Not only in Germany, but throughout Europe, battery storage systems are booming as a result of the energy transition. According to SolarPower Europe, battery storage systems with a capacity of 17.2 GWh were installed in 2023, almost twice as much as in the previous year. The total installed capacity in Europe was 35.8 GWh. For 2024, the industry association estimates that at least 22.4 GWh will be added across Europe (an increase of 31%). Final figures are not yet available.

While growth has so far been driven primarily by residential storage systems in households, more and more energy suppliers, solar and wind farm operators, as well as industrial and commercial enterprises, are now acquiring large battery storage systems. According to the “European Market Outlook for Battery Storage 2024-2028” by SolarPower Europe, the European battery storage market is expected to grow to a total installed capacity of up to 135 GWh in four years, and to 78 GWh in a medium scenario. The latter corresponds to an annual market growth of 30-40%.

Boom in large-scale projects expected

Large battery storage systems, especially grid storage systems (so-called utility-scale storage), are becoming increasingly dominant. Their share of newly installed capacity is expected to climb to 45% by 2028 (2023: 21%), while the share of commercial storage (commercial and industrial) is expected to rise to 25% (2023: 9%), and the share of private home storage is expected to fall to 29% (2023: 70%).

Also see: Expert analysis – How to approach battery energy storage systems in Europe

The increasing importance of large-scale battery storage systems is mainly due to the growing demand for grid stabilization services and the shifting of peak loads caused by the increasing share of fluctuating solar and wind power across Europe. In many places, energy suppliers are increasingly relying on grid storage systems to absorb large amounts of electricity in a matter of seconds and release it again when needed, thus keeping the grids stable and making better use of the lines in normal operation.

Also see: Large battery storage systems as new champions

In addition, it often makes economic sense for companies to invest in large battery storage systems when electricity supply and prices fluctuate. This is because electricity can be bought cheaply on the exchange, for example at midday when photovoltaic systems are running at full speed, and sold again in the evening when prices rise. Operators of solar and wind farms can avoid their plants being disconnected during periods of surplus electricity and price cannibalization by using large battery storage systems to shift the feed-in to the evening hours.

Tumbling prices – lithium-ion technology dominates

This is particularly worthwhile for companies because the costs and prices of battery storage have fallen sharply due to economies of scale and technological improvements. According to the International Energy Agency (IEA), prices for the predominant lithium-ion batteries (cells and rechargeable batteries) have fallen from around 690 USD/kWh (6 35 EUR/kWh) in 2014 to less than 140 USD/kWh (129 EUR/kWh) in 2023. This corresponds to an average annual decrease of about 15 %.

Listen to our new podcast: Solar Investors Guide #4 – Long-term storage with iron flow technlogy

The IEA expects battery storage costs to fall significantly again by 2030, by an estimated 30% for large-scale battery storage and 21% for small-scale battery storage. “Lithium-ion batteries are the leading technology for stationary storage, not only because of their low cost but also because of their high durability,” says Raffaele Rossi, Head of Market Intelligence at SolarPower Europe. They also have a high energy density per weight and volume, high charging and discharging performance, are scalable and currently readily available, according to Katja Esche, spokeswoman for the German Energy Storage Systems Association (BVES).

Most important European market: Italy

According to SolarPower Europe’s forecast, Italy will be at the forefront of large-scale battery storage in Europe over the next four years. Grid storage systems in particular will benefit from the rapidly growing demand for balancing the fluctuating electricity production resulting from the strong expansion of renewable energies. The use of storage systems will be supported by a state-backed capacity mechanism and legally regulated auctions for storage capacities (MACSE) with long-term supply contracts.

In this case, the national transmission system operator Terna pays a capacity premium to MACSE-supported projects, i.e. to the operators of corresponding grid storage facilities, which is exchanged for income from electricity trading. In addition, companies are offered 15-year contracts to support investment in storage capacity as part of the capacity market.

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In addition, Terna will launch a new energy trading platform that will enable storage operators to sell time-shifting of energy to solar and wind farm operators, as well as ancillary services. As a result of the new regulations, the addition of grid battery storage in Italy is expected to increase to 5.2 GWh in 2024, which corresponds to 67% of the total Italian battery storage market. By 2028, an annual new installation of grid storage with a capacity of more than 8 GWh is expected in the country (59% of the Italian storage market).

Great Britain number two – Germany number three

Great Britain is number two in Europe for large-scale battery storage. There, the provision of grid storage by companies is also actively financed through a statutory capacity remuneration mechanism. In addition, there are ambitious national expansion targets for energy storage – 24 GW by 2030. For 2024, SolarPower Europe expects an increase of 3.7 GWh in grid storage (82% of the British battery storage market), and 4.7 GWh annually by 2028 (65% of the British battery storage market).

In the ranking for the forecast from 2024 to 2028 in total battery storage growth in Europe, Germany is in third place, with utility-scale storage expected to increase to 65% in 2028.

Eastern European countries are also investing in large-scale battery storage

In Eastern Europe, too, large battery storage systems are becoming increasingly popular as a result of the expansion of renewable energies and the pursuit of energy security. Their expansion is financially incentivized – supported by the EU – as was recently demonstrated at the Cisolar & Greenbattery 2024 conference in Bucharest. Among other things, Romania will introduce capacity auctions for grid storage from 2026 and is already relying on Contracts for Difference (CfD).

Poland also has capacity market auctions and tax incentives to promote large-scale battery storage. In Hungary, up to 45% of the project costs for large-scale battery storage are covered by grants, in addition to a CfD program and grid connection facilitations.

