In Central and Eastern Europe, large energy storage may achieve a five-fold growth by 2030.
2024-12-25
With the increasing number of energy storage installations in Central and Eastern Europe, the source-grid battery storage market is expanding rapidly and is expected to grow five-fold by 2030, according to PV Europe.
Multiple factors are driving the growth of the energy storage market.
In Central Europe, there are several driving factors behind the growth of large energy storage system installations:
1. Renewable energy integration: The proportion of renewable energy such as wind and solar energy has increased, and the grid needs more efficient energy storage systems to balance the volatility of energy supply.
2. Carbon emission reduction targets and coal power phase-out: The EU's carbon emission targets and coal power phase-out plans have also promoted the popularisation of energy storage technology to replace traditional fossil fuel power generation.
3. Grid stability and energy independence: Energy storage systems can alleviate grid fluctuations and reduce dependence on external energy.
4. EU policy support: The EU has issued financial support policies and flexibility assessment requirements, which provides a strong policy endorsement for the development of the energy storage market.
5. Electricity price fluctuations: The price instability of the electricity market has prompted enterprises and governments to find more flexible energy storage solutions to cope with market changes.
6. The growth of electric vehicles and the easing of pressure on the power grid.
EU policy to support the energy storage market -
1. From June 2026, the EU requires system operators (TSOs) to conduct a flexibility assessment, quantify energy storage needs and incorporate them into national energy and climate plans (NECPs). This policy will send a clear signal to investors to help the energy storage market get more financial support.
2. In addition, there are large-scale financial incentives for energy storage systems, and from 2022, the total amount of aid approved by the EU for Eastern European countries is: Hungary and Poland each amounting to 1.2 billion euros; €590 million for Bulgaria, €578 million for Romania, €150 million for Slovenia and €180 million for Lithuania.
National Energy Storage Policy Highlights -
Romania: Plans to launch large-scale capacity auctions for battery storage in 2026 and has begun to use contracts for difference (CfD) to ensure the profitability of projects.
Poland: through capacity market auctions and tax incentives.
Hungary: Grants of up to 45% for utility-scale energy storage projects, and further support for the growth of the energy storage industry through contracts for difference (CfD) schemes and modern grid connection rules.
Lithuania: Promote the construction of large-scale energy storage systems that adapt to modern grid connection rules.
Ukraine: The expansion of its large-scale energy storage system is heavily funded by international financial donors and enjoys import duty exemptions.
- Future growth of the energy storage market in Central and Eastern Europe -
The large-scale battery storage market in six key countries in Central and Eastern Europe will grow fivefold by 2030, PV Europe reported. Specifically, Poland will lead the way, with energy storage capacity expected to grow from 350 MWh to 4,000 MWh; this was followed by Romania and Lithuania, which grew to 3,750 MWh and 3,500 MWh, respectively; Hungary is expected to reach about 3,300 MWh; the Bulgarian market is expected to be 3,000 MWh and the Ukrainian market is around 2,750 MWh.
Challenges need to overcome bottlenecks –
While the outlook for the energy storage market in Central and Eastern Europe is very positive, it also faces regulatory issues and market barriers, and in some countries, the approval process for energy storage projects is complex. In Romania, for example, the grid connection rules for utility-scale energy storage projects are not clear, and the approval of subsidies is slow, which affects the speed of project progress. In Bulgaria, there is also a lack of clear regulations for commercial and industrial energy storage (C&I BESS), and future policy planning such as frequency regulation is not yet mature. The lack of grid infrastructure has limited the development of some energy storage projects. In the future, with the gradual improvement of policies and the construction of infrastructure, the potential of the energy storage market in Central and Eastern Europe will continue to expand, and challenges will always coexist with opportunities!