Global installed energy storage is on a steep rise and is expected to increase ninefold by 2040, to over 4 TW, driven by battery energy storage systems (BESS), which saw record growth in 2024, according to a report by Rystad Energy. In recent years, the cost of storing electricity has dropped significantly thanks to the declining cost of battery projects, coupled with technological advancements.
Last year, a record 200 GWh of new BESS projects came online globally, bringing the world’s total operational battery storage capacity to 375 GWh. China maintained its leading position, with over 100 GWh of new capacity, followed by the United States, which added 35 GWh. Germany, Australia, and the United Kingdom were among the top five.
Energy storage will play a key role in integrating renewables as power demand grows
As power demand is expected to continue its strong growth in 2025 and after, the growth rate of low-carbon energy sources is now close to covering the entire demand increase. Energy storage will play a key role in integrating the increasing share of intermittent renewable energy and providing the needed flexibility for the secure operation of the power systems, according to Rystad’s report.
The increasing share of intermittent renewables, combined with low flexibility in supply and load, creates price volatility in the liberalized power markets, making energy trading (arbitrage) a good source of revenue for BESS, according to the report.
Solar energy is projected to grow more than all other energy sources combined between 2025 and 2050, expanding tenfold over the period, Rystad noted.
The cost of BESS projects has fallen below USD 300 per kWh in recent years
The global average cost of BESS projects fell below USD 300 per kWh in 2024. If it were to decline to USD 250 per kWh, the cost of storing electricity could be as low as USD 60 per MWh, allowing BESS operators to retain a larger portion of the price spread as profit, Rystad said.
The lower costs of electricity storage are also driven by technological advancements, as battery manufacturers currently guarantee over 10,000 charge-discharge cycles and more than 80% battery health during that lifespan.
Carbon capture, utilization and storage (CCUS) is a must for the future of the cement industry, Greek Prime Minister Kyriakos Mitsotakis said at the launch ceremony for Heracles Group’s Olympus project.
It is one of the very first CCUS plants in Greece, valued at EUR 380 million. The unit in the group’s Milaki cement production complex in the island of Evia (Euboea) is expected to capture up to one million tons of CO2 annually. Emissions from the facility are expected to decrease to net zero by 2029.
Other industrial players also have plans to introduce CCUS.
Cement producer Titan Group is moving forward with a EUR 583 million investment in Boeotia (also Beotia and Viotia) called Ifestos. The carbon capture installation is scheduled for launch in December 2029. In its first year, it is expected to reduce CO2 emissions to the atmosphere by 1.9 million tons.
Motor Oil Hellas aims to install a unit in its Agioi Theodoroi oil refinery for a cost of EUR 300 million to EUR 400 million. The project is called IRIS – Innovative low caRbon hydrogen and methanol productIon by large Scale carbon capture. It is for the construction and operation of a CCUS and e-methanol production system that would cut the refinery’s CO2 emissions by a quarter.
Motor Oil and Titan have won grants from the European Union’s Innovation Fund.
“Support is needed to make these investments viable. Greece is at the forefront of convincing European institutions to provide it,” said Mitsotakis.
The companies’ executives discussed CCUS market developments this week in Athens with European Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra.
Prinos CO2 project to store industrial carbon
Captured carbon from these industries would be transferred to the former underground oil deposit in Prinos, offshore Kavala, for storage. Energean is developing the site, aiming for an annual capacity of three million tons, which would be doubled in the second phase.
The first drilling in Prinos is expected in 2026. Energean’s subsidiary EnEarth has signed 15 memoranda of understanding with various Greek and foreign companies.
The facility would be able to store up to six million tons after the second phase is complete. The National Natural Gas System Operator (DESFA) is tasked with delivering the gas there, under a project called Apollo CO2.
Project Manager and Market Intelligence Specialist Nikolaj Candellari from CyberGrid said at the Belgrade Energy Forum 2025 that the company believes in the energy transition in Southeastern Europe and is contributing with its VPP solutions. The Austrian software developer is open to partnerships with aggregators or future aggregators and the region’s electricity transmission and distribution system operators.
CyberGrid connects different energy resources to different markets. It uses cloud-based flexibility management technology and provides software as a service (SaaS).
“Our core belief is that every energy resource should be renewable, or at least green, and flexible. And to support this transition which we are in at the moment, we have developed our own product called CyberNoc,” Project Manager and Market Intelligence Specialist Nikolaj Candellari said at Belgrade Energy Forum (BEF 2025).
