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Europe’s Battery Energy Storage Market Hits 21.9 GWh in 2024 with Strong Growth Projected, Yet Falling Short of EU Targets

Europe’s battery energy storage systems (BESS) market grew by 15% in 2024, reaching a record 21.9 GWh of new installations and pushing total battery capacity to 61.1 GWh, as reported by SolarPower Europe’s Market Outlook 2025-2029. Although growth continues, the annual capacity increase slowed compared to prior years, which saw capacity doubling. The market is expected to accelerate in 2025 with 29.7 GWh installations (36% growth) and further sharp increases projected through 2029, reaching nearly 120 GWh of annual capacity.

Germany, Italy, and the UK lead BESS deployment, accounting for nearly 70% of new installations in 2024, while Austria and Sweden also made notable gains. The utility-scale segment now dominates, expected to deliver 68% of annual additions by 2029, driven by energy security, renewables integration, and favorable economics. Conversely, residential battery installations are forecast to decline, impacted by a waning energy crisis and reduced incentives.

Despite positive growth, the report highlights that Europe’s planned BESS deployment falls short of the 780 GWh capacity needed by 2030 to fully support the continent’s renewable transition. Policymakers are urged to implement unified regulatory reforms, grid enhancements, and financial incentives to accelerate storage adoption, ensuring energy flexibility and decarbonization goals are met. Meanwhile, lithium-ion battery prices dropped 20% in 2024, reaching a record low of $115/kWh.