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Battery Energy Storage, Grid Investments Surge Across Europe

A major renewable energy developer and a leading independent asset manager have joined to support a portfolio of battery energy storage systems in Poland, part of the continuing buildout of new power infrastructure across Europe. Several companies in recent weeks have announced investments to accelerate the transformation of power generation and electricity transmission and distribution on the continent.

Those groups include global energy major ABB, which in May announced it would invest $200 million across Europe. The company said the funding includes expanding production capacity of medium-voltage technologies for electrical distribution. ABB said its major projects include a $100 million investment in Italy. The group also plans spending in Bulgaria, Finland, Germany, Norway, and Poland.

Other big projects include Israel-headquartered Nofar Energy’s plan to install 280 MW/860 MWh of battery energy storage systems (BESS) at two of the company’s solar parks in Romania. The company said the project represents an investment of more than $93 million. Sweden-based Repono AB, meanwhile, also in May announced a commercialization and optimization partnership with Switzerland’s Gunvor Group, an energy storage developer and operator. The companies are joining with Austria’s enspired GmbH for deployment of a 202-MW/404-MWh BESS project, also in Romania.

Project in Poland

The 300-MW BESS portfolio in Poland is headlined by renewable energy developer Green Capital S.A. alongside asset manager Prime Capital AG. The companies said they signed agreements to jointly hold the portfolio. The groups said Prime Capital has acquired a 50% stake in one advanced-stage project within the portfolio, with construction now underway. They also said they have an agreement for a second large-scale project that should be underway by year-end. The companies said both projects have 17-year capacity market contracts, which they said would support commercial viability and strengthen power grid reliability.

“We are delighted to welcome Prime Capital as our partner,” said Michał Polanowski, CEO of Green Capital. “By establishing a joint venture for the realization of a 300-MW/1,200-MWh BESS portfolio, we are marking a transformative moment for Green Capital. Prime Capital brings proven expertise in hybrid infrastructure investment across Europe, including a strong BESS track record, and together we are the first to bring this combination of scale and institutional capital to the Polish storage market. This portfolio will play a crucial role in balancing the national grid, enabling a faster and safer energy transition.”

Polanowski told POWER, “Battery storage has moved from a supporting technology to a strategic requirement for modern power systems. As renewable generation continues to expand across Europe, large-scale storage is becoming increasingly essential for maintaining grid stability, improving flexibility, and strengthening energy security. Our partnership with Prime Capital … represents an important milestone for Green Capital and for the Polish energy market. The estimated capital expenditure for the portfolio is approximately $230 million (PLN 850 million). With both projects securing 17-year capacity market contracts, the portfolio demonstrates how long-term investment frameworks can accelerate deployment of critical energy infrastructure while supporting energy security and grid resilience.

“This project is part of our broader strategy to develop renewable energy and energy infrastructure platforms across Europe, Africa, and South America,” said Polanowski. “As we continue advancing initiatives such as Atlas GigaHub.1, a proposed large-scale ‘power-to-data’ campus in Argentina, we remain focused on creating scalable solutions that support both the energy transition and the growing demand for digital infrastructure, such as data centers.”

Dr. Mathias Bimberg, head of Energy Infrastructure at Prime Capital, said, “This strategic partnership with Green Capital perfectly aligns with our infrastructure investment focus. By acquiring a stake in one project and committing to the joint development of the broader portfolio, we are securing a strong foothold in the rapidly growing Polish storage market. We look forward to working together to bring this 300-MW portfolio to operation, backed by long-term capacity market contracts.”

ABB Investment

ABB said its investment is targeted toward expanding the company’s medium-voltage manufacturing capabilities across Europe over the next three years. The group said the funding will support electric utilities, industry, and data center markets. ABB in a news release said the program includes increasing availability of SF6 -free medium-voltage switchgear and grid automation products for global markets.

“This $200-million investment will strengthen ABB’s medium-voltage manufacturing and technology capabilities in Europe and support customers as electricity demand increases and the grid evolves,” said Morten Wierod, ABB’s CEO. “Demand is being driven by major structural trends, from grid modernization and the integration of renewables to data center growth and the transition to more sustainable technologies. These investments will help us expand capacity, improve availability, and shorten lead times for customers in Europe and beyond, empowering them to adapt to the changing energy landscape.”

