As Europe moves towards a greener and more sustainable energy future, the role of large-scale stationary energy storage has become increasingly prominent.  

While the energy transition in Europe has made significant strides, primarily driven by solar and wind energy, their intermittent nature poses a major challenge, as energy production is dependent on weather conditions and time of day. This inconsistency creates a pressing need for cost-effective, reliable, and sustainable energy storage solutions that can bridge the gap between supply and demand. 

Targeted solutions include geothermal storage, flow batteries, gravitational & pumped hydro, and hydrogen, as well as software & AI systems for energy management, grid stabilization, and demand response. 

By addressing these obstacles head-on, Europe can unlock the full potential of energy storage and speed up its transition towards a greener, more resilient energy system. 

Sustainability and Sovereignty Impact Potential for Europe  

Enhancing Europe's Sustainability and Sovereignty through Innovative Stationary Energy Storage Solutions is paramount for various reasons: 

• Ensuring consistent power availability despite the intermittent nature of solar and wind energy sources, thus fostering European sovereignty by reducing reliance on fuel or power imports. 
• Decreasing dependence on imported battery technologies like Lithium-Ion and their associated critical raw materials. 
• Aligning with key European energy directives and initiatives, such as REPowerEU and the Renewable Energy Directive, as well as adhering to Commission principles outlined in the Clean Energy for all European package and the Commission Recommendation on Energy Storage. 
• Establishing European leadership in alternative stationary storage technologies, a domain where Lithium-Ion batteries may not provide a competitive advantage. 
• Reduce reliance on critical raw material imports, such as Lithium, by exploring alternative sources through geothermal extraction. 
• Cultivating a thriving industry and generating numerous job opportunities. 

The potential for deep tech and digital innovation is vast 

There is a wide spectrum of solutions that must be optimized for both short-term and long-term (up to seasonal) energy storage, in three categories:  

• Large-Scale Storage Systems (LSS) 
• Industrial Storage Systems (ISS) 
• Home Storage Systems (HSS) 

While lithium-ion batteries are currently prevalent, they come with their own set of limitations, including dependency on non-European entities and materials, and sustainability concerns. Lead-acid batteries, though low-cost, face health risks.  

This underscores the urgency for technologies that can efficiently store energy over both short and long durations, ensuring sustainability, safety, and independence from external imports, while also being economically viable and socially acceptable.  

To achieve these objectives, advancements are required across various domains, encompassing geothermal energy storage, (Redox) Flow and Sodium batteries, pumped hydro storage, gravitational energy storage, flywheel systems, compressed air or liquid storage, heat and ice storage, building thermal energy storage, hydrogen or ammonium storage, as well as hybrid storage solutions.  

Additionally, development in cloud-based, AI-based energy management platforms and demand-response energy management solutions, incorporating AI, are integral parts of this innovative landscape.  

 For insights into the market for innovative energy storage technology, the 2020 report on the "Energy Storage Grand Challenge: Energy Storage Market Report" by the U.S. Department of Energy serves as a valuable resource. 

What’s ahead of Europe’s Energy industry 

According to the IEA, global storage capacity is expected to increase by 56% from 2021 to 2026, reaching 270 GW, with utility-scale battery solutions projected to grow 44-fold by 2030, reaching 680 GW.  

For Europe, multiple studies point to energy storage capacity of 200 GW by 2030 and 600 GW by 2050. 

Europe is anticipated to contribute significantly, with studies forecasting energy storage capacity of 200 GW by 2030 and 600 GW by 2050.  

Market size estimates for the Stationary Energy Storage Market vary, but indicate robust growth, with projections ranging from 335 B US to 870 B US by 2032.  

The global market for Battery Storage Systems was about 10GWh in 2017 and was forecasted to grow to 180-420 GWh by 2030. 

Do you want to be part of Europe’s energy transformation? 

D2XCEL invites deep tech and digital ventures across Europe, operating in the field of large-scale energy storage to check the eligibility requirements and join our scaling programme! 

Apply here and join one of our live webinars for interested companies or network stakeholders, where you can learn more about the programme and the benefits of participating! 

This project has received funding from the European Union under grant agreement Nº101121100. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and SMEs Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.  

Sources: 

IEA and COMMISSION STAFF WORKING DOCUMENT - Energy Storage - Underpinning a decarbonized and secure EU energy system, March 2023 

EASE, Energy Storage Targets 2030 and 2050 - Ensuring Europe’s Energy Security in a Renewable Energy System, 2022 

Acumen Research and Consulting 

Coherent Market Insights 

IRENA and BNEF