See also: Central & Eastern Europe – Utility-scale storage market set to increase fivefold by 2030

Lithuania is also promoting grid-scale battery storage through various measures. The expansion of large-scale battery storage in war-torn Ukraine is heavily financed by international donors, and there are also exemptions from import duties. By 2030, the market for utility-scale battery storage in the six most important countries in Eastern and Central Europe will grow fivefold, according to industry representatives such as Eliza Stefan from Jinko Solar at the industry event in Bucharest. (hcn)





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The regulatory landscape for BESS in Europe is influenced by EU directives aimed at accelerating the shift to cleaner energy sources. Notable policies include the Clean Energy for All Europeans Package and the European Green Deal, which emphasize the uptake of energy storage technologies. However, each country adopts its own set of regulations and at different pace, which can significantly impact the attractiveness of BESS investments. These regulations influence areas such as:

–  Market access and participation rules

–  Tariffs and fees related to electricity consumption and storage

–  Incentives and support mechanisms for renewable energy and storage solutions

–  Safety and environmental standards for energy storage technologies 

Different revenue models & market maturity

Revenue generation for BESS is derived from various sources, including energy arbitrage, capacity markets, frequency regulation services, and ancillary services. The availability of these revenue streams varies by region based on market structures and regulations. Market maturity reflects the level of development of the energy market, the deployment of technology, and the investment climate for BESS projects. Mature markets tend to offer more robust regulatory support and established business models.

Also see: Large battery storage systems as new champions

In the following BESS business cases in selected countries 

Germany

Germany is the most developed market for CCE in continental Europe. It offers a dynamic environment, and we currently have one project in construction and three more in preparation with a total of approximately 50 MW. Our target is to grow our operational portfolio to around 250 MW, complemented with further assets on the medium voltage and high-voltage levels, in the course of 2026. The market is developing rapidly: CAPEX has fallen by around 30% since the beginning of the year, commercialization and financing strategies are maturing and therefore offering investors an ecosystem that supports growth.

Irrespective of our individual developments at CCE, we can see increasing capacities in Germany.The major bottleneck is and remains the availability of grid connections; local grid operators are becoming increasingly defensive regarding the operational mode of storage facilities. These limitations will impact the business case of future projects and potentially call into question the investment itself. Action on regulatory level is crucial to provide guidance to the many decentralized local grid operators in what ways BESS contributes positively to the grid efficiency. Further clarifications on the (in)famous BKZ (Baukostenzuschuss) and procedures for grid connection acceptance need to be implemented to provide the necessary certainty for BESS investors. 

Italy

Italy’s energy regulations adequately support the integration of renewable sources and energy storage. The country has been implementing policy measures to enhance energy efficiency and promote decarbonization through the national energy strategy. The capacity market introduced by the Italian government and future programs such as MACSE provide opportunities for flexible power generation technologies, including BESS. The market is expanding, but the potential for revenue generation is somewhat limited compared to Germany due to the less developed ancillary services market. Italy’s BESS market is in a transitional phase, with recent regulatory changes attracting increased investment and installation, particularly in the commercial and industrial sectors.

Hear our new podcast! Solar Investors Guide #4: Long-term storage with iron flow technlogy

In Italy, we find a very competitive market and yet, a clear business case for BESS still needs to be defined.Following the recent tenders for the capacity market, in which three BESS projects were also awarded a contract, it will be important to continue adapting the business models. This will likely involve a combination of merchant, capacity market and MACSE models, which will need to find a balance in line with investors’ return expectations. CCE is developing a portfolio of over 1.3 GW of BESS projects across Italy. As in Germany, the grid connection is the main limiting factor here. Thanks to years of experience in the country and many secured sites in the PV sector, we can also convert these existing sites into BESS sites or add BESS to the PV sites. 

France

In France, we are at a relatively early stage and busy developing the business case; CCE France’s project pipeline currently comprises three projects. Due to the high base load capacity in the country, there is somewhat less volatility here, but green energy projects will continue to be added, which impacts grid stability.France’s regulatory framework encourages the use of storage through various programs. The Multiannual Energy Program (PPE) outlines the government’s objectives for renewable energy and storage integration.

France has also set targets for energy storage capacity by 2028, fostering investments in BESS. While the revenue potential has been positively impacted by recent policies, the overall market for energy storage remains less developed and mature if compared to other EU countries. It is developing however, particularly in large-scale BESS.  

The Netherlands

The Netherlands have implemented a progressive regulatory regime supporting energy storage systems. The country fosters investments through subsidy programs for innovative storage technologies and adjustments to grid fees concerning storage facilities. Revenue generation in a market with high volatility and limited liquidity shows high promises, particularly as more renewable energy sources come online. The Netherlands boast a mature market, characterized by many projects in the commercial sector. The integration of battery storage into existing energy infrastructures is highly favorable. 

In the Netherlands, we are in the process of realising the first medium-voltage storage system, which will be installed in addition to an existing PV system. With 80 GW of connection enquiries at grid operator TenneT, for large-scale storage systems, there are considerable delays in grid commitments and the market seems pretty much fully booked. We also expect further regulatory developments in connection with grid fees and currently focus our strategic approach of utilising existing grid connection capacity of PV systems for the expansion of our BESS capacity. 

