Wednesday 14 February 2024

Europe’s battery boom: Britain, Ireland and Italy lead the charge

Europe’s battery boom: Britain, Ireland and Italy lead the charge

Britain, Italy and Ireland lead battery storage investment in Europe.

That's according to Aurora Energy Research's latest report, which examined 24 countries and revealed the top markets for Battery Energy Storage Systems (BESS) investment.

Europe's battery sector is accelerating, with installed capacity set to grow sevenfold to 51GW by 2030, representing a €78 billion (£66.3bn) investment opportunity through 2050.

According to the report, Britain emerges as the frontrunner in battery storage capacity, boasting the highest installed capacity and forecasting a quadrupling of capacity by 2030.

This growth is underpinned by promising revenue streams.

Additionally, Italy has set ambitious targets, aiming for 9GW of battery capacity by 2030.

Meanwhile, Ireland's I-SEM presents appealing investment prospects with its DS3 tariffs.

Spain and Greece present emerging opportunities, driven by robust public support and upcoming auctions for capacity allocation.

Ryan Alexander, Research Lead, European Power Markets, Aurora Energy Research, commented: "The market for grid-scale energy storage is set to increase exponentially in the coming years.

"This is no surprise - energy storage is one of the key enablers of the energy transition, and a complex interplay of cost and revenue factors are coming together to create a substantial investment opportunity."

Eva Zimmermann, Lead for Flexible Energy, Aurora Energy Research, added: "Batteries serve as indispensable assets in driving the energy transition forward.

"However, the attractiveness of the market hinges on a multitude of factors. Elements such as risk appetite, investment scope, and preferred setup are just as pivotal as market design and a comprehensive understanding of future power market developments."

Written by

Sumit Bose

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