The regulatory landscape for BESS in Europe is influenced by EU directives aimed at accelerating the shift to cleaner energy sources. Notable policies include the Clean Energy for All Europeans Package and the European Green Deal, which emphasize the uptake of energy storage technologies. However, each country adopts its own set of regulations and at different pace, which can significantly impact the attractiveness of BESS investments. These regulations influence areas such as:
- Market access and participation rules
- Tariffs and fees related to electricity consumption and storage
- Incentives and support mechanisms for renewable energy and storage solutions
- Safety and environmental standards for energy storage technologies
Different revenue models & market maturity
Revenue generation for BESS is derived from various sources, including energy arbitrage, capacity markets, frequency regulation services, and ancillary services. The availability of these revenue streams varies by region based on market structures and regulations. Market maturity reflects the level of development of the energy market, the deployment of technology, and the investment climate for BESS projects. Mature markets tend to offer more robust regulatory support and established business models.
Also see: Large battery storage systems as new champions
In the following BESS business cases in selected countries
Germany
Germany is the most developed market for CCE in continental Europe. It offers a dynamic environment, and we currently have one project in construction and three more in preparation with a total of approximately 50 MW. Our target is to grow our operational portfolio to around 250 MW, complemented with further assets on the medium voltage and high-voltage levels, in the course of 2026. The market is developing rapidly: CAPEX has fallen by around 30% since the beginning of the year, commercialization and financing strategies are maturing and therefore offering investors an ecosystem that supports growth.
Irrespective of our individual developments at CCE, we can see increasing capacities in Germany.The major bottleneck is and remains the availability of grid connections; local grid operators are becoming increasingly defensive regarding the operational mode of storage facilities. These limitations will impact the business case of future projects and potentially call into question the investment itself. Action on regulatory level is crucial to provide guidance to the many decentralized local grid operators in what ways BESS contributes positively to the grid efficiency. Further clarifications on the (in)famous BKZ (Baukostenzuschuss) and procedures for grid connection acceptance need to be implemented to provide the necessary certainty for BESS investors.
Italy
Italy’s energy regulations adequately support the integration of renewable sources and energy storage. The country has been implementing policy measures to enhance energy efficiency and promote decarbonization through the national energy strategy. The capacity market introduced by the Italian government and future programs such as MACSE provide opportunities for flexible power generation technologies, including BESS. The market is expanding, but the potential for revenue generation is somewhat limited compared to Germany due to the less developed ancillary services market. Italy's BESS market is in a transitional phase, with recent regulatory changes attracting increased investment and installation, particularly in the commercial and industrial sectors.
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In Italy, we find a very competitive market and yet, a clear business case for BESS still needs to be defined.Following the recent tenders for the capacity market, in which three BESS projects were also awarded a contract, it will be important to continue adapting the business models. This will likely involve a combination of merchant, capacity market and MACSE models, which will need to find a balance in line with investors' return expectations. CCE is developing a portfolio of over 1.3 GW of BESS projects across Italy. As in Germany, the grid connection is the main limiting factor here. Thanks to years of experience in the country and many secured sites in the PV sector, we can also convert these existing sites into BESS sites or add BESS to the PV sites.
France
In France, we are at a relatively early stage and busy developing the business case; CCE France's project pipeline currently comprises three projects. Due to the high base load capacity in the country, there is somewhat less volatility here, but green energy projects will continue to be added, which impacts grid stability.France's regulatory framework encourages the use of storage through various programs. The Multiannual Energy Program (PPE) outlines the government's objectives for renewable energy and storage integration.
France has also set targets for energy storage capacity by 2028, fostering investments in BESS. While the revenue potential has been positively impacted by recent policies, the overall market for energy storage remains less developed and mature if compared to other EU countries. It is developing however, particularly in large-scale BESS.
The Netherlands
The Netherlands have implemented a progressive regulatory regime supporting energy storage systems. The country fosters investments through subsidy programs for innovative storage technologies and adjustments to grid fees concerning storage facilities. Revenue generation in a market with high volatility and limited liquidity shows high promises, particularly as more renewable energy sources come online. The Netherlands boast a mature market, characterized by many projects in the commercial sector. The integration of battery storage into existing energy infrastructures is highly favorable.
In the Netherlands, we are in the process of realising the first medium-voltage storage system, which will be installed in addition to an existing PV system. With 80 GW of connection enquiries at grid operator TenneT, for large-scale storage systems, there are considerable delays in grid commitments and the market seems pretty much fully booked. We also expect further regulatory developments in connection with grid fees and currently focus our strategic approach of utilising existing grid connection capacity of PV systems for the expansion of our BESS capacity.
Austria
In Austria, we expect improved regulatory frameworks for storage facilities to arrive with the establishment of the new government. This should provide more certainty for the business case, including streamlined grid fees. Albeit this time lag, the trend for BESS should be similar to that in Germany and we are currently securing promising sites for these projects.In general, Austria has actively supported renewable energy through subsidies and feed-in tariffs in the past and today the role of BESS is increasingly recognized. So, Austria's BESS market is developing, today however, the number of installations in stand-alone systems is relatively limited.
Romania
In Romania, the market is developing rapidly and is increasingly catching up, although the installed BESS capacities to date are manageable.What is interesting in this country market is that financing banks recommend the addition of a storage system for PV projects (to provide grid-supporting services and thus reduce project costs) and thus grant better conditions, although the profitability of the overall project may be lesser than a stand-alone PV system.An increase in stand-alone projects can be observed and I expect a considerable capacity increase in the next few years, also in view of the fact that the authorisation phases in Romania are shorter than in other EU countries.
See also: Central & Eastern Europe: Utility-scale storage market set to increase fivefold by 2030
Romania is gradually adopting policies that support renewable energy and storage systems. The government has implemented feed-in tariffs and other incentives to stimulate growth, although the regulatory framework remains less established compared to Western European countries. The revenue generation potential is limited compared to other countries discussed, but there are opportunities as market dynamics change. The recent launch of a EUR 150m modernization fund for BESS is further supporting that trend.
CCE
Status Quo and Perspectives
The strategic value of a grid connection is very high in every country and presents the real bottleneck of the energy transition. This certainly applies to all countries.
European coordination would be desirable, particularly at grid operator level. The respective challenges and regulatory initiatives could be mirrored in an exchange of experiences. Defining why flexibility stands in the centre of making grids more resilient and how storage systems can contribute to grid neutrality and efficiency. Even if these are oftentimes local circumstances, there must be broader acceptance of why storage systems are so important for the expansion of our energy system.
See also: Optimizing energy storage - cost functions and strategies for long-term gains
Another general challenge is the transition of BESS stand-alone projects into so-called co- location between BESS and PV or wind. In addition to regulatory issues, this combination of technologies is highly complex in terms of structure and commercialization. Business cases need to be looked at individually and depending on the local parameters discussed in this article, a stand-alone project can oftentimes be more attractive than a co-located project.
In conclusion, the comparative analysis reveals varying levels of regulatory support, revenue potential, and market maturity. Germany and The Netherlands stand out as leading examples, Italy and France demonstrate growing interest and opportunity, while Austria and Romania are still developing their infrastructures and regulatory schemes. (Philipp Kraemer/hcn)
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