Recording of Tuesday, May 06, 2025 | The smarter E Europe | Conference Program | Language: English | Duration: 10:23 .

Europe's Energy Storage Market Gains Momentum with Increased Government Targets and Regulatory Support

Anna Darmani from Wood Mackenzie discusses Europe's energy storage revenue landscape, highlighting the increasing need for energy storage as renewable penetration grows. As renewables like wind and solar reach around 50% market share in Europe, power prices often drop to zero or negative levels. European governments are recognizing this challenge by setting targets for energy storage within their National Energy and Climate Plans (NECPs). Out of 28 countries analyzed, all have wind and solar targets; notably, 14 now also include specific goals for energy storage—a significant increase from just five last year. Key drivers of growth in the energy storage sector include regulatory frameworks that facilitate grid connections and participation in ancillary services markets. Countries like the UK and Germany lead due to robust regulations supporting battery deployment alongside high renewable shares. Meanwhile, Italy's regulation-driven investments attract attention through capacity markets while Poland benefits from auctions enabling battery integration. Spain faces challenges with regulatory frameworks but shows promise with over fifty gigawatts awarded via various auction types since 2020. Power Purchase Agreements (PPAs) play a crucial role here—historically dominated by solar projects without accompanying storages—but recent trends indicate increased pairing of storages with renewables to mitigate risks associated with price volatility. In summary: supportive policies drive investment; project revenues rely on diverse sources including guaranteed contracts; finally, renewable-plus-storage assets are expected to grow significantly beyond their current under-ten-percent status.

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Speaker

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

Talk of session: The Most Important Regulatory Developments for the Energy Storage Industry

To provide much-needed flexibility to the increasingly renewables-dominated power systems, energy storage requires suitable market schemes and fair market conditions. Although authorities are increasingly recognizing the benefits of storage, regulations are still lagging behind. Lack of contracted revenues, barriers to co-location with PV, and an uneven playing field for European cleantech manufacturers are only a few examples of where storage needs regulatory action.In this panel, experts discuss the most exciting developments in regulatory frameworks, their suitability for unlocking the full potential of energy storage as well as the improvements that need to be made.

Further Talks of this session:

Welcome & Introduction

Speaker

Lars Stephan
Director Marketing, Policy and Public Affairs (EMEA)
Fluence
United Kingdom

To Talk

Large-Scale BESS: Grid-Beneficial or Grid-Polluting? Exploring the German Perspective

Speaker

Benedikt Deuchert
Head of Business Development and Regulatory Affairs
Kyon Energy Solutions GmbH
Germany

To Talk

Manufacturing BESS in Europe - Mission Possible!

Speaker

Mariyana Yaneva
Chief Operating Officer
International Power Supply (IPS)
Bulgaria

To Talk

Regulatory Framework for ESS - Stay Safe for the Future

Speaker

Marvin Müller
Senior Project Engineer
PEM Motion GmbH
Germany

To Talk

Panel Discussion

To Talk