Energy storage, key to Europe’s ecological transition

In the context of the energy model transformation, energy storage is consolidating as a fundamental pillar for decarbonisation in Europe. The need to efficiently integrate renewable energy and reduce dependence on fossil fuels has led the European Commission to strengthen its commitment to advanced battery technologies. This autumn and in the first quarter of next year, the Horizon Europe programme is expected to allocate significant resources to projects that drive the production of batteries with sustainable materials, efficient manufacturing methods, and long-duration storage.

Data provided by the European Association for Storage of Energy (EASE) highlights the critical importance of this capacity. In 2023, more than 10.1 gigawatts (GW) of storage were installed, more than double compared to the previous year. This increase is driven by the expansion of renewable energy and investments in storage infrastructure at both residential and industrial levels.

Germany is leading this transition, with over 500,000 domestic storage systems deployed in 2023, driven by energy price volatility and incentive policies. Other countries like Spain, however, are progressing at a slower pace, which poses challenges to the cohesion of the European energy market.

Strategic autonomy in batteries

One of the main challenges for the EU is to reduce its reliance on critical raw materials for battery manufacturing. Currently, Europe imports most of the lithium, cobalt, and nickel needed for lithium-ion battery production. According to the International Energy Agency (IEA), global demand for the latter chemical element could increase 42 times from 2020 to 2040, highlighting the urgency to find viable alternatives.

The European Commission has set a target that at least 40% of the refining capacity of strategic raw materials should take place within the EU. To achieve this, upcoming Horizon Europe battery calls are expected to encourage the development of more sustainable refining processes and the reuse of materials from battery recycling.

“Europe cannot rely on external supply chains for such a strategic element as batteries. It is essential to strengthen processing and recycling capacity within our borders,” says Natxo de Marco, Head of Energy Knowledge Area in European Projects at Zabala Innovation.

Additionally, research into new storage technologies, such as sodium-ion batteries, should help reduce reliance on those materials. These batteries, still in the development phase, could offer a competitive alternative for electric mobility and stationary storage applications, with lower environmental impact and reduced production costs.

Long-duration storage

Furthermore, the intermittency of renewable energy requires storage solutions capable of ensuring power supply over extended periods. Currently, lithium-ion batteries dominate the short-term storage market, but their ability to provide energy over several hours or days remains limited. The European Commission has identified the need to develop technologies capable of storing electricity for more than 10 hours and even at a seasonal scale.

In this field, flow batteries and other emerging technologies are gaining prominence. “Developing long-duration batteries will be key to integrating renewables and ensuring the stability of the electrical grid. It’s not enough to store energy for just a few hours; we need solutions that ensure supply during days of low wind or solar production,” explains De Marco.

The RePowerEU Plan, launched in 2022, sets a target of reaching 200 GW of installed storage capacity by 2030. Achieving this goal will require not only technological progress but also the removal of regulatory barriers and the creation of specific markets for storage services.

Innovation and safety

The development of safer and more efficient batteries is another strategic focus of the EU. Current lithium-ion batteries present risks of overheating and degradation over time, which limits their lifespan and reliability. To address these challenges, research into solid-state batteries and new materials such as ceramic electrolytes aims to improve both the safety and durability of these devices.

Furthermore, advanced testing and simulation methodologies are being developed to accelerate the validation of new batteries without requiring long physical testing cycles. “Reducing development times and increasing battery reliability will be key to the competitiveness of the European sector. The combination of physical testing with virtual models will optimise performance and safety before commercialisation,” points out De Marco.

Electricity market reform

Beyond technological development, the regulatory framework will play a key role in expanding energy storage in Europe. The EU’s electricity market reform, scheduled for 2027, will require Member States to establish national plans for system flexibility, with specific targets for energy storage.

Countries like France and Germany have already started introducing specific auctions to encourage the installation of batteries and other storage solutions. Spain, for its part, has launched support programmes which include investments in storage, although large-scale deployment is still in its early stages.

“Energy storage is shaping up as a key piece in Europe’s green transition. As renewable energy penetration increases in the grid, the need for efficient storage solutions will only grow, and the use of batteries based on recycled materials or even the integration of second-life batteries from electric vehicles will play a significant role,” De Marco underlines.

“With the support of Horizon Europe and other initiatives, the EU aims to build a robust industrial ecosystem that guarantees energy autonomy and competitiveness in the global market,” he concludes.