Europe’s Solar Boom Has a Storage Problem

Watch on YouTube ↗  |  September 12, 2026 at 14:00  |  12:32  |  Bloomberg Markets
Speakers
Mario Schirru — CEO, Encavis
Julian Jansen — Managing Director, Fluence
Peter Osbaldstone — Research Director, European Power Markets, Wood Mackenzie
Jens Sander — Plankton PV
Moritz Hein — Homeowner

Summary

Europe's rapid solar buildout has made solar its largest summer power source, but surplus midday output is causing zero or negative wholesale power prices and price cannibalization for standalone solar projects. Industry experts argue the solution is not less solar but more battery storage, flexible demand, and stronger grid infrastructure to move and store power. Battery storage in Europe is expected to accelerate sharply through 2030, while grid investment is seen as the key bottleneck to further solar growth.

  • Europe's solar capacity has boomed, exceeding 400 GW, with 80 GW added in 2025.
  • Sunny-period surpluses push wholesale power prices to zero or negative, hurting standalone solar economics.
  • Battery storage is growing from a low base; Europe installed 36 GWh in 2025.
  • Projections see over 500 GWh of European battery storage by 2030.
  • Storage can shift electricity to high-demand hours but cannot replace grid reinforcement.
  • Grid investment and flexible demand are critical to absorb and move renewable power.
  • Residential solar increasingly includes battery storage due to lower costs.
  • Homeowners in Germany see strong payback from rooftop solar and self-consumption.
Ideas
Mario Schirru CEO, Encavis 2:14
European solar growth remains attractive long term
Solar has become a huge success in Europe with over 400 GW installed, and growth has been exponential because technology costs have fallen dramatically. He views negative power prices and price cannibalization as transitionary growing pains rather than a structural end to the buildout, and sees substantial long-term growth potential if grids and storage catch up.
European solar HIGH
Peter Osbaldstone Research Director, European Power Markets, Wood Mackenzie 3:20
Standalone solar faces price cannibalization risk
Standalone solar projects face price cannibalization because neighboring projects all generate at the midday peak and quickly exhaust available demand, causing wholesale power prices to fall sharply or turn negative. This creates boom-and-bust conditions and can leave renewable generators suffering from their own success.
European standalone solar projects HIGH
Julian Jansen Managing Director, Fluence 6:33
Europe battery storage set for rapid growth
Battery energy storage is critical for solving solar's timing mismatch by shifting electricity from low-demand hours to high-demand hours and easing grid constraints. Europe installed around 36 GWh of battery storage in 2025, and the installed base is projected to exceed 500 GWh by 2030, implying rapid acceleration from a low base.
Europe battery energy storage HIGH
Jens Sander Plankton PV 8:33
Cheaper batteries drive residential storage adoption
Battery storage has become much cheaper, so almost all new residential solar systems now include battery storage and increasingly larger batteries, improving self-consumption and system economics.
Residential battery storage MED
Julian Jansen Managing Director, Fluence 9:21
Grid investment essential for European energy transition
Storage is not a silver bullet; Europe must also reinforce and expand grid infrastructure to transport electricity from where it is generated to where it is needed. Grid investment is essential for the energy transition and is becoming the limiting factor for further solar growth.
European grid infrastructure HIGH
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This Bloomberg Markets video, published September 12, 2026, features Mario Schirru, Peter Osbaldstone, Julian Jansen, Jens Sander discussing European solar, European standalone solar projects, Europe battery energy storage, Residential battery storage, European grid infrastructure. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mario Schirru, Peter Osbaldstone, Julian Jansen, Jens Sander  · Tickers: European solar, European standalone solar projects, Europe battery energy storage, Residential battery storage, European grid infrastructure