This report does not constitute a rating action. Battery energy storage systems (BESSs) are rapidly becoming essential to the European energy transition. As renewable power sources expand, BESSs are critical, both as stand-alone assets and as a means of hybridizing renewable energy plants. Battery storage increases the number of hours during which intermittent renewable energy sources like solar and wind can continuously supply electricity to the grid. This supports grid stability, reduces fluctuations in generation, and even mitigates negative power pricing (see"Greening Up Without Blackouts: Boosting European Power Grids'Resilience May Dent Credit Quality ,"July 2, 2025). Europe's need for greater power-system flexibility was apparent during this summer's extreme heatwaves. Solar generation across the EU and U.K.