Austria

In Austria, we expect improved regulatory frameworks for storage facilities to arrive with the establishment of the new government. This should provide more certainty for the business case, including streamlined grid fees. Albeit this time lag, the trend for BESS should be similar to that in Germany and we are currently securing promising sites for these projects.In general, Austria has actively supported renewable energy through subsidies and feed-in tariffs in the past and today the role of BESS is increasingly recognized. So, Austria’s BESS market is developing, today however, the number of installations in stand-alone systems is relatively limited. 

Romania

In Romania, the market is developing rapidly and is increasingly catching up, although the installed BESS capacities to date are manageable.What is interesting in this country market is that financing banks recommend the addition of a storage system for PV projects (to provide grid-supporting services and thus reduce project costs) and thus grant better conditions, although the profitability of the overall project may be lesser than a stand-alone PV system.An increase in stand-alone projects can be observed and I expect a considerable capacity increase in the next few years, also in view of the fact that the authorisation phases in Romania are shorter than in other EU countries.

See also: Central & Eastern Europe: Utility-scale storage market set to increase fivefold by 2030

Romania is gradually adopting policies that support renewable energy and storage systems. The government has implemented feed-in tariffs and other incentives to stimulate growth, although the regulatory framework remains less established compared to Western European countries. The revenue generation potential is limited compared to other countries discussed, but there are opportunities as market dynamics change. The recent launch of a EUR 150m modernization fund for BESS is further supporting that trend.

CCE

Structure of a stand-alone battery energy storage system (BESS).

Status Quo and Perspectives

The strategic value of a grid connection is very high in every country and presents the real bottleneck of the energy transition. This certainly applies to all countries.

European coordination would be desirable, particularly at grid operator level. The respective challenges and regulatory initiatives could be mirrored in an exchange of experiences. Defining why flexibility stands in the centre of making grids more resilient and how storage systems can contribute to grid neutrality and efficiency. Even if these are oftentimes local circumstances, there must be broader acceptance of why storage systems are so important for the expansion of our energy system.

See also: Optimizing energy storage – cost functions and strategies for long-term gains

Another general challenge is the transition of BESS stand-alone projects into so-called co- location between BESS and PV or wind. In addition to regulatory issues, this combination of technologies is highly complex in terms of structure and commercialization. Business cases need to be looked at individually and depending on the local parameters discussed in this article, a stand-alone project can oftentimes be more attractive than a co-located project.

In conclusion, the comparative analysis reveals varying levels of regulatory support, revenue potential, and market maturity. Germany and The Netherlands stand out as leading examples, Italy and France demonstrate growing interest and opportunity, while Austria and Romania are still developing their infrastructures and regulatory schemes. (Philipp Kraemer/hcn)

More about CCE





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The regulatory landscape for BESS in Europe is influenced by EU directives aimed at accelerating the shift to cleaner energy sources. Notable policies include the Clean Energy for All Europeans Package and the European Green Deal, which emphasize the uptake of energy storage technologies. However, each country adopts its own set of regulations and at different pace, which can significantly impact the attractiveness of BESS investments. These regulations influence areas such as:

–  Market access and participation rules

–  Tariffs and fees related to electricity consumption and storage

–  Incentives and support mechanisms for renewable energy and storage solutions

–  Safety and environmental standards for energy storage technologies 

Different revenue models & market maturity

Revenue generation for BESS is derived from various sources, including energy arbitrage, capacity markets, frequency regulation services, and ancillary services. The availability of these revenue streams varies by region based on market structures and regulations. Market maturity reflects the level of development of the energy market, the deployment of technology, and the investment climate for BESS projects. Mature markets tend to offer more robust regulatory support and established business models.

Also see: Large battery storage systems as new champions

In the following BESS business cases in selected countries 

Germany

Germany is the most developed market for CCE in continental Europe. It offers a dynamic environment, and we currently have one project in construction and three more in preparation with a total of approximately 50 MW. Our target is to grow our operational portfolio to around 250 MW, complemented with further assets on the medium voltage and high-voltage levels, in the course of 2026. The market is developing rapidly: CAPEX has fallen by around 30% since the beginning of the year, commercialization and financing strategies are maturing and therefore offering investors an ecosystem that supports growth.

Irrespective of our individual developments at CCE, we can see increasing capacities in Germany.The major bottleneck is and remains the availability of grid connections; local grid operators are becoming increasingly defensive regarding the operational mode of storage facilities. These limitations will impact the business case of future projects and potentially call into question the investment itself. Action on regulatory level is crucial to provide guidance to the many decentralized local grid operators in what ways BESS contributes positively to the grid efficiency. Further clarifications on the (in)famous BKZ (Baukostenzuschuss) and procedures for grid connection acceptance need to be implemented to provide the necessary certainty for BESS investors. 

Italy

Italy’s energy regulations adequately support the integration of renewable sources and energy storage. The country has been implementing policy measures to enhance energy efficiency and promote decarbonization through the national energy strategy. The capacity market introduced by the Italian government and future programs such as MACSE provide opportunities for flexible power generation technologies, including BESS. The market is expanding, but the potential for revenue generation is somewhat limited compared to Germany due to the less developed ancillary services market. Italy’s BESS market is in a transitional phase, with recent regulatory changes attracting increased investment and installation, particularly in the commercial and industrial sectors.

Hear our new podcast! Solar Investors Guide #4: Long-term storage with iron flow technlogy

In Italy, we find a very competitive market and yet, a clear business case for BESS still needs to be defined.Following the recent tenders for the capacity market, in which three BESS projects were also awarded a contract, it will be important to continue adapting the business models. This will likely involve a combination of merchant, capacity market and MACSE models, which will need to find a balance in line with investors’ return expectations. CCE is developing a portfolio of over 1.3 GW of BESS projects across Italy. As in Germany, the grid connection is the main limiting factor here. Thanks to years of experience in the country and many secured sites in the PV sector, we can also convert these existing sites into BESS sites or add BESS to the PV sites. 

