The European Union could reduce its annual gas costs by €9 billion (US$10 billion) by deploying battery energy storage systems (BESS) to capture surplus wind and solar power, according to a recent report by think tank Ember. The report, titled “EU Battery Storage is Ready for its Moment in the Sun”, highlights the potential savings from using BESS to better integrate renewable energy into the grid.
The report reveals that if Germany had an additional 2GW of BESS in June 2024, it could have saved €2.5 million in fuel costs that month alone. Across the EU, renewable energy is set to meet a higher share of demand by 2030, with renewables expected to supply 49% of hourly demand, up from 27% in 2023. During 4% of hours in 2030, renewables will generate more electricity than demand, while for 35% of hours, they will meet more than half of demand.
Deploying more battery storage would allow EU countries to store excess renewable energy, reducing reliance on fossil fuels during periods when renewable generation falls short, Ember noted. The report also highlights that solar energy is increasingly meeting peak demand in several countries.
The report coincides with findings from the International Energy Agency (IEA) in its report “From Taking Stock to Taking Action: How to Implement the COP28 Energy Goals.” The IEA estimates that 1,500GW of energy storage is needed globally by 2030 to integrate the growing pipeline of renewables.
Additionally, the report emphasizes that significant grid upgrades will be necessary to accommodate renewable energy, with global grid investment needing to more than double by the end of the decade.
The IEA also noted that battery storage was the most invested-in energy technology in 2023, but further investments—around US$140 billion annually by 2030—will be required to meet future energy storage needs.
