This report does not constitute a rating action. LONDON (S&P Global Ratings) Oct. 29, 2026--As Europe accelerates its transition to renewable energy, battery energy storage systems (BESSs) are emerging as a cornerstone of grid stability. However, the rapid scaling of this sector brings a unique set of credit challenges. In a Credit FAQ report published today, S&P Global Ratings examines the evolving BESS landscape, the risks and rewards of BESS investments, and the structural barriers to deployment. We also outline how we capture the risks and rewards of BESS investments in our analysis of rated European utility companies. See “ Credit FAQ: Risks And Rewards In The European Battery Energy Storage System (BESS) Market â€. Nuanced credit profiles: Stand-alone BESS