Europe Makes Big Energy Storage Push

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The European Commission (EC) has rallied energy ministers, energy storage and renewable energy companies, alongside industrial users and financial institutions to turbocharge the rollout of energy storage solutions.

Energy Storage Drive

The European Commission (EC) has signed its first ever tripartite agreement on energy storage between European Union (EU) Member States, financial institutions and industry that will boost installed capacity by more than 30 gigawatts (GW) over the next two years. The EU Tripartite Agreement on Energy Storage aims to more than triple the region's 12 GW of energy storage installed in 2025 to 45 GW by 2028. 

Twenty-two Member States have committed to ambitious pledges for energy storage over the next two years, which combined account for between 30 and 35 GW of new storage capacity. According to Industrial Info Resources data, there are more than 1,800 battery energy storage system (BESS) projects in Europe worth more than US$152 billion in investment. Almost half of planned European energy storage investment is targeted at the U.K., which is no longer in the EU. Within the EU, the largest markets are Germany, Greece and Italy. 

The Missing Link

Increasing energy storage in Europe has become a matter of urgency according to the EC, especially in light of the global fuel crisis caused by U.S. and Israeli military attacks against Iran. Announcing the agreement, it stated that "energy storage is the missing link of the energy transition and can play a key role in lowering and stabilising energy prices". It added that while the EU needs to expand homegrown renewables to reduce its dependency on "volatile fossil fuel markets and strengthen security of supply, increasing renewable energy alone is not enough." It needs to be optimised with the way the energy system works, and in this framework, "storage is essential." It added that the deal will "help create a favourable business environment for scaling up storage quickly and at scale across Europe," while also reducing system operating costs, reducing EU businesses' exposure to volatile high energy prices and growing the storage manufacturing sector. Member States have agreed to work to remove regulatory hurdles to speed permitting while also providing financial support for projects alongside financial institutions. 

Industry Support

Trade association Energy Storage Europe welcomed the deal. "Today's Tripartite Agreement for Energy Storage is the most comprehensive political recognition of energy storage at EU level to date," said Patrick Clerens, secretary general. For the first time, the European Commission, Member States, financial institutions and industry are brought together around a common short-term agenda for storage deployment."

However, it highlighted existing issues that need to be addressed. The key one is that "storage still faces fragmented rules across electricity markets, grid connection, tariffs, permitting and finance. Existing EU funding instruments do not yet provide a genuine level playing field for storage, including where it is essential to wider decarbonisation, electrification and resilience projects. This must change." Clemens added. "The sector is calling for a set of Strategic EU Actions to Accelerate the Deployment of Energy Storage. Building Europe's energy autonomy will require a coordinated programme of regulatory, financial and industrial measures that remove the barriers to deploying storage at the speed and scale Europe requires."

A Big Task

It is estimated that the EU requires around 200 GW of storage capacity by 2030 to meet the needs of its energy system, compared with around 55 GW installed at the beginning of this year. The EC noted that "achieving this objective will require a substantial acceleration of different storage technologies, coupled with renewables and other sources of non-fossil flexibility". Dan Jørgensen, Commissioner for Energy and Housing

Energy: "Energy storage is the missing link in the clean energy transition. Through tripartite agreements, we are proposing an innovative model that unites industry and the public sector. As Europeans, we believe that this type of cooperation in key strategic sectors is essential to make energy cleaner, more affordable and to enhance our competitiveness and economic resilience. Certainty and project visibility is key for investors. And this is exactly what we are delivering with our first tripartite agreement."

Key Takeaways

• The European Commission (EC) wants to boost energy storage by more than 30 gigawatts (GW) over the next two years.
• The EC has signed its first ever tripartite deal with industry players, EU Member States and financial institutions to accelerate rollout.
• Industrial Info Resources data is tracking more than 1,800 battery energy system storage (BESS) projects in Europe worth more than US$152 billion in investment.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).