EU Battery Storage: 2025 Another Record Year - Large-Scale Storage Dominates Growth - Expansion Pace Still Insufficient for 2030

Brussels (Belgium) - In 2025, new battery storage systems with a total storage capacity of 27.1 GWh were installed in the EU. While this marks yet another record year for the sector, the pace of expansion still needs to accelerate in order to meet flexibility requirements by 2030. Pressure on policymakers and markets is increasing.

The EU Battery Storage Market Review 2025 by the European solar association SolarPower Europe shows that more than half of the newly added capacity last year came from large-scale projects, while installations by private households declined. Although Europe has increased its battery fleet tenfold since 2021, capacity must continue to expand significantly by 2030 to meet flexibility needs. At the same time, gaps remain in supply chains and permitting processes.

Record year 2025: Large-scale storage drives the EU battery storage market

Across EU member states, a total of 27.1 GWh of new battery storage capacity was installed in 2025. This marks the twelfth consecutive record year. According to SolarPower Europe’s EU Battery Storage Market Review 2025, this represents growth of 45 percent compared to the previous year. As a result, Europe has already expanded its battery fleet tenfold since 2021, from 7.8 GWh to 77.3 GWh. To meet flexibility demand by 2030, this increase will need to grow by another factor of ten, reaching around 750 GWh by the end of the decade, according to SolarPower Europe.

A key trend in 2025 was the rising importance of stationary large-scale storage: 55 percent of newly added capacity came from large projects, marking a significant structural shift in the market. Improved market conditions and stronger policy frameworks helped large-scale projects reach record levels, the report notes.

In contrast, newly installed capacity in the residential behind-the-meter segment declined for the second consecutive year, falling by 6 percent to 9.8 GWh. SolarPower Europe attributes this to lower electricity prices and reduced incentive programs. Commercial and industrial battery systems, meanwhile, grew moderately but remain a smaller market segment.

Walburga Hemetsberger, CEO of SolarPower Europe, summarizes the situation as follows: “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. But we must now dramatically accelerate deployment.”

Production, supply chains, and policy barriers: Europe remains midstream in the value chain

The report also examines the development of EU battery production. SolarPower Europe finds that Europe has built a solid industrial base in the midstream segment, with 252 GWh of nominal cell production capacity in 2025. However, structural gaps remain.

While electrolyte and separator production show strong capabilities, capacity for cathode and anode materials in the upstream segment remains limited. In addition, project delays and relatively high production costs are weighing on competitiveness. The report therefore highlights the need for a “more resilient and fully integrated European battery value chain.”

Looking ahead to further expansion of the EU battery storage market, SolarPower Europe identifies three priority areas for EU action:

First, accelerating the deployment of battery storage through simpler and faster permitting, prioritization of grid-supportive projects, and the removal of tariff barriers.

Second, building affordable and resilient supply chains through investment, access to raw materials, recycling capacity, and global partnerships.

Third, strengthening quality, safety, and sustainability through EU-wide standards, improved rules for recycling and second-life applications, and robust carbon footprint disclosure.

Antonio Arruebo, lead author of the report and market analyst at SolarPower Europe, emphasizes: “This year’s data shows that the EU storage market is picking up speed again, particularly in large scale systems. At the same time, the decline in distributed batteries reminds us that we still need clearer policy support to unlock more investments for businesses and households.” Batteries, he concludes, are the best allies of renewables when it comes to integrating clean electricity, stabilizing the system, and advancing Europe’s energy transition. “Looking ahead, accelerating deployment across all segments will be key to meeting Europe’s goals.”

Source: IWR Online, 29 Jan 2026