The latest EU energy storage subsidy policy document

How many energy subsidies were introduced in 2021-2022?

In 2021-2022, energy subsidies linked to new national measures to protect EU consumers from the high prices accounted for an estimated EUR 195 billion. Across the EU, at least 230 temporary national measures were introduced to address the energy price crisis.

How much do energy subsidies cost in the EU?

Total energy subsidies in the EU rose from EUR 177 billion in 2015 to EUR 216 billion in 2021, to reach an estimated EUR 390 billion in 2022. The trend of decline in fossil fuel subsidies continued until 2021, when they were at EUR 56 billion, before increasing rapidly to an estimated EUR 123 billion in 2022 in response to the crisis.

What does the European Commission say about energy storage?

The Commission adopted in March 2023 a list of recommendations to ensure greater deployment of energy storage, accompanied by a Staff Working Document, providing an outlook of the EU's current regulatory, market, and financing framework for storage and identifies barriers, opportunities and best practices for its development and deployment.

How is the EU preparing for the winter 2023-2024?

Ahead of the winter 2023-2024, the EU is better prepared to ensure its energy security, thanks to well-coordinated actions to fill gas storages, diversifying energy import routes and infrastructure, investments in renewable energy and energy efficiency, and collective efforts to reduce energy demand.

How have energy subsidies impacted energy consumption?

The recent spike in energy prices has also affected the types of measures used to provide the subsidies and technologies promoted by subsidies, leading to a significantly increase in fossil fuel subsidies since 2022 to mitigate the high energy bills among consumers. These increased energy subsidies did not lead to more energy consumption.

Why is energy storage important in the EU?

It can also facilitate the electrification of different economic sectors, notably buildings and transport. The main energy storage method in the EU is by far 'pumped hydro' storage, but battery storage projects are rising. A variety of new technologies to store energy are also rapidly developing and becoming increasingly market-competitive.