Successes in EU battery storage boost Azerbaijan’s confidence in strategy Energy transition shows first results

New data show that in 2025, wind and solar power generated more electricity in the European Union than fossil fuels for the first time, while the growing use of battery storage began shifting renewable energy to hours traditionally dominated by gas generation. This demonstrated success for the European economy reinforces Azerbaijan’s commitment to pursuing a similar energy strategy focused on expanding battery storage capacity to support renewable energy growth.

Wind and solar together accounted for 30% of EU electricity production, compared with 29% generated by fossil fuels, according to the latest European Electricity Review presented in an article by the Recharge News platform. 

Compiled by the global energy think tank Ember, their report indicates that wind power contributed 17% of total electricity generation, while solar accounted for the remaining 13%. Although wind remained the EU’s second-largest single source of electricity, its growth lagged behind solar. Solar generation rose by roughly 20%, marking a record year, whereas wind output declined by 2%.

The report’s author, Beatrice Petrovich, explained that the decrease in wind generation was largely due to unusually unfavourable weather conditions at the beginning of 2025.

Despite the temporary drop, she emphasized that wind power continues to be the EU’s second-largest electricity source, noting that new projects under development — including the North Sea offshore wind hub — are expected to bolster Europe’s wind generation capacity in the coming years.

The review analyzed full-year electricity generation and demand data for 2025 across all 27 EU member states. While the bloc remained reliant on costly gas imports, battery storage began enabling domestically produced renewable power to be shifted to periods of high gas usage.

If the trend continues, the report suggests it could help stabilize electricity prices by reducing the need for gas generation during evening hours. “The EU may be on the cusp of a battery revolution,” Petrovich told Recharge.

Azerbaijan’s energy policy follows suit

Europe’s success in transforming its energy mix has encouraged other countries to follow suit, with Azerbaijan among them. In recent years, Azerbaijan’s energy strategy has steadily shifted toward renewable sources, with particular emphasis on expanding battery energy storage systems. Saudi Arabia has as emerged a key partner supporting Azerbaijan in this transition.

Earlier this year, Saudi officials attended the opening ceremony of the 240-MW Khizi–Absheron Wind Power Plant, developed by Riyadh-based energy company ACWA Power. In 2024, Azerbaijan also began constructing large-scale “green” energy storage facilities based on Battery Energy Storage Systems (BESS), with ACWA Power expected to take part in these projects.

European powerhouses

Germany and Italy currently lead the EU in operational battery capacity, with 2.76 GW and 1.95 GW, respectively. Ireland and Bulgaria, meanwhile, have the highest battery capacity relative to wind and solar generation, at 15% and 13.1% respectively.

“Although it’s still early, a substantial pipeline of battery projects is taking shape, and falling battery costs suggest this technology could scale up rapidly.”

The report also found that Italy could follow a path similar to California’s rapid expansion of battery deployment and reduced dependence on gas. In 2021, California had around 2 GW of grid-scale battery capacity — comparable to Italy — but this figure rose to 13 GW within four years. Over the same period, California’s share of fossil fuels in evening peak demand fell by 10%.

“If major solar and wind producers like Spain and Germany accelerate battery rollouts, this could curb both gas import costs and evening price spikes driven by use of gas power generators,” Petrovich told Recharge.

According to Petrovich, electricity generated from solar or wind power, stored in large-scale batteries and released during evening peak hours, can already be cheaper than power produced by the average EU gas-fired plant, potentially lowering wholesale prices during periods of high demand.

By Nazrin Sadigova