Analysis Of The Development Of Energy Storage Systems (ESS) In Europe In 2024

15 May 2025

Record commissioning of capacities, but lagging behind the USA and China

In 2024, 21.9 GWh of new ESS were commissioned in Europe, which was a record. However, the growth rate (15%) slowed down compared to previous years. For comparison:

  • The USA commissioned 37.1 GWh,
  • China – more than 100 GWh.

Thus, Europe remains the third world market after China and the USA.

Market structure: decline in home storage, growth of industrial

  • Decline in demand for home ESS (especially in Germany, which remains the leader).
  • Growth of large-scale projects (commercial and network storage).
  • Top 5 countries (78% of new capacity): Germany, Italy, Great Britain, Austria, Sweden.
  • Spain and Portugal are lagging behind (Spain is 14th with 250 MWh, mostly small systems).

Issues and challenges

  • Dependence on Chinese batteries (European manufacturers such as Northvolt are facing a crisis).
  • Need for political support: SolarPower Europe calls on the EU to develop an “Energy Storage Action Plan” to increase grid flexibility (especially after the Iberian Peninsula disaster).

Forecasts to 2027

  • 2025: 29.7 GWh expected (moderate growth).
  • 2027: 68 GWh expected (accelerating).

Conclusion

Europe continues to increase PV capacity, but lags behind China and the US due to:

  • slowing growth,
  • dependence on battery imports,
  • problems with local production.

To accelerate development, the following is needed:

  1. Government support (taxes, subsidies, standards).
  2. Development of domestic battery production.
  3. Integration of the SES into the energy system (flexibility, stability).

If the EU does not strengthen measures, the gap with the leaders will only grow

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