Early signs of the impact of batteries

In 2025, EU wholesale electricity prices rose in 21 countries, driven by spikes during peak gas-use hours. Grid-scale battery capacity in the EU exceeded 10 GW in 2025, more than double the 4 GW recorded in 2023. A pipeline of projects in Germany, Poland, and Italy could push capacity beyond 40 GW, potentially displacing costly gas generation and reducing the waste of curtailed wind and solar power.

• Wholesale electricity prices in 21 EU countries increased in 2025 compared to 2024, with annual rises between 3% in Greece and 22% in Austria. These increases were primarily driven by price spikes during morning and evening hours when costly gas generators are most needed to meet demand.
• EU grid-scale battery capacity grew from 4 GW in 2023 to over 10 GW in 2025. A project pipeline led by Germany, Poland, and Italy could increase this capacity to over 40 GW, representing a ten-fold increase from 2023 levels.
• In Italy, batteries are beginning to displace gas during peak hours; in September 2025, large-scale batteries provided 1.1 GW during early evening hours (7–8 pm). Stored solar or wind power in Italy is estimated to cost around €64/MWh, significantly lower than the €111/MWh average cost of gas-fired electricity in 2025.
• California serves as a model for the potential impact of batteries; between September 2021 and September 2025, the share of fossil fuels in evening demand peaks dropped from 44% to 34%, while the battery contribution rose from 3% to 22%.
• Batteries can reduce the waste of curtailed renewable energy. In 2025, Germany curtailed approximately 9.6 TWh of wind and solar generation (nearly 4% of total generation). If announced battery projects (10.5 GW/26.3 GWh) had absorbed this, Germany could have avoided one third of its 2025 curtailment and €0.8 billion in redispatch and gas purchase costs.

APA

Ember (2026). Early signs of the impact of batteries. https://ember-energy.org/chapter/early-signs-of-the-impact-of-batteries/

Chicago

Ember. Early signs of the impact of batteries. 2026. https://ember-energy.org/chapter/early-signs-of-the-impact-of-batteries/.

Wikipedia

{{cite report |author=Ember |title=Early signs of the impact of batteries |date=22 January 2026 |url=https://ember-energy.org/chapter/early-signs-of-the-impact-of-batteries/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2026early, author = {{Ember}}, title = {{Early signs of the impact of batteries}}, institution = {Ember}, year = {2026}, month = jan, url = {https://ember-energy.org/chapter/early-signs-of-the-impact-of-batteries/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }