Full Charge Ahead: Europe's Storage Build Out

Research evidence excerpt

Full Charge Ahead: Europe's Storage Build Out

s the relevance of battery storage across Europe’s evolving power system. relevant energy sources in Europe

250 Jeff estimates

Co-Location Improves Renewable Asset Returns - The cannibalization effect is becoming a 200

defining challenge for renewable asset economics. Higher renewable penetration increasingly 150 €/MWh 100

concentrates generation into limited hours of the day, pushing wholesale prices sharply lower 50

during periods of solar oversupply. As a result, developers and off-takers are increasingly 0

shifting toward co-located solar-plus-storage projects to improve capture rates, reduce

curtailment and strengthen project bankability. According to Rystad Energy, integrating a 4-

.

hour battery with solar can increase capture rates to c128% and materially improve project Source: Rystad Energy, Jefferies estimates

IRRs. In our view, co-location is increasingly evolving from a competitive advantage into a

Figure 3 - Cumulative Share of Global Power

commercial necessity across key European markets. Generation Projects by Construction Time

Storage Strengthens Grid Stability And Security - Storage is also becoming strategically 80

important for grid efficiency, resilience and energy security. Batteries can absorb excess

renewable generation during oversupply periods and discharge electricity during evening 60 Battery storage

Onshore windpeaks, reducing redispatch costs, lowering curtailment and helping displace gas-fired peaking 40 Solar PV Gas 20

generation. Germany alone curtailed c9.6TWh of renewable generation in 2025, while PumpedNuclear hydro storage

0 1 2 3 4 5 6 7 8 9 10congestion management costs across Europe reached €8.9bn in 2024. At the same time, . 0