April 2, 2026: Plans for the rollout of much needed energy storage capacity across Europe are uneven, fragmented and hindering investment, according to a stark new report published by the EU.
Despite clear recognition of energy storage’s importance, there is still limited evidence that most of the bloc’s 27 member states have translated this into concrete action, according to analysis released on March 30 by the Joint Research Centre (JRC).
The JRC, the European Commission’s science and knowledge service, said in many cases, storage is acknowledged conceptually but not evaluated as a genuine substitute for conventional grid expansion.
Released just days after the Commission proposed a fresh package of support to encourage private investments in long duration energy storage projects and “novel” renewables, the report said 10 member states show limited or fragmented treatment of storage in their national energy and climate plans (NECPs).
While some EU nations show structured and measurable integration across NECPs and network plans, there is misalignment between operational deployment, target-setting, and planning methodologies among others, the report said.
Meanwhile, transmission network development plans (TNDPs) across all member states show uneven progress in integrating flexibility and energy storage.
Around 55% of member states include quantified flexibility or storage targets at transmission level, while around 37% refer to flexibility without quantification, and the remainder provide limited treatment.
“Many NECPs lack measurable storage targets or timelines, and network development plans often fail to account for storage as a viable alternative to traditional grid reinforcements,” according to the report.
“This disconnect between strategic ambition and practical implementation creates uncertainty for investors, slows market development, and risks undermining system reliability as renewable shares grow. Closing this gap is critical to ensuring that energy storage can fulfil its enabling role in the clean energy transition.”
Despite its strategic value, the rollout of energy storage across the EU has been uneven and remains fragmented and constrained. Many member states face persistent barriers, including inadequate market signals, regulatory uncertainty, limited access to financing, and insufficient recognition of storage’s multiple value streams.
These challenges hinder investment and slow down the pace of deployment needed to meet the EU’s climate and energy objectives.
A small group of EU countries accounts for the vast majority of the EU’s operational energy storage capacity. Austria, France, Germany, Italy, and Spain, each operating more than 3GW of storage, largely driven by extensive pumped-hydro storage installations. Together, these five countries hold around 36.5GW, representing about 68% of total operational storage across the 27 member states.
A broader group of member states — including Belgium, Bulgaria, the Czech Republic, Finland, Greece, Ireland, Lithuania, Luxembourg, Poland, Portugal, Slovakia and Sweden — demonstrate “meaningful levels of storage deployment”, with operational capacities ranging from 0.67GW in Sweden to just under 3GW in Portugal.
In total, they account for about 16.2GW, equivalent to approximately 30% of total EU-27 storage capacity, the report said.
Some countries still demonstrate small capacities of energy storage. Croatia, Cyprus, Denmark, Estonia, Hungary, Latvia, the Netherlands, Romania, and Slovenia each operate less than 0.5GW of storage with some — such as Cyprus and Latvia — effectively having no significant storage assets.
Combined, these nine countries contribute only 1.4GW, representing around 2.5% of total EU-27 operational storage.
“Overall, the distribution of operational storage capacity across the EU reveals a pronounced asymmetry, with a small number of member states accounting for a disproportionate share of total installed capacity.”
Only a small group of member states have embedded storage systematically as an alternative at both transmission and distribution level. Notably, Italy, France, Luxembourg and Sweden are classified as ‘comprehensive’ in both their TNDPs and distribution network development plans.
In these countries, storage and flexibility are integrated into formal planning methodologies, economic screening processes, and structured comparisons with conventional grid reinforcement, indicating a high degree of regulatory alignment and methodological maturity.
By contrast, most other member states fall into ‘mixed’ or ‘moderate’ categories, “demonstrating that flexibility is still not treated as a default planning option across Europe”.
The report recommends that network operators be required to systematically quantify flexibility needs and explicitly define the role of energy storage in meeting those needs. This assessment should become a mandatory and standardized component of all network development plans.
Meanwhile, regulatory incentives must be better aligned to ensure that procuring flexibility is financially neutral or preferable to traditional grid investment. “Without such alignment, even well-designed planning methodologies may fail to translate into implementation.”
