Energy storage in Europe: Powering up or stalling out?

Since 2020, the UK and EU Battery Energy Storage System (BESS) sector has expanded rapidly, driven by heightened demand for grid stability and energy security following Russia’s invasion of Ukraine. However, momentum has been tempered in recent years by persistent challenges, including fragmented supply chains, uneven policy alignment, and volatile revenue streams. Using proprietary data, inspiratia examines regional market dynamics and traces the downturn and subsequent rebound between Q3 2022 and Q3 2025. Our analysis shows that targeted policy measures and market design reforms, as seen in the UK, can anchor leadership in the sector. Meanwhile, diversification is emerging across continental Europe, with Germany and Italy accelerating deployment and closing the gap.