The Rise of Grid-Scale Energy Storage

Europe’s energy landscape is undergoing a dramatic shift, driven by the increasing integration of renewable energy sources. As solar and wind power become more prevalent, the need for robust grid stabilization solutions intensifies. large-scale battery storage systems are emerging as a critical component, addressing the intermittency challenges of renewables and fueling significant growth in the energy storage market.

Solarpower Europe, a leading industry association, projects an extraordinary annual growth rate of 30-40% for the European energy storage market, spurred by the rapid deployment of these large-scale systems. This growth underscores the pivotal role of energy storage in ensuring a reliable and sustainable energy future.

EES Europe: A Hub for Storage Innovation

From May 7th to 9th, 2025, EES Europe, the continent’s largest international trade fair for batteries and energy storage systems, will convene industry leaders, policymakers, and researchers in Munich. This event, part of The Smarter E Europe, is expected to host over 3,000 exhibitors and 110,000 visitors, providing a platform for collaboration and the exchange of ideas.

The focus will be on large-scale storage solutions, which are essential for delivering flexible, on-demand renewable energy around the clock. Attendees will explore the latest advancements in battery technology, grid integration strategies, and business models driving the energy storage revolution.

Germany’s Ambitious Storage Goals

Germany serves as a compelling case study for the rapid expansion of large-scale battery storage. As of early 2023, the country had approximately 1.4 GWh of installed large battery storage capacity, according to Frontier Economics. However, the latest Network Growth Plan (NEP) anticipates a staggering increase to 61 GWh by 2027 and 136 GWh by 2045.

A separate study by the Fraunhofer Institute for Solar Energy Systems ISE forecasts 104 GWh by 2030 and 178 GWh by 2040, further highlighting the ambitious growth trajectory. The sheer volume of connection requests – 650 applications totaling around 226 GW of capacity submitted to Germany’s four transmission network operators – underscores the momentum behind this expansion.

Economic Drivers: Falling Costs and Attractive Returns

The surge in large-scale storage deployment is fueled by two key economic factors.First, the costs associated with construction and operation are declining significantly, primarily due to the continuous decrease in battery prices. Second, commercially operated large storage facilities offer compelling revenue opportunities in the control energy market and through intraday and day-ahead electricity trading.

Leonhard Probst from Fraunhofer ISE suggests that an amortization period of just three years is realistic for these projects. Given an estimated battery lifespan of 15 years, this leaves a substantial window for generating notable profits.

Industry Perspectives and Regulatory Considerations

Solarpower Europe anticipates a shift towards large battery storage systems with longer discharge durations, perhaps increasing from the current average of 1.5 hours to between four and eight hours. This would enhance the ability of these systems to provide grid stability and support the integration of variable renewable energy sources.

Restrictions for stores associated with solar and wind farms and different technical norms and standards in various EU are currently still inhibiting the boom.
Dries Acke,Vice President of Solarpower Europe

However,Dries Acke,vice President of Solarpower Europe,points out existing hurdles,including restrictions on storage co-located with solar and wind farms and the lack of harmonized technical standards across the European Union.

germany has taken a significant step forward by exempting large storage facilities commissioned by 2029 from network charges for 20 years, eliminating double fees for electricity input and output.

Unlocking Grid Flexibility and Economic Benefits

Large-scale storage offers a crucial solution for efficiently integrating increasing flows of renewable electricity into the grid. By storing excess energy, these systems ensure that solar and wind power are available when needed, regardless of weather conditions. This enhances grid stability and reduces reliance on fossil fuels.

These systems benefit both producers and consumers through lower wholesale electricity prices and increased flexibility in electricity trading. Frontier Economics estimates that the economic benefits from day-ahead trading alone could reach at least €12 billion by 2050 in germany, driven by reduced fuel consumption and associated CO2 emissions.

Network Boosters: Enhancing Grid Capacity

Transmission system operators are also deploying “network boosters” – essentially large battery systems dedicated to grid support.These systems can absorb excess wind power in one location and inject it into the grid in another, effectively increasing transmission capacity and reducing the need for costly infrastructure upgrades.

Such as, two projects by Tennet, one in northern Germany and one in the south, are designed to perform the function of a hundred-kilometer-long transmission line, resulting in significant cost savings.

EES Europe Conference: Deep Dive into Large-Scale Storage

The EES Europe Conference, held on May 6th and 7th, 2025, will feature in-depth sessions on various aspects of large-scale storage technology. Experts and decision-makers will discuss regulatory frameworks, investor preferences, project development, quality standards, and emerging business opportunities.

The conference will address critical questions,such as the regulatory actions needed to unlock the full flexibility potential of large storage systems and the key factors driving investment decisions.