Energy storage: how can we complete the EU Energy Union?

Energy underpins every productive activity and is one of the main factors of economic and social well-being. The cost and security of supply shape business competitiveness, household disposable income and society’s overall resilience. Successive geopolitical shocks have brought the strategic importance of energy policy into sharper focus, placing it at the heart of European sovereignty, economic security and social stability.

This strategic dimension is becoming even more important as Europe accelerates the transition towards an energy system increasingly powered by renewable sources, led by wind and solar. Yet realising the full value of this clean energy requires a system capable of absorbing, transporting, storing and delivering it where and when it is needed. Storage is key: it turns variable generation into readily available power, curbs renewable energy curtailment, relieves grid congestion, smooths price fluctuations, lowers balancing costs and strengthens security of supply.

This is the case advanced in our EESC opinion on Energy storage, which recognises it as crucial infrastructure for a sovereign, affordable and resilient European Energy Union. 

Priorities

Translating this into a coherent European policy requires a strategy based on four clear priorities.

Firstly, an integrated European framework. Storage sits at the intersection of infrastructure planning, market design, industrial policy, the circular economy, cybersecurity, skills and social cohesion. Its systematic integration into National Energy and Climate Plans, ten-year network development plans and cross-border energy planning can align investment in generation, storage and grids. Common indicators for flexibility, adequacy and resilience would also provide a clearer picture of the needs of each Member State and a sound basis for planning the necessary measures.

Secondly, a complementary technology portfolio. Storage needs vary by duration, scale and function, making system resilience dependent on a mix of solutions. Batteries provide rapid response, peak management and intraday balancing. Pumped hydropower offers mature, large-scale, long-duration storage, with high local added value and a long operating life. Thermal storage supports industry, buildings and district heating, while renewable hydrogen is relevant where direct electrification is difficult and for selected long-duration uses. Microgrids, smart meters and bidirectional electric-vehicle charging unlock demand-side flexibility and strengthen the role of citizens and businesses. Technology choices should reflect each solution’s system contribution, cost, efficiency, duration, geographical suitability and environmental footprint. 

The third priority is a stable and coherent investment and regulatory framework. Storage creates value across the energy system, from balancing and capacity adequacy to easing grid congestion and providing ancillary services. Its viability therefore depends on combining revenues from multiple markets and services. Clear rules, predictable revenue streams, equal market access, coherent tariff treatment and faster permitting can mobilise substantial private capital. Strategic public planning, EIB financing, long-term investment models, regulated returns and partnerships among public authorities, businesses and energy communities can then direct investment to the infrastructure and regions where it is most needed for the system’s secure and efficient operation.

The fourth is stronger European industrial capacity. The expansion of storage is creating a fast-growing market for batteries, power electronics, software, pumped-storage hydropower projects, thermal storage systems, hydrogen equipment and digital services. A coherent European manufacturing strategy can connect research and innovation with industrial production, technological development and the skills required across the value chain. Diversifying sources of supply, securing access to critical raw materials, and reusing, repairing and recycling materials and equipment can support a more circular, resilient and competitive industrial model.

The social and territorial dimension

The social and territorial dimension is equally central. Storage can contain system costs, shield households and businesses from price volatility, create high-quality jobs and support regions in transition. Its role is especially important for islands and remote areas. The new EU Strategy for Islands links resilience with energy security, autonomy and decarbonisation, while its inclusion in recent European Council conclusions raises the profile of island-specific needs on the EU agenda.

From planning and technological diversification to the investment framework, industrial capacity and social and territorial cohesion, all these priorities converge on the same imperative: turning clean energy into reliable, readily available and affordable power. Storage enables Europe to use the energy it produces more effectively, strengthen its competitiveness and resilience, and consolidate its strategic autonomy. This is the political message of our Opinion: a European Energy Union capable of delivering energy where and when it is needed, while upholding energy sovereignty, economic security and social justice.

By Kostis Moussouroulis, EESC Employers' Group member and Co-rapporteur of Opinion TEN/875 Energy storage as systemically important infrastructure for a sovereign, affordable and resilient European Energy Union.