Part 2: Energy storage and flexible plant outlook to 2040 Europe's big-5 power markets (France, Germany, Great Britain, Italy and Spain) are in the process of decarbonisation. We expect variable renewable energy (VRE; wind and solar PV generation) to lead this process, making up the largest proportion of power generation capacity by 2023. This brings about a power supply-demand balancing challenge that most existing assets were not designed for. Therefore, we expect a flexibility market for new, more capable assets to flourish. In this two-part study we provide an outlook for energy storage and flexibility resource to 2040. In this Part 2, using our European power dispatch model alongside economic models, we complete our flexible asset outlook. There is a focus on the role of gas peakers and energy storage, and how they will compete for market share.