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

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

You are just hearing for the first time about Large-scale battery storage and are wondering what benefits it will bring to your region? Or you have heard about other communities that are currently building a storage facility and want to learn more about it?

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 Large-scale battery storage as a key technology for the energy transition, a brief summary will suffice at this point:
Due to the switch from conventional large-scale power plants to volatile renewable energy generation from wind and solar, our power grid is stressed as never before. As renewable energy expands to many millions of small plants, the share of renewables in the electricity mix increases, and with it the dependence of electricity generation on weather, time of day, and season. The change in power generation thus requires extensive flexibilization of the power 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 is technically capable of providing a variety of necessary system services. In the event of a power outage in your region (blackout), storage can act as a backup system and restore grid operations locally (black start).
Kyon Energy is currently actively working to create the regulatory framework for this islanding and black start capability so that this can be applied in the near future in the event of an emergency. With the energy stored in a Kyon large-scale battery storage system with 20 MW Power and 40MWh Capacity, the power supply of more than 30,000 households could be maintained for 2 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. This vision has already been taken up by the legislature: Energy generation plants, which include battery storage, are subject to business 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).
(Note: A tax loophole that led to the circumvention of this regulation in the past for wind and solar plants has since been closed).

The exact amount of the business tax depends on the business tax rate of your municipality and the actual annual profits of the battery storage system. A generally valid forecast is therefore unfortunately not possible, but will be estimated for each project individually for you.


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

  1. Kyon`s large-scale battery storage systems accelerate the transformation of power grids and thus the transformation to a sustainable and independent energy supply.
  2. Decarbonizing the energy sector is an important step towards meeting climate goals. 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 the trade tax.

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