Europe's Battery Boom Meets Turbine Squeeze as Renewables Navigate New Pressures

SolarPower Europe forecasts a nearly 500 per cent growth in the European battery market between 2024 and 2029 , signaling that large-scale energy storage may finally be hitting its stride after years of steady but modest expansion. The projection comes as Europe installed 25.3 GWh of battery storage in 2025 and is set to add 35.1 GWh this year , according to InfoLink Consulting. The surge reflects Europe's urgent need for grid flexibility as wind and solar generation expands rapidly across the continent.

In 2024, a record 3.7GW of battery storage was added, bringing the total to 10.8GW in Europe, according to Aurora Energy Research figures . Aurora projects the figure could surpass 50GW by 2030, with investments of around €80 billion. The battery buildout addresses a fundamental challenge: as wind and solar power expand rapidly, the demand for efficient energy storage has become essential, and in response, both the number and capacity of large batteries are surging across Europe .

Offshore Wind Faces Supply Squeeze and Soaring Costs

While battery storage accelerates, Europe's offshore wind sector is running into a different problem entirely. Rystad Energy's analysis of the offshore wind market outlines a sharp increase in per-megawatt (MW) costs, with turbine selling prices rising by between 40% and 45% since 2020, outpacing manufacturing cost increases of 20% to 25% over the same period .

The price surge stems from a supply constraint that's left European developers with fewer options. GE Vernova, Siemens Gamesa and Vestas have historically anchored Western offshore turbine supply, but with GE Vernova having paused new offshore wind orders following a series of technical and operational setbacks, Siemens Gamesa and Vestas now account for virtually all turbines available to European developers .

The nacelle, which houses the generator, gearbox and power electronics that convert wind into electricity, sits at the center of current supply constraints, while similar pressures are emerging in blade manufacturing, driven by increasing turbine sizes, longer production cycles and the logistical demands of transporting and installing next-generation components . Rystad's Sander Baksjoberget warned that if Europe doesn't meaningfully expand Western manufacturing capacity or rethink how supply constraints are addressed in its auction frameworks, it won't deliver its post-2030 targets at the pace or cost the energy transition requires .

China's Solar Glut Persists Despite War-Driven Demand

China's solar manufacturing sector continues to grapple with severe overcapacity, even as geopolitical tensions drive some countries to reassess their energy mix. Chinese solar manufacturers say any boost to global demand for renewable energy from the oil supply shock caused by the Iran war is unlikely to significantly ease the industry's overcapacity, leaving producers worried about their survival , Reuters reported in April.

As of 2025, China's solar factories had enough capacity to cover the estimated global demand this year nearly twice over, even after taking into account the Iran war impact in its demand forecast, Morningstar estimates . The overcapacity has triggered brutal price competition. In the first half of 2025, six leading Chinese solar manufacturers reported combined losses of €2.42 billion ($2.8 billion), reversing years of record profits, according to financial information provider Wind .

China has urged coordinated action across government bodies and industry stakeholders to tackle the ongoing overcapacity crisis in its solar power sector, as authorities intensify efforts to stabilise the market and curb aggressive price competition , according to saur ENERGY. The proposed framework focuses on several key interventions, including tighter control over production capacity, improved standard-setting, stricter price regulation, encouragement of mergers and acquisitions, and enhanced protection of intellectual property .

Wind Capacity Hits Record as China Dominates Global Additions

On a brighter note for renewables, global wind installations reached historic levels in 2025. The global wind industry installed a record 165 gigawatts of new capacity last year, up 40% from 2024 and mostly driven by China, which made up the bulk of that, adding a record 120.5 GW of new wind capacity , according to the Global Wind Energy Council.

With the newly added capacity, China's cumulative wind capacity has reached 640.5 GW, out of a global total of 1,299 GW in 2025, and the figures underscore Beijing's key role in shaping the direction and pace of the global wind energy transition . The expansion aligns with China's climate targets of peaking emissions before 2030 and achieving carbon neutrality by 2060.

Europe was the second-highest region for installations, commissioning 19 GW of new capacity , while the U.S., despite the anti-wind rhetoric of the current administration, added nearly 7 GW of onshore wind last year .

Trump Policies Create Uncertainty for U.S. Solar Manufacturing

The U.S. solar sector faces its own challenges as Trump administration policies create uncertainty around clean energy subsidies. Top solar companies, banks and insurers have stopped doing business with at least a half dozen recently built U.S. panel factories because of uncertainty over whether their ties to China could disqualify them from clean-energy subsidies, and the shift, driven by new Trump administration policies, jeopardizes more than a third of U.S. solar capacity in factories initially built by Chinese firms , Reuters reported on May 8.

The fresh uncertainty in U.S. solar investments stems from provisions in the Trump-backed "One Big Beautiful Bill" that the Republican-controlled Congress passed in 2025, and the legislation slashed Biden-era clean-energy subsidies and restricted certain foreign countries, including China, from securing those that remained . The U.S. Treasury Department has yet to provide full guidance on implementation.

The policy uncertainty comes as China controls about 80% of global solar equipment manufacturing, according to Wood Mackenzie , and Chinese companies were among the quickest to build U.S. factories when Biden's 2022 climate law created tax credits for clean-energy manufacturing.

According to market data, WTI crude traded at $71.50 per barrel on Sunday, up 0.6%, while Brent crude stood at $75.20, up 0.5%. Natural gas prices at Henry Hub fell 2.4% to $3.25 per MMBtu. The relatively modest oil price movements belie deeper tensions, as geopolitical uncertainty continues to shape energy investment decisions across both fossil fuels and renewables.