The smarter E Europe 2026 once again demonstrated the dynamic evolution of the energy industry. By bringing together Intersolar Europe, ees Europe, Power2Drive Europe, and EM-Power Europe, it unites four of the industry's key trade fairs under one roof. While previous years focused primarily on the market development of battery storage and economic feasibility, it became clear in Munich that the market has entered a new phase.
Discussions are increasingly revolving around scaling, grid integration, security of supply, and the industrial implementation of large-scale storage projects. After three intensive days at the fair, featuring numerous conversations with project partners, technology providers, and investors, we have identified five key trends currently shaping the industry.
One topic dominated almost every conversation: the trend toward increasingly large battery storage projects. While projects in the double-digit megawatt range were considered large just a few years ago, the focus is now shifting toward facilities with capacities of 200 MW and more.
There was particularly frequent discussion regarding storage projects at 380 kV grid nodes. The industry is increasingly focusing on sites with high grid relevance, where battery storage can play a vital role in grid stability, flexibility, and the integration of renewable energy in the future.
At the same time, system design is changing. While two-hour storage systems dominated in the past, projects with three- or four-hour storage durations are now being developed and discussed much more frequently.
Our take: The industry is increasingly thinking in larger dimensions—both in terms of power capacity and the potential applications for battery storage within the energy system.
The diversity of technology providers at the fair was greater than ever. Alongside established manufacturers, numerous new storage suppliers were present, preparing to enter the European market or expand their existing operations.
The momentum behind sodium-ion batteries was surprisingly visible. While this technology was primarily discussed as a future option in previous years, some market participants are now preparing for its market entry and commercial scaling. Even though lithium-ion batteries continue to dominate the market, the future trend of lithium carbonate prices, as well as scaling and drop-in effects in sodium-ion battery production, will be decisive for their medium-term market adoption.
At the same time, the energy density of these systems continues to rise. Another noticeable trend is the move toward integrated AC storage containers, which combine battery storage and inverters into a single system. This promises simpler installations, higher system availability, and more efficient maintenance.
Our take: The range of storage technologies continues to grow rapidly, and there is currently no sign of market consolidation among providers. Instead, new technologies and suppliers are driving further competition and innovation.
With the growing share of renewable energy—often from inverter-based systems—grid-supporting functions provided by battery storage are increasingly taking center stage.
There was a great deal of discussion surrounding so-called grid-forming capabilities. Notably, what was considered a key differentiator for individual providers just a few years ago is now presented as a standard feature by almost every major manufacturer.
The discussion is therefore shifting from whether a system can provide grid-forming properties to how these functions can be monetized in the future and integrated into regular operations. The efficient integration of battery storage is a crucial step toward making the energy system of the future less dependent on conventional power plants while ensuring affordability.
Our take: Providing system services, particularly for frequency stabilization via battery storage, is now well-established. What is new is the growing importance of grid-forming capabilities. While most systems have previously followed grid voltage and frequency (grid-following), there is an increasing expectation that storage systems will be technically capable of actively contributing to grid formation and stability. As a result, grid-forming properties are becoming significantly more important in technology selection and project planning, while also opening up new revenue streams for battery storage applications.
Whether on panels, at exhibition booths, or in conversations with investors and project developers, regulatory frameworks were once again among the most discussed topics at the trade fair. While the role of battery storage in a future energy system is recognized by all stakeholders, the focus is increasingly shifting to how the use of flexibility can be efficiently integrated into grid and system operations.
In particular, the regulatory and grid-side conditions required to successfully reach investment decisions were discussed in depth. For project developers and investors, it is crucial to have sufficient certainty to order components and thus implement projects on time.
We are observing two opposing trends here: On one hand, many market participants see positive signals in recent regulatory developments in Germany. The AgNes amendment is viewed industry-wide as an important step toward promoting the expansion of flexibility beyond 2029. However, the protection of legitimate expectations for projects scheduled to go into operation before August 2029 is putting stakeholders under pressure to make final investment decisions and purchase components quickly. Consequently, demand for critical infrastructure components, such as high-voltage transformers and substation capacities, is currently very high.
On the other hand, discussions surrounding Flexible Connection Agreements (FCAs) show that the integration of storage into secure grid operations still raises many questions for all stakeholders. Such unclear framework conditions have a direct impact on revenue forecasts and investment decisions. For investors and project developers, it therefore remains essential that contractually defined regulations remain robust in the future.
Our take: Discussions at The smarter E have shown that the storage industry is ready to keep pace with the expansion paths proposed by the Federal Network Agency in the NEP . Depending on the scenario for the target year 2037, the projected capacity corridors vary between 41 GW and 94 GW. The key now will be to create sufficient planning certainty for investments and to design the regulatory and grid-economic framework in such a way that the expansion of battery storage is not slowed down.
As battery storage systems grow in size and systemic importance, the requirements for their safety and reliability are also increasing. Accordingly, topics such as fire safety and cybersecurity were at the center of many conversations.
Cybersecurity is gaining importance, particularly regarding inverters and communication interfaces. Operators, investors, and authorities are increasingly prioritizing IT security, data sovereignty, and the protection of critical infrastructure. At the same time, fire safety remains one of the most important topics in the battery storage market. With project sizes increasing, safety concepts, technical standards, and permitting requirements are coming into sharper focus.
At the same time, the trade fair highlighted that international manufacturers are continuing to expand their European operations. Chinese suppliers, in particular, are increasingly focusing on European supply chains and local production sites for components such as inverters. This is driven not only by regulatory requirements, but also by the desire for more resilient supply chains and greater local value creation.
Our take: Competition among battery storage suppliers will no longer be decided solely by price and performance data. Safety, resilience, and trustworthy supply chains are increasingly becoming decisive factors in technology and investment decisions.
The discussions at The smarter E Europe 2026 confirm key trends that we are already seeing in our day-to-day work:
• Storage projects are becoming larger and more system-critical.
• Technological innovation remains high, while the importance of safety and quality continues to grow.
• Battery storage is increasingly becoming a central component for flexibility and stability in a renewable energy system.
• Efficient integration into grid and system operations is the decisive factor for the next phase of growth in the storage market.
• Germany remains one of the most attractive and dynamic storage markets in Europe.
The smarter E Europe 2026 impressively demonstrated that battery storage has long since become a cornerstone of the energy transition. The technological foundations are in place, the willingness to invest is high, and project sizes continue to grow. Now, it is primarily up to the regulatory framework to facilitate further expansion and consistently strengthen the role of battery storage in the future energy system. For Kyon Energy, this development opens up significant opportunities to actively help shape the transformation of the German energy system.
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