Europe risks leaving its renewables potential untapped and falling short in the global clean energy race and ultimately failing to meet its climate change goals. An EU-wide Energy Storage Action Plan might be that last critical step to cross the finish line.
Over the past five years, remarkable legislative and policy progress has been made at EU-level to enable the EU’s renewable energy transition, culminating with the reform of Electricity Market Design in 2024 which propelled renewable energy and flexibility deployment to the forefront of Europe’s energy policy. But as we approach critical targets for 2030 and with carbon-neutrality for 2050 in mind, there is no room for complacency.
Much like a marathon runner, Europe’s energy system must sustain its momentum to secure the ambitious goals of decarbonisation, energy independence, and economic competitiveness. Flexibility solutions and in particular energy storage – the linchpin of a renewable-based energy system – are at the heart of this challenge. Without these, Europe risks leaving its renewables potential untapped and falling short in the global clean energy race and ultimately failing to meet its climate change goals.
An EU-wide Energy Storage Action Plan might be that last critical step to cross the finish line.
We have had a good start
Europe has made tremendous strides toward its climate and energy goals. Renewable energy sources like wind and solar now account for a significant share of electricity generation, with renewable energy representing an unprecedented 44.7% of EU electricity production in 2023. This rise in renewable energy has led to a corresponding decline in fossil fuel-based generation – which decreased by 19.7% compared to 2022. The EU’s focus on decarbonisation has also fostered innovation in storage technologies, from thermal energy storage -to decarbonise and optimise industrial processes- to CO2 batteries that use the gas to fight climate change rather than cause it.
This progress reflects a shared commitment across Member States, supported by EU-level frameworks to encourage investment. The adoption of the Electricity Market Design Reform earlier this year marked a significant milestone. However, as we push forward, the next step must focus on scaling storage deployment to fully complement the integration of these renewable resources.
Why? Because if we ever want to achieve our energy and environmental objectives, we must see a massive increase in energy storage projects now. The European Commission’s Joint Research Centre estimates that flexibility requirements must double by 2030 and increase sevenfold by 2050 to accommodate the planned growth in renewables. Achieving this requires coordinated action to remove bottlenecks and send the right signals to investors.
Why we need to take steps for energy storage
Energy storage, alongside grid expansion and optimisation, is a key enabler of a resilient, renewables-based energy system. Indeed, as Commissioner Dan Jorgensen recently stated, success comes from “using all the tools in the toolbox”.
Storage allows renewable energy generated during sunny or windy days to be saved for later, ensuring a steady and uninterrupted low carbon power supply even when weather conditions fluctuate. Beyond this, energy storage helps decrease costs for consumers, stabilise the grid, reduces the need for expensive fossil-fuel backup systems, and minimises waste by capturing energy that would otherwise be lost. It is not just about efficiency; it is about building an energy system that is resilient, affordable, and sustainable for everyone.
Indeed, if we do not do enough for energy storage to support renewables, then it would mean keeping Europe’s reliance on imported fossil fuels, endangering its energy security. In turn, not moving from fossil fuels is a recipe for volatile energy prices already affecting households and EU competitiveness.
Meanwhile, investing in energy storage technologies strengthens Europe’s leadership in clean tech and innovation, creating jobs and positioning the EU as a global player in emerging storage markets. This aligns perfectly with the recommendations of the Draghi Report, which calls for massive investment in green and innovative industries to close the competitiveness gap with the U.S. and China. Accordingly, renewables and energy storage have also a central role to play in the incoming Clean Industrial Deal, the European Commission’s plan to strengthen and decarbonise the EU industry.
We need an action plan for energy storage, and we need it now
To fully realise these benefits, the Energy Storage Coalition is calling for an EU Energy Storage Action Plan to address barriers and accelerate deployment. Such a plan would complement existing initiatives like the RePowerEU Plan and build on the progress made under the Electricity Market Design Reform.
Key priorities for the action plan should include:
- Ensuring harmonised rules across the EU by guiding authorities on how to use available tools together and by enforcing critical existing rules, such as one-stop-shops for permitting & grid connection rules.
- Creating dedicated market incentives that reward the flexibility and resilience storage brings to the grid.
- Prioritising energy storage at national level in capacity markets & launching dedicated auctions for energy storage and flexibility solutions.
- Setting a fair framework for network charges and levies to avoid hurdles such as double-charging of energy storage.
- Monitoring energy storage growth in the National Energy & Climate Plans
Do not slow down before the finish line
Europe has come a long way in its clean energy journey, but the path ahead remains challenging. The risks of slowing down now are clear: stalled renewable deployment, rising energy costs, and a loss of global competitiveness.
By acting swiftly and decisively, Europe can bridge the gap between ambition and action, ensuring that its energy system is not only sustainable but also resilient, competitive, and future-proof. We must not slow down now – because in the race for clean energy leadership, there is no second place.
