1. Europe deployed 10GW of energy storage in 2023, while the US deployed around 8.7GW.
2. Europe’s energy storage market is shifting towards behind-the-meter storage capacity, while the US is dominated by front-of-the-meter systems.
3. There is growing momentum behind energy storage in Europe as policymakers and regulators recognize its importance in providing flexibility to low-carbon energy systems.
The European Market Monitor on Energy Storage (EMMES) reported the deployment of 10GW of storage in European countries in 2023, surpassing the 8.7GW deployed in the US. The shift towards energy storage in Europe is driven by the need to meet climate targets, with the majority of deployments focusing on behind-the-meter (BTM) storage capacity, particularly in residential areas. The rise in electricity prices and the desire for energy independence and sustainability are key drivers for this market momentum. However, there is a growing need for scaling up utility-scale deployments to meet the rising demand.
Despite recent setbacks in Texas regarding minimum state-of-charge rules for battery energy storage systems (BESS), the issue of ensuring reliability of BESS resources in the state’s electricity market remains a concern for grid operator ERCOT. On the other hand, there is growing momentum behind energy storage in Europe, with policymakers and regulators recognizing the importance of energy storage in providing flexibility to low-carbon energy systems. Falling BESS prices have made marginal projects more attractive for investors, particularly in merchant markets like Texas, where ERCOT operates.
The increasing adoption of energy storage technology across Europe is seen as a fundamental change in the way policymakers and regulators view energy storage assets. Energy storage is now considered a crucial component of the solution to providing flexibility to electricity systems reliant on low-carbon energy sources. This shift in perspective is driving the growth of the energy storage market in Europe, with a focus on behind-the-meter installations and utility-scale deployments to meet the region’s climate targets.