Sonnen boss in an interview
Can home storage save the German power grid?
May 3, 2024, 3:21 p.m
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More and more sun and wind in the German power grid are politically wanted. But it becomes a problem when the electricity is generated at times when it is not needed. Oliver Koch from Shell subsidiary Sonnen wants to change that – with a “virtual power plant”.
There are more and more solar systems installed in Germany. Does this mean that more and more electricity storage units are needed to temporarily store the energy generated?
Oliver Koch: One thing is certainly true: 2022 and 2023 were absolute boom years for solar energy and storage. At Sonnen we couldn’t keep up with production; there were shortages everywhere. Of electronic components, installation capacities and systems. But that changed at the end of 2023. Demand has fallen significantly, especially for single-family homes.
What is the reason for this decline? Is the market already saturated?
No, there is no market saturation. We are still only at the beginning. The reason lies in the boom years of 2022 and 2023. We have not collapsed, we have simply had two extremely strong years behind us. Now we’re going back to normal levels. However, this will mean layoffs for many companies, and we will also experience one or two insolvencies.
Is this a purely German phenomenon?
No, we also see this in other European countries. In the USA, however, things are completely different. The only real question is whether our business will triple or quadruple this year.
Sonnen is trying to use storage to address the fact that renewable energies often provide electricity at the wrong time – when it is not needed. How exactly does this work?
We are talking about a virtual power plant. We use tens of thousands of small home storage systems to turn it into a virtual large-scale power plant. This allows the power grid to be stabilized. So we de facto provide network services that we offer to German transmission system operators, for example. In other words, those who have to ensure that there is a balance between electricity demand and electricity supply at all times.
And this is how the company makes money?
We are paid by the transmission system operators for this, yes. We pass the money on to our customers. Either in the form of a free amount of electricity or with a profit share at the end of the year. In photovoltaics, we see that production in Germany is being reduced because strong competition from Asia is threatening the business.
Isn’t this also a danger for Sonnen as a battery provider?
Of course, you always have to make sure you stay competitive. I believe that our technology of networking and intelligent control is crucial. We are confident that we will be able to assert ourselves on the market against Chinese competition. But of course this is a highly competitive market.
What exactly can the role be for a German company like Sonnen?
We basically see ourselves as an important building block that makes the energy transition in the network possible. It’s about the flexibility of being able to supply electricity whenever it is needed on the grid. This will be the currency of the future in the German power grid.
Listen in the new episode of “Zero Hour“
· Why Sonnen also negotiates with supermarkets
· How storage can replace new power lines
· What a virtual power plant means for the heat pump
You can find all episodes directly here RTL+, Apple or Spotify or via Google.