European energy storage subsidies

How much do energy subsidies cost in the EU?

Total energy subsidies in the EU rose from EUR 177 billion in 2015 to EUR 216 billion in 2021, to reach an estimated EUR 390 billion in 2022. The trend of decline in fossil fuel subsidies continued until 2021, when they were at EUR 56 billion, before increasing rapidly to an estimated EUR 123 billion in 2022 in response to the crisis.

How do fossil fuel subsidies work in the EU-27?

Most of the fossil fuel subsidies allocated in the EU-27 since 2015 have been intended to support consumers’ energy demand, for example by limiting the costs of energy consumption through lower tax rates on energy products.

Why should EU countries consider the 'consumer-producer' role of energy storage?

It addresses the most important issues contributing to the broader deployment of energy storage. EU countries should consider the double 'consumer-producer' role of storage by applying the EU electricity regulatory framework and by removing barriers, including avoiding double taxation and facilitating smooth permitting procedures.

How many energy subsidies are there in the EU-27?

The total amount of energy subsidies in the EU-27 ( Figure 1 ) is estimated at EUR 390 billion in 2022 (+80% compared to the EUR 216 billion 8 in 2021). The economic recovery in 2021 put upward pressure on energy prices and consequently on subsidies. Energy subsidies already rose from EUR 200 billion in 2020 to EUR 216 billion in 2021.

Why is energy storage important in the EU?

It can also facilitate the electrification of different economic sectors, notably buildings and transport. The main energy storage method in the EU is by far 'pumped hydro' storage, but battery storage projects are rising. A variety of new technologies to store energy are also rapidly developing and becoming increasingly market-competitive.

Can energy storage help the EU decarbonise its energy supply?

A number of EU countries have also teamed up for ' Important Projects of Common European Interest ' on batteries research and innovation. Energy storage can help increase the EU's security of supply and support decarbonisation.