Aurora ranks Britain as one of the top BESS markets in Europe
A recent report by Aurora Energy Research has identified Britain as a top market for battery energy storage systems (BESS) in Europe. The European Battery Markets Attractiveness Report (BatMAR) states that Europe currently has a grid-scale BESS capacity of 10.3GW, which is projected to grow to 55GW by 2030. By 2050, the capacity is expected to reach 126GW, representing a significant €100 billion investment opportunity. Italy currently holds the top spot in the BESS market attractiveness ranking, with plans to have 50GWh of battery capacity by 2030 and opening up ancillary markets to BESS assets. Britain closely follows Italy in the rankings, with an existing BESS capacity of 4.3GW that is expected to more than double to 10.6GW. The report cites attractive revenue streams and a well-established BESS industry as reasons for Britain’s high ranking.
Germany is ranked third in attractiveness for BESS investment, surpassing Ireland due to its strong market outlook and renewable energy targets. Additionally, emerging markets in Belgium, Hungary, and Greece are seen as potential opportunities for smaller investors or those with a higher risk appetite. The report highlights Europe as a key global hub for BESS investors, with a projected increase of 333GW in variable renewable capacity by 2030 paving the way for significant growth in the sector.
Eva Zimmermann, a senior associate at Aurora Energy Research, emphasized the complexity of revenue-cost dynamics in battery markets and the differences in size, revenue streams, and risk levels across European markets. Jörn Richstein, research lead at Aurora Energy Research, noted that batteries play a crucial role in transitioning to higher levels of renewable technologies by providing flexibility to the energy system.
In a separate development, Modo Energy reported a significant increase in UK BESS revenues in December 2024. Revenues rose by 65% from the previous month, reaching £84k/MW/year, the highest monthly increase in four years. The spike in revenues was attributed to high wholesale price spreads and a record need for balancing mechanism dispatches, with 141GWh of capacity dispatched in December. Overall, the BESS sector in the UK saw revenues more than double from the beginning of the year, with January 2024 averaging £36k/MW/year in revenues.
These reports underscore the growing importance and attractiveness of the BESS market in Europe, with countries like Britain, Italy, and Germany leading the way in investment opportunities and revenue growth. The projections for increased capacity and investment highlight the significant role that battery energy storage systems will play in the transition to a more sustainable and renewable energy future.
