EU Installs Record 27.1 GWh Battery Storage In 2025, Marking 45% Growth And Tenfold Expansion Since 2021, Says SolarPower Europe

In 2025, the European Union installed 27.1 GWh of new battery storage capacity, setting a new record driven primarily by strong utility-scale deployment, according to SolarPower Europe’s EU Battery Storage Market Review 2025. This represents a 45% increase compared to the previous year and marks a tenfold growth in Europe’s battery fleet since 2021, rising from 7.8 GWh to 77.3 GWh today. To meet the EU’s energy flexibility needs by 2030, the battery storage capacity will need to grow another tenfold, reaching approximately 750 GWh by the end of the decade.

The report highlights that utility-scale systems have become the main driver of Europe’s battery storage expansion, accounting for 55% of all new capacity in 2025 and signaling a clear shift in the market structure. This growth has been supported by improved market conditions and stronger policy frameworks, which have allowed large-scale projects to reach record levels. While behind-the-meter storage continues to play an important role, residential battery installations declined for the second year in a row, falling by 6% to 9.8 GWh due to lower electricity prices and reduced support schemes. Commercial and industrial battery systems showed modest growth but remain a smaller portion of the overall market.

Walburga Hemetsberger, CEO of SolarPower Europe, noted that Europe’s battery storage market is expanding rapidly, providing the flexible capacity needed to support the energy system. She emphasized that the strong uptake of utility-scale batteries demonstrates investor confidence and the maturity of the technology, but stressed the urgent need to accelerate deployment further to ensure energy security and competitiveness across the EU.

The report also examines the state of EU battery manufacturing. Europe has developed a solid midstream industrial base, with 252 GWh of nominal battery cell production capacity in 2025, but structural gaps remain. While the EU has strong capabilities in electrolyte and separator production, cathode and anode active material manufacturing is limited. Moreover, over 90% of existing cell capacity is focused on electric vehicles rather than stationary storage. High production costs and project delays continue to challenge competitiveness, highlighting the need for a fully integrated and resilient European battery value chain.

To address these challenges and scale battery storage effectively, the report identifies three priority areas for action. First, accelerating the deployment of battery energy storage systems requires simplified permitting processes, prioritization of grid-friendly projects, and removal of tariff barriers to ensure fair market access.

Second, building affordable and resilient supply chains involves targeted investment in EU battery manufacturing, improved access to critical raw materials, expanded recycling capacity, and strategic global partnerships. Third, strengthening quality, safety, and sustainability calls for harmonized EU-wide safety standards, better recycling and second-life battery rules, and robust carbon footprint disclosures across the battery value chain.

Antonio Arruebo, lead author of the report, highlighted that the EU battery storage market is gaining momentum, particularly in utility-scale systems, but pointed out that distributed battery deployment still requires clearer policy support to unlock investment from businesses and households. He noted that while EU battery manufacturing has advanced, uncertainties remain, and accelerating deployment across all segments will be essential to achieving Europe’s energy transition goals.

All data from the EU Battery Storage Market Review 2025 is now available through SolarPower Europe’s Market and Policy Navigator, which provides historical and current deployment data for battery storage and solar PV across Europe. While European-level data is publicly accessible, full access to detailed country- and segment-level figures is exclusive to SolarPower Europe members.