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Electricity storage in a redesigned market

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Storage technologies have the potential to significantly support the EU’s electricity system, bringing a number of flexibility services. There are numerous electric energy storage (EES) technologies, tackling different magnitudes in terms of quantity of energy, ramp-up time, duration of discharge, costs, and lifetime. 

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Leighton Buzzard substation's battery in Great Britain providing backup for the National Grid / ITW News Anglia
Leighton Buzzard substation's battery in Great Britain providing backup for the National Grid / ITW News Anglia
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However, legislation around storage raises a number of challenges if analysed under the current unbundling rules involving a mix of regulated operators and market-based mechanisms. This stems partially from a non-inclusive definition of storage. The study provides an alternative definition which aims to capture the perspectives of multiple stakeholders. Furthermore, we discuss the need to value EES technologies such as batteries, pumped hydropower, flywheels, power-to-X, etc. based on their ability to provide different services. This is based on a techno-economic comparison of different EES technologies, given in additional tables. Finally, the study looks at how storage fits into the current regulatory system and proposes options for future systems so that EES are not discriminated against other flexibility options. A set of policy recommendations is provided that relates to the definition of storage, broadening ownership models, avoiding double grid fees, and valuing EES’ potential for supporting the EU’s 2030 energy and climate targets.

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Electricity storage in a redesigned market

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Climate & Energy
Center for Energy & Climate
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Ifri's Energy and Climate Center carries out activities and research on the geopolitical and geoeconomic issues of energy transitions such as energy security, competitiveness, control of value chains, and acceptability. Specialized in the study of European energy/climate policies as well as energy markets in Europe and around the world, its work also focuses on the energy and climate strategies of major powers such as the United States, China or India. It offers recognized expertise, enriched by international collaborations and events, particularly in Paris and Brussels.

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Reconnecting With Europe's Nuclear DNA: a Political Question

Date de publication
10 July 2025
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As Europe's main source of low-carbon electricity, nuclear power is a strategic asset for tackling climate and geopolitical challenges. 

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Will the Western Nuclear Power Revival Take Place? The State of Extra-European Advances

Date de publication
10 July 2025
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Against the dual backdrop of the energy transition and the rapid transformation of the international order, the question of Western nuclear revival is being raised with renewed acuity. 

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Re-evaluating Copper Supply: The Crucial Role of Technology

Date de publication
18 June 2025
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Some authors argue that the energy transition is doomed to fail due to metal scarcity and the rising energy costs of extraction. 

Cédric PHILIBERT Nicholas ARNDT
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The Strategic Dimension of Power System Flexibility: Opportunities in Europe

Date de publication
30 April 2025
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The European Union has embarked on an energy transition aimed primarily at replacing fossil fuels by electrifying demand. 

Cédric PHILIBERT Arthur de LASSUS
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Leighton Buzzard substation's battery in Great Britain providing backup for the National Grid / ITW News Anglia

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Electricity storage in a redesigned market