The UK continues to dominate the transaction volume, while Italy and Finland witnessed a surge in investor interest due to policy support and favorable market conditions.
The UK: Extensive penetration of onshore and offshore renewables in the domestic power mix has motivated the government to target 30 GW of operational battery capacity by 2030. A recent UBS report stated that from a regulatory perspective, the UK is a leading market because it has granular pricing policies. Additionally, the government has lifted size restrictions for project planning, helping to wave in larger-scale projects such as Alcemi’s 500-megawatt facility in Coalburn, Scotland, and Zenobe’s 300-megawatt BESS development in Blackhillock, Scotland, which is currently under construction.
Italy: The country has recently emerged as an investment hotspot in Europe's battery segment, driven by a doubling of renewable energy installations y/y to ~6 GW in 2023. The resulting power system, coupled with TSO Terna's target to install 9 GW of battery capacity by 2030 and proposed capacity market auctions through to 2028 have rendered Italy ripe for battery M&A.
Finland: Finland has witnessed four major deals for battery assets since the start of 2023, three of which occurred in Q1 2024. Investor interest is driven the country's established supply chain, which ensures access to the required critical minerals and chemicals. Additionally, Finland benefits from low corporate taxes and integration with the stable Nordic Electricity Market, which helps to maintain a low electricity price environment.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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