To achieve the EU’s climate and energy targets, decarbonise the energy sector and bolster Europe's energy security, our energy system needs to undergo a profound transformation.
The rapid deployment of a hugely increased share of variable renewable energy sources will require more flexibility, allowing the energy system to adapt to the changing needs of the grid and manage the variability and uncertainty of energy supply and demand.
At any moment in time, the consumption of electricity has to be perfectly matched with the generation of electricity. This balance is necessary in all electricity grids to maintain a stable and safe supply. Flexibility solutions can adjust demand and supply by allowing excess electricity to be saved in large quantities over different time periods.
Besides being an important flexibility solution, energy storage can reduce price fluctuations, lower electricity prices during peak times and empower consumers to adapt their energy consumption to prices and their needs. It can also facilitate the electrification of different economic sectors, notably buildings and transport.
Monitoring EU energy storage progress and competitiveness
The main energy storage method in the EU is by far 'pumped storage hydropower', which works by pumping water into reservoirs when there is an electricity surplus in the grid - for example on a sunny or windy day - and releasing it when more energy is needed. In terms of other energy storage solutions, battery storage projects are rising and a variety of new technologies to store energy are also rapidly developing and becoming increasingly market-competitive.
Since 2020, the Commission publishes yearly progress reports on the competitiveness of clean energy technologies that present the current and projected state of play for different clean and low-carbon energy technologies and solutions. The 2025 report highlighted the urgent need to quickly deploy more energy storage infrastructure across the EU.
In March 2025, the Commission launched the European Energy Storage Inventory, a real-time dashboard that displays energy storage levels across different European countries. It is the first European-level tool of its kind and offers energy storage data across a full range of technologies.
Recommendations and guidance
A Commission Recommendation on energy storage (C/2023/1729) was adopted in March 2023. It addresses the most important issues contributing to the broader deployment of energy storage.
The Recommendation was accompanied by a Staff Working Document (SWD/2023/57) which looked at the role and application of storage in the energy transition, emphasising the need for flexibility, reliability and stability. It also provided some global outlook for storage deployment and an overview of best practices.
The key facts on energy storage illustrate where there is a need for increased flexibility in the electricity system and what we are aiming to achieve by 2030 and 2050 respectively.
EU initiatives on batteries
Global demand for batteries is growing rapidly, given their capacity to integrate more renewables into our energy systems and to 'green' the industry and transport sectors, with spill-over effects for the electrification of other sectors.
The costs of battery storage have gone down by 93% between 2010 and 2024, according to the International Renewable Energy Agency (IRENA).
The Batteries Regulation (EU/2023/1542) entered into force on 17 August 2023 to ensure that batteries are collected, reused and recycled in EU. Starting from 2025, the new rules gradually introduce declaration requirements, performance classes and maximum limits on the carbon footprint of electric vehicles, light means of transport (such as e-bikes and scooters) and rechargeable industrial batteries. Starting in 2027, consumers will be able to remove and replace the portable batteries in their electronic products at any time of the life cycle.
The comprehensive governance framework of the energy union and the strategic action plan on batteries (annex 2 to the Communication on sustainable mobility for Europe (COM/2018/293)), were important steps to help build a globally integrated, sustainable and competitive industrial base for batteries in the EU. The progress made was evaluated and summarised in the Commission report on the Implementation of the Strategic Action Plan on Batteries (COM/2019/176).
Batteries Europe and batteries research
Batteries Europe, launched in 2019, is the technology and innovation platform of the European Battery Alliance, run jointly by the Commission and stakeholders in the battery industry.
It includes a wide representation of stakeholders and has a well-defined governance structure, including 6 thematic working groups, which build on the previous work of the Strategic Energy Technology Plan (SET Plan) 'action 7 on batteries', focused on competitiveness in the global battery sector.
Most of the new EU collaborative research projects on batteries are taking place under the BATT4EU Partnership, with €925 million earmarked for 2021-2027. A number of EU countries have also teamed up for 'Important Projects of Common European Interest' on batteries research and innovation.
Documents
Related links
- Commission Recommendation (C/2023/1729) | News: Commission recommendations on how to exploit the potential of energy storage (March 2023)
- Batteries Regulation (EU/2023/1542)
- News article: In focus: Supercharging the transition with energy storage solutions (September 2025)
- International Renewable Energy Agency: Battery Energy Storage Systems: Key to Renewable Power Supply-Demand Gaps
- EnTEC study on energy storage (March 2023)
- Hydrogen
- SETIS – SET plan information system
- Batteries (DG Environment)
- Energy storage (DG Research and Innovation)
- European Energy Storage Inventory | JRC SES
- European Battery Alliance (DG for Internal Market, Industry, Entrepreneurship and SMEs)