Our updated Germany’s price forecast is already available on Clean Horizon platform! What are the new opportunities and risks? Salomé Perperot, our Germany’s market consultant, tells us more in this article.

Additional revenue stream for battery storage

New revenue opportunity for BESS in Germany! Ongoing tenders for the procurement of inertia reserves has open to BESS in 2026, opening an additional revenue stream for battery storage assets.

A new market-based process is offering four products, structured by:

→ Direction: positive/negative inertia
→ Availability level: “Basic”/“Premium”

Remuneration is based on a fixed-price mechanism, with payments linked to the asset’s minimum availability to deliver the service.

Thanks to our COSMOS tool which optimizes BESS operations on all markets, we can assess how much synthetic inertia a BESS can provide without impacting its dispatch and thus its merchant revenues.

What are the benefits for your projects?

Providing positive and negative inertia can increase project IRR by 0.6% to 2%, which primarily benefits short-duration BESS. See the increase in BESS IRR when providing positive and negative inertia, for all battery durations, in our carousel.

How Clean Horizon can support you:

→ Strategic advisory on market positioning, especially on bid strategy for synthetic inertia
→ Customized sensitivity analyses
→ Full project economics adapted to the German market
→ Revenue stacking with inertia services integrated into business cases

Germany’s grid fee reform: a new risk factor for BESS profitability

Germany’s ongoing grid tariff reform could materially reshape storage economics and should not be treated as a secondary parameter in project evaluations.

Our latest price forecast already integrates these developments and their potential impact on project returns.

How will it impact your projects in practice?

→ Power grid fees could reduce project IRR by 1–2.1%
→ Additional energy-related fees may further decrease IRR by ~0.8–0.9%
→ A key uncertainty remains: potential retroactive application to existing BESS assets

In other words: the opportunity is still there but the assumptions need refreshing.

What should developers and investors focus on?

→ Reassessing project profitability under updated cost structures
→ Stress-testing business cases across multiple regulatory scenarios
→ Anticipating downside risks linked to tariff evolution

At Clean Horizon, we support market players by:

→ Quantifying the impact on project returns
→ Running scenario-based analyses
→ Providing strategic guidance on risk mitigation

Our updated Germany price forecast is already available on our platform !
Not yet subscribed? Access all of our reports, forecasts, dynamic graphs, our COSMOS tool, and our Premium Index here!