Insights

Q3 2025 marked sustained yet complex growth in the Energy Storage and Grid sector. Record BESS deployments, particularly in the U.S, were offset by policy uncertainty, trade tensions and challenging investment conditions for technology providers from outside of Asia. Nonetheless, there is excitement around the huge demand opportunity that datacentres and AI will bring for Energy Storage and the continued emergence of longer duration storage technologies.

Market Trends

• Grid-scale storage in Europe expanded rapidly, especially in Italy, Germany, and the UK, driven by high renewable penetration and growing flexibility needs. This is dominated by grid-scale projects but the investment cases are growing for C&I as behind-themeter revenue opportunities increase across Europe.
• Long-duration energy storage (LDES) technologies gained traction, with Italy’s 10 GWh MACSE auction, 77 UK projects
  progressing under the cap-and-floor mechanism, and Google partnering with Energy Dome to decarbonise operations.
• Energy security and supply chain resilience remain key priorities. Governments are pushing for local manufacturing to reduce reliance on Chinese imports, though competitiveness and financing challenges persist.
  • Grid constraints continue across several markets. The UK’s NESO reforms aim to ease connection bottlenecks, and following Iberian blackouts, Spain increased its grid investment cap by 62% and Portugal committed €400M investment, and German policy changes could remove fee exemptions for storage between 2026-2029, threatening project viability.
• In the U.S., record BESS deployments in California, Texas, and Arizona contrasted with new policy uncertainty stemming from the “One Big Beautiful Bill Act” (OBBBA) and “Foreign Entity of Concern” (FEOC) regulations.
• The AI revolution energy demand is accelerating large-scale BESS adoption for utilities and IPPs, as datacentres require faster, more flexible clean power solutions.
• AI-driven forecasting, optimisation, and trading tools are becoming essential for maximising storage asset performance and
  returns.

Talent Trends

In Q3, hiring shifted toward project execution, new-market expansion and supply chain resilience. Demand increased for:

• Project Engineers and Managers – delivering large-scale deployments.
• Territory Expansion Leaders – establishing new country or regional operations.
• Grid Managers – navigating evolving regulatory and connection landscapes.
• Asset Optimisation Specialists – maximising returns from complex BESS portfolios.
• Supply Chain Leaders – securing and stabilising battery and component supply.

Key Deals

• Fidra Energy reached financial close on the UK’s largest BESS project (Thorpe Marsh) totalling over L1Bn in equity and debt financing.
• The EU Commission pledged €852M in battery manufacturing grants.
• The UK’s National Wealth Fund, Equitix, and Aware Super (two private investment firms) invested L500M in Eelpower’s grid scale projects.
• Sympower and Suena raised €27M combined to accelerate the rollout of their BESS optimisation and flexibility software.
• FlexGen acquired Powin’s IP and key assets following bankruptcy.
• Lyten acquired all remaining assets of Northvolt, including gigafactories and IP valued at approximately $5 billion.

You can read, download and share our  full Q3 Cleantech Market & Talent Review here: Hyperion Market Reviews