Market for Energy Storage Growing Across Europe

The European Commission, the executive arm of the European Union (EU), in 2023 issued recommendations on how member states should proceed with deployments of energy storage. The group said EU countries should be encouraged to use energy storage across electricity networks to increase the flexibility of the power transmission system and support the integration of renewable energy resources along the grid.

The agency wrote that it considers energy storage “a crucial technology to provide the necessary flexibility, stability, and reliability for the energy system of the future.” The group’s recommendations came as EU members were rapidly increasing their use of battery energy storage systems (BESS) and other storage technologies. LCP Delta, a consultancy group, and the European Association for Storage of Energy (EASE) earlier this year said Europe in 2023 exceeded 10 GW of energy storage deployments for the first time. The groups in their annual European Market Monitor on Energy Storage report said that total BESS installations in Europe, including EU and non-EU countries, across utility-scale, commercial and industrial, and residential market segments, comprised about 10.1 GW of generation capacity. The groups said that was more than double the 4.5 GW the continent recorded in 2022.

George Sakellaris, president and CEO of Ameresco, told POWER, “The energy storage market in Europe is poised for significant growth in the coming years. We are witnessing a substantial increase in the deployment of battery energy storage systems across the continent. This is driven by the rising penetration of renewable energy sources like solar and wind. As Europe continues its ambitious—and inspiring—push towards decarbonization and energy independence, the demand for reliable and efficient energy storage solutions will only intensify.”

EU members are promoting energy storage through policy actions. Francois Le Scornet, president of Cleantech and Climate Tech senior consultant at Carbonexit Consulting, a France-based consulting firm focused on low-carbon energy, told POWER, “A set of incentives has been supporting energy storage in Europe for the last few years. First, the EU commission directly supports early-stage energy storage R&D [research and development] projects through the Horizon Europe program. In addition, more mature highly innovative technologies as well as flagship demonstration projects of different sizes are also partially financed through the Innovation Fund, which is funded by the EU ETS [Emissions Trading System].”

Le Scornet added, “Other programs like the Connecting Europe Facility, the Modernisation Fund [targeting the 10 lower-income EU countries], and The Just Transition Mechanism can also directly support energy storage project deployment. The European Clean Energy Package also includes a number of measures to support energy storage, such as a directive on electricity storage and a regulation on the internal market for electricity that can influence the deployment of energy storage.”

1. Harmony Energy is building the Cheviré battery facility in France. The 100-MW/200-MWh battery energy storage system would be that country’s largest such project. Courtesy: Harmony Energy

More and larger storage projects are taking shape. UK-based Harmony Energy recently announced construction of the Cheviré battery facility (Figure 1), a 100-MW/200-MWh battery in France that would be that country’s largest BESS. The project will feature Tesla Megapack technology, and be built at Nantes Saint-Nazaire harbor on the site of the former Cheviré power station, which was fueled by coal, natural gas, and oil during its 30-plus years of operation.

Clément Girard, COO for Harmony Energy France, in a statement said, “It’s an exciting location, given the historical importance of the fossil-fuel coal power station, but looking ahead, the delivery of the Cheviré BESS will transform the site into exactly the opposite, facilitating the green electrification of the French energy system, whilst offsetting several hundred thousand tons of CO_2. ”

Andy Symonds, CEO of Harmony Energy France, said, “Developing and operating vital battery energy storage facilities across France will lead to enhanced energy security, more affordable energy bills, and the decarbonization of the grid. We are excited to commence building works on our first project.”

The company said it expects the BESS will enter commercial operation during the upcoming winter season. Harmony Energy, founded in 2010, currently operates more than 1 GW of batteries in the UK, with a portfolio in Europe of more than 13 GW. The company in March began operating a 99-MW/198-MWh BESS in Essex, England, in partnership with renewables developer-operator Fotowatio Renewable Ventures (FRV). FRV, headquartered in Spain, has a global portfolio of solar and wind projects.

Todd Khozein, CEO and founder of SecondMuse, a group that supports economic development through a variety of programs, noted the importance of energy storage to support the growth of renewable energy. Khozein told POWER, “Energy storage is clearly one of the most significant barriers for the next jump in renewable energy adoption. So long as renewable energy cannot be stored for long duration, renewables will be vulnerable to climatic patterns, which, as we all know, are increasingly unpredictable. This is why long-duration energy storage is such an exciting and interesting area for investment. There are significant new areas developing including the use of heat and molten salts, kinetic energy storage, and more efficient pumped storage that can link solar with hydro power.”

A project being developed in Italy would combine gravity energy storage and BESS technology. Energy Vault, a global energy storage group, recently announced it has partnered with Carbosulcis S.p.A., a government-owned coal mining company in Sardinia, to develop a 100-MW “Hybrid Gravity Energy Storage System.” Energy Vault said the technology is designed to be deployed in underground mines. Energy Vault said the project would combine its proprietary gravity energy storage technology and its BESS technology. It said the project would be deployed in the Nuraxi Figus coal mine that Carbosulcis has said it will retire in 2026.

Sardinia officials have said they want to turn the coal mine into a carbon-free technology hub to support economic development in an area impacted by the phase-out of coal mining. Energy Vault said installation of the first modular gravity components will begin this month, and testing of the underground component of the system is expected to be completed next year.

—Darrell Proctor is senior editor for POWER.