Europe
June 23, 2025

Grid, permits and revenue models: the main bottlenecks for energy storage in Europe

Enertis Applus+, with over 100 GWh in BESS projects and 400 GW in renewables, warns that regulatory uncertainty and permitting delays are impacting the bankability and execution of storage initiatives and emerging technologies like green hydrogen.
By Emilia Lardizabal

By Emilia Lardizabal

June 23, 2025
Grid, permits and revenue models: the main bottlenecks for energy storage in Europe

Europe is progressing with ambitious targets in renewables and storage, yet technical and regulatory hurdles remain critical to ensuring project bankability and effective execution.

In this context, Enertis Applus+, active across several European markets, relies on a local, highly specialised approach supported by cutting-edge technological tools.

“Renewable and storage projects face significant opportunities but also major challenges, from national support schemes to initiatives like the Green Deal and REPowerEU,” states Gorka Oña, Head of Europe at Applus+ Renewable Energy Services Unit.

In conversation with Strategic Energy Europe, Oña highlights the grid congestion and permitting delays as the top bottlenecks, along with uncertainty in BESS revenue models, which hinder bankability.

He also points to global supply chain constraints, especially for batteries, as factors that can inflate costs and delay timelines.

To address these challenges, Enertis Applus+ leverages its global experience of over 400 GW and a strong local presence.

“Our strength lies in our local presence, highly specialised teams, and ability to stay ahead of trends,” explains Oña.

In Spain, the firm advises on regulatory frameworks and capacity auctions, while in Italy, it adapts support to meet regional permitting requirements.

Solutions for storage bankability

In the BESS sector, where Enertis Applus+ has already contributed to over 100 GWh globally, its strategy focuses on advanced engineering and mitigating regulatory and commercial risks. The firm uses its proprietary tool Simubatt+ Enertis for technical-economic feasibility studies tailored to local constraints and grid services.

“We carry out independent technical due diligence and bankability reports that cover design, technology, and contractual and operational risks,” notes Oña.

Additionally, the company supports interconnection applications, documentation for tenders, supplier agreements, and performance testing protocols.

Its QAQC services include factory audits, supplier qualification, and supply chain traceability.

Green hydrogen: economic feasibility and site-specific strategies

Regarding green hydrogen integration, Oña points out that “the levelised cost of hydrogen (LCOH) depends on a complex interplay of technical, operational, and economic variables.”

An effective strategy must combine a high electrolyser capacity factor, low LCOE from the renewable source, and favourable financial conditions.

Enertis Applus+ conducts technical-economic feasibility studies, financial modelling, and iterative energy scenario simulations to optimise outcomes. “Each location requires a tailored strategy. No single variable ensures viability, but their effective combination can make the difference,” the executive warns.

The firm also highlights challenges such as demand creation, CAPEX reduction, and the development of consistent regulatory frameworks.

Market trends and hybridisation

Europe’s most dynamic markets for Enertis Applus+ include Spain, Italy, the UK, France, Poland, and Romania, in both renewables and storage.

For BESS, the UK and Italy stand out, while Spain could improve its standing if a capacity mechanism is approved. Germany and Poland also show promise with auctions planned for 2029.

To support the growing hybrid and corporate PPA segment, the company offers Simubatt+ Enertis, enabling simulations of solar, wind, and storage combinations, delivering energy flow estimates and facilitating more strategic PPA negotiations.

Innovation and digitalisation

Among its most innovative tools are Data Science and AI solutions, including the Smart PV Inspection Tool (SPI), which uses drones and AI to deliver precise diagnostics of PV modules and reduces analysis time by 40%.

It also offers the Advanced Analytics Performance Application (A-PAA) and the Soiling and Snow Application, which enhance asset operation through interactive visualisations and accurate loss estimations.

Additionally, Enertis Applus+ provides mobile PV labs with A+A+A+ simulators for on-site testing and an AI-powered software for electroluminescence (EL) image analysis during factory QA inspections.

“We aim to remain a trusted, independent technical advisor delivering quality and innovation,” concludes Oña. Enertis Applus+ plans to expand services to emerging technologies like green hydrogen and position itself as a key player in shaping a more resilient, efficient, and sustainable energy system across Europe.

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