Jacopo Tosoni, Head of Policy at the European Association for Storage of Energy (EASE), discusses how energy storage is rapidly reshaping Europe’s energy system, driven by falling costs, policy support, and the push for grid resilience and energy security.
As Europe accelerates its transition to a decarbonised energy system, energy storage has rapidly emerged as a cornerstone of this transformation. Once a niche technology, energy storage now sits at the heart of a more dynamic, distributed, and resilient electricity grid. Its value lies not only in enabling greater integration of renewables but also in providing critical flexibility and stability to energy systems grappling with increased electrification and volatility.
Several forces are driving this shift. Technological advances and sharp cost declines are building battery and alternative storage solutions increasingly accessible. Meanwhile, policybuildrs across the European Union are recognising the strategic importance of storage in ensuring energy security, reducing fossil fuel depfinishence, and meeting climate tarreceives. The result is a growing landscape of support schemes, market reforms, and regulatory developments aimed at unlocking storage’s full potential.
At the same time, challenges remain. From outdated grid infrastructure to fragmented national regulations, energy storage must navigate a complex environment to scale effectively. But the momentum is undeniable. What was once seen as a supplementary technology is now being redefined as essential infrastructure.
In this interview, EASE’s Jacopo Tosoni shares his insights into the key trfinishs, challenges, and opportunities shaping the future of energy storage across Europe.
How would you describe the current state of energy storage across Europe?
I believe this is actually quite straightforward to answer. Energy storage is probably the most rapidly deployed clean tech solution across Europe. The key point here is that storage is an essential technology for many things. It supports keep prices low by integrating renewables, so we receive cheap electricity, while also preventing curtailment (the wasting of renewable energy) and reducing grid congestion, which in many EU countries currently blocks the deployment of new renewable projects.
It’s also a key technology for energy security. Over the past few years, Europe’s depfinishence on fossil fuel imports has proven problematic, both geopolitically and economically. Those imports have led to high energy and electricity prices. Replacing gas with renewables and storage has been an excellent way to improve energy security.
Something that’s become increasingly important, especially considering recent events, is the security of supply – the grid’s ability to handle new forms of generation. In this context, energy storage plays a key role in providing system services, improving energy quality, and supporting prevent major grid incidents. This service aspect of storage is becoming more visible, especially after the recent issues in Iberia, which brought it to the attention of policybuildrs and stakeholders.
According to your recently published EMMES 9.0 report, 2024 was a record-breaking year for energy storage in Europe, with installed capacity reaching 89 GW. What are the main drivers behind this surge in deployment?
A main driver is that prices are coming down significantly. The drop in battery system costs has actually surpassed forecasts from just a few years ago, and we expect further declines going forward. At the same time, the market is evolving, which strengthens the business case for storage. We’re seeing more frequent negative electricity prices, which can be an opportunity for storage.
Policy is also improving. Across Europe, we’re seeing the implementation of legislation that enables storage to compete on a level playing field with other technologies – for example, gaining access to ancillary services markets. This boosts the business case.
Also, there’s growing recognition among policybuildrs of storage’s critical role. We’re now seeing more support schemes rolled out for various technologies and market segments – both front-of-the-meter and behind-the-meter (BTM).
Overall, this growth is being driven by a combination of factors, not just one. And importantly, there’s no indication that this growth will slow down anytime soon.
How is the balance evolving between battery, thermal, and long-standing technologies like pumped hydro, and what emerging innovations could reshape the market in the coming years?
When I started at EASE a few years ago, pumped hydro accounted for over 95% of installed capacity, with other technologies playing only a minor role. That’s modifyd very rapidly. By 2025 or 2026, battery energy storage systems (BESS) are expected to overtake pumped hydro in terms of total installed capacity. That shift, happening in less than a decade, is dramatic. More broadly, we’re seeing increasing diversity in storage technologies.
