On 26 June, EU energy ministers signed the bloc's first tripartite agreement to triple energy storage capacity, aiming for 200 gigawatts (GW) by 2030 from the current 55 GW. Twenty-two member states committed to adding roughly 30-35 GW of new capacity by 2028, addressing a critical bottleneck in Europe's green transition.
The deal tackles a growing problem: renewable energy surpluses from wind and solar are increasingly wasted due to insufficient storage. While renewables' share of EU electricity rose from 23% in 2020 to 25.2% in 2024, storage capacity has not kept pace. Europe often curtails clean generation during seasonal peaks, forcing reliance on fossil fuels when demand spikes.
“For the first time, the EU has established a clear political direction, turning storage from enabling technology to a delivery priority,” said Walburga Hemetsberger, CEO of SolarPowerEurope.
Why Storage Matters Now
Solar and wind generate electricity according to weather, not human demand. Without optimised storage, the EU remains dependent on imported fossil gas to fill gaps when the sun sets or winds fade. Despite renewables supplying 44% of EU electricity, the bloc still imports around 55% of its total energy, including oil and gas.
Electricity demand is rising fast. The International Energy Agency projects AI and data centre consumption will double by 2030. These facilities already account for about 3% of electricity supply and are expected to exceed 28 GW. Data centres require constant 24/7 power; they cannot pause operations when renewable generation falls. Without 200 GW of storage by 2030, operators may rely on fossil-fuel plants, undermining net-zero goals. Storage allows excess solar power generated during the day to supply digital infrastructure overnight.
Europe is also electrifying transport and heating. The EU aims to put more than 30 million electric vehicles on the road and install 50 million heat pumps by 2030. Meeting this demand will require large-scale storage to balance renewable supply.
“I think the biggest issue will be to not treat energy storage as essential infrastructure,” said Jacopo Tosoni, Deputy Secretary General at Energy Storage Europe. “If we don't put flexibility at the heart of the energy system, we waste the cheap renewable electricity we already have while industry continues paying high energy prices.”
By early 2026, Europe saw record periods of negative electricity prices as solar and wind generation exceeded grid capacity. In the first quarter alone, EU day-ahead markets recorded 1,223 hours of negative prices, roughly twice previous levels, with Germany and Spain among the hardest hit. When supply exceeds demand, grids must curtail renewable generation, wasting clean electricity and reducing project revenues. Storage absorbs excess power when prices are low and returns it when demand rises.
“We already are in a version of gridlock,” Tosoni said. “Negative prices are becoming common because we have a surplus of renewables and not enough storage to use that power later.”
The Agreement's Details
The agreement scales up capacity to store more solar and wind power for use during sudden demand increases. It targets at least 20% (45 GW) more capacity than the 2025 annual installed capacity of 12 GW between 2026 and 2028. Storage supplies should cover around 10% of peak demand, up from about 5% in 2025. Greater energy security balances the grid and lowers prices.
Larger storage capacity means Europe can rely more on in-house green energy and move toward its 2030 target of at least 42.5% renewable energy production. It also reduces dependence on imported fossil fuels, which remain high: in 2024, oil and petroleum accounted for 67% of energy imports, according to a March 2026 Eurostat report.
“If we want to get to the 200 gigawatt that the European Commission has set out in Accelerate EU, we need to see a bit more of an ambition. But it's a very good first step. The real test is now in the implementation,” Hemetsberger said.
In practice, the EU needs to expand storage facilities through increased market flexibility. While all types of storage matter, batteries are the real “game changer.” They can be installed quickly, are highly scalable, and could cut €55 billion per year in power system operating costs, along with reducing gas imports and lowering electricity prices, Hemetsberger explained.
Storage system and renewable energy developers will provide annual estimates of new capacity. Energy-intensive industries will develop on-site storage projects, monitor demand, and provide long-term forecasts. Financial institutions, including national and regional banks, will finance these initiatives and attract investment. The European Investment Bank plans to expand its €500 million corporate power purchase programme to include storage solutions and increase its €1.5 billion support for grid manufacturing to cover new storage technologies. The Commission will monitor progress annually, accelerate project finance, and support decarbonisation through the Industrial Decarbonisation Bank.
Twenty-two national governments have signed the agreement, with 17 submitting concrete commitments. The deal marks a shift in EU energy policy, turning storage from a supporting technology into a delivery priority. For more on the broader context, see Europe's Clean Energy Surplus: Why Storage Lags and What the EU Plans to Do and EU Signs First Tripartite Deal to Boost Energy Storage and Secure Green Power.
