Recording of Tuesday, May 06, 2025 | The smarter E Europe | Conference Program | Language: English | Duration: 17:02 .

Europe's Energy Transition Hindered by Fragmented Support Despite Surge in Battery Storage and Solar Expansion, Report Finds

The presentation discusses the rapid deployment of battery storage systems in Europe, highlighting their critical role as an energy technology for this decade. SolarPower Europe, representing over 320 organizations, significantly influences solar and storage policy-making. Key points include Europe's expanding solar PV capacity—nearly 340 gigawatts by last year—and its integration challenges due to technical and financial constraints. Battery production costs have plummeted from $210 per kilowatt-hour to below $60 thanks to manufacturing advancements. Global lithium-ion battery cell production is booming with China leading at an 80% share; however, other regions like Europe are striving to catch up. Rising electricity prices drive residential adoption of self-sufficient solar installations supported by favorable schemes in countries like Germany and Italy where attachment rates exceed 80%. The focus is shifting towards large-scale projects facilitated by economic incentives such as CAPEX support or tax breaks emphasizing resilience alongside sustainability aspects. Despite these developments, fragmented support schemes across Europe remain insufficient amid changing dynamics like electricity prices and borrowing costs. While residential PV installation has surged with high attachment rates during past crises, CNI sector faces challenges with low battery storage adoption (below 5%). Utility-scale solar combined with batteries now competes cost-effectively against fossil baseload generation in Germany but most NECPs lack detailed grid investment plans; only a few countries set quantified energy storage targets which often fall short of future renewable needs. Revenue streams for batteries expand yet many services go unpaid; fast frequency regulation prevails among available revenue options across member states while hybridization potential remains underutilized compared to standalone configurations dominating existing fleets.

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Speaker

Antonio Arruebo
Market Analyst
SolarPower Europe
Belgium

Talk of session: Future Trends: How Will the Market Develop, Which Applications Will Become Relevant?

What are emerging trends in battery storage? How are installation numbers evolving across the residential, C&I, and utility-scale battery markets? What new and existing applications are driving market growth? What can we learn from developments in other regions, such as the UK, and what insights can be applied to the European market? These are the questions that will be explored in this session.

Further Talks of this session:

Welcome and Introduction

Speaker

Dr. Alexander Hirnet
Vice President Device Development
sonnen GmbH
Germany

To Talk

Tackling Merchant Risk - Overview of Europe Energy Storage Offtake Market

Speaker

Anna Darmani
Principal Analyst, Energy Storage Europe
Wood Mackenzie
United Kingdom

To Talk

Unlocking New Revenue Streams for Battery Storage in Europe

Speaker

Simon De Clercq
Senior Associate
Aurora Energy Research
Germany

To Talk

Unlocking Profitable Utility-Scale Bess in Europe: Challenges and Opportunities in the Spot Market

Speaker

Sepehr Soltani
Senior Analyst
Rystad Energy
Norway

To Talk