Why is battery storage important to EDP?
Battery storage is an essential enabler for EDP’s strategy to accelerate the energy transition and ensure a more flexible, reliable, and sustainable energy system. As renewable energy continues to expand, the need to integrate naturally intermittent resources into the grid is key. Battery storage plays a fundamental role in helping us meet this challenge, allowing us to stabilize energy supply, reduce curtailment, and extract greater value from our energy assets.
At EDP, we are focused on deploying utility-scale and behind-the-meter storage solutions across our global footprint. On the utility scale, we develop both hybrid and stand-alone battery storage systems. Hybrid projects, where batteries are co-located with wind or solar, allow us to store electricity when production is high and dispatch it during peak demand or price volatility. Stand-alone battery storage, meanwhile, plays a critical role in grid support, frequency regulation, congestion management, and enhancing system flexibility independently of generation assets. These installations help stabilize the grid, particularly in high-renewables regions, and create new revenue streams while supporting overall system resilience.
Behind the meter, EDP provides tailored storage systems to corporate clients, helping them reduce peak demand charges, improve energy autonomy, and integrate distributed generation. These assets also enable participation in demand response programs and offer backup during outages. By optimizing energy usage and providing additional flexibility, behind-the-meter solutions help businesses meet their sustainability goals and reduce operating costs.
Battery storage is no longer a future technology: it is a present necessity. It supports the financial optimization of our projects, enhances system flexibility, and positions us to thrive in increasingly dynamic and decentralized power markets. With storage integrated into our development strategy, whether co-located, stand-alone, or customer-based, EDP is unlocking new business models and contributing directly to the decarbonization of the global energy sector.
EDP is a Strategic Partner of the Battery Storage Europe Platform — why did you choose to join?
EDP chose to become a Strategic Partner of the Battery Storage Europe Platform to actively contribute to shape the future of energy storage in Europe. As one of the region’s leading renewable energy companies, we recognize the importance of collective action to overcome the regulatory, technical, and market challenges that still hinder large-scale deployment of storage. This platform, coordinated by SolarPower Europe, brings together key stakeholders to accelerate progress, align industry efforts, and ensure storage becomes a central pillar of Europe’s energy system.
EDP is currently on the final stages to operate two utility-scale battery storage projects in the United Kingdom, totaling 100 MW, and is actively developing new storage capacity in other key European countries such as Poland and Italy. In Italy, we recently signed our largest distributed generation project combined with battery storage: an important step in delivering integrated, tailored energy solutions for our clients. We are also advancing other storage projects in Spain and the United States, leveraging regulatory momentum and grid modernization efforts to scale our solutions further.
By contributing our market experience, EDP aims to help improve policy frameworks, share best practices, and advocate for regulatory changes that support both utility-scale and distributed storage. Our participation in this platform is a strategic move to ensure that battery storage reaches its full potential in supporting Europe’s decarbonization and electrification goals.
Why do we need more battery storage in Europe?
The expansion of storage in Europe is essential to meet Europe’s ambitious climate goals. As the share of renewable energy grows, so does the need for flexibility in the power system. Battery storage offers an efficient solution to match supply and demand, maintain grid stability, and make the energy system more affordable.
According to recent data from SolarPower Europe, Europe added 21.9 GWh of battery storage in 2024—a 15% increase from the previous year. Forecasts expect that by the end of 2025, annual additions will reach nearly 30 GWh. Yet to align with the European Union’s 2030 targets, total installed capacity needs to grow to over 780 GWh, far beyond current deployment trends. The European Commission has acknowledged this gap and, as of July 2025, has issued updated guidance to support the implementation of the revised Renewable Energy Directive and Electricity Market Design. These updates aim to accelerate permitting, improve market access for storage, and prioritize flexible resources like batteries in grid planning.
Despite this progress, regulatory barriers remain. Many markets still lack proper remuneration for flexibility, and storage projects face double grid fees or unclear market rules. Industry leaders have called for the Commission to introduce a dedicated Energy Storage Action Plan that would provide harmonized frameworks and targeted incentives across Member States.
Additionally, the EU’s Battery Regulation, fully replacing the previous directive, will introduce new requirements around sustainability, transparency, and recycling. At the national level, countries like Spain, Poland, Italy, and the UK are each advancing supportive policies. Spain’s updated national energy plan targets 22.5 GW of storage by 2030, while Italy and Poland are establishing new capacity mechanisms and hybrid project frameworks. The UK, where EDP already operates major projects, continues to lead with long-duration storage policy development and has recently implemented a cap-and-floor model to incentivize investment.
EDP is aligned with these trends and well-positioned to help Europe meet its flexibility needs. Our growing portfolio across the UK, Italy, Poland, Germany and Spain reflects our commitment to scale storage as a key technology of the clean energy future. As we expand both utility-scale and distributed battery systems, we are proud to be contributing to a more secure and decarbonized European energy system.
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