Europe’s BESS Market Set for Exponential Growth: Italy Leads as Grid-Scale Storage Capacity Poised to Surge Fivefold by 2030

The report reveals that as of October 2024, Europe’s grid-scale battery energy storage system (BESS) capacity has reached 10.3GW, marking a significant milestone in the continent’s energy transition. This capacity is projected to experience a remarkable fivefold increase, soaring to 55GW by 2030. Looking further ahead, forecasts indicate that Europe could achieve an impressive 126GW of operational BESS capacity by 2050, underscoring the region’s commitment to scaling up energy storage infrastructure to support its renewable energy ambitions.

Italy currently leads the battery investment attractiveness ranking among 28 European countries, a position driven by its ambitious target of deploying 50GWh of battery capacity by 2030. Additionally, Italy’s decision to open its ancillary services market to BESS assets has significantly enhanced its appeal to potential investors. These factors, combined with a favorable regulatory environment, position Italy as a frontrunner in the European BESS market.

The United Kingdom ranks a close second, with its installed BESS capacity currently standing at 4.3GW. This capacity is expected to more than double to 10.6GW in the coming years, bolstered by the country’s mature BESS industry and diverse revenue streams. The UK’s well-established market framework and supportive policies continue to attract significant investment, making it a key player in the European energy storage landscape.

Germany secures the third spot in the attractiveness ranking, surpassing Ireland due to its robust market prospects and ambitious renewable energy targets. The report highlights Germany’s strong potential for BESS deployment, driven by its commitment to achieving a carbon-neutral energy system. Meanwhile, emerging BESS markets across Europe, such as Belgium, Hungary, and Greece, are gaining traction as attractive investment destinations, particularly for smaller investors or those willing to take on higher risks in pursuit of growth opportunities.

Europe is rapidly emerging as a global hub for BESS investment, fueled by the anticipated addition of 333GW of variable renewable energy capacity by 2030. This surge in renewable energy deployment is expected to create unprecedented demand for energy storage solutions, enabling the BESS industry to expand exponentially in the coming decades.

An industry expert commented, “The grid-scale energy storage market remains robust, with a growing pipeline of investment opportunities driven by favorable market conditions. However, the battery market is characterized by a complex interplay between revenue streams and costs, with significant variations across European markets in terms of size, revenue potential, and risk profiles. This is evident even when comparing top markets like Italy and the UK: Italy offers opportunities for developers entering the market with greenfield projects, while the UK’s market is already saturated, making it more appealing to investors with advanced project portfolios. Batteries are a critical enabler of the energy transition, providing the flexibility needed to integrate a higher share of renewable energy technologies into the grid. However, the types of flexibility required and the associated revenue opportunities will continue to evolve, making this a highly dynamic and challenging market. Success will depend on a deep understanding of how local power markets are likely to develop in the future.”

This comprehensive outlook highlights the transformative potential of BESS in Europe’s energy landscape, while also emphasizing the need for strategic investment and market expertise to navigate its complexities.