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2.8.2022

The 3 best reasons to have a large-scale battery storage system in your municipality

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4 min

Have you just heard about large-scale battery storage for the first time and are wondering what benefits it will bring to your region? Or have you heard about other municipalities that are currently building a storage facility and want to find out more?

Here are the 3 most important reasons for a large-scale battery storage system in your region.

1. strengthening their local electricity infrastructure

The greatest advantage of a large-scale battery storage system is precisely what makes it so unique in the energy sector. The ability to switch between drawing electricity from the grid and feeding stored energy into the grid within a few milliseconds, depending on demand.
But why is that so important?

You can find the detailed answer in our article Battery storage as a key technology of the energy transition, at this point a brief summary will suffice:
The switch from conventional large-scale power plants to volatile renewable energy generation from wind and sun is putting more strain on our electricity grid than ever before. With the expansion of renewable energies to many millions of small plants, the share of renewables in the electricity mix is increasing and with it the dependence of electricity generation on the weather, time of day and season. The change in electricity generation therefore requires extensive flexibilization of the electricity infrastructure to ensure security of supply in the future.

Large-scale battery storage systems make a decisive contribution to this.
By temporarily storing electricity, the storage system can absorb surplus electricity and feed it back into the grid when demand increases. In this way, it stabilizes both the nationwide and the local power grid and increases local supply security. In addition, it simultaneously reduces the need for expansion of high-voltage lines and substations in the region, which would alternatively be necessary to adapt the grid to the high number of new, volatile generation plants.

In addition, large-scale battery storage systems are technically capable of providing a variety of necessary system services. In the event of a power outage in your region (blackout), the storage system can act as a reserve system and restore grid operation locally (black start).
Kyon Energy is currently actively working to ensure that the regulatory framework for this island and black start capability is created so that this can also be used in practice in an emergency in the near future. With the energy stored in a Kyon large-scale battery storage system with a capacity of 20 MW and 40 MWh, the power supply for over 30,000 households could be maintained for two hours.

2. a lighthouse project for your municipality

Even though the implementation of battery storage projects are indispensable for the expansion of renewable energies, the construction of such a storage facility in Germany is currently by no means a matter of course. Currently, only about 20 large-scale battery storage facilities with a respective capacity of more than 10 megawatts are in operation across Germany.

That's why every project that will be connected to the gird in the next few years will be a real headline. A headline that shows that sustainability and a strong vision for the future are an integral part of the region. Not only does such a project improve the perception of the municipality and the awareness of the region, it also attracts other potential projects such as photovoltaics and wind turbines, makes potential residents aware of the community, and supports the municipality in meeting climate goals (e.g. climate protection concepts, greenhouse gas neutrality, or similar).

A project like this also increases the energy independence of your region, as renewable sources can be used more effectively, reducing dependence on gas imports, for example.
Therefore, your municipality contributes to the realization of the vision of a sustainable and independent energy supply.

3. trade tax revenue for municipalities

Part of this vision is also an economic benefit for the region. Energy generation plants are subject to trade tax at the place of generation. More precisely, 90% of the profits are subject to trade tax in your municipality (cf. §29 para. 1 no. 2 letter a GewStG).
The exact amount of trade tax depends on the trade tax multiplier of your municipality and the actual annual profits of the battery storage system.

Conclusion:

In a nutshell, why are large-scale battery storage systems valuable in your municipality?

1. Kyon large-scale battery storage accelerates the transformation of power grids and thus the transformation to a sustainable and independent energy supply.

2. Decarbonization of the energy sector is an important step towards meeting climate targets. By building a Kyon battery storage system, your community not only actively contributes to this, but also benefits from resulting positive press.

3. You will participate in the economic success of the project via business tax.

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