A two-fold increase in investments in energy storage in Europe
In 2023, Europe saw a 94% increase in the amount of energy storage installed. This is a great response to the energy supply threats caused by the war in Ukraine.
Home energy storage is driving the market\
Traditionally, SolarPower Europe, an industry association, publishes a report on the state of the European battery energy storage market in the middle of the year. This year’s report, titled “European Market Outlook for Battery Storage 2024-2028,” shows the significant changes in Europe over the past 10 years. At the end of 2014, the total installed storage capacity was just 0.2 GWh, but by the end of 2023, it had increased to 35.9 GWh. The report highlights the rapid growth of new capacities in recent years:
- 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 accounted for 70% of the new capacity (12 GWh in 2023). The industrial segment contributed 1.6 GWh, and the network segment contributed 3.6 GWh. This shift is due to the energy crisis and the drastic rise in energy prices in recent years. Additionally, the introduction of subsidy programs for prosumers in many countries has played a significant role.
The Czechs jumped into the top five in Europe
For years, Germany has led the way in investing heavily in energy storage systems. This trend continued in 2023, with Germany installing batteries with a capacity of 5.9 GWh, up from 2.3 GWh in the previous period. Italy followed with 3.7 GWh, the UK with 2.7 GWh, and Austria with 1 GWh. Surprisingly, the Czech Republic jumped to fifth place, tripling its investments in energy storage during this period. Their total capacity of 900 MWh is more than twice that of Poland.
Europe is definitely inferior to other continents
The positive signals from the energy storage market in Europe do not change the global picture. Europe accounts for only 15% of global investments. While Europe saw a 94% growth, the global market grew even more, at 133%. SolarPower Europe’s forecasts are also not positive. Analysts predict that by the end of 2024, industry investments will decline by 23% compared to last year. This decline is due to the gradual slowdown in household demand as electricity prices stabilize.
However, a rebound is expected as early as 2025, with numerous investments in the network and industrial storage segments set to be completed. By 2028, the total storage capacity in Europe is expected to be 135 GWh in the optimistic scenario, 78.1 GWh in the realistic scenario, and 34.1 GWh in the pessimistic scenario.
Regulations are the problem
SolarPower Europe analysts doubt that the target of 200 GW of installed storage will be reached by 2030. They believe this scale is necessary to ensure system stability given the rapid development of renewable energy sources. The challenge remains to eliminate barriers hindering market growth.
These barriers include the lack of strategic plans, legal frameworks regarding flexibility, double taxation, and complicated rules for connecting hybrid renewable energy installations to the grid. The report’s introduction states that this issue “requires political oversight and prioritization if Europe truly wants to solve its energy security problems.”
Source: solarpowereurope.org