The pipeline of new gas-fired power plants in Europe is shrinking, and battery storage is filling the gap. Cancelled gas plant capacity doubled from 10.2 GW in 2023 to 20.6 GW, equivalent to roughly one-third of the capacity in planned new gas projects, according to data reported by RNAnews. Cost increases, permitting difficulties and construction delays are cited as the main drivers.

Belgium: Ringvaart switches from gas to BESS

The clearest example is in Belgium. Luminus abandoned a 235 MW gas plant expansion at Ringvaart because of permitting difficulties and has instead proposed a 100 MW/400 MWh battery energy storage system at the same site. The substitution keeps the grid connection and the land in productive use while removing the emissions and permitting exposure associated with new fossil capacity.

Romania: coal replacement plans stall

In Romania, two planned gas plants of 475 MW and 850 MW, both intended to replace coal-fired generation, have not been built. The larger project was cancelled outright. The operator is now aiming to develop 1 GW of storage across three industrial sites — a scale that would make it one of the more significant storage portfolios in Central and Eastern Europe.

Italy: Brindisi and La Spezia pivot to storage

Enel shelved the coal-to-gas conversion at Brindisi Sud and cancelled the planned La Spezia gas project. At Brindisi, Enel is developing a storage project that won capacity in Italy's first Macse storage auction in September 2025, with construction confirmed for spring 2026, and a 'Brindisi BESS 3' project has already been authorised.

At La Spezia, a 21 MW battery storage system has been operational since July 2024, and a second 193 MW system is under construction and expected to enter service in January 2027.

The economics favour storage — with caveats

A study by LCP Delta estimates that long-duration storage in Germany can contribute to security of supply with an average support need of about €31/kW per year, compared with almost €100/kW per year for gas plants. That gap explains much of the substitution now under way.

Policy design remains the main risk. Italy's revised 2028 Capacity Market derating coefficients reduce the recognised capacity for BESS: four-hour batteries receive 40% in the North and Centre-North, 51% in the Centre-South, and 21% in the South, Calabria and the islands, compared with 67% in the 2027 delivery auction. Developers can therefore face lower capacity revenues even as the underlying cost case improves.

Source: RNAnews

This article was assisted by AI analysis. Please refer to the original source for official information.