Europe’s battery energy storage systems (BESS) segment is expected to continue to see solid investor interest despite headwinds in the adjacent renewable energy market.

”Dealmaking will be driven by the increasing penetration of renewables, which makes BESS both necessary and, generally speaking, increasingly financially viable”, Salvatore Santoro, head of investment banking for Sweden and global head of renewables, infrastructure & transition at DNB, said.

BESS plays a central role in the green transition due to the intermittent nature of renewable energy sources, meaning that while the sun is shining or the wind is blowing, that energy needs to be captured and stored for later use.

The global BESS market was estimated to be worth between USD 44bn and USD 55bn in 2023, which is forecast to increase to up to USD 150bn by 2030, according to a report published by Statista in February 2025. Utility-scale BESS constitutes the largest share of the market in the period under consideration, the report says.

Both financial and strategic buyers are expected to take advantage of opportunities in the space, Salvatore said. ”In terms of strategic buyers, we often see larger BESS aggregators, often backed by financial investors.”

In a notable deal in 2024, France’s Mirova became a minority shareholder in Austrian renewables and energy storage specialist RP Global through a EUR 480m capital injection. The company includes BESS infrastructure within solar plants.

Headwinds

On the downside, experts in the energy transition are grappling with issues like inflation, which can drive the cost of core materials much higher, and US President Donald Trump’s anti-green stance.

Last month, the BESS segment in particular suffered a blow as Sweden’s Northvolt was forced to file for bankruptcy. The company said it ”experienced a series of compounding challenges in recent months that eroded its financial position.”

However, Northvolt’s failure is not expected to significantly dampen investor interest in the sector, according to Santoro. ”BESS is a downstream application of batteries, therefore uncorrelated to issues related to a specific manufacturer,” he said.

Indeed, since the bankruptcy announcement, Northvolt has been reported to be in talks with potential buyers.

Deals on the way

Mergermarket intelligence shows a number of other opportunities are coming to market. For example, Ingrid Capacity of Sweden will look to sell majority stakes in several ready-to-build BESS projects this year. It expects to sell projects with 700 MW capacity in Sweden, Finland and Germany.

On the buyside, a number of companies are interested in BESS opportunities, including Alpiq of Switzerland and Green Genius of Lithuania. Meanwhile, ZE Energy of France has developed a hybrid solution that combines photovoltaic (PV) generation with BESS. It wants to buy PV projects in France and Germany.

Finally, Public Power Corporation (PPC) of Greece has announced a strategic investment roadmap to convert former sites in Western Macedonia into a green energy and tech hub for Greece and Southeastern Europe. As part of the plan, which is worth EUR 5.75bn, it will invest in BESS plants with 300 MW installed capacity. The company has a track record of cutting deals with infrastructure investors.

The general direction of travel in Europe is clear, Santoro said. ”The big trend is still there – the need to reduce carbon. Both the tailwinds and headwinds considered, the European market is set to be in balance, and leaning to a positive outlook.”