For years, battery storage was seen as the missing piece of Europe’s energy transition. Today, it is becoming one of the defining technologies of its next phase.

Across Europe, battery storage is helping integrate growing volumes of renewable energy, strengthen energy security and improve power system resilience. As the continent seeks to reduce its dependence on costly fossil fuel imports, accelerate electrification and meet its climate goals, storage can no longer be viewed as a supporting technology. It is becoming a strategic asset, instrumental to strengthening Europe’s resilience, competitiveness and energy sovereignty.

This growing importance is reflected in the market’s performance. In 2025, Europe installed 36 GWh of new battery energy storage systems, bringing total operational capacity beyond 100 GWh for the first time. Utility-scale batteries became the largest market segment, accounting for more than half of annual installations and marking the beginning of a new phase in Europe’s battery storage journey.

This momentum comes at an important moment for Europe’s power sector. Over recent years, SolarPower Europe has consistently called for a dedicated energy storage target to complement EU renewable energy ambitions. We therefore welcome the European Commission’s decision, under AccelerateEU, to establish a 200 GW energy storage target by 2030.

Battery storage is becoming a strategic asset for Europe’s resilience, competitiveness and energy sovereignty

The target provides a much-needed silver lining on the horizon. Parts of Europe’s solar market have recently experienced slower growth as power systems struggle to absorb increasing volumes of variable renewable generation. Rising curtailment, declining solar capture prices, grid congestion and insufficient flexibility all underline the growing need for storage as a core component of the energy transition.

Yet targets alone do not deliver flexibility. Under our Medium Scenario, annual battery installations are expected to exceed 50 GWh in 2026 and nearly quadruple to 138 GWh by 2030 in Europe. Total installed capacity is projected to grow more than sixfold, from just over 100 GWh today to around 580 GWh (EU-27: 470 GWh) by the end of the decade. Even so, Europe remains below the trajectory required to fully support a highly renewable and electrified energy system.

A positive development highlighted in this outlook is the increasing geographic diversification of Europe’s battery market. Germany, the UK and Italy remain the largest markets, but their dominance is gradually declining as deployment accelerates elsewhere. Ukraine and Bulgaria entered the top five, each adding almost 3 GWh of battery capacity. This demonstrates that the value of storage is increasingly being recognised across very different European energy systems and market designs.

Ukraine’s emergence on the European battery storage map is particularly significant. Following extensive damage to its power infrastructure caused by Russian attacks, battery storage has rapidly evolved from an investment opportunity into a critical energy security asset. The Ukrainian experience demonstrates that batteries are not only enabling the clean energy transition; they are also essential for safeguarding democratic societies.

The report also highlights an important shift within the market itself. Utility-scale batteries continue their remarkable growth trajectory, supported by growing flexibility needs, improving policy frameworks and increasingly attractive business cases. At the same time, residential storage has slowed in several mature markets following the exceptional growth triggered by the 2022 energy crisis. Greater attention will therefore be needed to ensure that households and businesses can continue to benefit from affordable, resilient and locally generated solar power.

While these developments underline the growing maturity of Europe’s battery market, they also reveal the scale of the challenge ahead. Under our most likely scenario, the EU is set to fall short of its new storage target despite the remarkable growth expected over the coming years. Closing this flexibility gap will require a stronger policy response.

That is why a dedicated EU Battery Storage Action Plan is urgently needed. As outlined in SolarPower Europe’s policy recommendations, three actions are particularly important: unlocking flexibility through appropriate network tariff structures; ensuring full market access for battery storage; and guaranteeing long-term policy consistency and transparency for investors.

For years, battery storage was seen as the missing piece of Europe's energy transition. Today, that piece is finally starting to fall into place. It is now up to policymakers, regulators and market participants to ensure low-cost battery storage can deliver its full flexibility value for Europe's energy security, competitiveness and climate ambitions.

Enjoy reading our report.

European Battery Market Outlook 2026-2030

23 June 2026