Europe is on the brink of an energy revolution.

A new report suggests pairing solar power with batteries could save the EU €9 billion annually by 2030. By storing surplus renewable energy, batteries could reduce fossil fuel dependence and cut consumer costs.

The report, from energy think tank Ember, highlights a growing issue: Europe often produces more renewable energy than it can use.

By 2030, wind and solar are expected to generate 183 terawatt-hours (TWh) of electricity beyond demand during peak hours. Without storage, much of this clean power will go to waste.

Solar energy’s potential is already clear. Between August 2023 and July 2024, solar power surpassed 80% of electricity demand during peak hours in nine EU countries.

In some cases, like Greece and the Netherlands, solar generation exceeded 100% of demand.

Batteries offer a solution to this imbalance. In June 2024, adding just 2 GW of battery capacity in Germany could have saved €2.5 million in fuel costs. These batteries could have displaced 36 gigawatt-hours (GWh) of fossil power, significantly reducing the country’s reliance on coal and gas.

Currently, the EU has 16 GW of battery storage, enough to hold 23 GWh of electricity.

While most batteries today are designed for short-term use, longer-duration systems are becoming more common. Future projects aim to extend storage durations to four or even eight hours.

The economic case for batteries is strengthening as solar energy transforms Europe’s power markets.

In Spain, zero or negative electricity prices occurred during 14% of hours in the first half of 2024, up from just 1% the year before. While this benefits consumers, it cuts into the profits of solar producers, making new investments riskier.

Evenings tell a different story. Fossil fuels still dominate during post-sunset hours, driving electricity prices sky-high.

In the summer of 2024, price spreads between midday and evening surged to over €200 per megawatt-hour in Hungary and Greece. Batteries could ease this volatility by storing cheap solar power during the day and releasing it at night.

California provides a compelling example. The state increased its battery capacity in just five years from less than 1 GW to 10 GW. This expansion halved California’s reliance on gas-fired power during evening peaks and proved how quickly storage can transform an energy system.

Germany is leading Europe’s charge. The country accounts for nearly half of the EU’s installed battery capacity and, under favourable policies, could reach 11.4 GW by the end of 2024. These investments could significantly reduce fossil fuel reliance and lower energy costs.

The report calls for urgent policy action to fully realize these benefits. It recommends simplifying rules for pairing batteries with solar, removing double grid-charging fees, and introducing clear storage capacity targets in national energy plans.

Ember also urges governments to improve market structures for batteries.

Allowing storage systems to earn revenue from multiple services, such as grid stabilization and energy arbitrage, would make the technology even more viable.

The EU plans to triple solar and wind capacity by 2030. However, without sufficient storage, much of this clean energy will be wasted.

Batteries are the missing link to ensure renewable energy powers Europe’s future around the clock.

“This is about more than energy savings,” says Beatrice Petrovich, one of the report’s authors. “It’s about reducing dependence on volatile fossil fuel markets, stabilizing prices, and meeting climate goals.”