Key facts
- The EU has agreed to expand its energy storage capacity to better utilize surplus renewable electricity.
- The deal aims to increase storage capacity to approximately 65 gigawatts by 2028.
- This capacity is intended to help meet rising electricity demand, reduce dependence on imported fossil fuels, and stabilize energy prices.
- The agreement seeks to ensure storage supplies cover around 10% of peak demand by 2028.
- 22 national governments have signed the agreement, with 17 submitting concrete commitments for new storage capacity.
Europe is intensifying efforts to expand its energy storage capacity, aiming to better manage surplus renewable electricity and meet growing demand. The agreement addresses the challenge of storing excess power generated by intermittent sources like solar and wind, which currently leads to wasted clean energy and reliance on fossil fuels.
The EU's storage capacity has lagged behind the increasing share of renewables, which reached 25.2% in 2024. This deficit forces the bloc to increase fossil-fuel generation to fill gaps when renewable output is low, undermining net-zero goals. The new deal aims to keep extra energy, ensuring a reliable supply, reducing dependence on imported fossil fuels, and stabilizing energy prices.
Key players include member states, financial institutions, clean energy producers, and energy-consuming industries. The International Energy Agency projects that consumption from AI and data centers will double by 2030, requiring constant power supply that storage can provide by utilizing daytime solar generation overnight. Electrification of transport and heating further increases demand, necessitating large-scale storage to balance the grid.
Negative electricity prices have become increasingly common due to surplus renewables and insufficient storage, with the EU recording 1,223 hours of negative prices in the first quarter of 2026. Storage solutions absorb excess power when prices are low and release it when demand rises, addressing this issue and reducing curtailment of renewable generation.
The agreement targets an increase in storage capacity to approximately 65 gigawatts by 2028, with EU countries adding 30-35 GW. This falls short of the 200 GW target set for 2030. The deal emphasizes market flexibility and the role of batteries as a key technology for rapid installation and scalability, potentially cutting power system operating costs by 55 billion euros annually.
Storage system and renewable energy developers will provide annual capacity estimates, while energy-intensive industries will develop on-site projects. Financial institutions will provide financing, with the European Investment Bank planning to expand its support for grid manufacturing and storage solutions. The European Commission will monitor progress and support decarbonisation efforts.
While 22 national governments have signed the agreement, it is not legally binding. Commitments vary by country, with Germany, the Netherlands, Greece, Finland, and Denmark expected to join by year-end. Meeting future targets will require accelerated permitting, new revenue streams, a predictable regulatory environment, and swift grid connection. Failure to meet storage targets could lead to increased reliance on gas, which sets electricity prices.