Fraunhofer ISE releases electricity price simulator

The Fraunhofer Institute for Solar Energy Systems ISE has released a new, freely accessible electricity price simulator via its Energy-Charts.info platform. The tool allows users to analyze how varying levels of battery storage capacity—ranging from 0 to 20 GW—and different storage durations impact electricity prices on Germany’s day-ahead market.

Using actual market data, Fraunhofer’s analysis of a hypothetical 20 GW battery fleet with a two-hour storage duration shows significant impacts on price volatility. In this scenario, the average price difference between the most expensive and cheapest quarter-hour of the day would drop from €130/MWh to €53/MWh. Additionally, hours with prices exceeding €200/MWh would decrease from 169 to 20, and hours with negative prices would fall from 575 to 271. The market value of solar energy would also increase from €45.08/MWh to €61.02/MWh.

However, critics note that while these simulations show improved price stability and higher solar value, they may not account for the massive capital requirements. Implementing such a battery fleet could cost between €12 billion and €18 billion, and the simulations do not necessarily reflect whether such large-scale investments are cost-effective for the average consumer, as average annual electricity prices could see a slight increase.