Power Grid

Battery storage markets in Europe, particularly in Italy, Britain, and Germany, are currently attracting significant investor interest due to the size and potential of projects in these countries. According to a specialized energy platform based in Washington, Italy is the most appealing market for battery storage investments, followed by the UK and Germany.

These nations have set ambitious targets for battery capacity and have introduced various initiatives to enhance grid stability through energy storage systems.

Italy stands out with its goal to achieve a 50 GWh battery capacity by 2030. The country has introduced battery storage systems to support ancillary services, which aim to stabilize the power grid. According to a report by Aurora Energy Research, Italy is projected to add 10.5 GW of battery projects by 2030, with 3 GW already in advanced stages.

These projects are expected to be operational within the next few years, underscoring Italy’s leadership in the sector.

However, while Italy leads in terms of battery capacity targets and projects, it faces challenges in connecting its grid to the broader European network due to its geographical limitations.

Eva Zimmermann, Senior Flexible Power Partner at Aurora, noted that Italy's role in strengthening the European electricity grid will remain limited, particularly as the country is not actively involved in the EU's Picasso system, which aims to harmonize electricity networks across member states.

In comparison, the UK and Germany also show strong market prospects for battery storage. The UK, with an existing installed capacity of 4.3 GW, is expected to see its battery storage capacity more than double by 2030. Germany, with its robust renewable energy targets, ranks third in Europe, surpassing Ireland in battery storage potential.

The European battery storage market presents an estimated €100 billion investment opportunity by 2050, with varying revenue streams and investment risks across different countries. The market continues to offer both challenges and rewards, depending on the project's stage and location.