Enterprise energy transition: how storage technologies are shifting the strategic landscape
In the rapidly evolving energy landscape, companies are increasingly investing in energy storage solutions to ensure strategic alignment and performance efficiency during the energy transition. This transition requires a thoughtful approach, as companies must consider several key factors to maximise the value of their investments.
First and foremost, understanding the policy and regulatory environment is essential. Strong federal and state-level policy support, such as tax incentives, storage mandates, and clean energy targets, can have a significant impact on project viability and financing options. Companies should align their investments with current and anticipated regulatory frameworks to capitalise on incentives and reduce policy risk.
Technology choice and grid needs are another crucial consideration. Selecting the most appropriate energy storage technology that matches operational goals is essential, especially as renewables exceed 80% of capacity additions globally. Grid-forming battery storage systems (GFM BESS) are emerging as essential for maintaining grid stability with increasing renewable share, actively creating and managing grid frequency rather than just responding passively.
Financial and market considerations also play a significant role. The capital-intensive nature of storage projects combined with market volatility and rising interest rates demands innovative financing strategies. Companies should secure creditworthy offtake agreements and hedging mechanisms to de-risk revenue streams and attract investments. Flexibility to navigate shifting legislative incentives is also important given potential policy changes.
Integration with renewables and hybrid systems is another key factor. Co-located or hybrid systems—combining storage with solar or wind—maximise asset value, improve dispatchability, and help manage renewable intermittency. Hybrid power plants can optimise grid utilisation and improve performance efficiencies through complementary generation and storage profiles.
Considerations around storage duration (short vs. long duration) and scale affect strategic fit and cost-effectiveness. Initiatives aiming to drastically reduce costs for grid-scale, long-duration storage are in place, reflecting growing demand for solutions that enable energy shifting over multiple hours and improve grid resilience.
Companies must also look beyond development and construction phases to ensure operational reliability, maintainability, and long-term value creation. This implies investing in technologies and contractual frameworks that support sustained performance across the project life.
Awareness of ongoing technological advancements, such as economy of scale benefits lowering lithium-ion battery costs, emergence of virtual power plants (VPPs) that digitally aggregate storage assets, and overall digitization of grids, can enhance strategic positioning and performance.
Focusing solely on cheap storage systems may result in missed savings targets due to varying quality levels in the current market. Intelligent storage solutions are crucial for ensuring supply security during network outages. Insufficient qualification of some storage system providers is a risk, as market pressure has led to more installers being active without in-depth electrical knowledge.
Storage technologies provide technical balancing, economic and operational resilience, and relieve public grid infrastructure. The transformation of the energy system presents companies with new strategic challenges, particularly in the face of growing network instabilities.
Companies are advised to collaborate with partners who understand technical and systemic connections to avoid superficial consultations that focus on storage volume but not on dynamic consumption behaviour or regulatory requirements. Poor advice or investment in cheap systems can lead to strategic misinvestments.
Companies must plan for network-independent solutions to ensure future supply security. Minor network fluctuations can amplify at critical nodes and trigger cascading outages, especially in the European interconnected grid. Early investment in powerful, precisely dimensioned storage systems can provide operational independence and strategically position companies for an energy future where network stability and autonomy become location advantages.
Underestimating system selection can lead to investments in underdimensioned or incorrectly configured systems, resulting in significant financial burdens and potential long-term economic consequences. Storage solutions are no longer just a green add-on, but mark the interface between energy policy and profitability.
EPP GmbH, under the leadership of Daniel Poelzlbauer, has established itself as a leading provider in the region with over 15,000 realised projects. More information can be found at: https://elektro-epp.at/.
The energy transition is leading to increased network instabilities, rising peak load tariffs, and dependence on volatile energy sources. Network fees and peak load surcharges can remain nearly unchanged even with decreasing grid consumption if the performance and control behaviour of the storage system don't match the load structure. The distinction between storage capacity and withdrawal performance is crucial: storage capacity indicates how much energy can be stored, while withdrawal performance determines how quickly this energy is available.
Modern storage systems smooth out peak loads, reduce external procurement dependence, and increase operational flexibility. There is often a gap between storage capacity and actual performance. Many companies are turning to storage technologies, but not all investments are profitable due to varying quality. Electric vehicles increase peak load by five to six times, necessitating storage systems that can anticipate future load developments.
Daniel Poelzlbauer, an engineer for renewable energies and electrical engineering, is the managing director of EPP GmbH, a family-owned company offering high-quality photovoltaic solutions, energy storage systems, and modern electrical engineering.
- In the renewable-energy industry, companies are taking a strategic approach to their energy investments, ensuring alignment with regulatory frameworks to capitalize on incentives and reduce policy risk.
- Financial and market considerations are essential when investing in energy storage solutions. Innovative financing strategies are needed to address the capital-intensive nature of storage projects and manage market volatility.
- Beyond development and construction, companies must focus on operational reliability, maintainability, and long-term value creation to ensure sustained performance across the project life. This involves investing in technologies and contractual frameworks that support sustained performance.