Germany Launches Instantaneous Reserve Power Market to Drive Energy Storage System Development

Since January 22, Germany has been procuring instantaneous reserve power through market mechanisms, marking a structural change in how grid system services are provided. Instantaneous reserve power can stabilize frequency within milliseconds to 30 seconds after a grid disturbance occurs, providing support for subsequent frequency regulation services.

Previously, this function was primarily undertaken by gas and coal-fired power plants, which could naturally provide this service due to their rotating mass characteristics. With the gradual phase-out of coal-fired power plants and the reduced operating hours of gas-fired plants, other participants are needed to fill this role.

The new procurement model no longer relies on traditional physical supply methods but operates through market mechanisms. This enables inverter-based technology assets to participate, opening up new development space for energy storage systems.

This reform provides new application scenarios and market opportunities for energy storage technologies. Inverter-based energy storage systems can respond quickly to grid demands and play a significant role in the instantaneous reserve power market.