Why BESS

Without sufficient storage capacity, countries will be unable to add renewable energy to their grids at the scale needed.

As Europe works to meet its ambitious climate goals by shifting away from fossil fuels toward renewable sources like wind, solar, and hydro energy, significant investment in modern infrastructure to support more dynamic energy flows is required.
THE BASICS

Understanding Grid Stability and Battery Storage

Why is grid stability so important?
The power grid operates at a frequency that must stay within tightly controlled limits (50Hz in Europe, 60Hz in the US). When electricity supply and demand fall out of balance, the frequency begins to drift from these safe limits. This can cause equipment to malfunction or trip offline, and without rapid correction, these frequency deviations can, in the worst scenario, cascade into widespread blackouts.
How does renewable energy affect grid stability?
Solar and wind power are inherently variable, generating electricity only when the sun shines or wind blows. This intermittency creates rapid fluctuations in power supply that traditional grid infrastructure struggles to handle. As renewable capacity grows, these unpredictable swings in generation make it increasingly difficult to maintain the constant balance between supply and demand that grid stability requires.
How does BESS help to solve this challenge?
Battery storage with smart control units responds instantly to frequency fluctuations. When excess generation pushes frequency too high, BESS charges to absorb the surplus. When demand exceeds supply and frequency drops, BESS discharges immediately to restore balance. This split-second response prevents dangerous deviations and keeps the grid stable.
How is revenue generated through BESS?
By participating in the balancing market and providing ancillary services like frequency regulation, BESS generates consistent revenue as transmission system operators pay for these critical grid stabilization services. This makes battery storage a profitable investment while enabling higher renewable energy integration. With growing renewable capacity and increasing grid complexity, BESS is becoming indispensable for modern energy systems.
DEMANDS

The Battery Storage Opportunity of the Decade

Europe's energy transformation is creating unprecedented demand for battery energy storage systems. With the EU targeting 42.5% renewable energy by 2030, the continent needs between 500GWh and 780GWh of battery storage. Currently at just 61.1 GWh, even optimistic projections show the market reaching only 344GWh by 2030, falling dramatically short of requirements. This supply gap represents one of the most compelling investment opportunities in the clean energy sector.

Investing in BESS means capitalizing on Europe's renewable future. Battery storage is essential infrastructure that ensures grid stability, maximizes renewable integration, and delivers long-term energy security. With demand far outpacing projected supply, early investors stand to benefit from a market experiencing exponential growth and strong regulatory support across the EU.
SOURCES

"If Europe has already entered the solar age, the battery storage age is just beginning."

"The Iberian blackout is a stark reminder that there is no room for complacency in strengthening a robust and flexible energy system for Europe."

Read article
Walburga Hemetsberger
CEO, SolarPower Europe
SOURCES

"A sixfold increase to nearly 120 GWh by 2029, driving total capacity to 400 GWh – this remains far below the levels required to meet flexibility needs in a renewable-driven energy system."

"According to our Mission Solar 2040 study, EU-27 BESS capacity must reach 780 GWh by 2030 to fully support the transition."

Read article
European Market Outlook for Battery Storage 2025-2029
SolarPower Europe
FAQ

Common
questions

What is a battery energy storage solution?

A battery energy storage solution (BESS) consists of one or more batteries connected to an inverter. The inverter converts direct current (DC) into alternating current (AC), which can be used for various purposes.

A small-scale battery storage system may consist of individual battery units stacked together according to the manufacturer’s design. A medium-sized system typically comes as a cabinet that houses both the inverter and battery modules. Large-scale battery storage systems can take the form of either containerized solutions or multiple cabinets containing batteries and inverters.

For large installations, we typically provide a quotation that includes the required distribution panel, and in some cases, a substation – where applicable.

What can a battery energy storage solution be used for?

Backup power – Provides electricity during short-term outages.

Island mode / off-grid operation – Enables longer-term operation during outages or in off-grid setups.

Ancillary services – Supports Svenska Kraftnät (the Swedish national grid operator) by helping to balance the grid.

Peak shaving – Reduces power peaks to lower the required main fuse rating or to prevent tripping the fuse during high loads.

Energy arbitrage – Charges the battery with low-cost electricity during off-peak hours and discharges it during peak hours to reduce costs or sell electricity at a higher price.

Solar energy balancing – Stores excess solar energy during the day and makes it available for use during the evening or nighttime.

Can a battery storage system be used for all applications at the same time?

No, for example, energy arbitrage or ancillary services cannot be performed during a power outage. Our equipment requires an internet connection, and in some cases, the inverters need AC input from the grid (such as power from the building’s main supply). When ancillary services are active, the battery system cannot simultaneously perform other tasks. However, it is possible to schedule different operations, such as peak shaving between 07:00 and 18:00, and ancillary services between 18:00 and 07:00.

What is frequency balancing?

Inertia, frequency, voltage, system constraints, and more — these are just some of the factors that need to be considered when balancing an electricity grid. But don’t worry, you don’t need a PhD in nuclear physics. Balancing the grid is a highly complex task, and here we’ll explain the basics. Svenska kraftnät’s (SVK) role is to reliably ensure that the power grid can match supply and demand every single second — this is what it means to balance the grid.When you think about how electricity demand rises and falls throughout the day, and how it can be affected by weather conditions, it’s easy to see how quickly that demand can change. To manage this, SVK relies on a wide range of tools. Electricity is transported across all regions of Sweden, and key parameters like voltage (volts) and frequency (Hz) must be carefully regulated across the entire national grid. This ensures that the power produced in large reactors and turbines can safely be used by everyday electronics plugged into wall sockets. SVK’s mission is to ensure that all of this happens smoothly and efficiently. To do so, they work with partners to provide ancillary services — critical tools that help keep our grid stable, secure, and as cost-effective as possible.

What does the future look like for electricity prices and grid imbalances?

Considering the ongoing efforts both internationally and nationally, we assess that electricity prices will remain high compared to historical levels. At the same time, we believe that market volatility will gradually decrease, meaning electricity prices will trend downward over a longer time horizon.However, imbalances in the power market are expected to remain high. What does this mean?

We believe these imbalances will persist due to a lack of turbines within major dispatchable energy sources – such as hydropower, nuclear, gas, oil, and combined heat and power (CHP) plants. Solar and wind power, while renewable, do not provide dispatchable energy unless combined with energy storage.In parallel, the green transition is accelerating: society is becoming increasingly electrified while dispatchable energy becomes increasingly scarce. This combination will likely lead to continued imbalances in the power grid.

In summary: We expect revenues from ancillary services to remain strong, while electricity prices gradually stabilize over time.