European special energy storage battery merchants

Fragmented policy has led Europe’s battery energy storage system (BESS) space to split into contracted and hybrid markets in Italy, Poland, and the UK, anchored by long-term capacity or tolling contracts and 12%-17% unlevered internal rates of return (IRR); and merchant-exposed markets in Germany, France, and the Netherlands, where grid fees, construction taxes, and permitting costs suppress returns and widen the financing gap. [pdf]