2026 will be a pivotal year for energy storage, according to Jacopo Tosoni, Head of Policy at the European Association for Storage of Energy (EASE). The executive says that next year will mark a turning point for large-scale battery systems, with an unprecedented acceleration in operational projects.

“2025 is a record-breaking year, but 2026 will be the big year for storage. We’re going to see an explosion of projects going live and a real transformation of the energy system,” Tosoni stated during the Storage, Renewable and EV Integration Forum held on May 21.

Speaking at the event organized by Strategic Energy Europe, Tosoni explained that EASE’s data projects 2025 deployment levels to be at least ten times higher than five years ago, and that 2026 will bring a dramatic leap.

It is worth recalling that 22 GWh of new storage capacity were installed in 2024 and that the industry expects to reach 400 GWh by 2029.

RELIVE THE STORAGE, RENEWABLE, AND EV INTEGRATION FORUM:

The second major event of the year from Strategic Energy Corp was a two-part virtual session, co-organized with Mobility Portal Europe and Strategic Energy Europe. Strategic Energy Corp, in partnership with the Future Energy Summit (FES), is behind some of the sector’s most relevant events, as FES positions itself as the leading platform for renewable energy dialogue in Spanish-speaking countries.

The third edition of FES Iberia 2025 will take place on June 24, at the Colegio de Caminos (Betancourt Auditorium, C. de Almagro, 42, Chamberí, Madrid). (Watch the previous edition here).

During the virtual forum, Tosoni explained:“ The growth rate is always double-digit year on year. There will definitely be a significant increase in the coming years, and there’s no sign of this stopping between now and 2030. Quite the opposite — the 2030 figures will be at least two to three times the annual deployment we expect in 2025.”

He noted that most of the growth will take place in front-of-the-meter technologies, while behind-the-meter applications depend on support schemes and are currently “plateauing”.

In this context, IRENA (International Renewable Energy Agency) stated in an exclusive interview with Strategic Energy Europe: “Storage prices keep falling, and 2026 could mark a turning point in the competitiveness of these technologies — if non-technical barriers are removed.”

Tosoni agrees with this assessment and emphasizes that growth will continue beyond that year: “Between 2025 and 2030, annual deployment volumes are expected to double or even triple,” he projects.

Regulatory, fiscal, and market barriers

This leap is tied to structural factors, as well as steady improvement in project readiness. However, regulatory bottlenecks and grid connection delays remain critical obstacles.

“Many projects are ready for implementation, but deployment is severely hindered by slow permitting and grid connection processes. We need a new, less bureaucratic system that encourages investment,” Tosoni asserts.

The lack of coordination between national and EU-level regulations also undermines the financial viability of storage initiatives. Moreover, cost structures remain ill-suited for the sector.

“In several countries, storage is taxed twice — when charging and discharging energy. Network charges are also not designed for storage technologies. We would love to see lower costs to reflect the real value storage provides to the system,” he explains.

Another key issue, according to Tosoni, is the lack of proper mechanisms to compensate the services storage provides to the grid.

“To maximize the potential of a storage system, we need tendered and remunerated services. But today, many grid services are not even tendered. There’s no comprehensive system in place to recognize and pay for the flexibility storage offers,” he says.

This lack of market mechanisms prevents projects from building sustainable business models. “It’s essential to implement real market-based solutions. Legislation must translate into actual revenue opportunities,” adds Tosoni, stressing that allowing competition between providers and technologies is crucial to lower costs for end users.

“We’d love to see all these emerging services being tendered in the market. That would mean society gets the most efficient and cost-effective storage solutions, and project developers gain a new revenue stream that helps them secure financing more easily. That’s my humble and realistic wish list,” Tosoni points out.

Flexibility and energy security in the spotlight

One of the most critical recent events was the Iberian blackout, which reignited concerns about the flexibility of Europe’s power system. While the exact causes are still under investigation, Tosoni believes the event highlighted systemic vulnerabilities.

“We observed voltage and inertia disturbances in Spain, potentially due to voltage shocks. Right now, there’s no complete regulatory or market-based framework to ensure these services are effectively provided,” explains the EASE representative.

“As we move toward a more renewables-based grid, ancillary frequency and non-frequency services will become increasingly important. There are ultra-fast services like inertia and voltage control that are not currently legislated or covered by the market. Without a robust regulatory framework, these gaps threaten the security of energy supply,” Tosoni adds.

He points out that some of these concerns have already been addressed, at least partially, through the EU’s electricity market design reforms.

“The European Parliament has started to legislate so that Member States assess their flexibility needs and, if necessary, authorize specific state aid to promote storage, with energy security in mind. The European Commission passed the regulation last year, and Member States are expected to implement it over the next two years,” Tosoni concludes.