Battery Storage

Research evidence excerpt

Battery Storage

RBC Europe Limited

Joseph Pepper (Analyst)

+44 20 4557 7410,

joseph.pepper@rbccm.com

Fernando Garcia (Analyst)

+44 20 7029 0267,

fernando.garcia@rbccm.com

Alexander Wheeler

May 19, 2026 (Analyst)

+44 20 7653 4481,

alexander.wheeler@rbccm.com Battery Storage Charlotte Mettyear

(Analyst)RESEARCH Pipeline opportunity shifts back to Europe +44 75 4786 7085,

Our view: We believe a 'boom, bust, normalise' revenue cycle is emerging across battery markets, as charlotte.mettyear@rbccm.com Ziyad Jasimuddin (Senior

more mature markets (GB) recover following previous revenue droughts, with power price spreads Associate)

supported by ongoing renewable build-out, while adolescent markets (Texas) are facing short-term BESS +44 20 7653 4757,

saturation and rationalisation of battery pipelines. Conversely, we think the first mover advantage is ziyad.jasimuddin@rbccm.com

significant in new markets (Spain), which is scaling from a standing start with attractive spreads. Engie

and Grenergy remain our top picks for BESS exposure, while we estimate at current spreads, new Spanish

BESS can achieve full capex repayment on a long-life BESS asset within the first four years of operation.EQUITY

Battery opportunity accelerates in Spain; key US markets face oversupply

We expect Spain to be a key BESS focus market for the remainder of the decade, with developers

benefitting from low capex costs and widening power price spreads as price volatility can no longer

be addressed solely by existing pumped storage capacity. We estimate payback periods of c.4 years at

current power price spreads, while the upcoming 2027 capacity market could provide further upside

to our estimates. Across other geographies, the mature GB market has recovered from 2023-2024