Battery storage is no longer an optional add-on—it has become a strategic pillar of Europe’s energy security. According to SolarPower Europe’s European Market Outlook for Battery Storage 2025-2029,  the region installed 21.9 GWh in 2024, setting a new all-time high. This brings total capacity to 61.1 GWh. However, the report also reveals a concerning slowdown: the growth rate dropped to 15%, compared to the dramatic increases of up to 145% during the energy crisis years.

“We are at a turning point. Batteries are the key infrastructure for a secure and competitive energy system, but we’re not moving fast enough,” stresses Walburga Hemetsberger, CEO of SolarPower Europe.

The report projects that storage capacity will grow sixfold to reach 400 GWh by 2029. But even in the most optimistic scenario—600 GWh by that year—Europe would still fall short of the 780 GWh required to meet the flexibility needs of a renewables-dominated power system.

Utility-scale: the new engine of the market

The market is undergoing a paradigm shift. Residential batteries, which led the boom between 2021 and 2023 due to high electricity prices, declined by 11% in 2024. In contrast, the utility-scale segment surged by an impressive 79%, now accounting for 40% of new installations and laying the foundation to become the sector’s main driver.

“The key challenge is turning this progress into a sustained trend. The demand is there, but we need to remove the regulatory and financial bottlenecks that are holding back large-scale deployment,” says Dries Acke, Deputy CEO of SolarPower Europe.

The commercial and industrial (C&I) segment also shows growth potential. Although it expanded by 17% in 2024, development remains constrained by a lack of clear incentives, limited income streams from flexibility services, and regulatory hurdles.

Why isn’t Europe moving fast enough?

One of the main issues identified by SolarPower Europe is the geographic concentration of installed capacity. Germany, Italy, and the United Kingdom account for nearly 70% of new installations, hindering balanced development across the region. This lack of diversification threatens system security and complicates the integration of additional renewables into the grid.

“Without stronger commitments from countries currently lagging behind, we won’t achieve the necessary scale to transform the electricity system,” says Michael Schmela, Executive Advisor at SolarPower Europe.

The organization also warns of the threat posed by negative electricity prices and rising curtailment of renewables. These trends—already visible in markets like Germany—undermine the profitability of clean energy investments, just as Europe seeks to attract capital into sustainable projects.

What is SolarPower Europe proposing to reverse this situation?

The report outlines five strategic recommendations to unlock the full potential of battery storage:

• An Energy Storage Action Plan: Batteries must be integrated as a central element in the EU’s future energy strategy.

• Reform of connection procedures and grid tariffs: Transparent and fair connection mechanisms must be put in place, and double taxation on storage must be eliminated.

• Full access to electricity markets: Clear revenue mechanisms should be guaranteed by updating Guarantees of Origin systems and enabling battery participation across multiple markets.

• Open and competitive balancing markets: Storage assets must be allowed to take part in grid balancing and ancillary services.

• Common standards for metering and communication: Accelerate the rollout of smart meters and unified communication protocols to enable efficient real-time management.

“If these measures are not implemented, Europe will not only lose competitiveness, but also put the viability of its energy transition at risk,” Hemetsberger concludes.

A road with obstacles—but also with opportunities

SolarPower Europe forecasts a strong rebound in 2025, with installations expected to grow by 36%, reaching 29.7 GWh. This recovery will be driven by the utility-scale segment, which is cementing its role as the leading solution to provide flexibility to the grid.

But beyond the numbers, the big question remains whether Europe can accelerate fast enough to ensure a resilient, competitive, and above all, decarbonised power system.

The clock on the energy transition is ticking—and for now, battery storage is still falling short of the speed Europe needs.