Tackling Merchant Risk - Overview of Europe Energy Storage Offtake Market

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Recording of Tuesday, May 06, 2025 | The smarter E Europe | Conference Program | Language: English | Duration: 14:45 .

Europe's Energy Storage Market Set for Major Growth with New Applications and Contract Opportunities, Says Wood Mackenzie Expert

The presentation focuses on the evolving energy storage market in Europe, highlighting significant growth and challenges. The speaker from Wood Mackenzie discusses how increasing renewable energy integration has led to negative power prices across Europe since 2019, particularly affecting countries like Germany and Ireland. This situation underscores a need for more flexible resources to balance supply and demand, driving interest in energy storage projects. Energy storage capacity is projected to grow significantly from 34 gigawatts installed by late 2024 to an anticipated 250 gigawatt-hours over the next decade. Historically dominated by distributed markets, grid-scale segments are expected to catch up due to new applications and contract opportunities emerging throughout Europe. Ancillary services have been primary revenue sources but face saturation; thus developers are exploring alternative routes such as government-led auctions or PPAs (Power Purchase Agreements). Additionally, there’s growing potential for residential battery systems through Virtual Power Plants (VPPs) that aggregate assets effectively at scale akin to large-grid operations—demonstrating diverse investment avenues beyond utility scales.

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

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:

Speaker

Dr. Alexander Hirnet
Vice President Device Development
sonnen GmbH
Germany

To Talk

Speaker

Antonio Arruebo
Market Analyst
SolarPower Europe
Belgium

To Talk

Speaker

Simon De Clercq
Senior Associate
Aurora Energy Research
Germany

To Talk

Speaker

Sepehr Soltani
Senior Analyst
Rystad Energy
Norway

To Talk

Further Content
Publications
European Market Outlook for Battery Storage 2025–2029

Comprehensive analysis of Europe’s battery storage market – now available for download

Thaddäus Kreisig
Stack ’Em Up: Germany’s Big Battery Inflection Point – with Thaddäus Kreisig

The smarter E Podcast Episode 265 | Language: English

September 16, 2026

Discover how Germany's solar surge is driving a gigawatt-scale battery boom, the revenue models making projects viable, and the hurdles ahead.

The smarter E Europe Conference 2023
Zinc-Ion Batteries: The Key to Sustainable Energy Storage in Europe

Tuesday, June 13, 2023, 04:30 pm - 06:00 pm

The smarter E Europe Conference 2023 | Conference Program

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Technology is the key to battery storage markets developing at a rapid pace. Just look at the way system costs have dropped drastically in recent years as a result of progress in the development of battery materials and battery cells and advancement in storage system technology.In the diverse stationary markets in particular, opportunities for technological alternatives to the lithium-ion battery are being opened up. In this session, you can hear from experts directly about current progress in the development of specific battery technologies and learn about the impact those battery technologies are set to have on the market for electrical energy storage systems in the near future.

The smarter E Europe Conference 2023
NAS Batteries for Long-Duration Stationary Energy Storage

Tuesday, June 13, 2023, 04:30 pm - 06:00 pm

The smarter E Europe Conference 2023 | Conference Program

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Technology is the key to battery storage markets developing at a rapid pace. Just look at the way system costs have dropped drastically in recent years as a result of progress in the development of battery materials and battery cells and advancement in storage system technology.In the diverse stationary markets in particular, opportunities for technological alternatives to the lithium-ion battery are being opened up. In this session, you can hear from experts directly about current progress in the development of specific battery technologies and learn about the impact those battery technologies are set to have on the market for electrical energy storage systems in the near future.

The smarter E Europe Conference 2023
Pitches by Panelists

Tuesday, June 13, 2023, 11:30 am - 01:00 pm

The smarter E Europe Conference 2023 | Conference Program

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Integrators of Battery Energy Storage Systems (BESS) are positioned at the very core of the value chain for large-scale energy storage systems. Their decisions such which BESS component design to use, which product and software portfolio to offer or which supply chain approach to be taken very well reflect the requirements and trends in the energy storage market.In this panel session, some of the industry's leading BESS integrators and developers will be discussing the developments, opportunities and challenges of the energy storage market, and which BESS products and business models are best suited to address them today and in the future.

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