Italy and the United Kingdom Have Huge Energy Storage Market Potential in Europe, According to Aurora Energy Research

Italy, the UK, and Germany: The Most Attractive Energy Storage Markets in Europe

Italy, the United Kingdom, and Germany are currently the most attractive markets for energy storage investments in Europe, according to the latest report by Aurora Energy Research. The fourth edition of the “European Battery Markets Attractiveness Report (BatMAR)” analyzes 28 European markets in terms of investment potential and regulatory trends.

Ranking Leaders

At the top of the ranking are Italy, which stands out due to its ambitious goal of reaching 50 GWh of storage capacity by 2030, as well as its opening of ancillary services markets for Battery Energy Storage Systems (BESS). This is another positive development for the country’s economy, following the recently announced launch of record funds for agrivoltaic projects.

The United Kingdom holds second place, with its storage capacity of 4.3 GW and a forecasted increase to 10.6 GW by 2030. The established market position and attractive income sources are drawing investors.

Germany ranks third, ahead of Ireland. The main strengths of the German market are strong growth forecasts and ambitious goals to increase the share of renewable energy.

In addition to the leaders, the report highlights the dynamic growth of the energy storage market in Belgium, Hungary, and Greece. These countries are becoming attractive locations for investors interested in smaller projects with higher levels of risk.

Forecasts for the BESS Market in Europe

According to the report, the capacity of grid-scale energy storage in Europe, which was 10.3 GW in October 2024, will increase fivefold to 55 GW by 2030. By 2050, the projected growth is 126 GW.

Investments in BESS will amount to approximately €100 billion by 2050, including modernization projects. It’s also worth noting that battery energy storage systems are currently seeing successes in Asia and the USA as well.

Experts on the Energy Storage Market

Eva Zimmermann, Senior Associate Flexible Energy at Aurora Energy Research, emphasizes the growing investment opportunities but points out different market entry strategies: “In Italy, there is potential for investors seeking greenfield projects, while in the UK, the market is already largely developed and more attractive for investments in advanced projects.”

Jörn Richstein, Research Lead at Aurora Energy Research, highlights the crucial role of energy storage in the energy transition process: “Batteries are essential for integrating renewable energy sources, as they provide system flexibility. However, business models are evolving, which means the energy storage market requires in-depth analysis of local market conditions.”

Source: auroraer.com