EU installs record 27 GWh of battery storage capacity in 2025: SolarPower Europe

The EU installed a record 27.1 GWh of new battery storage capacity in 2025, driven by utility-scale projects that accounted for over half of new additions as the bloc races to build the flexible power capacity needed to support the expansion of solar and wind, according to SolarPower Europe's EU Battery Storage Market Review 2025, released Jan. 28.

According to the report, this marks a 45% year-over-year growth with total EU battery storage capacity reaching 77.3 GWh by end-2025, up from 7.8 GWh in 2021.

However, SolarPower Europe said the EU must scale to around 750 GWh by 2030 to meet its energy flexibility needs, requiring another tenfold increase.

"Europe's battery storage market is growing fast and delivering the flexible capacity our energy system urgently needs. The strong uptake of utility-scale batteries in 2025 shows investors are ready, the technology is mature, and the system benefits are clear," said Walburga Hemetsberger, CEO of SolarPower Europe.

The solar association, which recently flagged the first annual decline in solar additions in almost a decade, said Europe "must now dramatically accelerate deployment...to support EU security and competitiveness, we need a battery fleet capable of supporting a fully flexible, renewable-based energy system."

The surge in utility-scale batteries reflects improved market conditions and better policy frameworks, with front-of-meter installations accounting for about 15 GWh of new capacity in 2025, it said.

Residential battery installations declined for the second consecutive year, falling 6% to 9.8 GWh in 2025.

The drop reflected lower electricity prices across Europe and reduced government support schemes that had previously incentivized behind-the-meter storage for households.

Commercial and industrial battery systems grew modestly to about 2.3 GWh, but remained a smaller segment of the overall market.

UK leads European BESS market

The report also examined EU battery manufacturing capabilities, saying that Europe developed 252 GWh of nominal battery cell production capacity in 2025.

However, significant structural gaps persist in the supply chain, while over 90% of existing EU cell production capacity is geared toward electric vehicles rather than stationary energy storage systems, it said.

Analysts at S&P Global Energy Horizon expect about 43 GW of utility-scale, front-of-meter batteries to be online across Europe by end-2026, led by the UK with almost 10 GW online by the end of this year.

Germany has seen the widest battery spread across Europe's main markets, with the spread for a two-hour system averaging Eur139.77/MWh in April-September, falling to Eur79.11/MWh in the fourth quarter of 2025, according to Platts assessments by S&P Global Energy.