Italy, Great Britain, and Germany are currently the most appealing battery markets in Europe, according to a study by Aurora.

Aurora Energy Research, an international energy market analysis company, has recently published its latest European Battery Markets Attractiveness Report (BatMAR), highlighting Italy, Great Britain, and Germany as the most appealing battery markets for potential investors in Battery Energy Storage Systems (BESS) within Europe. The report covers insights from 28 European countries, shedding light on market trends and regulatory changes.

Leading the pack is Italy, which has set a target of 50 GWh of battery capacity by 2030 and has opened up its ancillary markets to BESS investments, making it a top choice for investors. Following closely behind is Great Britain with an existing installed capacity of 4.3 GW and a thriving battery industry expected to grow to 10.6 GW, offering attractive revenue streams. Germany, surpassing Ireland’s I-SEM, secures the third spot due to its promising market outlook and ambitious renewable energy objectives.

Although Italy, Great Britain, and Germany present large investment opportunities, Belgium, Hungary, and Greece are emerging as promising destinations for smaller-scale investors or those willing to take on higher risks. Europe’s grid-scale BESS capacity, standing at 10.3 GW in October 2024, is anticipated to increase significantly to 55 GW by 2030 and a staggering 126 GW by 2050, creating an investment opportunity of up to 100 billion euros, including repowering initiatives.

Europe is consolidating its position as a global center for BESS investments, with extensive decarbonization goals and an expected surge of 333 GW in variable renewable capacity by 2030 fueling industry growth. Eva Zimmermann, Senior Associate Flexible Energy at Aurora Energy Research, emphasized the robust nature of the grid-scale energy storage market, highlighting the burgeoning investment prospects. However, she also noted the intricate revenue-cost dynamics within battery markets and the varying risk levels among European countries.

Jörn Richstein, Research Lead at Aurora Energy Research, stressed the pivotal role batteries play in transitioning the energy system towards greater reliance on renewable technologies by providing essential system flexibility. He pointed out the evolving nature of revenue opportunities in the sector, necessitating a deep understanding of future local power market developments and a keen grasp of the market’s complexities.

As the energy transition progresses, Aurora Energy Research continues to provide vital quantitative analysis and decision support to ease the shift towards cleaner energy sources. Their detailed European Battery Markets Attractiveness Report offers an in-depth look at the landscape of BESS investments and regulatory frameworks in Europe, guiding potential investors and industry stakeholders towards informed decisions.