Investment in energy storage doubles in Europe
In 2023, Europe saw a 94% increase in installed energy storage capacity. This significant growth is an excellent response to the threats to energy security posed by the war in Ukraine.
Home energy storage drives the market
Traditionally, in the middle of the year, the industry association SolarPower Europe publishes a report on the state of the European battery energy storage market. This year’s report, titled “European Market Outlook for Battery Storage 2024-2028,” highlights the significant changes that have occurred in Europe over the past 10 years. At the end of 2014, the total installed capacity of storage facilities was only 0.2 gigawatt-hours (GWh), but by the end of 2023, it had risen to 35.9 GWh. The recent years have seen particularly dynamic growth in new capacities. Here are the details:
- 2020 – 2.3 GWh,
- 2021 – 4.4 GWh,
- 2022 – 8.8 GWh,
- 2023 – 17.2 GWh
The main driving force behind these changes is the home battery segment, which accounts for 70% of the capacity of new devices, totaling 12 gigawatt-hours (GWh) in 2023. The industrial segment contributed 1.6 GWh, and the network segment added 3.6 GWh. This shift is largely due to the energy crisis and the drastic increase in energy prices in recent years. Additionally, the launch of subsidy programs for prosumers in many countries has played a significant role.
The Czechs have entered the top five in Europe
For years, Germany has been leading in investments in energy storage systems. In 2023, Germany installed batteries with a capacity of 5.9 gigawatt-hours (GWh), up from 2.3 GWh in the previous period. Italy follows with 3.7 GWh, the UK with 2.7 GWh, and Austria with 1 GWh. Unexpectedly, the Czech Republic jumped to fifth place, tripling its investments in energy storage during this period. Their total capacity reached 900 megawatt-hours (MWh), which is more than double that of Poland.
Europe is definitely behind other continents
The positive signals from Europe’s energy storage market do not change the global picture. Europe accounts for only 15% of worldwide investments. While Europe saw a 94% growth, the global storage market grew even more, at 133%. SolarPower Europe’s forecasts are also not positive. Analysts estimate that by the end of 2024, industry ventures will fall by 23% compared to last year due to the stabilization of electricity prices, leading to a gradual slowdown in household sector demand.
A rebound is expected as early as 2025, with numerous investments in the network and industrial storage segments set to be completed. By 2028, Europe’s total storage capacity is projected to be 135 gigawatt-hours (GWh) in the optimistic scenario, 78.1 GWh in the realistic scenario, and 34.1 GWh in the pessimistic scenario.
The problem is regulations
SolarPower Europe analysts are skeptical about achieving 200 gigawatts (GW) of installed storage by 2030, despite its necessity for maintaining system stability amid the rapid growth of renewable energy. They identify several barriers hindering market growth, such as the absence of strategic plans, inadequate legal frameworks for flexibility, issues of double taxation, and cumbersome rules for connecting hybrid renewable energy installations to the grid. The report emphasizes that addressing these challenges requires political oversight and prioritization if Europe is to effectively tackle its energy security issues.
Source: solarpowereurope.org