Executive Summary
- Britain has been named one of Europe’s most attractive co-location investment markets, according to a new analysis from Aurora Energy Research
- Substantial installed capacity, alongside a CfD-backed pipeline that helps offset grid connection delays, were cited as key for Britain’s potential, with 550GW of renewable storage capacity awaiting grid connection
- Hybrid PPAs ‘remain nascent but are gaining traction’, Aurora added
Germany, Great Britain, and Bulgaria have been named Europe’s best co-location investment markets by Aurora Energy Research.
The analyst’s latest European Co-Location Markets Attractiveness Report, which covers 20 regions, outlines where co-location is already viable, and how investors can optimise assets amid tightening grid constraints and rising market volatility. Alongside the three leaders, Spain, Hungary and France are seen as key markets to watch, with recent ongoing regulatory changes and reforms cited.
Europe’s co-located renewable capacity hit 6.3 GW in 2025, led by solar-plus-storage, representing more than 60% of deployments. More than 1,600 GW of renewable storage capacity is awaiting grid connection across Europe, including 550 GW in Britain alone.
Germany secured first place with its market size and significant rate of return upside potential relative to a standalone project. Britain and Bulgaria share the silver medal; Britain ‘benefits from substantial installed capacity and a CfD-backed pipeline that helps offset grid connection delays’, Aurora notes. Bulgaria, meanwhile, has a combination of ‘strong subsidies, a robust pipeline, and favourable economics’ to its advantage.
One area of interest was with regard to hybrid power purchase agreements (PPAs), which ‘remain nascent but are gaining traction’, Aurora notes. Spain currently leads activity, but contracted capacity is also emerging in France, Britain, and Bulgaria. The hybrid PPA market ‘gained clear momentum’ last year with more than 700MW contracted.
“As renewable penetration accelerates, grid congestion, curtailment, and price volatility are becoming defining features of Europe’s power markets,” said Sameer Hussain, research senior analyst at Aurora Energy Research. “Co-location is no longer a niche solution: it is increasingly critical to protecting project economics and sustaining investment momentum.”
In February, as Electrical Insight reported, Britain was ranked the second most attractive battery market in Europe by Aurora, behind only Germany.
