The European Commission introduced the Net-Zero Industry Act on Thursday to scale up manufacturing of clean technologies in the EU, including batteries and energy storage.
It said the proposed legislation covers technologies that will make “a significant contribution” to decarbonisation. These include batteries and storage, as well as solar photovoltaic and solar thermal, onshore wind and offshore renewable energy and many more.
The European Association for Storage of Energy said the proposed Net-Zero Industrial Act is “encouraging” as not only batteries, but all energy storage is included as a net-zero strategic technology.
“But if the European Union aims to attract capital investment, an EU-wide energy storage strategy is needed,” it said.
European Union proposes boost to energy storage
The European Union proposed a boost to energy storage in place of fossil fuels, a move welcomed by the industry. In proposals – to be agreed by the European Parliament and Council – the European Commission said on Tuesday technologies can provide the energy system with the necessary flexibility for “a decarbonised and secure EU energy system”.
Energy storage in particular can provide diverse services at different scales and timeframes, it said, saving costs, and providing stability and reliability.
The European Association for Storage of Energy welcomed the proposals. In a statement, it said: “It is incredibly positive that the European Commission has decided to improve capacity markets, design flexibility support schemes, introduce national flexibility objectives, and encourage Power Purchase Agreements.
“Historically, capacity mechanisms have provided long-term, lucrative contracts almost exclusively to fossil gas turbines under the justification of energy security. Russia’s invasion of Ukraine has demonstrated that relying on fossil fuel imports has detrimental consequences on security of supply,” it said.
The proposals showed political commitment and now an energy storage strategy is needed, it added.
The Commission’s proposals to member states:
- Take into account the double role (generator-consumer) of energy storage when defining regulatory frameworks
- Identify the flexibility needs of their energy systems and assess manufacturing capacity needs
- Assess energy system flexibility needs and whether energy storage can be a more cost effective alternative to grid investments
- Identify potential financing gaps
- Explore whether energy storage services are sufficiently remunerated
- Consider competitive bidding processes
- Remove barriers to the deployment of demand response and behind-the-meter storage
- Accelerate deployment of storage facilities etc. on islands, remote areas and outermost EU regions
- Publish detailed data to facilitate investment decisions on new energy storage facilities
- Continue to support research and innovation in energy storage.
- 2,407MW of battery capacity is already operational,
- a further 49,420MW is in the pipeline (2,486MW under construction, 15,204MW consented awaiting construction to commence, 16,674MW submitted for approval awaiting a decision, and 15,055MW at the pre-planning application stage).