Batteries are no longer just a flexibility tool—they’re becoming a contributor to the security of supply across Europe.
Aurora Energy Research, commissioned by Fluence, has published a new study that explores how capacity mechanisms are evolving across Europe, and the role battery storage is expected to play within them.
With increasing pressure on energy systems to deliver decarbonisation, flexibility, and reliability, this report provides a timely deep dive into the current and future design of capacity mechanisms—and what they mean for battery economics and policy frameworks.
What’s covered in the report?
- The European regulatory framework for capacity mechanisms
Explore how recent market reforms have positioned capacity mechanisms as a core element of Europe’s long-term energy strategy. - The growing role of batteries in flexible, low-carbon systems
Understand how battery storage contributes to flexibility, decarbonisation, and security of supply—especially as renewables expand. - Future design options for Germany’s capacity mechanism
Discover potential structures and the implications of battery de-rating factors on economics and system evolution. - Assessment of Spain’s proposed capacity mechanism
Dive into how the mechanism could incentivise battery buildout and reshape investment dynamics in the Spanish market.
If you have any questions or would like to learn more about this report as well as our other projects, please contact Nicolas Leicht.
