Battery storage growth slows in Europe after years of doubling
Europe’s battery storage capacity grew in 2024, yet at a slower pace, reports Solar Power Europe.
Published on May 8, 2025
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2024 was another year of growth for battery storage installations in Europe, as 21.9 GWh more capacity of battery energy storage systems (BESS) was installed. This marks a 15% increase from the previous year. Yet, it is also a slowdown after three consecutive years of doubling newly added capacity, reports Solar Power Europe in its European Market Outlook for Battery Storage 2025-2029.
According to the trade organization, this slowdown was expected, as the household segment drove the exceptional soar witnessed in the two previous years. As electricity prices receded and some support schemes were phased out, installations in the residential segment declined. However, the utility segment underwent strong growth. The European battery fleet totaled 61.1 GWh at the end of 2024, with the EU one being 49.1 GWh of this number.
The top three countries per installation delivered nearly 70% of newly installed capacity: Germany, Italy, and the UK. Germany retains its leading position, despite a decrease in installations. Large-scale installations in Italy compensated for the drop in the residential sector. The Netherlands installed less than 500 MWh of new BESS.
Forecasting sustained battery storage growth
The analysts predict faster growth in the coming years. In the most likely scenario for 2025, 29.7 GWh of battery storage will be installed in Europe, representing a 36% annual growth. Solar Power Europe expects 2025 to be a record-breaking year for the Netherlands, with almost 1.5 GWh of new installations.
By 2029, the report anticipates a sixfold increase of the European market to nearly 120 GWh, driving total capacity to 400 GWh (EU-27: 334 GWh). However, this remains far below the levels required to meet flexibility needs in a renewable-driven energy system. Solar Power Europe’s Mission Solar 2040 study, EU-27 BESS capacity must reach 780 GWh by 2030 to fully support the transition.
In addition to its analysis, Solar Power Europe has come up with a set of policy recommendations to help reach the required levels of BESS by the end of the decade.
- The European Commission must adopt an Energy Storage Action Plan within a broader Flexibility Package, to harmonise markets, remove regulatory barriers, and ensure storage is integral to national energy strategies.
- Grid connection procedures and pricing frameworks must be reformed to facilitate access, prioritise hybrid systems, and fairly allocate costs.
- BESS must have full and fair access to electricity markets, with clear revenue streams, updated Guarantees of Origin frameworks, and permission to stack revenues.
- Balancing markets must become fully competitive and accessible to storage, through harmonised technical standards and transparent procurement.
- Europe must enhance smart metering and data communication standards to enable real-time energy management and seamless BESS integration.
Walburga Hemetsberger, CEO of SolarPower Europe, said: “If Europe has already entered the solar age, the battery storage age is just beginning. With solar energy mainstreaming across the continent, now is the time for European decision-makers to put batteries at the centre of a flexible, electrified energy system. We urge the European Commission to double down on its efforts here and come forward with an EU Energy Storage Action Plan as part of a broader Energy System Flexibility Package. The recent electricity outage in the Iberian Peninsula is a stark reminder of why this is important.”
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