Pivotal year for battery energy storage

The UK is forecast to be one of the fastest growing markets for new battery storage.

A report from EUPD Research said annual installations across Europe are forecast to rise from 32 GWh in 2025 to 57 GWh in 2026, a 78% year-on-year increase.

It said the milestone signals a “fundamental shift in Europe’s energy transition”, as battery storage becomes critical infrastructure for renewable integration, grid flexibility and electrification across residential, commercial and utility-scale markets.

It highlighted the UK market for scaling rapidly through expanding front-of-the-meter pipelines.

Growth is driven by falling battery costs, rising electricity prices, and increasing adoption of solar-plus-storage systems to maximise self-consumption and reduce energy bills. Commercial and industrial storage is gaining traction as businesses seek to reduce energy costs and optimize on-site generation, while utility-scale deployment is accelerating, supported by improving market opportunities and policy frameworks, despite persistent grid-connection and permitting challenges.