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Aurora Energy Research has published the fifth edition of its European Battery Markets Attractiveness Report (BATMAR), with Germany, Great Britain and Italy at the top of the chart among 28 countries. Romania and Bulgaria are in the top 10.
Germany is the most attractive European battery market, due to its significant demand for flexibility associated with decarbonization initiatives, fostering robust growth in both the near and long term, Aurora Energy Research found. Great Britain ranks second, supported by its substantial installed capacity and diverse sources of revenue.
Italy is next – its short-term advancement is largely influenced by the MACSE subsidy, the think tank said in its European Battery Markets Attractiveness Report. The scheme also facilitates the development of long-duration energy storage.
Operating power of batteries in Europe increased by over 7 GW in 2025 to just above 17 GW, according to the update. Aurora predicts that by 2030, it will exceed 80 GW.
Four-hour BESS top 50% of investments expected through 2030
Longer-duration batteries are expected to become more popular as capital costs fall, and flexibility needs rise in decarbonizing power markets, the document reads. Already, EUR 24 billion is projected to be invested in four-hour batteries from now until 2030, accounting for more than half of the expected investment.
Market players with more risk aversion may look to buy into existing projects in more mature markets
“Battery markets in Europe are evolving rapidly. But they are still at different stages of market development: while Great Britain, Germany and Italy are maturing and as a result face issues such as grid connection constraints, more nascent markets only have their first projects coming online in 2026 or later,” says Aurora’s Pan-European Senior Research Associate Eva Zimmermann.
Pan-European Senior Research Analyst Anne Geschke added that opportunities for market players are changing as battery deployment across Europe reaches scale. “Market players with more risk aversion may look to buy into existing projects in more mature markets, while others may look to establish themselves in markets where batteries are gaining traction only just now,” she pointed out.
Southeastern Europe gaining traction amid incentives, improving profitability
The fifth annual BATMAR shows that more nascent markets are now gaining traction. Southeastern European markets, such as Romania and Bulgaria, now rank among the top 10. Promising battery economics and increased policy support influence this rise in attractiveness.
However, given its rapidly changing landscape, battery deployment is facing new challenges and opportunities. Rising system needs for flexibility and questions around managing grid connection pipelines have been bringing the topic of grids to the forefront. Discussions around flexible grid connection agreements (FCAs) and potential implications for battery economics are ongoing in many countries.
“As realising large-scale projects becomes more of a challenge in markets with few secure cash flows, battery investors are starting to move to more innovative offtake structures such as tolling agreements to secure financing,” says Aurora’s Research Lead for Pan-European Power Markets, Policies and Technologies Jörn Richstein.
Notably, Bulgaria ranked third in SolarPower Europe’s report for 2025 in absolute expansion and total battery storage capacity. At the same time, it is by far the strongest if its economy and the number of inhabitants are taken into account.
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