Europe Battery Energy Storage System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Europe Battery Energy Storage System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Europe battery energy storage system market is expected to rise at a CAGR of more than 4.2% during the forecast period. Factors such as increasing demand for uninterrupted power supply during the peak hours of the day where battery energy storage systems serve as a backup is likely going to drive the Europe battery energy storage system market. However, the mismatch in the demand and supply of the raw materials used for battery manufacturing is expected to restrain the market during the forecast period.

• The lithium-ion segment, due to the significant reduction in the manufacturing and retail cost, has become more accessible to the people in everyday use and is likely going to be the largest segment for the Europe battery energy storage system market.
• New generation batteries such as lithium-sulfur and solid-state due to technological improvements such as an increase in efficiency and production scale-up are expected to take over the market by 2030 or 2035. These advancements in batteries are expected to create several opportunities for the Europe battery energy storage market in the future.
• Germany is the largest economy of the European market and has been attracting investments from other companies across the globe for the battery energy storage system. It is likely going to dominate the European market during the forecast period.

• Lithium-ion batteries are a rechargeable type of cell that is commonly used in electronic devices and energy vehicles. These batteries are also being used for renewable energy storage from sources such as solar and wind. The energy densities of these batteries are quite high and have a round trip efficiency of 85% to 95%. The lithium-ion battery is a low maintenance battery, and the cells of the battery cause little harm to the environment when disposed of
• Lithium-ion batteries are witnessing a massive demand in battery energy storage owing to the reducing prices, the lithium-ion battery prices saw a reduction of approximately 11% in 2019 compared to 2018. Moreover, countries in Europe have set their targets to install renewable energy in their respective countries. With growing concerns regarding air pollution, many countries in the region have launched several policies and subsidies in the renewable energy market. As renewable energy is an intermittent energy source, the extra power generated by it can be stored in a battery storage system for its later use. This is likely going to drive the market during the forecast period.
• In March 2020, Total S.A, French oil major, launched a battery-based energy storage project in Mardyck, at the Flandres Center, in Dunkirk. With a storage capacity of 25 megawatt-hours (MWh) and an output of 25 megawatts (MW) of power, the new lithium-ion energy storage system is expected to be going the largest in France. The project is part of government policy to support the development of electrical capacity through capacity mechanisms. The project is expected to be commissioned by the end of 2020.
• In May 2019, Fortum, a Finland based company, activated its previously announced batteries at the Forshuvud hydropower plant located near Borlänge and Dalälven in Dalarna, Sweden. For the first time, batteries were used in the electricity grid to support hydropower and improve the regulation power. The plant has been equipped with an extensive lithium-ion batteries storage system with a total capacity of 6.2 megawatt-hours (MWh) and a maximum power output of 5 megawatts (MW).
• Hence, owing to the above points, the lithium-ion segment is likely to dominate the Europe battery energy storage system market during the forecast period.

• Germany's having the second largest population after Russia in Europe has an increase in the electricity demand along with the rise in industrialization and urbanization in the country, which is likely going to be the largest market for the battery energy storage system market.
• The government of Germany wanted domestic investment and manufacturers for battery cells, which are used in battery storage systems and have planned to decrease the dominance of Asia-Pacific companies in the country, affecting the local companies' involvement in the area. This is likely going to boost-up the domestic investment in the battery energy storage system market.
• Moreover, the government has targeted increasing the installed renewable energy capacity and has planned to generate 40% to 45% of the total energy consumption from renewable energy by 2025. This is likely going to drive the battery energy storage system market as batteries can be used to store extra power generated from renewable. In 2019, Germany's total installed solar capacity was 48.96 gigawatts (GW), compared to 45.18 gigawatts (GW) in 2018,
• In May 2019, Enel X, Enertrag AG, and Leclanché SA, inaugurated the Cremzow lithium-ion battery energy storage facility in the city of Cremzow, located in the German Länder of Brandenburg. The storage facility has a capacity of 22 megawatts (MW) and was built with an investment of approximately EUR 17 million.
• In June 2018, Germany became the host to Europe's largest battery energy storage system, of 50 megawatt-hours (MWh) capacity. On the other hand, owing to the fall in the PV system and battery costs, the market for energy storage gathered pace in the country.
• Hence, owing to the above points, Germany is expected to dominate the Europe battery energy storage system market during the forecast period.

The Europe battery energy storage system market is fragmented. Some of the key players in this market include BYD Company Ltd, Contemporary Amperex Technology Co Ltd, Panasonic Corporation, Toshiba Corp, and LG Chem Ltd.

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