Europe is directing billions of euros towards electricity-storage projects
in an effort to integrate renewable generation, stabilise power grids and
reduce dependence on expensive gas-fired plants during peak-demand periods.
The strategy could lower system costs—but only if governments support the
right technologies in the right locations.
Since September 2022, the European Commission has authorised national
support schemes in Greece, Hungary, Italy, Bulgaria, Czechia, Spain,
Romania and Slovenia. Together, the approved measures represent more than
€21 billion in State aid for electricity-storage facilities and systems.
Batteries can respond within milliseconds, absorb surplus renewable
electricity and release it during the most expensive hours of the day.
Their rapid deployment makes them attractive to governments seeking
immediate flexibility. Yet short-duration batteries cannot provide the
same strategic protection as gas storage, oil stocks or technologies
capable of retaining energy for several days or entire seasons.
Lower Peak Costs, but New Strategic Risks
Poorly designed support schemes may overcompensate operators, subsidise
projects in unsuitable locations or favour technologies that provide only
a few hours of discharge when the system needs longer-duration resilience.
They may also deepen Europe’s dependence on imported battery cells,
components and raw materials.
The central policy question is therefore not whether Europe needs more
storage. It is whether public support is buying the flexibility, duration
and security that national and European electricity systems actually need.
Energy Storage · State Aid
Is Europe Subsidising the Right Storage?
Read the full analysis of the costs, benefits and industrial risks of
Europe’s rapidly expanding battery-support programmes.
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