CyberNoc in real time aggregates the assets – batteries, renewables and even loads and is putting them to the markets, Candellari explained. In this way, the company supports grid stability and resilience and generates additional revenue streams for owners.
“We are heavily present in the region because we believe in this transition in Southeastern Europe. We helped partners in Croatia, Bulgaria and North Macedonia to connect to different markets,” he stressed and added that the firm has established cooperation in Slovenia and Greece.
Candellari called on aggregators or future aggregators, transition and distribution system operators and all other entities in the electricity system to contact CyberGrid.
The company, founded in 2010 and headquartered in Vienna, is one of the friends of the Belgrade Energy Forum, organized in Serbia’s capital city by Balkan Green Energy News.
CyberNoc enables trading, balancing services
CyberNoc manages battery storage, power plants and consumption, optimizing them in line with market and grid conditions. The platform continuously communicates with the transmission system operator (TSO). It facilitates energy trading as well as the provision of balancing services including frequency control reserve (FCR), automatic frequency restoration reserve (aFRR) and manual frequency restoration reserve (mFRR).
Candellari also participated in a panel discussion at BEF 2025 called Market Flexibility: The Backbone of a Resilient Energy System. He recalled that the market went from 15-minute time intervals all the way down to just two seconds and stressed the significance of real-time data for TSOs and other participants.
“I think we can connect everything, including households,” Candellari underscored.
Notably, CyberGrid is part of the SPRINT project, launched at the beginning of the year, for the development of innovative quasi-solid-state sodium-ion batteries for stationary purposes. The endeavor received funding through the Horizon Europe program.
Croatia has earmarked EUR 25 million for households at risk of energy poverty. They will use the funds for the energy renovation.
The subsidies for households at risk of energy poverty are part of a EUR 652 million package for 2025 launched by the Ministry of Environmental Protection and Green Transition and the Environmental Protection and Energy Efficiency Fund (EPEEF or FZOEU). The incentives will be used for renewable energy sources, decarbonization of the district heating system and road traffic, and waste management.
The fund launched a public call for expressions of interest in using subsidies for energy efficiency measures.
Energy poverty is an increasingly important issue because the number of affected households is rising. They are struggling to cover the bills for electricity, gas and heating as the energy transition and energy crisis lifted prices.
Many governments have introduced measures to fix the issue. For example, Slovenia has adopted an action plan for the reduction of energy poverty, which foresees almost EUR 34 million for measures in the period 2024-2026.
Croatia adopted the definition of energy poverty this year
Until this year, Croatia had no official definition of energy poverty. It was included in the changes to the law on energy efficiency.
The legislation defines an energy-poor household as one that doesn’t have access to basic energy services to ensure a basic standard of living and health.
The requirements are suitable heating, hot water, cooling, lighting, and energy to power household appliances. There is a combination of causes of deficits in the said segments. Among them are weak purchasing power, insufficient income, high energy costs, poor energy performances of buildings, and low energy efficiency, according to the public call.
FZOEU invited citizens to fill out a questionnaire and send photos
A European household is said to be at risk of energy poverty if it spends more than 10% of its income on energy.
The funding scheme for natural persons is for measures and investments in energy efficiency and decarbonization of heating and cooling at family houses.
FZOEU seeks to receive information from citizens through questionnaires and photo documentation. The aim is to help the body define the details of a public call for granting subsidies, scheduled to be issued by mid-year.
Kosovo’s decision to liberalize its electricity market threatens to spark a new crisis, as business consumers face significantly higher prices compared to the current, regulated rates. As a warning, disgruntled business owners plan to block the main roads leading into the capital, Prishtina, for two hours on Thursday, May 29.
Starting on June 1, businesses with an annual turnover of over EUR 10 million will be required to buy electricity on the open market, losing the right to regulated prices. Kosovo’s electricity market is the only one in the region that has not yet been opened to competition, and the decision to do so has been postponed several times since 2017.
The Kosovo Chamber of Commerce (KCC) said last week that out of 19 power companies licensed to supply electricity, only KESCO had made an offer to customers, at a price many times higher than the current rate, according to Kosovapress.
AmCham: Businesses are facing electricity price hikes of over 200%
The American Chamber of Commerce in Kosovo* has also expressed its deep concern regarding the significant risks that the liberalization, in its current form, poses to economic activity, employment, and long-term competitiveness of Kosovo*. It warned that businesses are exposed to electricity price increases of over 200%
The protest planned for tomorrow follows a series of meetings and numerous attempts to delay the latest decision on market liberalization. The KCC has said the business community wants the government to enable a fair and manageable transition phase, warning the protests will continue until the demands are met.
