In 2025, European Union member states installed 27.1 GWh of new battery energy storage capacity—a 45% increase over 2024—marking the twelfth consecutive year of record-breaking growth, according to the EU Battery Storage Market Review 2025 published by SolarPower Europe. This volume also represents a return to high growth following a more modest 23% rise from 2023 to 2024.
Notably, 2025 was the first year in which utility-scale storage deployments exceeded residential installations. Utility-scale systems accounted for 15 GWh, or 55% of total annual capacity, and roughly 15% of these projects were hybridised with solar PV. After a “breakthrough” year in 2024, when 6.5 GWh of utility-scale capacity came online despite regulatory hurdles, grid connection delays, uncertain revenue models, skill shortages and high upfront costs, Italy led new commissioning from prior auctions. Germany’s merchant market also expanded, while Spain and Bulgaria each reached gigawatt-hour deployment levels for the first time. Sweden and Finland together surpassed 1 GWh, and France and the Netherlands neared that milestone.
Commercial and industrial (C&I) storage grew by 31%, reaching 2.3 GWh and representing 8% of the total. However, the segment remains below its potential, as most C&I systems are still focused on solar self-consumption and peak shaving. The residential market declined by 6%, with 9.8 GWh of new capacity installed. The scaling back of support schemes in certain countries was not fully offset by new incentives elsewhere, following a boom in 2022 and 2023 driven by elevated electricity prices.
Looking ahead, cumulative storage capacity must climb from about 7 GWh in 2021 to 77 GWh today and ultimately to 750 GWh by 2030 to meet the EU’s clean energy objectives. Growth will need to accelerate across utility-scale, C&I and residential segments.
On the manufacturing side, the EU reported nominal cell production capacity of 252 GWh in 2025, with more than 90% destined for electric vehicle batteries. Of that total, 55% is nickel manganese cobalt chemistry, 29% lithium iron phosphate, 15% nickel cobalt aluminium and 1% other. Upstream anode and cathode production remains limited, though electrolyte and separator production has expanded.
“Batteries remain renewables’ best allies,” said Antonio Arruebo, lead author of the report. “Accelerating deployment and clearer policy support are essential to deliver Europe’s energy transition.”
Source: Energy Storage News