France

In France, we are at a relatively early stage and busy developing the business case; CCE France’s project pipeline currently comprises three projects. Due to the high base load capacity in the country, there is somewhat less volatility here, but green energy projects will continue to be added, which impacts grid stability.France’s regulatory framework encourages the use of storage through various programs. The Multiannual Energy Program (PPE) outlines the government’s objectives for renewable energy and storage integration.

France has also set targets for energy storage capacity by 2028, fostering investments in BESS. While the revenue potential has been positively impacted by recent policies, the overall market for energy storage remains less developed and mature if compared to other EU countries. It is developing however, particularly in large-scale BESS.  

The Netherlands

The Netherlands have implemented a progressive regulatory regime supporting energy storage systems. The country fosters investments through subsidy programs for innovative storage technologies and adjustments to grid fees concerning storage facilities. Revenue generation in a market with high volatility and limited liquidity shows high promises, particularly as more renewable energy sources come online. The Netherlands boast a mature market, characterized by many projects in the commercial sector. The integration of battery storage into existing energy infrastructures is highly favorable. 

In the Netherlands, we are in the process of realising the first medium-voltage storage system, which will be installed in addition to an existing PV system. With 80 GW of connection enquiries at grid operator TenneT, for large-scale storage systems, there are considerable delays in grid commitments and the market seems pretty much fully booked. We also expect further regulatory developments in connection with grid fees and currently focus our strategic approach of utilising existing grid connection capacity of PV systems for the expansion of our BESS capacity. 

Austria

In Austria, we expect improved regulatory frameworks for storage facilities to arrive with the establishment of the new government. This should provide more certainty for the business case, including streamlined grid fees. Albeit this time lag, the trend for BESS should be similar to that in Germany and we are currently securing promising sites for these projects.In general, Austria has actively supported renewable energy through subsidies and feed-in tariffs in the past and today the role of BESS is increasingly recognized. So, Austria’s BESS market is developing, today however, the number of installations in stand-alone systems is relatively limited. 

Romania

In Romania, the market is developing rapidly and is increasingly catching up, although the installed BESS capacities to date are manageable.What is interesting in this country market is that financing banks recommend the addition of a storage system for PV projects (to provide grid-supporting services and thus reduce project costs) and thus grant better conditions, although the profitability of the overall project may be lesser than a stand-alone PV system.An increase in stand-alone projects can be observed and I expect a considerable capacity increase in the next few years, also in view of the fact that the authorisation phases in Romania are shorter than in other EU countries.

See also: Central & Eastern Europe: Utility-scale storage market set to increase fivefold by 2030

Romania is gradually adopting policies that support renewable energy and storage systems. The government has implemented feed-in tariffs and other incentives to stimulate growth, although the regulatory framework remains less established compared to Western European countries. The revenue generation potential is limited compared to other countries discussed, but there are opportunities as market dynamics change. The recent launch of a EUR 150m modernization fund for BESS is further supporting that trend.

CCE

Structure of a stand-alone battery energy storage system (BESS).

Status Quo and Perspectives

The strategic value of a grid connection is very high in every country and presents the real bottleneck of the energy transition. This certainly applies to all countries.

European coordination would be desirable, particularly at grid operator level. The respective challenges and regulatory initiatives could be mirrored in an exchange of experiences. Defining why flexibility stands in the centre of making grids more resilient and how storage systems can contribute to grid neutrality and efficiency. Even if these are oftentimes local circumstances, there must be broader acceptance of why storage systems are so important for the expansion of our energy system.

See also: Optimizing energy storage – cost functions and strategies for long-term gains

Another general challenge is the transition of BESS stand-alone projects into so-called co- location between BESS and PV or wind. In addition to regulatory issues, this combination of technologies is highly complex in terms of structure and commercialization. Business cases need to be looked at individually and depending on the local parameters discussed in this article, a stand-alone project can oftentimes be more attractive than a co-located project.

In conclusion, the comparative analysis reveals varying levels of regulatory support, revenue potential, and market maturity. Germany and The Netherlands stand out as leading examples, Italy and France demonstrate growing interest and opportunity, while Austria and Romania are still developing their infrastructures and regulatory schemes. (Philipp Kraemer/hcn)

More about CCE





Source link



There are a number of drivers for the installation of large-scale batteries in Central and Eastern Europe. These include the increasing renewable energy integration, grid stability, energy security & independence goals, EU regulation & support, regulatory & market developments, electricity price volatility, carbon reduction goals & coal plant phase out, electric vehicle growth and grid relief.

See also: Increasing focus on integrated PV development

In addition, flexibility assessments will be mandatory for transmission system operators (TSO) in the EU from 2026. By June 2026, they must assess system flexibility needs, set national targets for non-fossil flexibility, and quantify energy storage needs for inclusion in National Energy and Climate Plans (NECPs). “This is a clear signal to investors and developers, funding will help kickstart emerging storage markets,” emphasized Eliza Stefan, Sales Manager BESS for Central & Eastern Europe, Jinko EES.

Strong financial incentives

In addition to high energy prices, there are strong financial incentives for the use of large-scale battery storage. For example, the approved EU State Aid for Eastern Europe since 2022 in Hungary and Poland adds up to 1.2 trillion euros each; in Bulgaria to 0.75 bn euros, in Romania to 0.375 bn €, in Slovenia to 0.2 billion euros and in Lithuania to 0.2 billion euros.

