European utilities have began investing in the region’s relatively new energy storage market over the past two years according to the latest report from Wood Mackenzie Power & Renewables.
The key message from the report is that, while there is a building shift towards investing in and developing energy storage across Europe, it has nevertheless been a slow build.
The report finds that each EU Member State is at various stages in its development of energy policies, making it complicated for players to participate in multiple markets due to the varying nature of restrictions and freedom.
Currently, the United Kingdom and Germany lead the way for utility-scale policy and storage development. They are also leading with regards to the commercial & industrial energy storage segment.
Given the UK and Europe are at a critical stage in the Brexit process, it’s important to remember the key role energy storage has to play in these power markets.
For Europe’s residential energy storage market, Germany remains well ahead of its regional neighbors, “and one of the most mature globally.
Wood Mackenzie models an impressive 54% reduction in the levelised cost of residential solar-plus-storage in Germany since 2013, but it is still some way above electricity costs of €0.30 in the country. It’s essential these two points meet before the economics begin to look attractive.
However, the economics are not the deciding factor for the early adopters who are willing to accept the high-cost premium for a piece of technology which can simultaneously de-risk future bill increases and include them in the energy transition.