The Volkswagen Group is making a significant leap into the energy sector with the launch of Elli, its new charging and energy brand. Elli will spearhead the development, construction, and operation of large-scale stationary storage systems in collaboration with various partners along the value chain. These storage systems will cater to both consumer energy needs and participate in electricity market arbitrage transactions. This strategic move is poised to transform Elli into a leading smart energy company, contributing significantly to the stabilization and efficiency of power grids. The first Elli battery storage projects are anticipated to be operational as early as next year.
The Elli project pipeline includes some of the largest energy storage projects in Germany, with capacities reaching up to 350 MW and storage capabilities of 700 MWh. Such projects could nearly double Germany’s current total storage capacity, which stands at approximately one GWh. “Germany and Europe need sufficient storage solutions to meet the increasing demand and to compensate for the volatile feed-in of renewable energies,” stated Thomas Schmall, Volkswagen Group Board Member for Technology. “Our investment in stationary battery storage systems is a significant contribution to the sustainable transformation of the energy supply.”
The urgency for such storage solutions is underscored by the fact that in 2023, approximately 10,500 GWh of potential renewable electricity generation in Germany was lost due to inadequate intermediate storage options. This amount of energy could have powered over 3.2 million electric vehicles for a year. According to estimates by the Fraunhofer Institute, the demand for battery storage systems is expected to exceed 100 GWh by 2030 to effectively manage the volatility of renewable energy sources.
Elli’s entry into the industrial energy storage market reinforces its leadership in the mobility and energy transition. Giovanni Palazzo, CEO of Elli, expressed optimism about the financial prospects and strategic significance of this venture. “We see high financial potential in this business area and the opportunity to develop Elli into a holistic energy provider in Europe,” Palazzo stated.
With these ambitious projects, Volkswagen Group and Elli are set to play a pivotal role in the future of Europe’s energy landscape, driving forward the transition towards a more sustainable and efficient energy system.