See also: Central and Eastern Europe increasingly in the solar gigawatt class

Among other things, Romania is introducing capacity auctions for large-scale battery storage from 2026 and is already relying on contracts for difference (CfD). Poland is also relying on capacity market auctions, but also on tax incentives, to promote large-scale battery storage. Up to 45% of project costs of utility-scale storage are covered by grants in Hungary, in addition to a CfD scheme and modern grid connection rules. Lithuania is also promoting modern grid connection rules and large-scale BESS support. The expansion of large-scale battery storage in war-torn Ukraine is being heavily financed by international financial donors, and import duty exemptions are also in place.

Strong growth – but still also limitations

Overall, the large-scale battery storage market in six key countries in Central Europe is expected to grow by a factor of five by 2030. Poland is in the lead with an increase in installed large-scale battery storage capacity from around 350 MWh to 4,000 MWh, followed by Romania with an increase to around 3,750 MWh and Lithuania with around 3,500 MWh in 2030. The Hungarian large-scale battery storage market is estimated to be around 3,300 MWh by then, the Bulgarian market around 3,000 MWh and the Ukrainian market around 2,750 MWh.

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However, regulatory and market barriers, grid infrastructure limitations and limited financial incentives are still hurdles, as Eliza Stefan pointed out. In Romania, for example, there are no clear connection rules for utility-scale BEES projects and delays in processing grants hinder rapid development. In Bulgaria, there are also no clear regulatory for C&I BESS storage and the future plans for frequency regulation are underdeveloped. (hcn)





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New optimization techniques have emerged as powerful tools to address these challenges. By considering not only factors like electricity prices, demand forecasts, but also real time battery data and battery degradation, operators can make smarter decisions about when to charge, discharge, or idle their systems. These strategies not only boost immediate profitability but also preserve the long-term health of energy storage assets, ensuring increased long term profitability.

Market dynamics and energy storage optimization

Understanding market behavior is crucial for optimizing energy storage systems. Electricity prices fluctuate due to various factors like grid demand, renewable energy availability, and regulatory policies. Energy storage operators can take advantage of these price fluctuations by charging batteries when prices are low and discharging when prices are high. Other key revenue streams, like grid support and frequency regulation, also play a vital role. Grid support services, such as voltage regulation and load balancing, help stabilize the grid during periods of high demand or unexpected outages, ensuring operational efficiency. Frequency regulation, which maintains the grid’s correct operational frequency (typically 50 or 60 Hz), relies on energy storage to quickly respond to imbalances by either absorbing or releasing power.

Also see: Battery revenues forecast to rebound in 2026

Leveraging predictive algorithms enables energy storage systems to adjust their operations based on forecasted market trends, weather data, and regulatory signals. By doing so, operators can position their systems to enhance financial performance.

Battery degradation and lifecycle management

Battery degradation is one of the most significant challenges in energy storage operations, and its complexities go beyond the simple metrics of usage. The performance and longevity of a battery are influenced by a variety of interconnected factors, including depth of discharge, frequency of use, and temperature variations. For example, while deep discharge cycles can shorten battery life, it’s not just about how deep the discharge is, but also how frequently these deep cycles occur, the charging rates applied afterward, and the operational conditions under which the battery is used.

Frequent cycling causes wear and tear, but the specific effects of each cycle vary depending on the battery’s state of charge, thermal environment, and electrochemical properties. These factors create a highly intricate system where understanding how individual cycles impact battery lifetime—and long-term profitability—is an ongoing challenge. Battery health degradation is non-linear and difficult to predict without advanced monitoring systems and predictive analytics.

Read more about storage here

To extend battery life and maintain capacity, it is crucial to manage these factors with precision. Limiting deep discharges, optimizing charge cycles, and controlling operational temperatures are foundational practices, but the integration of real-time data analysis to predict degradation patterns is equally important. Proactive management through sophisticated lifecycle monitoring and adaptive control strategies not only reduces maintenance costs but also enhances the return on investment. A strategy that balances immediate operational efficiency with long-term battery health maximizes profitability and ensures the reliability of energy storage systems over time.

Operational constraints in battery systems

Optimizing energy storage is not just about market dynamics or degradation management. Operational constraints play a vital role in ensuring the system runs efficiently within its physical and technical limits. For instance, maintaining an optimal state of charge prevents both overcharging and deep depletion, which can damage the battery.

Also interesting: New guideline for increased fire protection in battery storage systems

Adhering to limits on charge and discharge rates is equally important. Exceeding these rates can lead to irreversible damage, reducing battery lifespan and effectiveness. Moreover, compliance with grid requirements, including power quality and frequency support, ensures seamless integration of energy storage into the grid. These operational parameters, when integrated into the optimization process, safeguard battery health and ensure sustained profitability over time.

Incorporating cost functions

Optimization is the process of making the best possible decisions to achieve specific goals while minimizing costs or maximizing efficiency. In the context of battery operation, optimization ensures that the battery system performs at its highest potential by making strategic decisions, like when to charge or discharge. A key tool in this process is the cost function, which assigns values to different operational scenarios based on factors like electricity prices, battery degradation, and market demand. By evaluating these factors, a well-designed cost function helps operators make data-driven decisions that improve real-time profitability and overall system efficiency.