Businesses want a transition phase to enable a fair integration into the free market
The transition phase would allow for the gradual preparation of businesses for a sustainable and fair integration into the free energy market, the KCC said in a press release.
“If institutions do not reflect and do not take concrete steps to address the demands of businesses, the protests will continue until they are met,” it added.
The KCC also claims that the Energy Regulatory Office’s (ERO) decision to liberalize the market was made without proper analysis or consultation with stakeholders. It also said it would launch a “legal battle” to challenge the decision.
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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
The surge in the number of hours with negative wholesale electricity prices in Europe made 2024 the second consecutive record year. According to ACER’s Director Christian Zinglersen, it means a new era is here. Speaking at Belgrade Energy Forum – BEF 2025, he called on governments, regulators and system operators to tackle the issue with more flexibility and reap the benefits of integrated electricity markets.
At EUR 81 per MWh, the average day-ahead power price in the European Union and Norway was lower last year than in 2021, when the energy crisis began. This is good news, but there are significant differences in price averages across the continent, Director of the EU Agency for the Cooperation of Energy Regulators (ACER) Christian Zinglersen asserted.
In a keynote speech at Belgrade Energy Forum, BEF 2025, he also pointed out that the percentage of days with significant price swings remained elevated. “This suggests that we need much more short-term flexibility in the system,” Zinglersen said.
Prices in Romania, Bulgaria, Greece, Hungary among highest in Europe
In 2024, the share of time when prices were above EUR 150 per MWh landed at 6.1%, compared to 11.3% in the previous year and 66.7% in 2022. The number of days with price swings greater than EUR 50 per MWh accounted for a strong 70.4% of the total, though down from 77.1% in 2023 and 87.8% one year before.
The average price in Romania was virtually unchanged in 2024. It fell only 1% in Bulgaria and 5% in Hungary. Conversely, the drop was the strongest in Sweden, Norway, France and Belgium: 22% to 39%.
The average day-ahead electricity price in Romania was virtually unchanged last year, while in several countries it tumbled by at least 22%
Last year, prices were the highest across Italy, between EUR 106 per MWh and EUR 112 MWh, in Ireland (EUR 109 per MWh), Romania (EUR 104 per MWh), Bulgaria (EUR 103 per MWh) and Greece and Hungary (both EUR 101 per MWh).
Importantly, 2024 was the second consecutive record year in the number of hours with negative wholesale prices. Their share jumped to 2.8% from 1.9%.
“This is very significant and it shows we are already, in my view, in a new era. We’re not just embarking upon it. We’re there,” Zinglersen stressed.
Photo: ACER
Share of very low wholesale prices rallies back to level from 2020
As for the share of time with very low wholesale prices, it surged last year to 8.8%. The level was last seen in 2020, when the pandemic erupted and resulted in an unprecedented demand shock, ACER’s chief noted. He called on governments, regulators and system operators to tackle the issues with more flexibility.
Grid tariffs increasingly need to show what the system needs, in his view: more time nuance and more locational nuance. “That combination of an energy signal and a tariff signal should hopefully enable us to build more of what we need in the right places, as opposed to build what we don’t need, in the wrong places,” Zinglersen stated.
Integrated markets bring benefits
A policy brief that Brussels-based think tank Bruegel published last year pointed to the benefits of the integration of electricity markets. Among other factors, there is more security with fewer backup power plants and more flexibility with less investment in energy storage, together with lower capital costs. In 2022, ACER, based in Ljubljana, estimated benefits from cross-border trade alone at EUR 34 billion in the EU.
“It has very significant security of supply implications as well, to be in a very integrated-type jurisdiction,” Zinglersen underscored. But integrated markets come with tradeoffs, he said.
One of the examples is an incident in 2021 that split the Continental Europe synchronous area into two parts for an hour and reserves were pulled from across the continent. “But you can also bring the system much more quickly back together again,” Zinglersen said at the conference.
The same goes for the June 2024 blackout in the Balkans.
There are many solutions in Europe, but they are not evenly distributed
ACER’s director also recalled the power price decorrelation that affected Southeastern Europe and Hungary from July to September. He attributed some of the spikes in day-ahead prices to the lack of short-term flexibility, for instance batteries.
There are lots of technical solutions and frameworks in place across Europe, but they are not very evenly distributed, he added.
Zinglersen pointed to the opportunities and benefits of further integrating the electricity market of the Western Balkans region and the EU.
