The European law firm Fieldfisher has published its latest report, The European Battery Energy Storage System (BESS) Economy.
After 18 months of expansion, the European storage sector is increasingly facing regulatory and grid access barriers. Europe is poised to double its installed BESS capacity from the current 66 GW to 132 GW by 2035, but the report warns that this progress depends on accelerating grid developments, simplifying planning processes, and establishing clearer, more predictable, and reliable legal frameworks for investors and developers.
Fieldfisher’s analysis covers 11* key European markets, supported by the BESS Market Maturity Index, which evaluates countries based on five legal and regulatory pillars: regulation, grid connection, investor confidence, incentives, and cybersecurity. Together, these factors illustrate where markets are maturing and where structural and legal barriers continue to slow adoption.
Grid saturation and regulatory delays are intensifying across Europe
The report finds that 9 out of 11 markets are already facing grid saturation, resulting in long wait times for connection approvals and growing uncertainty about project feasibility. The situation in Germany is the most severe: transmission operators had received 226 GW of new grid connection requests by early 2025, far exceeding available capacity, and one grid operator confirmed that no additional capacity would be available until 2029. Ireland faces similar constraints, with just 730 MW operational out of a 10 GW pipeline due to grid readiness issues. The report details how grid operators are addressing these challenges and outlines the opportunities arising from the current situation.
The development of BESS to support renewable energy generation projects or data centers can enable the creation of business plans more robust that are less susceptible to market risks.
Italy in the Spotlight: The Regulatory Framework—Current, Upcoming Developments, and Opportunities
Regulatory Framework
- The Italian regulatory framework for BESS, launched in May 2021, has gradually introduced an authorization process focused on simplification and clarity .
- This framework was finalized with the so-called Consolidated Act on Renewable Energy Sources (Legislative Decree 190/2024) of December 2024, which regulates within a single legislative text the authorization procedures (and related environmental procedures) for the construction and operation of stand-alone BESS systems or those connected to renewable energy projects. .
- An update to the national regulatory framework is underway to implement EU directives and allow for flexible grid connection agreements, especially in cases where grid expansion is inefficient.
- The amendments to the TICA, expected by 2026, aim to streamline connection procedures with new technical and economic rules to address grid saturation.
- The MACSE capacity mechanism provides that Terna procures storage through annual tenders, awarding multi-year indexed contracts (up to 15 years).
Fabio Giuffrè, Partner and Head of Energy, Real Estate & Public Law, commented:
“Italy needs large-scale energy storage systems (BESS) to cope with growing production from renewable sources, but such projects face the same obstacles encountered by renewable energy sources: difficulties in grid connection procedures and uncertain project development timelines. With connection requests continuing to rise, grid access has become a key risk factor for project implementation. That is why investments in the grid, as well as the announced reforms to the TICA, are not just “the solution” in principle: they are the necessary condition for the recent simplifications in authorization procedures to translate into concrete projects and effective system capacity.”
Opportunities
- The figure of over 1.5 GW of projects BESScurrently under construction indicates strong interest in the sector and momentum for the project.
- Italy has obtained authorization from the EU for a €17.7 billion program to procure 9 GW / 71 GWh of new storage capacity by 2030—a significant financial boost for developers.
- The massive expansion of renewables (solar +44 GW, wind +15 GW by 2030) creates strong structural demand for large-scale storage capacity to integrate 60 GW of additional generation.
- The investments planned by Terna in the years 2025-2027 for the development of the electricity grid will help reduce congestion and saturation, promoting the development of large-scale projects .
- The MACSE capacity mechanism is a strong driver of bankability, offering stable remuneration for 15 years and having allocated 10 GWh in the first auction held in 2025 .
Europe’s ambition regarding battery storage is real, but to achieve it, investors and financiers must navigate an ever-evolving regulatory framework and anticipate upcoming developments.
*The BESS report is based on a detailed analysis of 11 European BESS markets, combining contributions from Fieldfisher’s energy, regulatory, and infrastructure specialists in each of the countries covered for BESS projects with a capacity exceeding 1 MW. The countries are Austria, Belgium, France, Germany, Ireland, Italy, the Netherlands, Poland, Portugal, Spain, and the United Kingdom. The analysis is based on an examination of national regulations, grid conditions, permitting processes, cybersecurity requirements, and market support schemes, drawing on the firm’s professionals’ industry experience . The findings focus on the period from 2025 to 2030, with forward-looking insights extending to 2035 and beyond. The report also introduces the Fieldfisher BESS Market Maturity Index, which compares countries based on five criteria: regulation, grid connection, investor confidence, incentives, and cybersecurity.