European Commission Reaches Ambitious Agreement to Accelerate Growth to 45 GW of Storage Capacity

On March 19, the European Commission decided to accelerate the rollout of renewable energy and energy storage to reduce dependence on the volatile fossil fuel market. Energy storage is seen as an essential part of the energy system: it supports the integration of renewable generation into the grid, contributes to more stable electricity prices, helps reduce grid congestion, prevents unnecessary grid expansion, and limits curtailment of renewable generation. The EU expects that approximately 200 GW of storage will be needed by 2030. To realize this potential, the Tripartite Agreement Various commitments have been set out. The document contains ambitious, voluntary commitments between member states, industry, project developers, banks, and EU institutions.

Ambitions Tripartite Agreement on Energy Storage

To strengthen the role of energy storage as a pillar of a renewable energy system, the European Commission aims to add at least 20% of additional storage capacity annually through 2028, compared to 2025 levels. This should result in 45 GW of additional storage capacity. Through PPAs between power generators and industry, the agreement is also expected to lead to 3 GW of additional storage and 1 GW of thermal storage. The European Commission is also strongly committed to co-located storage, with capacity set to grow from 9 GWh to 24 GWh by 2028.

Cooperation between member states, electricity-consuming companies, project developers, banks, and the European Commission should strengthen the collaboration among these parties by setting clear goals. In addition to setting targets, the EIB is allocating additional funds through the PPA pilot program and the Grid Package. The European Commission will also support member states in designing subsidies for energy storage and expedited state aid through CISAF, and intends to amend the grid codes to better support energy storage.

Strategic Roadmap to Accelerate Storage

It is important that these intentions be translated into concrete solutions for the bottlenecks that are currently delaying the implementation of storage. For example, the European Commission refers to the creation of ‘cost-reflective and non-discriminatory network tariffs.’ In the Netherlands, there is currently a risk that, with the introduction of the feed-in tariff, storage facilities will have to pay grid costs for both consumption and feed-in. A separate tariff category for storage, as proposed by the European Commission, would be an appropriate solution to this issue. In addition, it is essential that storage be given a clear role in newly developed instruments such as Contracts for Difference, the capacity mechanism, and flex tenders. Storage is no longer a standalone solution but a pillar of the energy system. This must also be reflected in these new instruments, for example by incorporating CO2 requirements or designing technology-inclusive conditions, so that storage can compete with fossil fuel sources. Support is particularly urgently needed for long-duration energy storage (LDES).

Turn good intentions into policy

Energy Storage NL welcomes the European recognition of energy storage as a crucial pillar of an affordable, reliable, and sustainable energy system. The call for member states to set national storage targets and remove barriers to storage is an important step forward. At the same time, further steps are needed, including concrete national solutions, improved market access, appropriate grid tariffs, and structural measures to strengthen the bankability of storage projects.

Energy Storage NL is eager to contribute to the strategic roadmap that will result from the Tripartite Agreement on Energy Storage, both for the Dutch implementation and for the design of instruments at the European level.