Energy Storage Summit EU 2025: Key Insights on Co-location, Emission Reduction, and Emerging Markets

Energy Storage Summit EU 2025: Co-location, Avoided Emissions, and Europe’s Hottest Markets

Our coverage of the Energy Storage Summit EU 2025, Europe’s largest industry conference, continues to unfold. The tenth annual edition of the summit has proven to be its most significant yet, and conveying the extensive insights, opinions, and analyses shared over the two days is no small task.

Nevertheless, here are some key highlights to keep you informed, with more detailed coverage coming soon on Energy-Storage.news and ESN Premium.

Key Themes

Several recurring themes emerged throughout the summit:

• Battery Energy Storage System (BESS) performance and availability, including uptime, remain top concerns for operators.
• Noise considerations are increasingly influencing site selection and permitting for battery storage.
• Co-location with renewable energy sources is an area that remains largely untapped in Europe.
• The UK’s long-duration energy storage (LDES) Cap and Floor scheme is expected to attract significant interest from developers, technology providers, and industry observers.
• While BESS component supply chains, including battery cells, have become less constrained, issues related to grid connection availability, transformers, and workforce shortages continue to create bottlenecks.

Europe’s Hottest Markets

A lively discussion took place among panelists from Wärtsilä ES&O, Trina Storage, Fluence, developer Merus Power, and infrastructure investor JLL during the session titled “The Big Debate: Where are the Hottest European Storage Markets?” This session was moderated by Anna Darmani, principal analyst for energy storage at Wood Mackenzie.

Currently, the UK and Germany seem to be leading the pack, with Italy and Poland also receiving considerable attention. The Nordic ancillary services markets, along with emerging opportunities in Spain, were also discussed. In an interview following the session, Darmani emphasized the importance of the right regulations and legislation to facilitate battery access to the grid and participation in the market. She noted that the market fundamentals significantly differentiate the UK and Germany: the UK operates as an island with limited interconnection capacity to Europe, while Germany benefits from deep liquidity through its interconnections with nine neighboring countries.

Trade War Impacts

Cristiana Dochioiu, an investment manager at Railpen, one of the UK’s largest pension managers, stated that rising tensions between competing trading blocs have not yet directly affected pricing in the BESS industry. During a panel discussion on Day 2, she compared this situation to the solar industry, which has been impacted by trade disputes between the US and China. Dochioiu observed that while there might be potential effects on solar pricing due to tariffs, the BESS supply chain remains largely unaffected.

Carbon Benefit of Battery Storage

The summit also marked the launch of the UK BESS Carbon Emissions Calculator, an open-source tool designed to calculate the emissions associated with battery storage. Developed by Pulse Clean Energy in collaboration with energy transition consultancy LCP Delta and the UK’s National Wealth Fund, this tool utilizes real-time data from the UK electricity market operator Elexon to calculate emissions at half-hour intervals.

Aazzum Yassir, Pulse Clean Energy’s director of technology and operations, explained that the project originated from the need to conduct a complete lifecycle analysis of the company’s batteries. The team sought to understand the carbon footprint of procuring, building, and operating these batteries and to determine how they avoid emissions once in use.

Long-Duration Storage Needs

James Mills from Adaptogen Capital stated during a panel discussion that lithium-ion battery storage could largely fulfill the long-duration energy storage needs of Great Britain. He emphasized that storage and batteries are pivotal for creating a complex green grid by 2040. While the government focuses on clean power targets for 2030, significant battery storage deployment will be essential to meet legally binding carbon reduction targets by 2050. Mills noted that the rapid evolution of BESS technology and its cost curve are remarkable, and future requirements are likely to demand 10-hour discharge durations or more.

UK Solar Market Dynamics

Scott Berrie, asset development director at GridBeyond, addressed the potential impact of the UK’s Contracts for Difference (CfD) scheme on solar PV, suggesting it may lead to a more pronounced duck curve in daytime electricity pricing. He argued that increased battery installation could help minimize price fluctuations.

Peter Bolton of Korkia noted that negative pricing is already evident in the market, and the CfD structures impose risks on asset owners. Dario Hernandez from NextEnergy Capital remarked that the UK energy sector sees a greater contribution from wind rather than solar, which influences the market’s demand for short-duration BESS assets.

Conclusion

The Energy Storage Summit EU 2025 has showcased essential insights into the current landscape of energy storage in Europe. From regulatory frameworks to market dynamics and technological advancements, the discussions highlighted the critical role of battery storage in achieving energy transition goals. Stay tuned for more updates and detailed analyses in the coming days.