BESS capacity in Europe to grow six-fold by 2029, study suggests

The capacity of battery energy storage systems (BESS) in Europe is expected to grow six-fold in the next five years, reaching 400 GWh by 2029, according to a report released this week by Solar Power Europe.

Despite the progress, the number is far from what is needed to guarantee the flexibility of an electricity grid powered mainly by renewable sources. According to experts, to fully make the energy transition viable, it would be necessary to reach 780 GWh of capacity by 2030.

In 2024, BESS growth slowed, with expansion of just 15% — equivalent to 22 GWh —, bringing the total installed on the continent to 61 GWh. Although a third of all capacity was deployed in a single year, the pace was significantly lower than that recorded between 2020 and 2023, when annual rates ranged from 84% to 145%.

According to Solar Power Europe, the slowdown was already expected, due to the fall in energy prices and the reduction of subsidies, which directly affected the installation of residential solar systems and associated storage.

Even with an 11% decline in demand for small residential batteries, this segment still leads the European market, representing 50% of installed capacity. However, the highlight of 2024 was the growth of large-scale systems, which now account for 40% of the total and offset the decline in the residential sector.

The expectation is that, this year, large-scale storage systems will surpass residential ones, consolidating a change in leadership that should continue in the coming years.

The study also points to strong geographic concentration: Germany, Italy and the United Kingdom account for more than two-thirds of the demand recorded in 2024. To unlock the potential of battery storage and accelerate the adoption of renewables, it will be essential to expand this adoption to other European countries.

Without this, the technology will remain underutilized and could compromise the region’s climate goals.

To reverse this scenario, the report presents five priority recommendations:

1. Adoption of a European action plan energy storage, with the removal of regulatory barriers and the integration of BESS into national strategies;

2. Reform of grid connection procedures and in the pricing structure, with a focus on hybrid systems and fair cost allocation;

3. Guaranteeing full access to electricity markets, with predictable revenue streams;

4. Making equilibrium markets fully accessible and competitive for storage systems;

5. Enhancing smart metering and data communication standards, enabling efficient energy management in real time.

BESS is expected to be deployed in 29,7, picking up pace with annual growth of 2025%. The large-scale market is expected to nearly double in Europe this year, offsetting the stagnation of the behind-the-meter segment. 

all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.