The European storage market is expected to reach 3000 megawatt-hours in 2021, according to a new report from the European Association for Storage of Energy (EASE).
The report, produced with energy consultancy Delta-EE, found that new ancillary services have been responsible for the energy storage market doubling compared with 2020 levels of installations across Europe.
Key markets driving growth are Italy, the UK and the Nordics, the report said.
The fifth edition of the European Market Monitor on Energy Storage (EMMES) report revealed the front-of-meter segment, which includes utility-scale batteries, proved more resilient during the pandemic, compared with commercial and industrial and behind-the-meter segments.
Looking ahead, 2021 looks “particularly strong” for the sector with new ancillary services opening across Europe and national targets further supporting regional projects, the report stated.
The EMMES highlights the strong performance of front-of-meter market across Europe in 2020, with new balancing and ancillary services in countries such as Italy, the UK and the Nordic region supporting demand for grid-level storage projects of increasing duration.
The report also highlights that the €1.8trn EU COVID-19 Recovery Plan is expected to deliver “significant public investment” into clean energy technologies, including storage.
The European Parliament has called on the Commission to develop a new comprehensive EU energy storage strategy which could create new market incentives and help accelerate recovery.
Delta-EE energy storage and flexibility head Jon Ferris said: “Last year’s report showed stalled market growth, particularly for the front-of-meter sector, so the fact that it rebounded in the midst of the pandemic is remarkable.
“We are anticipating growth in the sector will accelerate as improved access to markets, particularly for behind-the-meter storage, and the increasing ability for batteries to stack value from multiple markets, add to government support from ‘green recovery’ packages.”
The EMMES report examines the European energy storage market by market segment (front-of-meter, C&I, residential) and country, covering France, Italy, Germany, the UK and other European regional markets.
The report also touches upon European policy updates relevant to the sector.