See also: Maximizing energy storage efficiency

An innovative aspect of this approach lies in the ability of cost functions to integrate both short-term market dynamics and long-term operational goals. For example, an innovative cost function not only suggests charging during periods of low electricity prices and discharging during peak times but also incorporates insights into battery health and how much the operation will affect the long term profits. This allows operators to plan for operation at optimal times, extending the battery’s lifespan while maintaining revenues. By combining real-time market analysis with battery health, this advanced cost function ensures both immediate financial gains and prolonged system reliability.

Decision-making processes and optimization algorithms

The decision-making processes for managing Battery Energy Storage Systems (BESS) have been transformed by the introduction of sophisticated optimization algorithms. Unlike traditional approaches, where operators rely on static models or manual oversight, today’s data-driven systems enable dynamic, real-time decision-making that adapts to various factors such as market conditions, battery health, and grid demands. This shift marks a significant improvement over conventional methods, which often fail to capture the complexity of efficiently and sustainably operating modern energy storage systems.

Also interesting: Central & Eastern Europe – Utility-scale storage market set to increase fivefold by 2030

This new approach is revolutionary in several ways. It replaces the outdated, one-size-fits-all model of battery operation with one that is adaptive and intelligent. The algorithms take into account a variety of conditions, enabling operators to fine-tune system performance based on real-time data rather than relying on fixed schedules or reactive measures.
Moreover, these decision-making tools contribute significantly to sustainability.

By optimizing when and how batteries are used, operators can minimize wear and tear, reducing the need for frequent replacements and lowering lifecycle costs. This not only decreases material waste but also ensures that energy storage systems can operate longer before requiring upgrades or replacements. Additionally, by improving the efficiency of energy storage, these algorithms support the broader adoption of renewable energy sources like solar, accelerating the transition to a cleaner, more sustainable energy future.

Conclusion

The optimization of Battery Energy Storage Systems (BESS) through advanced algorithms has transformed energy management. Moving beyond traditional, reactive methods, these data-driven approaches enable real-time decision-making that boosts both efficiency and long-term profitability. By optimizing battery use, minimizing degradation, and extending system life, operators can increase revenues while ensuring sustainability and reducing waste.

Website of Reli Energy

This innovative approach balances short-term market gains with the widespread integration of renewable energy, positioning optimized BESS management as a key driver in the shift toward a more sustainable and profitable energy future.(Laura Laringe/hcn)





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There are a number of drivers for the installation of large-scale batteries in Central and Eastern Europe. These include the increasing renewable energy integration, grid stability, energy security & independence goals, EU regulation & support, regulatory & market developments, electricity price volatility, carbon reduction goals & coal plant phase out, electric vehicle growth and grid relief.

See also: Increasing focus on integrated PV development

In addition, flexibility assessments will be mandatory for transmission system operators (TSO) in the EU from 2026. By June 2026, they must assess system flexibility needs, set national targets for non-fossil flexibility, and quantify energy storage needs for inclusion in National Energy and Climate Plans (NECPs). “This is a clear signal to investors and developers, funding will help kickstart emerging storage markets,” emphasized Eliza Stefan, Sales Manager BESS for Central & Eastern Europe, Jinko EES.

Strong financial incentives

In addition to high energy prices, there are strong financial incentives for the use of large-scale battery storage. For example, the approved EU State Aid for Eastern Europe since 2022 in Hungary and Poland adds up to 1.2 trillion euros each; in Bulgaria to 0.75 bn euros, in Romania to 0.375 bn €, in Slovenia to 0.2 billion euros and in Lithuania to 0.2 billion euros.

See also: Central and Eastern Europe increasingly in the solar gigawatt class

Among other things, Romania is introducing capacity auctions for large-scale battery storage from 2026 and is already relying on contracts for difference (CfD). Poland is also relying on capacity market auctions, but also on tax incentives, to promote large-scale battery storage. Up to 45% of project costs of utility-scale storage are covered by grants in Hungary, in addition to a CfD scheme and modern grid connection rules. Lithuania is also promoting modern grid connection rules and large-scale BESS support. The expansion of large-scale battery storage in war-torn Ukraine is being heavily financed by international financial donors, and import duty exemptions are also in place.

Strong growth – but still also limitations

Overall, the large-scale battery storage market in six key countries in Central Europe is expected to grow by a factor of five by 2030. Poland is in the lead with an increase in installed large-scale battery storage capacity from around 350 MWh to 4,000 MWh, followed by Romania with an increase to around 3,750 MWh and Lithuania with around 3,500 MWh in 2030. The Hungarian large-scale battery storage market is estimated to be around 3,300 MWh by then, the Bulgarian market around 3,000 MWh and the Ukrainian market around 2,750 MWh.

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However, regulatory and market barriers, grid infrastructure limitations and limited financial incentives are still hurdles, as Eliza Stefan pointed out. In Romania, for example, there are no clear connection rules for utility-scale BEES projects and delays in processing grants hinder rapid development. In Bulgaria, there are also no clear regulatory for C&I BESS storage and the future plans for frequency regulation are underdeveloped. (hcn)





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This is the first time that the battery storage manufacturer Cmblu Energy has delivered an organic large-scale storage system of this size to an energy utility in the USA.

The company, along with Arizona-based Salt River Project (SRP), announced the successful launch of the joint pilot project “Desert Blume,” which will integrate a 5-megawatt, 50-megawatt-hour capacity organic solid-flow battery into an existing and expanding solar farm near the major U.S. city of Phoenix by the end of 2025.

SRP’s Copper Crossing Energy and Research Center is already home to a 20-megawatt solar farm, which will be joined by another 55 megawatts of photovoltaics, a 99-megawatt natural gas-fired power plant and several heat-resistant long-term battery storage systems without lithium-ion technology by 2026.

