22 EU Countries Back Up To 35 GW Energy Storage Push By 2028

Energy ministers from 22 European Union (EU) countries have signed the bloc's first tripartite agreement on energy storage, committing to support 30-35 GW of new storage capacity between 2026 and 2028. Moreover, they have adopted the European Council's negotiating position on the proposed European Grids Package, which aims to modernize the region's electricity networks. 

The tripartite agreement sets a target to expand the EU's energy storage capacity from around 55 GW installed at the start of 2026 to an estimated 200 GW by 2030, saying a mix of storage technologies will be needed to support the growing share of renewable energy (see Europe’s Battery Storage Capacity Exceeds 100 GWh). 

The agreement brings together EU governments, energy storage developers and manufacturers, renewable energy companies, energy-intensive industries, and financial institutions. 

The aim is to coordinate efforts at EU level to improve grid flexibility, strengthen energy security and support renewable energy integration across the bloc.  

Within 2026-2028, the bloc aims to increase annual storage deployment by at least 20% over the 2025 installed capacity of around 12 GW. This translates to adding about 45 GW of new storage capacity between 2026 and 2028 to support the integration of renewable energy, reduce curtailment, and stabilize electricity prices. 

It will increase storage’s contribution to peak electricity demand from around 5% in 2025 to 10%, thereby reducing gas use. 

The agreement also sets targets to expand the use of storage in the commercial and industrial (C&I) sector by 2028. To this end, it will increase the volume of storage-backed power purchase agreements (PPAs) to 4.5 GW by 2028, from 1.5 GW in 2026. Additionally, it will increase the share of renewable energy projects co-located with storage from 5% in 2026 to 20% of renewable energy installations, and grow battery installations in the C&I segment to 24 GWh from 9 GWh.  

Under the agreement, energy storage and renewable energy developers will publish annual estimates of planned storage and hybrid projects to ascertain the pipeline for 2026-2028. Energy-intensive industries will develop storage projects at their facilities and provide greater visibility into their electricity demand to improve investment certainty.

Member states, on their part, will commit to removing regulatory barriers to storage deployment and to enabling cost-reflective network tariffs that encourage flexibility. They will also support storage deployment and manufacturing through national and EU funding mechanisms. 

Financial institutions, including national and regional promotional banks, will work with the European Investment Bank (EIB) Group to expand financing and improve access to capital for storage projects. 

The EIB Group is exploring additional financing measures for storage, including expanding its €500 million PPA pilot, extending its €1.5 billion grid manufacturing program to storage manufacturers and supporting technology development. 

Meanwhile, the European Bank for Reconstruction and Development (EBRD) will scale up financing for storage projects and advise member states on enabling regulatory frameworks through 2028. 

Details of the tripartite agreement are available on the Commission’s website. The Commission has also published a list of projects that showcase how different storage technologies can support the objectives of the Tripartite Agreement. Some of these projects have already received EU or national financial support through separate programs. 

The Commission will coordinate implementation through 2028 and support member states in designing storage funding schemes. It will explore additional backing under the Innovation Fund and update network rules to encourage wider deployment.  

“Energy storage is the missing link in the clean energy transition,” said Dan Jørgensen, Commissioner for Energy and Housing. He said the agreement provides greater certainty and project visibility for investors while strengthening Europe's competitiveness and energy resilience. 

Welcoming the agreement, the Head of Battery Storage European Platform at SolarPower Europe, Sonja Risteska, highlighted that it is unclear how the bloc will meet this target with its current instruments. She called for a dedicated Battery Storage Action Plan to reach this ambition, as well as the 200 GW of storage goal by 2030 outlined in AccelerateEU.  

“Without it, we risk falling short of the scale needed to curb dependence on volatile energy markets and progress with the energy transition,” added Risteska. 

European Council Backs European Grids Package  

Alongside the tripartite agreement signed during the Energy Council meeting in Luxembourg, the European Grids Package received the European Council’s backing. 

Proposed by the European Commission in December 2025, the European Grids Package aims to address low interconnectivity among member states and to make the EU’s energy network fit for climate neutrality. With stronger electricity networks, renewable energy projects will not have to face grid connection delays, which are currently one of the biggest bottlenecks for the bloc’s energy transition. 

The European Grids Package aims to modernize Europe's electricity infrastructure through faster permitting, improved cross-border grid planning and stronger interconnections. It will support electrification, renewable energy integration and energy security while accelerating electrification and decarbonization.

With the EU Council backing the grids package, it will now enter negotiations with the European Parliament. They expect to reach a final agreement in 2026. 

Nevertheless, SolarPower Europe said the council's position leaves much to be desired. Its Deputy CEO Dries Acke said it does not go far enough in strengthening practical measures such as digital permitting, clear grid connection timelines, and greater transparency on connection options for renewable energy and storage developers. 

“The Council also missed the opportunity to highlight the importance of non-fossil flexibility solutions alongside grid build-out, such as storage and demand response. This is key to avoiding continued reliance on high and volatile fossil gas prices, and reduce the hours they set the market-wide electricity price,” explained Acke.