European nations on cusp of 'battery investment wave'

by John Shepherd
'Growing battery investment pipelines in Europe'. Image: Timera Energy
Countries across Europe are ripe for a wave of battery investments to tackle an increasing "flexibility problem” in power markets, says a new report.

But while battery investment "is not even close to scalable at the pace and volume required to address the looming flex deficit” – that could change within the next three years, according to analysis by consulting firm Timera Energy.

"There is currently a disconnect between the investability of batteries and the scale and pace of new flexibility required, but that may not be the case for much longer,” Timera says in its overview of the European battery investment landscape.

Awareness of a "looming flexibility problem is gradually increasing” among policymakers, as renewable energy targets are ramped up to meet net-zero emission goals, Timera says.

'Growing investment pipelines'

"Across Europe, there is set to be more than 30GW of net derated capacity reduction between 2020-23 and more than 60GW by 2030. And those numbers only include regulatory scheduled coal and nuclear plant closures. There may be an additional 20-30GW of older gas plant closures by 2030.”

According to Timera, battery investment "has moved well beyond the experimental phase”, with the UK being the "most mature market, with over 1GW of installed capacity and a pipeline of several gigawatts behind”. Most of Europe’s other major power markets "have installed battery capacity in the low hundreds of megawatts, but with growing investment pipelines.”

Timera said battery investors are finding specific projects that work – helped by rapidly declining cell costs and "growing policy tailwinds”.

Timera’s detailed analysis is available online:

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