In 2023, Germany, the United Kingdom, and Italy were the top three markets for energy storage installations in Europe. According to TrendForce, the installed capacity in Germany, the UK, and Italy in 2023 was approximately 6.1/4.0/3.9 GWh, respectively.
The global energy storage market remained active in the first quarter of 2024. In Europe, Germany, Italy, and Spain continued to experience high growth in the energy storage market during the first quarter, with both Germany and Italy announcing or approving projects exceeding 1 GW.
TrendForce predicts that the new installations in Germany, the UK, and Italy in 2024 will be approximately 7.1/7.7/6.2 GWh, representing growth rates of 17%/92%/62%, respectively. Italy's energy storage market is expected to be further integrated with renewable energy generation facilities in 2024, driven by favorable policies.
On February 27, 2024, the Italian Council of Ministers approved the "National Recovery and Resilience Plan," which includes the introduction of the "EU Industry 5.0" plan, with an investment of 6.3 billion euros in digitization and energy transition. Prior to this 6.3 billion euro allocation, Italy's National Recovery and Resilience Plan had already committed 59 billion euros between 2021 and 2026 to incentivize renewable energy.
Italy's electricity consumption and renewable energy generation rank third in Europe, while electricity prices rank first. The combination of high electricity demand, high prices, and the Superbonus program introduced by the Italian government in 2020 has made Italy the second-largest market for residential energy storage installations and the third-largest market for overall energy storage in Europe.
According to ANIE data, as of June 30, 2023, Italy had a total installed energy storage capacity of 3,045 MW/4,893 MWh, with residential energy storage accounting for over 80% of the new installations. However, in Q2 2023, residential energy storage installations declined by 13% compared to the previous quarter due to the reduction in subsidies under the Superbonus program.
In December 2023, the European Union approved Italy's energy storage plan, allocating up to 17.7 billion euros to help Italy build over 9 GW/71 GWh of energy storage facilities. The plan is expected to run until the end of 2033, with the aim of constructing large-scale storage facilities in southern Italy and Sicily by 2030.
According to TrendForce, Italy's new energy storage installations in 2023 were approximately 2.4 GW/3.9 GWh, representing a year-on-year growth of 117%/90%, primarily driven by residential installations. TrendForce predicts that Italy's new energy storage installations in 2024 will reach 2.6 GW/6.2 GWh.
So far, the market size of Italy's energy storage grid is relatively small, but in the coming years, it is expected to become one of the most active markets in Europe. There are also expected to be significant opportunities in the commercial and industrial capacity market.
The fluctuation of energy storage policies in Italy has affected residential energy storage demand. The high subsidies have brought market prosperity but also significant fiscal pressure. The government temporarily suspended the Superbonus subsidy program between February and April 2023 due to budgetary pressures and subsequently reduced the subsidy levels for 2024 and 2025. This has led to construction delays in thousands of projects, affecting residential energy storage demand. The Superbonus program was limitedly extended in December 2023.
The local energy storage demand environment in Italy may undergo significant changes. In 2023, residential energy storage still accounted for the largest share of new installations in Italy. However, in 2024, there is potential for significant development in large-scale and commercial/industrial energy storage. It is important to monitor policy changes and adjust business strategies accordingly to mitigate risks.
Additionally, careful market planning and sales strategies should be implemented to avoid high inventory and to ensure flexible adjustment of product and service supply based on market demand and policy trends, enabling businesses to develop steadily in the context of policy fluctuations.
Source: TrendForce Energy Storage (translated from Chinese)