CALGARY, Alberta (June 11, 2025) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a market overview of the opportunities and challenges related to developing battery projects in Europe.
The report focuses on identifying the defining policies, regulations and economic factors impacting the success of battery projects in the European Union’s (EU) evolving renewables energy landscape. While capacity is set to rise substantially over the next five years, creating attractive revenue-generating opportunities for investors, the EU must balance growing wind and solar capacity with regulatory hurdles and fragmented grid infrastructure. Additionally, the report contrasts the markedly different approaches taken in the EU — which favors long-term planning over agility — and the more market-driven and adaptable U.S. market.
“Europe’s battery storage market is on the cusp of rapid expansion, driven by surging wind and solar capacity,” said Donald Campbell, EIR analyst. “However, fragmented grid infrastructure and dense regulations pose challenges that investors must navigate carefully to unlock real long-term value.”
“The U.S. market is driven by adaptability and competitive dynamics, whereas the EU’s approach to battery storage prioritizes stability and long-term planning, offering an alternative blueprint,” said Alex Nevokshonoff, EIR senior analyst. “For investors, understanding these structural differences is crucial in assessing risk and opportunity in both regions.”
Key takeaways from the report:
- EIR anticipates the EU’s installed battery capacity will increase up to 13 times by 2028 due to the rise of renewables, the electrification of transport and supportive policies.
- Various regulatory bodies obstruct swift EU battery development, causing projected growth to fall short of what’s needed for grid stabilization. EIR finds that developments in some countries involve 50% more regulatory bodies than similar projects in Texas.
- Revenue generation varies by jurisdiction. Ancillary services are vital for project viability in Germany, while capacity payments are the main revenue source in the U.K. Widening arbitrage spreads are a common theme.
- European power markets exhibit strong revenue potential and solid fundamentals for battery development, but overly stringent regulation may hinder growth and reduce deployments.
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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
