European energy storage forecast to 2025

Why is energy storage important in the EU?

It can also facilitate the electrification of different economic sectors, notably buildings and transport. The main energy storage method in the EU is by far 'pumped hydro' storage, but battery storage projects are rising. A variety of new technologies to store energy are also rapidly developing and becoming increasingly market-competitive.

Why should EU countries consider the 'consumer-producer' role of energy storage?

It addresses the most important issues contributing to the broader deployment of energy storage. EU countries should consider the double 'consumer-producer' role of storage by applying the EU electricity regulatory framework and by removing barriers, including avoiding double taxation and facilitating smooth permitting procedures.

Will residential battery storage grow in Europe?

This study also outlines policy recommendations to enable the further growth of residential battery storage across Europe. The forecast for household solar continues to look bright for coming years, with European solar & storage set to grow over 400%, from 3 GWh installed storage capacity in 2020 to 12.8 GWh in 2025.

Will the Italian home storage market regain traction in 2025?

With the end of the incentive scheme in 2023, our expectation is that the market will take a break that year, and to regain traction through 2025 as residential PV installations continue growing. The Medium Scenario anticipates the Italian home storage market to reach 188 MWh in 2025.

Is Europe catching up with the energy crisis?

Europe, however, is catching up with a significant ramp-up in capacity fueled by the current energy crisis. The anticipated acceleration of the US market follows the passage of the Inflation Reduction Act in August 2022, with large volumes of funds allocated to wind, solar and storage tax credits.

Why is battery energy storage important in Europe?

Europe is undergoing an energy transformation, expected to intensify over the coming years. The change includes a greater reliance on renewable energy in response to climate mitigation policies. In renewable energy generation, battery energy storage serves as a medium for an excess generation which can be used when needed.