Europe’s Battery Markets on the Rise: Germany Leads, Romania and Bulgaria Emerging
Berlin (Germany) – The battery storage market in Europe is developing with strong momentum. Germany, the United Kingdom, and Italy are leading the markets, while emerging countries such as Romania and Bulgaria are becoming increasingly attractive. This is shown in the fifth edition of the BATMAR report (Battery Market Analysis Europe) by Aurora Energy Research.
Leading Markets Dominate Investment Landscape
Germany is the frontrunner in battery storage development in Europe. According to Aurora Energy Research, the market benefits from strong flexibility demand in the course of decarbonization. The United Kingdom ranks second, supported by substantial installed capacities and diversified revenue streams. Italy is showing short-term progress through the government-backed MACSE program, which particularly supports the deployment of long-duration storage.
The BATMAR report examines 28 European countries in terms of their attractiveness for battery storage investments. The assessment considers market growth, regulatory frameworks, revenue streams, and flexibility demand.
Between 2024 and 2025, installed capacity increased by more than 7 GW to just over 17 GW. Forecasts point to more than 80 GW by 2030. Four-hour batteries are a particular focus.
Emerging Markets and New Challenges
In addition to established markets, emerging regions are gaining importance. According to the report, Romania and Bulgaria are now among the ten most important battery markets in Europe. Favorable economic conditions and increased political support are contributing to their attractiveness.
“Battery markets in Europe are evolving rapidly. But they are still at different stages of market development: while Great Britain, Germany and Italy are maturing and as a result face issues such as grid connection constraints, more nascent markets only have their first projects coming online in 2026 or later,” says Eva Zimmermann, Senior Research Associate at Aurora Energy Research.
Anne Geschke, Lead Research Analyst for Europe, adds: “Market players with more risk aversion may look to buy into existing projects in more mature markets, while others may look to establish themselves in markets where batteries are gaining traction only just now.”
As battery deployment increases, new challenges are emerging. Flexibility in the power grid is becoming an increasingly critical factor, while questions surrounding Flexible Grid Connection Agreements (FCA) are influencing project economics. Jörn Richstein, Research Director at Aurora Energy Research, explains: “As it becomes more difficult to realize large-scale projects in markets with limited secure cash flows, battery investors are beginning to turn to more innovative offtake structures such as tolling agreements.”
Opportunities for Investors in New Markets
The analysis shows that the momentum in battery markets requires not only investment but also innovative business models and regulatory adjustments. While established markets continue to grow, new markets are opening opportunities for investors willing to act early.
Source: IWR Online, 25 Feb 2026
