- In its latest report, Aurora Energy Research states that batteries with more than four hours of storage capacity will account for 61% of the total installed battery capacity in 2050.
- Batteries represent an attractive investment opportunity in Europe’s energy sector.
Europe could hit 42 GW by 2030 and 95 GW by 2050 of grid-connected, utility-scale battery energy storage capacity (>10 MW), according to figures from Aurora Energy Research. The capacity additions represent a cumulative investment opportunity of more than €70 billion between 2023 and 2050. Over 40% of this capital will be deployed by the end of 2030.
According to Aurora Energy Research in its latest report, batteries with more than four hours of storage capacity will account for 61% of total installed battery capacity in 2050, up from 22% in 2025. It identifies Germany, Great Britain, Greece, Ireland, and Italy as Europe’s most attractive markets due to policies, regulatory support, revenue-stacking opportunities, and demand for low-carbon elastic energy.
However, the report states there is still scope for further growth of Europe’s extensive battery fleet. Aurora Energy Research notes that 14 of the 24 countries it assessed do not yet have strategies or targets for energy storage deployment. One of these countries is Germany, but the sheer scope of its rapidly growing renewables capacity makes it an attractive storage market.
Ryan Alexander, Aurora Energy Research’s European power markets research lead, said, “Batteries represent an attractive investment opportunity in Europe’s energy sector. There will undoubtedly be an early mover advantage for investors: the anticipated surge in battery demands over the next decades creates saturation risk, causing revenues to decline as markets become overcrowded.”
The publication of the reports coincides with a statement from European Commission’s commissioner for energy, Kadri Simson, highlighting the importance of storage for Europe’s decarbonization efforts. Simson said, “We have a lot of topics on our agenda. But storage is the centrepiece for building a decarbonized, flexible and cost-effective energy system through electrification and energy system integration. The fact is that the role of storage is often overlooked.”