There are a number of drivers for the installation of large-scale batteries in Central and Eastern Europe. These include the increasing renewable energy integration, grid stability, energy security & independence goals, EU regulation & support, regulatory & market developments, electricity price volatility, carbon reduction goals & coal plant phase out, electric vehicle growth and grid relief.
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In addition, flexibility assessments will be mandatory for transmission system operators (TSO) in the EU from 2026. By June 2026, they must assess system flexibility needs, set national targets for non-fossil flexibility, and quantify energy storage needs for inclusion in National Energy and Climate Plans (NECPs). “This is a clear signal to investors and developers, funding will help kickstart emerging storage markets,” emphasized Eliza Stefan, Sales Manager BESS for Central & Eastern Europe, Jinko EES.
Strong financial incentives
In addition to high energy prices, there are strong financial incentives for the use of large-scale battery storage. For example, the approved EU State Aid for Eastern Europe since 2022 in Hungary and Poland adds up to 1.2 trillion euros each; in Bulgaria to 0.75 bn euros, in Romania to 0.375 bn €, in Slovenia to 0.2 billion euros and in Lithuania to 0.2 billion euros.
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Among other things, Romania is introducing capacity auctions for large-scale battery storage from 2026 and is already relying on contracts for difference (CfD). Poland is also relying on capacity market auctions, but also on tax incentives, to promote large-scale battery storage. Up to 45% of project costs of utility-scale storage are covered by grants in Hungary, in addition to a CfD scheme and modern grid connection rules. Lithuania is also promoting modern grid connection rules and large-scale BESS support. The expansion of large-scale battery storage in war-torn Ukraine is being heavily financed by international financial donors, and import duty exemptions are also in place.
Strong growth – but still also limitations
Overall, the large-scale battery storage market in six key countries in Central Europe is expected to grow by a factor of five by 2030. Poland is in the lead with an increase in installed large-scale battery storage capacity from around 350 MWh to 4,000 MWh, followed by Romania with an increase to around 3,750 MWh and Lithuania with around 3,500 MWh in 2030. The Hungarian large-scale battery storage market is estimated to be around 3,300 MWh by then, the Bulgarian market around 3,000 MWh and the Ukrainian market around 2,750 MWh.
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However, regulatory and market barriers, grid infrastructure limitations and limited financial incentives are still hurdles, as Eliza Stefan pointed out. In Romania, for example, there are no clear connection rules for utility-scale BEES projects and delays in processing grants hinder rapid development. In Bulgaria, there are also no clear regulatory for C&I BESS storage and the future plans for frequency regulation are underdeveloped. (hcn)
