FRANKFURT (Reuters) - Britain, Ireland and Italy are the most attractive markets for investors in battery power storage, energy consultancy Aurora said on Wednesday, citing the lucrative revenue models offered by their governments.
Spain, Germany and Greece are also showing promising signs, according to abstracts from Aurora Energy Research's Market Attractiveness Report, which covered 24 European countries.
Aurora says it has enabled 1.5 billion euros ($1.6 billion) in battery investment and presented the report in a webinar.
WHY IT'S IMPORTANT
Forecasting a seven-fold increase in European battery power storage capacity by 2030, Aurora said this translates into an investment opportunity of over 30 billion euros, rising to almost 80 billion euros by 2050.
CONTEXT
* As renewable energy expands across Europe to meet decarbonisation goals, battery usage needs to grow to smooth out the intermittent supply of wind and solar energy.
* A constant voltage level is needed to avoid system crashes.
* Demand will increase with the closure of thermal and nuclear power stations, as well as the switch to electric vehicles and heat pumps.
KEY QUOTES
"This market is literally exploding," said Ryan Alexander, research lead, European power markets, at Aurora, adding Europe was catching up with early movers such as Australia and the United States.
"It is moving from being a niche part in the energy system to actually one of the fundamental elements of it."
THE NUMBERS
Rising from 7.1 gigawatts (GW) of installed grid-scale battery capacity in 2023, Aurora sees capacity increasing to 51 GW by 2030 and 98 GW by 2050.
Italy alone is aiming for 9 GW by 2030.
Leading countries are offering secure revenue streams for the new capacity and wide wholesale price spreads, allowing battery operators to buy low and sell high.
Britain, unlike mainland Europe, lacks strong inter-connectors with neighbours that could help cap prices.
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