European Energy Security: Germany in Focus

In the past, energy security had a clear meaning: keeping the lights on. Today, it encompasses a broader challenge—maintaining a reliable supply amid a rapidly changing energy system.

Modern energy security is increasingly defined as the “low vulnerability of vital energy systems” (Cherp & Jewell, 2014). From this perspective, the protection of critical infrastructure, the ability to manage interdependencies, and the capacity to withstand shocks in highly interconnected systems constitute the central pillars of contemporary energy security thinking.

This framework is directly reflected in current European energy policy discussions. In Germany, where the energy transition is advancing rapidly and the country is targeting an 80% renewable share of electricity generation by 2030, the challenge of maintaining system security has become particularly acute.

The Bundesnetzagentur (Germany’s energy regulator) has recently concluded that the build-out of energy storage system infrastructure must accelerate. Energy storage can provide essential system services that were historically delivered by conventional synchronous power plants. These include time-shifting renewable generation to periods of demand, grid-forming capabilities, congestion management, and capacity and adequacy support.

There is an urgent need to ensure the stability of the energy supply in Europe’s largest economy. Battery Energy Storage Systems (BESS) therefore emerge as critical contributors to Germany’s energy security. This, in turn, creates a compelling investment opportunity for BESS specialists able to secure a strategic project pipeline, as well as for long-term investors seeking attractive yields.

Disclaimer
This material is for informational purposes only and is intended solely for professional investors. It does not constitute investment advice or an offer to buy or sell any financial instrument. Investment decisions should be based on independent due diligence and professional advice. Sogne Strategies Norway AS is a Nordic placement agent regulated by the Financial Supervisory Authority of Norway.