Unlocking Grid-Scale Storage and Renewable Energy in Europe
Key Ideas
  • Grid-scale storage development is expected to grow ten-fold by 2033 due to volatile electricity prices and extensive capacity markets, presenting new business opportunities.
  • European renewables sector faces challenges in meeting ambitious targets, with onshore wind and solar PV deployment falling short of capacity targets in NECPs.
  • Despite obstacles, the EU's requirement for renewable fuels of non-biological origin will drive demand for green hydrogen, varying in pace and scale across different European countries.
  • Southern Europe and the Nordics have advantages in green hydrogen production due to low-cost solar, wind, and hydropower, while Northwest Europe faces challenges in competitive bids.
The article discusses the evolving landscape of grid-scale storage and renewable energy in Europe. With electricity prices becoming more volatile and capacity markets expanding, the development of grid-scale storage is projected to grow significantly by 2033. The European Commission is pushing for the deployment of renewables to achieve decarbonization and energy independence, aiming for 42.5% renewable energy generation by 2030. However, challenges exist in meeting the capacity targets for onshore wind and solar PV, with existing policies failing to protect against manufacturing cost fluctuations. Despite facing barriers, the EU's demand for green hydrogen from renewable fuels is expected to increase, though the pace of development will vary across countries. Southern Europe and the Nordics have advantages in green hydrogen production due to their renewable energy resources, while Northwest Europe struggles with competitive bids. Overall, the article paints a positive outlook on the growth of renewable energy and grid-scale storage in Europe, while acknowledging the challenges and opportunities in the sector.
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