A supportive policy framework starts with “breaking barriers” to energy storage deployment

13 Jul 2023
13 Jul 2023 Discover the Campaign

Despite its immense potential, the deployment of energy storage technologies faces significant obstacles.

It is time for the Electricity Market Design to address double charges, and rethink capacity remuneration mechanisms and flexibility support schemes.

Renewable energies coupled with energy storage are crucial to successfully decarbonise the energy system and ensure energy security in Europe. Efforts are needed now for the EU to reach its ambitions. Estimates show that energy storage must rapidly double its current capacity to achieve the forecasted demand of 200 GW by 2030. Despite its immense potential, the deployment of energy storage technologies faces significant obstacles.

The revision of the Electricity Market Design provides an excellent opportunity to address these barriers, and the Energy Storage Coalition urges policymakers to take action by:

  • Setting a clear and precise framework that protects energy storage projects from double charges across the European Union.
  • Prioritising investments in cleaner capacity resources, which are essential for our supply security, by lowering the EU-wide carbon cap of the Capacity Market. Currently, it stands at 550g of CO2/kWh and should be reduced to net-zero by 2040.
  • Encouraging support schemes for energy storage and renewable energies, rather than for fossil-based energy solutions. 

In conjunction with its advocacy efforts, the Energy Storage Coalition has launched a communication campaign titled “Breaking Barriers: Enabling Energy Storage through Effective Policy Design.” The campaign aims to shine a light on three key barriers, enabling policymakers to design a policy framework that effectively supports energy storage:

The campaign focuses on three key barriers:

  • Double charges, which unreasonably hinder the deployment of energy storage projects;
  • The scope of Capacity Remuneration Mechanisms which still allows financial support to fossil fuel generators;
  • The inadequacy of flexibility support schemes for energy storage, which should be further encouraged and limited to non-fossil solutions.

By addressing these barriers and implementing supportive policies, policymakers can unlock the full potential of energy storage, fostering a cleaner and more sustainable energy future. The Energy Storage Coalition is dedicated to collaborating with policymakers to ensure the successful integration of energy storage technologies into our energy systems. Together, we can break down barriers and propel the energy storage industry forward.


Check out the Breaking Barriers: Enabling Energy Storage through Effective Policy Design campaign. 

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