1. ABB has opened a new $100 million manufacturing facility in Dalmine, Italy. The site will support increased demand for the company’s switchgear and breaker equipment. Courtesy: ABB

The company said the investment includes a new $100 million facility (Figure 1) in Dalmine, Italy, to support growing demand for air-insulated and SF6 -free (free of sulfur hexafluoride) switchgear and breakers. Another $100 million is earmarked for capacity expansion projects across factories in Bulgaria, Finland, Germany, Norway, and Poland. The company said the facilities will support scaling production of gas-insulated switchgear, vacuum interrupters, and relays. ABB said the latest funding comes after the company invested about $15 million in Hungary for research and development, and production, for connector technologies. The company also expanded its portfolio of grid resilience solutions for electric utility and renewable energy customers.

ABB also recently spent about $35 million in the UK to expand production of earthing and lightning protection technologies. The company said the funding supports protection of critical infrastructure and buildings, data centers, and communications and transportation networks from lightning strikes and electrical surges.

Installation in Romania

Repono AB has called its Arges County, Romania, project with Gunvor one of the largest standalone BESS installations in southeastern Europe. Romania has become a strong market for battery energy storage as it expands renewable energy generation capacity and works to make its power grid more flexible. The country also has a supportive regulatory framework for energy storage. Gunvor said it would market and manage the project with a cap-and-floor toll structure. Project partner enspired GmbH is expected to commercially optimize the installation and provide access to power markets and ancillary service revenue opportunities.

“Romania is rapidly emerging as one of Europe’s most attractive markets for battery energy storage. The accelerated build-out of renewable generation, combined with growing system balancing requirements and increasing market volatility, is creating a strong business case for large-scale BESS assets,” said Karim Grueber, Repono’s managing director. “Together with Gunvor, enspired, and our local development partner, we believe the Arges project is exceptionally well positioned to support grid flexibility while capturing the significant opportunities offered by this evolving market environment.” Repono was launched in 2024, and entered a partnership with Chinese system integrator Hyperstrong on a 1.4-GWh supply deal last year.

Nofar’s project in Romania pairs solar power with energy storage. The plan includes a 160-MW/340-MWh battery that will be installed alongside the 169-MW Lepuresti solar park in Giurgiu County. It also supports the 146-MW Ghimpati solar farm with a 120-MW/520-MWh BESS. The batteries are expected to become operational no later than early 2027. Nofar in a news release wrote, “By co-locating these advanced storage facilities with our solar sites, we are creating a powerful synergy: supporting grid stability while maximizing energy profitability by shifting sales to peak-demand hours.” Nofar at present has 850 MW of solar assets in Romania. It also has a 2.3-GWh pipeline of energy storage projects in the country.

Project in Italy

France-headquartered Neoen, a global renewable energy developer, recently announced the start of construction of the 25-MW/100-MWh Pasian di Prato Battery project in the Friuli-Venezia Giulia region in Italy. The facility is expected to enter operation next year. It is Neoen’s second energy storage installation asset in Italy; the 10-MW/40-MWh Broni Battery is about midway through the construction process.

“The launch of this [Pasian di Prato] battery is a clear signal of the momentum we are building in the country,” said Andrea Bartolini, co-managing director of Neoen Italia. “Storage is becoming essential to support the increasing share of renewable energy and to provide security to the Italian electricity system. Launching the construction of this 25-MW four-hour battery confirms our long-term commitment to Italy and reflects the trust the market is placing in our capabilities.”

Neoen also said it recently began construction of two new solar farms in Ireland as it looks to double its renewable energy generation capacity there. The company said it has begun building the 162-MW Garr Solar Farm, along with the 33-MW Johnstown North Solar Farm. It said the Garr project, sited in County Offaly, will be one of Ireland’s largest solar projects. It is expected online in 2029. The Johnstown array, located in County Wicklow, is scheduled to enter commercial operation in 2028. Neoen said the projects will bring the company’s renewable energy capacity to about 410 MW of wind and solar in operation or under construction.

Elektroprivreda Crne Gore AD Niksic, or EPCG—the national utility of Montenegro—recently said it signed a memorandum of understanding (MOU) with Japan-based PowerX for deployment of 500 MWh of battery energy storage. Officials said the MOU initially covers a three-year period to support grid integration of renewable energy. Montenegro, as part of its National Energy and Climate Plan, has a goal of receiving at least half its power supply from renewable energy by 2030.

PowerX said the company will “collaborate together [with EPCG] to identify optimal BESS deployment plans to support grid reliability, peak shaving, and frequency regulation.” The company also said it will explore establishing a manufacturing presence in Montenegro.

—Darrell Proctor is a senior editor for POWER.