By Paolo LICANDRO   |   Estimated reading time: 7 minutes

Brussels, 27 August 2026

Across Europe, governments are committing increasingly large amounts of public money to electricity storage.

The European Commission has already authorised national support schemes ranging from tens of millions to several billion euros. Italy alone has an authorised storage mechanism worth up to €17.7 billion, while other Member States are developing their own programmes to accelerate the deployment of storage capacity.

The political logic appears straightforward. As Europe increases renewable electricity and progressively electrifies transport, industry, heating and other parts of the economy, the power system needs considerably more flexibility.

Batteries can absorb electricity when solar and wind production is abundant and release it when demand rises or renewable generation falls.

But does subsidising more battery capacity automatically make Europe’s electricity system more efficient?

Not necessarily.

The economic value of electricity storage depends on where capacity is installed, how frequently it is used, how long it can discharge and which alternative flexibility solutions are available.

Grid reinforcement, interconnections, demand response, pumped hydropower and flexible generation can in some circumstances provide comparable system value — potentially at a lower overall cost.

There is also a broader European policy question.

Member States have very different financial capacities. If storage investment starts following the most generous subsidy rather than the greatest electricity-system need, State aid could influence the geography of investment and potentially reinforce differences within the EU internal energy market.