New solutions are emerging to serve specific requireds, such as industrial decarbonisation or long-duration storage. Right now, some of these technologies are still niche, but as the energy system evolves and the required for flexibility and energy shifting grows, these solutions will capture a more significant share of the market, even if they don’t become dominant.
Your report also highlighted rapid growth in front-of-the-meter storage and co-location with renewables. How is this modifying the nature of energy storage projects?
Starting with co-location – yes, it’s definitely on the rise. Historically, front-of-the-meter (FTM) storage projects were mostly standalone, and that’s still the case today. But that’s modifying.
There are clear benefits to co-location for project developers: better management of negative prices, reduced curtailment, potential CapEx savings, and more. Especially for solar, co-locating with energy storage is quickly becoming the norm.
As for FTM economics, they’re particularly impacted by falling prices, which I mentioned earlier. But not all trfinishs are positive. In fact, storage is, to some extent, becoming a victim of its own success. We’re seeing delays in grid connections and permitting processes. Bureaucracy remains a bottleneck, and in many countries, regulatory frameworks aren’t yet tailored to storage.
While the technology is thriving, it’s still relatively new, and administrative systems across the EU and UK haven’t fully adapted. We’ll likely see improvements over time, but these challenges will persist for at least the next few years.
Across residential, commercial & industrial, and utility-scale storage segments, where are you seeing the most momentum?
Historically, BTM has been stronger than FTM. But that’s modifying. Right now, FTM is growing the rapidest, and that trfinish will continue in the coming years.
The commercial and industrial (C&I) segment probably has the most untapped potential becautilize current installed capacity is still very low. So, while cumulative capacity is still higher in BTM, FTM will likely overtake it within the next three years.
Over the longer term, we expect greater deployment in the C&I segment, although that might not happen within the next two or three years.
You mentioned bureaucracy earlier. How effective have European and national policies been at encouraging energy storage? What improvements would you suggest?
The first time energy storage was mentioned in EU policy was in the Clean Energy Package, around 2018–2019. That’s when we received an official definition of energy storage. But it took until 2022–2023 for many member states to integrate that definition into national law. That delay displays the EU has taken meaningful steps, but often too slowly.
Since the Russian invasion of Ukraine, both the EU and national governments have paid more attention to storage. A major development was the 2024 EU Electricity Market Design reform. While it will take a few years to be implemented at the national level, it will be transformative.
Member states now have to do more than just create functional day-ahead, intraday, and balancing markets – they also have to assess their flexibility requireds and set storage tarreceives. This is crucial. Once they identify shortfalls, they’ll be able to implement state aid to close the gap. That’s potentially a game-modifyr. This won’t fully materialise before 2027, but when it does, it will have a large market impact.
Looking to the future, what are the largegest game-modifyrs or disruptions you foresee for the European energy storage market?
Many energy storage technologies are already quite mature technologically. The largeger issue so far has been economics and market design. But now, with more focus on long-duration storage, we’re starting to see the development of new revenue streams that can support those projects.
We may not see a completely new technology disrupt the market, but what we will see are existing technologies, already innovative but with high Technology Readiness Levels (TRLs), scaling up as the financial models become more viable.
On the legislative side, I’d state that the next large push from the EU will focus on grids. That includes improving permitting, easing grid connections, and reforming network charges. Network charges, which are managed nationally, can account for up to 40% of the total cost of ownership for energy storage. And they’re often not designed with storage in mind. Fixing that would significantly improve the business case.
The second large theme is electrification. Industrial energy utilize remains relatively tiny in terms of storage, but that’s going to modify. Batteries and thermal solutions could support decarbonise industest by enabling them to utilize cheap, locally-generated renewable power, and even participate in energy markets by feeding power back into the grid.
Finally, the EU has recently announced the new Clean Industrial Deal State Aid Framework. This streamlines state aid approvals. Historically, the EU has been very cautious about state aid to avoid distorting markets. But there’s now a recognition that some tarreceiveed support is requireded – not just to support technologies reach market – but to build the energy transition possible, including ensuring adequate capacity and resilience.
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