The European Union’s battery storage sector is poised to play a pivotal role in the region’s energy transition, offering vital solutions to balance renewable energy supply and demand, according to an EMBER report. By integrating renewable energy sources like wind and solar with clean flexibility measures, the EU stands to gain significantly. This approach could help reduce dependency on imported fossil fuels, cut energy costs, and fully capitalize on the abundance of locally generated renewable power. 1g243x

€9 Billion gas savings by 2030 6j1e6e

By 2030, the EU could avoid gas costs worth up to €9 billion annually by capturing excess wind and solar power. According to EMBER forecasts, renewable power could exceed domestic demand by 183 TWh across all EU member states. This is equivalent to Poland’s annual electricity consumption. By deploying flexibility solutions, such as battery storage and interconnectors, countries could shift surplus renewable energy to meet demand during non-peak hours, thus displacing costly fossil gas generation.

Source: EMBER

The ability to store and redirect renewable energy offers a significant opportunity for savings. If countries act now to remove barriers and deploy more battery storage, they can transition away from expensive and polluting fossil fuels while ensuring a stable and flexible power supply.

Between August 2023 and July 2024, nine EU countries, including the Netherlands and Greece, experienced solar generation suring 80% of their hourly domestic electricity demand during certain peak periods. In some cases, solar production even exceeded 100% of demand.

could have saved €2.5 million in June 2024 with additional battery storage 5j92w

According to EMBER, in June 2024 alone, could have saved up to €2.5 million in fossil fuel costs if it had an additional 2 GW of battery storage capacity. With this extra capacity, could have shifted 36 GWh of midday solar power to the evening, replacing expensive fossil fuel-based electricity generation. Depending on the fuel type, this could have saved between €1.3 million in hard coal costs and €2.5 million in natural gas costs.

This example underscores the financial benefits of expanding battery storage across the EU. With more flexible storage solutions, countries can avoid using costly and polluting fossil fuels to meet electricity demand, even during periods of high renewable energy generation.

Flexibility is key to a resilient renewable energy system 6i626s

As renewable energy capacity continues to expand rapidly across the EU, the need for flexibility in the power system becomes increasingly urgent. Clean flexibility solutions—such as battery storage, demand-side management, and grid interconnections—are essential to ensure that renewable power can be used efficiently throughout the day. These technologies allow energy to be shifted across time or geographies, ensuring the grid remains balanced even when weather-dependent renewable generation, like wind and solar, either exceeds or falls short of electricity demand.

According to Beatrice Petrovich, Senior Energy and Climate Analyst at Ember, "It just makes sense to capture all the low-cost renewable power we can. As solar continues to soar, batteries will help ensure that abundant power can be used at all hours. While the EU’s renewables scale-up has been rapid and ambitious, the same focus on clean flexibility is still lacking. This needs to be addressed, and quickly, for consumers and businesses to feel the benefits of reducing fossil dependence."

Renewables and flexibility must grow together 3b1n6m

Wind and solar power generation in the EU is expected to meet 49% of total hourly demand by 2030—nearly double their contribution from 2023, when they provided 27% of the electricity mix. Moreover, solar and wind are forecasted to generate more electricity than the EU’s total demand during an estimated 4% of hours in 2030, and will exceed 50% of demand in 35% of hours, up from just 3% of hours in 2023.

As this dynamic accelerates, it is crucial for member states to plan for and implement clean flexibility measures to maximize the benefits of renewables. The EU’s National Energy and Climate Plans (NEs) signal an ambitious intent to triple solar capacity and double wind capacity from 2022 levels by 2030, aiming for a 66% share of renewables in the yearly generation mix. However, this rapid growth will require simultaneous investment in flexible energy infrastructure.

The EU cannot afford to delay clean flexibility deployment p2t5g

The future of the EU’s energy system hinges on its ability to deploy flexible solutions alongside renewables. Without a concerted effort to scale up technologies like battery storage, demand-side flexibility, and improved grid connections, much of the potential of wind and solar power will be wasted. The REPowerEU plan, which sets ambitious renewable energy targets, cannot be fully realized unless the EU also prioritizes flexibility.

A larger solar and wind fleet will mean that renewable power becomes abundant at certain times, but ensuring that this power is used effectively requires swift action. Countries must take advantage of the unique opportunity to pair solar and battery storage, a combination that mutually reinforces each other's business case. As Petrovich emphasized, “Batteries will be crucial in capturing and storing excess solar energy, ensuring that Europe’s clean energy transition is efficient, cost-effective, and sustainable.”

The shift towards a flexible, renewable energy-backed system will ultimately create a more resilient and affordable energy landscape for Europe. By acting now, the EU can secure its energy future, reduce dependence on volatile fossil fuel markets, and meet its climate goals.