Trade association Energy Storage Europe has welcomed the European Commission’s proposed Industrial Accelerator Act, but warned that parts of the legislation could unintentionally slow the deployment of battery energy storage systems unless significant changes are made.
In a new position paper published in May, the Brussels-based association said it supports the Act’s wider aims of strengthening European industrial capacity, accelerating decarbonisation and creating stronger lead markets for clean technologies. However, it argued that the current draft does not sufficiently recognise the differences between stationary battery energy storage systems (BESS) and electric vehicle battery supply chains.
The European Commission unveiled the Industrial Accelerator Act (IAA) on 4 March as part of a broader “Made in Europe” industrial strategy intended to reduce dependence on foreign manufacturing and support domestic production of strategic technologies including batteries, solar PV and other net-zero technologies. Measures in the proposal include local-content requirements in public procurement and subsidy schemes, streamlined permitting rules and tighter conditions on foreign investment in strategic sectors.
Industrial Accelerator Act requires “targeted legislative corrections”
Energy Storage Europe said the legislation needs “targeted legislative corrections” to avoid harming the rapidly expanding storage sector. In particular, the group called for greater legal clarity around the definition of BESS and clearer distinctions between procurement schemes and other forms of support. It also warned against introducing stringent Union-origin requirements too quickly.
The association said measures intended to support Europe’s strategic autonomy “must not deter the non-EU investments needed to build EU manufacturing capacity”. It also argued that the energy storage value chain differs fundamentally from that of battery electric vehicles, meaning policy mechanisms designed for automotive batteries may not work effectively for stationary storage applications.
Energy Storage Europe had already expressed concerns when the IAA was first published in March. Aurélien Ballagny, senior policy officer at the association, said at the time that any Union-origin requirements for batteries “must be gradual” to allow time for European industrial capacity to develop and to avoid increasing costs or slowing renewable energy deployment.
The organisation nevertheless welcomed measures designed to accelerate permitting and manufacturing. Alberto Gasparato, junior policy officer at Energy Storage Europe, said the proposed creation of industrial “acceleration areas”, single permitting procedures and simplified approval systems would benefit both manufacturing and deployment of storage technologies.
The debate around the IAA reflects wider tensions within Europe’s clean-tech industrial strategy. Industry groups including SolarPower Europe have broadly welcomed the Act as a major shift towards European industrial preference policies, while critics and trading partners including China have accused Brussels of moving towards protectionism.
The proposed legislation will now move into negotiations between the European Parliament and EU member states, where industry groups are expected to push for amendments before the final text is adopted.
Photo: the EU flag, and flags of the bloc’s constituent nations, flying outside the European Parliament in Strasbourg by Antoine Schibler on Unsplash
