Rising energy costs across Europe continue to pose challenges, even with some relief since the 2022 peak. Compounding this issue is the sharp rise in negative electricity prices. In 2024, Germany’s Bundesnetzagentur (Federal Network Agency) recorded 457 hours of negative wholesale prices, a significant jump from 301 hours in 2023. Similarly, data from the European Power Exchange reveals a 70 percent increase in such hours in the UK, while France saw its total double to 356 hours. Spain also reported its first-ever negative prices, amounting to 247 hours for the year.
As renewables account for a growing share of Europe’s energy mix, their variable output is driving greater price fluctuations. In response, energy storage is proving to be a practical, future-ready solution, enabling businesses to optimise clean power use, stabilise costs and ensure supply reliability. By unlocking the full potential of renewables, storage systems are instrumental in mitigating market volatility and bolstering long-term energy strategies for commercial and industrial (C&I) sectors.
Storage as a strategic response
Energy storage systems are becoming essential in the evolving energy landscape. By storing surplus electricity during periods of oversupply and discharging it during high-demand hours, these systems stabilise the grid and address the intermittency of renewable sources such as wind and solar.
For businesses, particularly in energy-intensive sectors, storage provides significant advantages. Systems can be charged during low-cost periods and discharged when prices peak, cutting operational expenses and boosting competitiveness. Advanced C&I systems are already driving this shift. As Europe accelerates its energy transition, energy storage is no longer just a backup solution – it is becoming a strategic pillar for a more resilient, efficient and sustainable industrial future.
Expert view – how Europe can build a resilient battery ecosystem
Policy momentum
Encouragingly, there are numerous national programmes already in place that support the development of C&I battery energy storage systems:
- Germany offers low-interest loans through the KfW 275 programme, reducing upfront costs and motivating companies to invest in energy storage.
- The UK has implemented a Capacity Market scheme, providing financial rewards to systems that can supply power during peak periods, drawing many businesses into the storage space.
- France promotes self-consumption policies, allowing enterprises to use the renewable energy they produce, lowering costs and grid dependence while encouraging adoption of behind-the-meter storage.
Collectively, these frameworks, which spanning subsidies, loans and performance-based incentives, are helping create a favourable policy environment for C&I storage deployment across Europe.
From cost burden to competitive edge
For businesses, reducing energy costs is key to enhancing competitiveness. In Europe, the significant gap between peak and off-peak electricity prices creates strong potential for the development of C&I energy storage.
Expert view – battery storage needs to be as lucrative to make as it is to use
By using storage systems, companies can purchase electricity during off-peak hours at lower rates, store it and then use the stored energy during peak periods, resulting in substantial savings on energy bills.
Sungrow
Beyond direct peak-valley arbitrage, energy storage helps businesses manage price volatility, protecting them from sudden spikes in electricity costs. As the energy market evolves, this ability to control expenses will become increasingly valuable and is likely to drive greater adoption of C&I storage.
Innovations addressing the needs of C&I stakeholders
As C&I storage assumes a more central role, innovation is no longer optional – it is essential. Businesses and installers across Europe are demanding solutions that integrate seamlessly with inverters, offer compact footprints, meet high safety and cybersecurity standards, and connect effortlessly to smart energy ecosystems.
Smarter storage and agile inverters reshape the C&I landscape
For forward-thinking businesses, adopting advanced PV-plus-storage is not just about cutting costs but about future-proofing operations, enhancing resilience and contributing to a cleaner, more sustainable energy landscape. In this critical phase of Europe’s energy transition, those who act now will shape a stronger, greener and more competitive industrial future. (Robert von Wahl/hcn)
