I. Background and driving force of growth
According to the International Energy Agency (IEA), global battery energy storage system (BESS) capacity has achieved significant growth in recent years. For example, global BESS capacity increased by 40 GW in 2023, almost doubling the capacity added in 2022, bringing the total capacity to more than 90 GW.
This growth trend is expected to continue until 2030, and the total capacity of battery energy storage systems installed worldwide is expected to increase significantly.
The rapid development of the European battery storage market:
Europe has also made significant progress in the field of battery storage. Although the amount of large energy storage connected to the grid in Europe in 2024 is lower than expected, the market forecasts that the installed capacity will return to 25 to 30GWh in 2025, showing the market's optimism about medium - and long-term energy storage demand.
In terms of the household storage market, the report of the European Photovoltaic solar system Industry Association shows that the European household storage market has maintained a rapid growth trend in recent years. For example, in 2022, the growth rate of European household storage will be 71%, and the new installed capacity will be 3.9GWh; Additional deployments are expected to reach 4.5GWh in 2023 and 5.1GWh in 2024.
Dual support of policy and technology:
Governments across Europe are rolling out incentives to boost the renewable energy and storage sectors. These policies provide a strong guarantee for the growth of the battery energy storage market.
At the same time, advances in battery chemistry and manufacturing technology have also reduced battery costs and improved battery performance, further promoting the rapid development of the battery energy storage market.
2. Growth forecast and potential for lithium battery
Forecast growth of battery storage capacity in Europe in the coming years:
Given the rapid development trend of the global and European battery storage market, as well as the dual support of policy and technology, the European battery storage capacity is expected to achieve substantial growth in the next few years.
The exact growth rate will depend on a combination of factors, including the intensity of policy, the pace of technological progress, and changes in market demand.
Growth Potential and Opportunities:
With the rapid development of renewable energy and the gradual opening up of the electricity market, the European battery energy storage market will usher in more opportunities. For example, by participating in electricity market transactions and providing auxiliary services, battery energy storage systems can achieve higher economic returns.
In addition, with the rapid growth of new loads such as electric vehicles, battery energy storage systems can also be used as an important supporting facility for electric vehicle charging stations to further expand its application field and market space.
Iii. Challenges and coping strategies
Insufficient grid connection and declining profitability:
At present, the European battery storage market is facing the problem of insufficient grid-connection, resulting in a decline in profitability. This is mainly due to changes in the market environment, policy adjustments and technical bottlenecks and other factors.
In order to cope with this challenge, enterprises need to strengthen market research and policy research, timely adjust the investment strategy and operation mode; At the same time, strengthen technological innovation and industrial upgrading
Lifepo4 Battery, improve the performance of battery energy storage systems and reduce costs.
Tight supply and rising prices of key minerals:
With the rapid development of the battery storage market, the demand for key minerals will also increase significantly. However, the current tight supply and rising prices of key minerals have brought challenges to the production and application of battery energy storage systems.
In order to cope with this challenge, enterprises need to strengthen supply chain management and risk control; At the same time, we are actively seeking solutions such as alternative materials and recycling to reduce the dependence and cost of key minerals.
To sum up, Europe's battery storage capacity is expected to grow significantly in the next few years, but there are also some challenges and uncertainties to face. Measures such as strengthening policy guidance, technological innovation and industrial upgrading can promote the sustainable and healthy development of the European battery energy storage market.
