storage can contribute to security of supply more cost-effectively than gas-fired power plants, LCP Delta finds
LCP Delta has conducted a study analyzing the potential contribution of long-duration battery storage to security of supply within capacity tenders in Germany, including an economic comparison with gas-fired power plants and the resulting costs to the public. However, the authors explicitly note that they are not advocating for a complete phase-out of new gas-fired power plants.
Philippines announces 7th renewables auction, mandates integrated BESS
The country’s seventh green energy auction is set to procure rooftop, ground-mounted and floating solar projects across the Philippines, with increased allocation in Mindanao. The Department of Energy plans to release the auction’s terms of reference during the second quarter of this year.
India’s behind-the-meter stationary storage market to surpass 39 GWh by 2033, says IESA
A new report by the India Energy Storage Alliance (IESA) and Customised Energy Solutions (CES) projects India’s behind-the-meter (BTM) stationary energy storage market to grow from 32 GWh in annual demand in 2025 to over 39 GWh by 2033.
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New German allowances give further boosts for plug-in PV and storage
Germany’s revised VDE standard enables simplified registration of larger plug-in photovoltaic systems and storage, effectively removing previous capacity limits for self-installation and paving the way for high-capacity battery integration.
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Japan: First capacity market battery commissioned, finance secured for 270 MWh Kikugawa BESS
Private and public cash supports more energy storage deployment in Japan, as developers take different approaches to project financing. More large-scale grid-connected projects expected in the wake of oversubscribed Japanese capacity market auction.
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BBDF: German network agency says framework for BESS grid fees coming soon
The Federal Network Agency plans to present a framework for the future network fee system at the end of May 2026. Battery Business Development Forum guests hear how grid fees might interact with flexible connection agreements debate, and the potential consequences for battery energy storage system (BESS) returns.
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