BESS investments in Europe set to surge, says Aurora

BESS investments in Europe set to surge, says Aurora

BESS investments in Europe set to surge, says Aurora 768 380 Energy Storage Journal

February 22, 2024: Europe is on the brink of a significant surge in grid-scale battery energy storage with a sevenfold increase in capacity projected by 2030, according to analysis published on February 13 by Aurora Energy Research.

Great Britain, Italy and the wholesale electricity market for Ireland and Northern Ireland have emerged as the top three sectors for BESS investments in the region.

But Aurora, an energy markets analytics company founded by University of Oxford professors and economists, says Spain and Greece are showing promising signs of “compelling investment opportunities”.

The third edition of Aurora’s European Battery Markets Attractiveness Report, which examined 24 European countries, says installed grid-scale BESS capacity across the region was 7.1GW in the third quarter of 2023. That is projected to rise to 51GW by 2030 and 98GW by 2050.

These new capacity additions represent a cumulative investment opportunity of €78 billion ($85 billion) up to 2050, Aurora says.

To date, dedicated auctions for standalone or co-located battery storage in Europe have subsidized at least 1.8GW of batteries in Germany, Greece, and Spain.

Upcoming auctions could procure over 15GW across Europe by 2030, notably 9GW of procurement from Italy’s new storage capacity procurement mechanism, MACSE, which aims to cover both capital and operational costs.

Meanwhile, according to separate analysis released by Wood Mackenzie on February 21, BESS will also play a key role in the energy transition in the Asia Pacific region by 2050.

Wood Mackenzie’s Asia Pacific Energy Transition Outlook said nearly 50% of the world’s low-carbon technology opportunities will be in that region in the next 25 years.

The report’s base case, low-carbon supply says the current 35% of power generation in the region is set to rise to 75% by 2050. Of that, the share of wind and solar increases to more than 54%.   

The rapid growth in variable renewables is projected to be accompanied by adopting energy storage plus hydrogen, small modular nuclear reactors, and geothermal technologies.