2025: EU Adds Record 27.1 GWh Of Battery Storage, Led by Utility-Scale Projects

The European Union (EU) installed 27.1 GWh of new battery storage capacity in 2025, marking a record year driven by strong utility-scale deployment, according to SolarPower Europe’s EU Battery Storage Market Review 2025. This represents 45% year-on-year growth and confirms that Europe has already expanded its battery fleet tenfold since 2021, rising from 7.8 GWh to 77.3 GWh today.

In a press release, SolarPower Europe said that to meet its energy flexibility needs by 2030, the EU must now repeat this tenfold increase, scaling capacity to around 750 GWh by the end of the decade. The report shows that utility-scale systems have become the main engine of Europe’s battery storage expansion, accounting for 55% of all newly added capacity in 2025 and marking a clear shift in the market’s structure. Improved market conditions and stronger policy frameworks enabled large-scale projects to reach record deployment levels. Residential batteries fell 6% to 9.8 GWh for the second consecutive year

While behind-the-meter storage continues to play a vital role, residential batteries declined for the second consecutive year, falling by 6% to 9.8 GWh, largely due to lower electricity prices and reduced support schemes. Commercial and industrial battery systems grew modestly but remain a smaller segment of the market.

Walburga Hemetsberger, CEO of SolarPower Europe (she/her), said: “Europe’s battery storage market is growing fast and delivering the flexible capacity our energy system urgently needs. The strong uptake of utility-scale batteries in 2025 shows investors are ready, the technology is mature, and the system benefits are clear. But we must now dramatically accelerate deployment. To support EU security and competitiveness, we need a battery fleet capable of supporting a fully flexible, renewable-based energy system.”

The report also highlights the state of EU battery manufacturing, noting that Europe has developed a solid midstream industrial base, with 252 GWh of nominal battery cell production capacity in 2025, but still faces significant structural gaps. While the EU shows strong capabilities in electrolyte and separator production, cathode and anode active material manufacturing remains limited, and more than 90% of existing cell capacity is geared toward electric vehicles rather than stationary storage. Project postponements and relatively high production costs continue to challenge competitiveness, underscoring the need for a more resilient and fully integrated European battery value chain.

Three Priority Areas To Scale EU Battery Storage Capacity

The report sets out three priority areas for EU action to scale battery storage. The first is to accelerate deployment of battery energy storage systems (BESS) by simplifying and speeding up permitting for storage and hybrid projects. It also calls for prioritising mature, grid-friendly projects in connection queues, fixing tariff barriers, and enabling fair access to all power markets.

The report also aims to support the development of affordable and resilient supply chains by backing EU battery manufacturing through targeted investment and innovation. In addition, it calls for strengthening access to critical raw materials, scaling recycling capacity, and developing global partnerships to diversify supply.