Europe's Renewable‑Plus‑Storage Capacity Set to Reach 35 GW by 2030

Context Europe’s power system is adding more wind and solar each year, but the grid sometimes cannot absorb all the electricity they produce. When supply exceeds demand, operators must curtail renewable output to keep the network stable. This temporary shutdown, known as curtailment, wastes clean energy and reduces revenue for project owners. To limit these losses, developers are pairing renewables with on‑site batteries that can store excess power and release it later when the grid needs it.

Investment in hybrid projects has risen as developers seek to lock in revenue streams that are less dependent on wholesale price swings. Financial institutions are increasingly willing to fund projects that combine generation with storage because the combined asset reduces risk of curtailment‑related losses.

Key Facts Analysts project Europe’s combined renewable‑plus‑storage capacity will rise from 6 GW in 2025 to up to 35 GW by 2030. At the same time, renewable curtailment is forecast to grow from just over 10 TWh in 2024 to about 33 TWh by 2030, more than tripling. Co‑location of solar or wind farms with battery storage is increasingly seen as essential for protecting project economics and sustaining investment flows across the continent.

Regional differences shape the pace of adoption. Germany leads in absolute market size, while Britain’s contract‑for‑difference framework provides revenue certainty. Bulgaria’s combination of subsidies and a growing project pipeline makes it a hotspot for early‑stage developers.

What It Means Germany, Great Britain, and Bulgaria emerge as the most attractive markets for co‑located projects, according to recent research. Germany’s large market and strong upside potential put it at the top, while Britain benefits from existing capacity and contract‑for‑difference schemes that ease grid connection delays. Bulgaria offers robust subsidies, a healthy project pipeline, and favorable economics. By storing surplus generation, co‑located batteries can shift output to periods of higher prices, reduce curtailment, and improve capture prices for developers. This approach helps investors manage revenue volatility caused by grid congestion and price swings. Market participants are also watching how national auctions and state aid rules evolve to support hybrid projects.

Technology costs continue to fall, making battery integration more affordable. Lithium‑ion prices have dropped sharply over the past five years, and emerging chemistries promise further reductions. Lower storage costs improve the economics of co‑location, encouraging more developers to add batteries at the planning stage.

What to watch next Policy makers will likely refine subsidy designs and grid access rules to encourage more co‑location, while technology costs continue to fall. Monitoring how quickly Germany, Britain, and Bulgaria translate their attractiveness into actual installed capacity will indicate whether the six‑fold target is on track.