Markets
Policymakers are increasingly recognizing the value of energy storage for building a greener, flexible, and reliable energy system. In a growing number of markets, energy policies are being introduced to support both deployment and local manufacturing.
Be it through procurement exercises or other market mechanisms, policymakers have intensified efforts to drive the development and deployment of all energy storage solutions.
However, in most markets, some barriers still exist.
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Latest News
Europe: AccelerateEU supports a 200 GW storage target, but omits financing mechanism
The European Commission’s AccelerateEU energy crisis plan endorses a 200 GW battery storage target for 2030 but proposes no dedicated financing mechanism to reach it, according to SolarPower Europe (SPE), which is calling for a separate EU-wide auction funded by emissions trading revenues.
3 hours ago
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Colombia launches long-term electricity auction, opens participation to battery energy storage systems
The resolution establishes 15-year contracts with obligations starting in 2030, along with an additional procurement window in 2035 for one of the products, with implementation scheduled before July 31, 2026.
Germany may curtail preferential treatment of large battery storage facilities near substations
The recently introduced preferential treatment for large battery storage facilities within a 200-meter radius of substations may soon be scaled back under the next amendment to the building code. At a minimum, lawmakers are considering tightening the eligible zone by introducing a minimum setback of 100 meters, effectively limiting the preferential treatment to projects located within a narrower band of 100 to 200 meters around substations.
Long-duration battery storage can contribute to security of supply more cost-effectively than gas-fired power plants, LCP Delta finds
LCP Delta has conducted a study analyzing the potential contribution of long-duration battery storage to security of supply within capacity tenders in Germany, including an economic comparison with gas-fired power plants and the resulting costs to the public. However, the authors explicitly note that they are not advocating for a complete phase-out of new gas-fired power plants.
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Japan: First capacity market battery commissioned, finance secured for 270 MWh Kikugawa BESS
Private and public cash supports more energy storage deployment in Japan, as developers take different approaches to project financing. More large-scale grid-connected projects expected in the wake of oversubscribed Japanese capacity market auction.
BBDF: German network agency says framework for BESS grid fees coming soon
The Federal Network Agency plans to present a framework for the future network fee system at the end of May 2026. Battery Business Development Forum guests hear how grid fees might interact with flexible connection agreements debate, and the potential consequences for battery energy storage system (BESS) returns.
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France moves to tie solar subsidies to storage as negative prices surge
With negative prices increasing and the value of solar generation declining, the Energy Regulatory Commission is proposing to adapt support mechanisms for photovoltaics to encourage the development of co-located storage. Such hybrid projects are seen as better aligned with the evolving needs of the electricity system.
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