QAZAQ GREEN.  Germany, Great Britain and Italy rank as the most attractive battery storage markets in Europe, according to the fifth edition of the European Battery Markets Attractiveness Report (BATMAR) published by Aurora Energy Research.

The study assessed 28 European countries. Germany leads the ranking, driven by strong flexibility demand linked to decarbonisation efforts, supporting robust market growth in both the near and long term. Great Britain places second, underpinned by substantial installed capacity and diversified revenue streams. Italy’s recent rise is largely supported by the MACSE subsidy scheme promoting long-duration energy storage.

Between 2024 and 2025, Europe’s installed battery capacity grew by more than 7 GW to exceed 17 GW. Aurora forecasts that total capacity will surpass 80 GW by 2030. Longer-duration batteries, particularly four-hour systems, are expected to gain traction as capital costs decline and flexibility needs increase in decarbonising power markets. Around EUR 24 billion is projected to be invested in four-hour batteries by 2030, accounting for more than half of total expected investment.

The report notes that markets remain at different stages of development. While Great Britain, Germany and Italy are maturing and facing challenges such as grid connection constraints, more nascent markets will see their first large-scale projects commissioned from 2026 onwards.

As deployment scales up, investor strategies are evolving. More risk-averse players are targeting operational assets in mature markets, while others are seeking early-mover advantages in emerging jurisdictions.

Southeastern Europe is gaining prominence. Romania and Bulgaria now rank among Europe’s top ten battery markets, supported by improving project economics and stronger policy backing.

At the same time, rapid expansion brings new challenges. Rising system flexibility requirements and grid connection pipeline management are placing networks at the centre of policy discussions. Flexible connection agreements and their implications for battery economics are under active consideration across several countries.

With large-scale project financing becoming more complex in markets with limited secured revenues, investors are increasingly turning to innovative offtake structures, including tolling agreements, to underpin financing strategies.