Reducing Emissions: How Can We Store the Energy Produced by the Green Transition?

Europe is currently experiencing a race to expand its electricity storage capacity, with battery technologies emerging as the key weapon in this challenge. As solar and wind energy generation continues to grow rapidly, it is becoming increasingly clear that without powerful energy storage systems, the green transition will simply not be able to deliver a stable and reliable electricity supply.

From our collaboration with businesses, we see that companies in Latvia are increasingly assessing—and in many cases are compelled to assess—their opportunities to reduce emissions and lower electricity costs by combining solar panels with battery energy storage systems. While this may sound straightforward, our experience shows that selecting the right solution requires precise calculations and thorough analysis to determine the battery capacity best suited to a company's energy needs and the most efficient overall system. In addition, businesses must identify viable financing options to implement these solutions. It is a complex analytical process.

According to the latest data from Ember and Euronews, Germany currently leads Europe with 2.8 GW of installed battery energy storage capacity, followed by Italy with 2 GW. Ireland, Sweden, Bulgaria, and France are also experiencing rapid growth in battery storage deployment. The real surprise, however, is Turkey. If all announced projects are completed, the country could become Europe's undisputed leader within the next few years, with nearly 33 GW of battery storage capacity.

Why Is This So Important?

Solar and wind energy depend on weather conditions. On days with abundant sunshine, Europe is already experiencing periods of negative electricity prices, as the power system generates more electricity than can be consumed. In contrast, during the evening or periods of low wind, electricity shortages can occur. Battery energy storage systems make it possible to shift energy through time—storing excess electricity during the day and using it when demand is higher.

At the same time, battery technologies are becoming increasingly affordable. According to Ember analysts, the cost of utility-scale battery systems fell by approximately 45% in 2025 compared with the previous year, continuing a long-term downward trend in prices. As a result, energy storage is becoming economically viable even without subsidies.

European energy policy is shifting its focus: it is no longer enough to simply install solar panels or build wind farms. The key question is now where to store this energy and how to ensure a stable electricity grid.

New technology providers—including companies not traditionally associated with the energy sector—are also entering the market. For example, Huawei, a company best known for telecommunications, now offers a range of energy solutions in Latvia, including battery energy storage systems and advanced electrical equipment for businesses. As a global technology leader, Huawei is well positioned to apply its expertise in data management and digital technologies to adjacent sectors such as energy storage.

Latvia currently faces a significant shortage of energy storage capacity. To achieve its 2030 targets, the country's battery storage capacity will need to increase many times over during the next five years. In the years ahead, Latvia's energy future will depend not only on how much sustainable energy is generated, but also on how effectively that energy can be stored and how intelligently energy consumption can be managed using new technologies.