Battery Energy Storage Systems in Europe

In this series of articles Coen Hutters, Pablo Ruiz, and Sanne de Boer explore the key factors shaping BESS investment models in Germany, the UK, France, Spain, Italy, and the Netherlands.

Backup power for Europe - part 1: Country attractiveness for battery energy storage systems – January 9, 2025
Battery Energy Storage Systems (BESS) are key to integrating variable renewable energy sources like solar and wind. This report examines the factors influencing BESS investments in Germany, the UK, France, Spain, Italy, and the Netherlands. We identify the most attractive markets and highlight the importance of assessing local conditions for successful BESS projects.

Backup power for Europe - part 2: The UK's BESS leadership and evolving revenue stacks – March 11, 2025
The UK is a global leader in the deployment of grid-scale BESS and was among the first countries to actively pursue BESS investments. Due to limited interconnection capacity and a heavy reliance on wind energy, battery storage is essential to ensure stability in UK’s electricity system.

Backup power for Europe - part 3: Italy's bet on BESS – April 3, 2025
Italy is emerging as one of the most attractive markets for BESS in Europe, thanks to a range of lucrative incentives introduced by the government. The country is undergoing a rapid transformation from a power system based on programmable thermal generation to one increasingly reliant on intermittent renewable sources.

Backup power for Europe - part 4: Spain's BESS market is heating up – April 25, 2025
The current state of the Spanish BESS market highlights the need for both high renewable energy penetration and a transparent regulatory environment to gain market attraction. Despite strong renewable energy growth, regulatory delays have held back large-scale BESS development, and significant projects have yet to materialize. Recent changes in Spain’s electricity system and regulatory framework are expected to improve market conditions and enhance the investment outlook for BESS.

Backup power for Europe - part 5: Revenue potential in the German BESS market – July 7, 2025
Germany is fast emerging as one of Europe’s most attractive markets for BESS, thanks to its deep and volatile electricity markets. Renewables play a major role in the German electricity generation mix, grid investment plans are substantial, and grid flexibility is much needed. Additionally, the German electricity markets are highly liquid and volatile, and the regulatory environment offers numerous favorable policies for BESS. Nevertheless, the German BESS market is still in its infancy, and many uncertainties remain.

Backup power for Europe – part 6: Dutch BESS capacity grows despite regulatory hurdles – July 17, 2025
The Dutch market offers strong revenue potential for BESS, driven by volatile electricity prices and growing flexibility needs. Deployment is accelerating, but challenges remain – from high grid fees and limited connections to an unfavorable regulatory framework. Still, new opportunities are emerging as policymakers explore solutions like capacity auctions.