EU: Energy Storage Europe backs grid reform to speed up connections and permits

Energy Storage Europe (ESE) has welcomed the European Commission’s European Grids Package, unveiled on 12 December, saying the proposed changes could meaningfully reduce grid-connection delays for storage and other clean energy assets.

The Commission framed the package as a response to energy security and competitiveness pressures following recent geopolitical and trade shocks.

It noted that 70% of EU energy use in 2022 came from fossil fuels, and 98% of the oil and gas was imported. EU countries spent around €375 billion on these imports last year, while Europe invested US$117 billion in renewables and grid infrastructure compared with US$327 billion in China. The Commission also highlighted that industrial power prices in Europe are on average about double those in the US.

The plan aims to accelerate permitting and grid connections and improve cro

ss-border energy sharing, targeting bottlenecks that slow major infrastructure—including energy storage. Measures include new Grid Connection Guidance, proposals linked to contracts for difference (CfDs), updates to EU permitting rules for infrastructure projects, and revisions to Trans-European Networks for Energy (TEN-E) planning legislation. The new guidance explicitly considers energy storage for the first time, including co-located renewables-plus-storage projects.

A key reform is replacing “first-come-first-served” grid queues with a “first-ready-first-served” approach. ESE said this would help move mature projects forward faster and improve network efficiency. ESE also welcomed proposals such as queue reform, flexible connection agreements, and clearer recognition of storage’s system value—especially its ability to relieve congestion and reduce curtailment.

On permitting, ESE highlighted shorter deadlines: up to six months for standalone storage projects above 100 kW (excluding hydrogen) and up to two years for pumped hydro energy storage (PHES). The association said these changes are important in cutting processes that can currently take as long as seven years. The Commission also proposed treating storage—standalone or paired with generation—as being presumed in the overriding public interest, reinforcing its role in flexibility and security of supply.

Separately, the Commission is also proposing eight “Energy Highways” initiatives to strengthen cross-border transmission and storage. It also plans a TEN-E “gap-filling” process to identify cross-border transmission planning needs that national regulators cannot address alone.

However, ESE cautioned that it may still be difficult for storage projects to gain Project of Common Interest (PCI) status. While there is no formal minimum size threshold, ESE pointed to past ENTSO-E cost-benefit analysis methods suggesting projects would need to be around 225 MW to qualify, which it called “prohibitively high.” ESE also said there is still no tailored methodology to properly value storage’s cross-border system benefits.