EASE Statement on the Publication of the Competitiveness Compass

On 29 January 2025, the European Commission presents the Competitiveness Compass, the first major initiative of this mandate. The Compass revolves around three core areas for action: innovation, decarbonisation, and security.

EASE Head of Policy Jacopo Tosoni’s statement:

On Industrial Decarbonisation and the Clean Industrial Deal:

As highlighted in the Competitiveness Compass, industrial consumers must be encouraged to provide flexibility services. Energy storage at the industrial level is not solely about self-consumption or cost savings; it enables companies to trade excess electricity in the energy market and receive compensation for providing ancillary services. If we expect industry players to decarbonise, they need a regulatory framework that ensures financial benefits from the energy transition, ultimately enhancing their competitiveness. And of course, promoting 24/7 Power Purchase Agreements (PPAs) is crucial.

On the Action Plan on Affordable Energy Action Plan:

The European Union must prioritise clean, affordable energy through decarbonisation, with energy storage playing a crucial role. Reducing fossil fuel imports is essential to avoid the price spikes witnessed in recent years. EASE welcomes forthcoming initiatives addressing network tariffs and taxation, often not designed with energy storage in mind. These inefficiencies undermine the business case for storage and limit deployment rates, hindering the energy transition.

On Electrification Action Plan and European Grids Package:

EASE regrets the postponement of these key dossiers to 2026 – strengthening Europe’s electricity system is indispensable. In several Member States, new renewable energy projects face delays due to severe grid congestion: this must change – and energy storage can play a role in that by absorbing excess electricity produced by renewable generation. Currently, this does not happen as often as it should; and by 2040, costs for redispatch may increase to up 103 Billion Euros, as assessed by the European Commission itself. This would lead to even higher costs for consumers, underutilisation of Europe’s renewable energy resources, and increased CO2 emissions.

On Implementation of EU Legislation and Market Integration:

The Compass rightly emphasises the importance of implementation and simplification. This issue is particularly significant for EASE, as no single EU Member State has fully implemented the Clean Energy Package – nor addressed the European Commission’s Recommendation on Energy Storage. The “rules of the game” are unreasonably different from country to country – and this deters investment. Ensuring the swift implementation of the previous mandate’s legislation is essential to improving Europe’s competitiveness.