European Parliament sends support for non-fossil flexibility to Electricity Market Design trilogues

15 September 2023: The European Parliament, in a full plenary session, backed sending ITRE’s compromise reached in July straight to trilogue negotiations. The deal between S&D, Renew, EPP, and Greens/EFA supports non-fossil flexibility and energy storage, ahead of trilogue negotiations on the Electricity Market Design (EMD).

The Parliament’s position introduces a range of new provisions to support the deployment of flexible technologies, such as energy storage. Member States would now have the powers to set up fossil-free flexibility support schemes, which provide energy storage a solid business case. Additionally, EU countries must now assess the flexibility needed in the electricity system to deploy further sources of renewable energy in line with the EU’s 2030 climate goals, and set a national objective for energy storage. The Commission would also be obliged to introduce a Strategy for Energy Storage from 2025, to ensure a harmonised approach across the EU.

EASE Policy Officer, Thomas Lewis statement: 

On sending ITRE’s compromise agreement straight to trilogues

“The result of today’s vote squarely denied the opportunity to derail the Parliament’s EMD negotiations in favour of fossil fuels. The compromise reached in ITRE by MEP Nicolas Casares is fair and contains solid protections for consumers and promotes renewable energy and non-fossil flexibility. This puts the Parliament in a stronger negotiating position with the Commisssion and Council to ensure the Electricity Market Design better supports energy storage and thwarts attempts for additional support for fossil fuels.”

On a new strategy for non-fossil flexibility

“Most notably, the Parliament’s position will push for allowing the introduction of flexibility support schemes, which will encourage the much-needed rapid roll out energy storage. The Parliament also pushes to ensure in-depth assessments for flexibility needs at both the national and European level, and, crucially, introduces a Union Strategy on Demand Response and Energy Storage from 2025 with the possibility of EU-level targets. All of this will help provide the flexibility needed to integrate further renewable energy and tackle grid congestion.”

On rejecting fossil-fuel dependency 

“Furthermore, the Parliament’s position will rightly push against any attempts to allow for further subsidies to prop-up coal through capacity mechanisms. In the future, EASE hopes to see stricter CO2 emissions limits implemented to ensure the swift decarbonisation of back-up power and the uptake of energy storage.”

Next steps 

• EMD Rapporteur, MEP Casares (S&D, Spain), now has the permission to take this compromise straight to trilogue negotiations as the Parliament's position with the Commission and Council.
• The Council is still negotiating and has yet to adopt its position on the EMD. Once it does, trilogue negotiations can begin.