EU Member States Accelerate Storage Capacity Market Reforms

EU Member States Accelerate Storage Capacity Market Reforms

European energy policies are increasingly emphasizing flexibility, resilience, and domestic clean energy supply chains. To achieve these goals, several EU member states have implemented or clarified regulatory frameworks for energy storage, allowing battery assets to participate in capacity, balancing, and ancillary service markets. These reforms are significantly strengthening investor confidence through storage-specific tenders, subsidies, and tax incentives.

Long-Term Contracts Across the Continent

Italy held its first MACSE auction in September 2025, successfully awarding 10 GWh of energy storage with 15-year contracts. Similarly, Poland has awarded batteries contracts of up to 17 years in its capacity market, providing crucial long-term revenue visibility. In Spain, the government published Order TED/966/2026 on September 17, 2026, creating a capacity market with an estimated €9 billion budget over ten years, allowing new storage facilities to secure contracts for up to 15 years.

Germany's Capacity Market and Public Support

Germany received European Commission approval for its capacity market in September 2026. While Germany retains the highest merchant weight in Europe, with less than 20% of capacity relying on public support, tolling agreements spanning 5 to 10 years are expanding rapidly to secure debt financing.

S&P Global Energy estimates that public support, auctions, or public programs will account for over 90% of front-of-the-meter battery capacity in Bulgaria, around 85% in Poland, and over 70% in Italy and France between 2025 and 2030.

Notably, Bulgaria is projected to become the fifth-largest global market for new battery capacity in 2026, heavily supported by EU funds covering up to 50% of investments. These coordinated regulatory efforts across the EU are fundamentally de-risking battery investments and accelerating the deployment of critical grid infrastructure.

Source: Europa 24 Horas

This article was assisted by AI analysis. Please refer to the original source for official information.