“Desert Blume” aims to prove performance and efficiency of SolidFlow battery

The project will serve as a pilot to demonstrate the performance and efficiency benefits that the non-flammable, solid as well as liquid electrolyte-based Organic SolidFlow batteries can deliver in the challenging environment of the Arizona desert. At the same time, they provide over 1,000 homes with a maximum of ten hours of excess clean energy from Arizona’s solar farms. Cmblu Energy expects its recyclable battery system, based on environmentally friendly materials, to be able to store and re-inject energy two to three times longer per cycle than conventional lithium-ion technology, which is typically designed to store energy for one to four hours.

“Desert Blume” is expected to make a correspondingly clear case for the cost-effectiveness of the innovative and sustainable technology once it starts operating. Storage operation will be monitored by the renowned Electric Power Research Institute (EPRI), which will validate the battery’s performance data under the hot and dry environmental conditions in Arizona. As recently as July 2023, Arizona had experienced several heat records.

SRP and Cmblu Energy are optimistic about their future collaboration

“We are excited about the privilege of working with Cmblu and gaining experience with this highly innovative technology,” said Jim Pratt, CEO of SRP. “The SolidFlow battery will be a useful addition to SRP’s energy system, helping to provide stored power for longer periods of time, especially during periods of high and fluctuating energy demand from customers in the Valley of the Sun. It will be a helpful addition to SRP’s many renewable systems and storage projects, which typically can only store energy for up to four hours.”

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“Desert Blume is an important project to validate large-scale Organic SolidFlow batteries and promote safe, sustainable, long-term energy storage in the United States,” explained Ben Kaun, president of Cmblu Energy’s U.S. subsidiary. “We are very excited to partner with SRP to help the utility rapidly transition to clean energy and to have the opportunity to demonstrate our technology in the southwestern United States. Phoenix is one of the fastest growing metropolitan areas in the country with large solar potential, making it an ideal environment for next-generation long-term storage.”

U.S. market with huge potential for Cmblu Energy – exhibtion in September

SRP had decided to collaborate with Cmblu Energy after an RFP for long-term storage from emerging energy storage companies. Production of battery storage for the Desert Flower project is scheduled to start in early 2025. Following the announcement of a pilot battery storage project in cooperation with Milwaukee-based WEC Energy, the cooperation with SRP is now the second major entrepreneurial milestone for Cmblu Energy in the US. The U.S. market is particularly attractive for storage companies in view of the high energy demand, rather unstable power grids and government subsidy programs, and the demand for scalable storage without conflict raw materials is particularly high here.

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At the industry’s leading trade fair RE+, which will take place in Las Vegas from September 11 to 14, Cmblu Energy will present the “Desert Blume” project in detail to experts and many thousands of visitors. (hcn)





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The new guideline sets a clear standard for how battery storage systems should be installed to minimize the risk of fires and other incidents. The guideline is specifically designed to provide practical guidance for the installation of batteries in both commercial and residential buildings, as well as in free-standing outdoor structures. It also covers the latest fire protection requirements for large-scale batteries in containers, increasingly common in large solar and wind farms.

“Energy storage systems are an indispensable technology in our transition to a fully renewable electricity system with very cheap, weather-dependent electricity, but we cannot ignore the potential risks,” said Anna Werner, CEO of the Swedish Solar Energy Federation. “This guideline is a step forward to ensure that the rapidly growing energy storage sector remains safe, reliable and sustainable.”

Main content of the guideline

– Categorization of battery systems based on size and location, with clear information on the requirements for installations in houses, commercial buildings and large-scale battery systems.

– Enhanced fire protection requirements are presented, in addition to general ones, including recommendations for fire compartmentation, separation distances and ventilation.

– Recommendations for risk assessment, with particular focus on large-scale battery installations where risk analysis should be carried out.

– Recommendations for signage for all types of installations. For larger installations, there are also recommendations on response cards for the local emergency services.

The new guideline is a support for installers and property owners and provides clear information on fire protection around the battery itself. The guideline also contains appendices with guidance for fire protection in batteries in other national and international regulations and guidelines, including from the Swedish National Board of Housing, Building and Planning and local emergency services.

Statistics on batteries

The number of people who were granted tax deductions for the installation of home batteries increased from 2,000 in 2021 to 43,000 in 2023. The increase looks set to continue to new levels and the installed capacity of home batteries is estimated to increase from just over 200 MW to almost 400 MW in 2024.

See also: Proactive safety measures protect value of PV investments

Statistics are not available for larger batteries, but both commercial batteries in buildings and industry and large-scale battery parks are expected to increase from around 100 MW each at the end of 2023 to well over 1 000 MW in total in 2024.

See also: Report calls for better safety standards for storage systems

The amount of batteries pre-qualified to supply ancillary services to Svenska kraftnät increased in 2023 from 40 MW to 80 MW. At the beginning of October 2024, more than 530 MW was pre-qualified and at the same time a large number of projects are waiting to undergo pre-qualification. (hcn)





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Business owners across Europe are increasingly turning to electricity to meet carbon reduction targets, yet they often face an unexpected setback when it comes to enlarging the capacity of their building’s connection with the grid.

The demands of electrification, combined with ageing power networks, mean that many distribution system operators are unable to provide their customers with larger grid connections, particularly for commercial, industrial, and residential apartment buildings. In some parts of Europe, notably Germany, Italy, the Netherlands, Poland, Denmark, the United Kingdom and Ireland, grid accessibility constraints are already proving a significant barrier to electrification, with only Finland having a truly open and accessible electricity grid*.

