Battery Storage: The European BESS Market Accelerates as Italy Confirms Its Role Among Key Growth Countries

The new report The European Battery Energy Storage System (BESS) Economy, published by Fieldfisher and prepared by its legal teams specializing in energy, regulation, and infrastructure, offers a precise snapshot of a rapidly expanding sector still constrained by structural bottlenecks that only targeted regulatory intervention can resolve. The study, which examines eleven European markets through the Fieldfisher BESS Market Maturity Index, goes beyond describing the current landscape: it highlights the legal implications, regulatory hurdles, and conditions required for storage to become a true pillar of the energy transition.

The starting point is clear: Europe could double its installed BESS capacity from the current 66 GW to 132 GW by 2035. Yet, Fieldfisher warns, this trajectory is far from guaranteed. Grid saturation and slow permitting processes are already hindering project development. Nine out of eleven markets are now congested, with connection requests far exceeding available capacity. Germany stands out as the most critical case, with 226 GW of grid connection requests filed at the start of 2025 and one operator confirming no additional capacity until 2029. Ireland faces similar constraints, with only 730 MW operational out of a 10 GW pipeline, stalled by infrastructure delays and grid limitations.

Viewed through a legal lens, these factors reveal how permitting and grid access have become the true arbiters of project bankability. A simplified authorization framework is no longer enough: clear technical rules, predictable timelines, and coordination between grid and plant development are essential. This is where Fieldfisher’s research proves strategic, showing that market maturity depends not only on incentives but on a coherent and reliable regulatory ecosystem.

Italy emerges as one of the most dynamic yet complex markets. The regulatory framework launched in 2021 was consolidated with the Testo Unico FER (Legislative Decree 190/2024), which unified authorization and environmental procedures for both stand?alone BESS and those integrated with renewable plants. This marks a significant step forward, introducing greater clarity and reducing procedural fragmentation that had long slowed the sector. However, as Fieldfisher notes, the real challenge lies in grid connection. The upcoming TICA reforms, expected by 2026, aim to introduce more flexible connection agreements and updated technical criteria—crucial to tackling growing saturation.

Fabio Giuffrè, Partner and Head of Energy, Real Estate & Public Law, captures the core issue: Italy urgently needs large?scale energy storage systems, but without grid investment and TICA reform, even streamlined authorization procedures risk remaining theoretical. Grid access has become a primary risk factor, determining whether a project can move forward.

On the opportunity side, the report paints a surprisingly positive picture. Over 1.5 GW of BESS projects are already under construction, signaling a vibrant market and strong investor interest. The EU’s approval of an Italian program worth €17.7 billion to acquire 9 GW / 71 GWh of new storage capacity by 2030 provides unprecedented financial momentum. Combined with the massive renewable expansion planned by 2030—+44 GW of solar and +15 GW of wind—storage becomes not just useful but indispensable for system stability.

The MACSE capacity mechanism also plays a decisive role, offering indexed contracts of up to 15 years and awarding 10 GWh in its first auction in 2025. For investors, this means stable, predictable remuneration—a key factor for project bankability in a still?volatile market.

Fieldfisher’s final message is unequivocal: Europe’s ambition for battery storage is real, but achieving it requires a regulatory framework that evolves as fast as the market itself. Developers must anticipate regulatory changes, understand the legal implications of new connection models, and carefully assess available remuneration mechanisms. In short, the energy transition is not just a technological challenge—it is a matter of law, governance, and adaptability.

That is why analyses like Fieldfisher’s are essential tools for navigating a fast?growing sector that demands solid legal expertise to turn opportunities into tangible projects.

 

Fieldfisher is a leading European law firm, with a strong presence in Italy, specializing in legal, tax, labour, risk & compliance advisory.

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Author: Marco Zingaro