Implementing Building as a Grid approach

A new project in the Netherlands, however, shows how one entrepreneur has turned the lack of an adequate grid connection to his advantage. The owner of The Florian Hotel in Amsterdam, has teamed up with the international power management company, Eaton, to ensure his business has a reliable supply of low-cost, low-carbon, electricity. By implementing Eaton’s Buildings as a Grid approach to the energy transition, he has overcome the setback of an inadequate grid connection to transform a former office building near Schiphol Airport into a vibrant hotel that makes the most of renewable energy.

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Using a 30 kWp rooftop solar photo-voltaic array and an Eaton xStorage battery energy storage system (40 kW power and 50 kWh capacity), Eaton designed an energy strategy for The Florian that mixes its solar power with electricity available within its grid connection. A system of ‘peak shaving’ ensures that electricity from the batteries is used when demand for power in the hotel is at its highest, keeping overall energy consumption at these times well within the limits pre-agreed with the distribution system operator and saving money, too.

The Building as a Grid approach is scalable, so an expandable network of EV chargers has been installed in the hotel’s parking garage and integrated into the energy management system via Eaton’s proprietary Buildings Energy Management Software (BEMS). Powerful algorithms within the software direct available power to where it is most needed for EV charging and other electrical requirements in the hotel while at the same time keeping the xStorage battery charged to substitute power from the grid when necessary.

Reduce energy costs and save the climate

The BEMS software analyses the hotel’s current and past energy use trends and even monitors weather forecasts to ensure that the low-cost, low-carbon energy from the solar panels is used to maximum effect to reduce both energy bills and the hotel’s carbon footprint.

The hotel owner, who prefers to be known simply by his first name – Tony – is delighted with the outcome: “Our Buildings as a Grid approach at The Florian is achieving outstanding results. In 2022, despite soaring energy prices, we kept control of our energy costs, and reduced carbon emissions by more than 15 tons compared with the average for a building of similar size. Crucially, we stayed within the limits of our grid connection because had we not been able to do that, we may have had to close.”

Fabrice Roudet, general manager of Eaton’s energy transition division in Europe, said: “The carbon saving will help The Florian to reach its corporate sustainability goal of reducing its carbon footprint towards net zero, and we can help similar businesses to do the same.” (hcn)





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Big batteries, real big batteries: How is this market developing?

Michael Hierholzer: The market is developing great, I must say. We really see a strong growth trajectory, double-digit growth for the next years to come with even energy storage capacity reaching 350 gigawatt-hours in terms annual installed capacity in 2030. So quite promising.

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And what are the technological trends? Where does the journey goes to?

For this decade, I would say we really see lithium-ion storage as dominating storage technology for these areas. We see a clear shift, though, from NMC technology or chemistry towards LFP technology.

What’s the reason for that?

Predominantly pricing factors. So LFP is slightly cheaper than NMC, but then also further advancements now with LFP technology and an added safety feature.

Watch the full interview on YouTube

What storage systems does Rolls-Royce offer in this business?

We really offer a wide variety. As you see, we brought it all today. We have started with the smallest models because they’re too big to get into the hole. This, realistically, is a 10-ft container. Reaching up to 625 kilowatt-hours in capacity it is small, really compact, and can be relocated.

Do you offer larger systems, too?

On the other side we have our slightly larger unit, the Energy Pack QL, a 40-ft shipping container, walk-in possibility, really for harsh environments so that the technicians can go inside. A really large scale utility solution is our MTU Energy Pack QG, which we can really scale up to the gigawatt-hours.

More about new solar storage solutions

Is it a larger commercial and utility system?

It’s both. You can expand That’s the advantage that we bring as a company. We have for industrial customers, smaller or mid-size products, and then, of course, for the utilities, a large scale product or solution, That scales up to whatever the customer requires.

In which segments of the market the demand is highest? Is it grid connected, utility scale or more commercial applications?

It is both, and that’s why we play in both. On the industrial side, we really see a lot of customers seeking energy independence, trying to lower their cost of electricity, lower emissions. On the utility scale the utilities continue to integrate renewables for which you need the battery. The battery is needed to balance that, as well as to offer grid services, for instance frequency regulation, frequency response, and such.

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That’s all included in one system, correct? So one system fits all and it’s expandable according to the wishes of your customers?

Correct. It’s really a turnkey, customizable solution. We talk with the utility, what are the requirements technologically, but also on-site, what needs to be integrated, what capacity do I need, and then we really do everything from end-to-end.

What are the main markets for you at the moment?

Main markets at the moment is the EMEA region, that means Europe, Middle East, Africa. We also have some exposure towards Asia. At the moment, we’re not too focused on China due to price competition.

They make that business themselves, right? It is a closed shop.

We also lay strong focus for the next month on the US market. It is the largest microgrid and also battery energy storage market globally.

Rolls-Royce is a famous brand. Everybody expects high value and reliability. What do you offer, especially for your customers, which is unique Rolls-Royce?

Our strength is really that we are one-stop shop to our customers, a solution provider. We are there for the customer right from the get-go, doing the consulting, doing the simulation of a project, and then really delivering that turnkey to the customer. Then after that is done, we’re not leaving the customer alone, but we are there with a holistic service approach and concept for many years to come. It’s 20, 30 or 40 years. That’s our ambition.

Interview by Heiko Schwarzburger

To get more information about MTU storage solutions of Rolls-Royce, please refer to the website.





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