EU Signs First Tripartite Agreement on Energy Storage and Hybrid PPAs

On 26 June 2026, the first EU tripartite agreement on energy storage was signed by the European Commission, EU Member States, storage and renewable energy developers, manufacturers, energy-consuming industries, and financial institutions. The agreement targets 30–35 GW of pledged storage capacity, with total deployment expected to reach around 45 GW between 2026 and 2028, compared with about 12 GW installed in 2025, and sets a path for power purchase agreements with storage assets to grow from 1.5 GW in 2026 to 4.5 GW in 2028.

Key facts

• Expected total deployment: around 45 GW of energy storage installed between 2026 and 2028, reflecting annual deployment at least 20% higher than the roughly 12 GW installed in 2025
• Peak demand: storage to supply around 10% of EU peak power demand by 2028, up from around 5% in 2025
• Hybrid PPAs: volumes of PPAs with storage assets to grow from 1.5 GW in 2026 to 4.5 GW in 2028
• Commercial and industrial segment: battery installations to grow from 9 GWh in 2026 to 24 GWh in 2028, industrial thermal storage from 0.5 GWh in 2026 to 1.5 GWh in 2028
• Longer horizon: the agreement cites an estimated need of 200 GW of storage by 2030, against around 55 GW installed at the start of 2026
• Legal status: voluntary, the commitments create no legal obligations for signatories

What the agreement covers

The agreement, which takes effect immediately and runs through 2026-2028, sets out commitments for each group of signatories. Member States that are signatories submitted, or are expected to submit, national pledges for storage deployment. Storage and renewable developers committed to provide annual indicative figures for new storage and hybrid projects, giving the market a more visible project pipeline. Energy-consuming industries committed to develop storage projects for industrial premises and improve visibility of long-term electricity demand forecasts.

Member States took on a broad set of commitments. They agreed to frontload the removal of barriers to storage deployment, including barriers to concluding PPAs with storage assets and other long-term contracts, and to enable cost-reflective, non-discriminatory network tariffs that stimulate flexibility and grid-friendly behaviour. Support for deployment and manufacturing may draw on national and EU funds within State aid rules, including the Clean Industrial State Aid Framework.

The Commission, for its part, committed to assist Member States with the design of efficient support schemes open to storage, ensure the swiftest possible State aid approval for relevant measures, and update the Requirements for Generators network code and the Demand Connection Code to support the roll-out of storage.

What is a hybrid PPA

A hybrid PPA is a power purchase agreement that combines renewable generation, usually solar or wind, with an energy storage asset typically under one contractual structure. The storage component shifts delivery from hours of surplus generation to hours of higher demand, which can reduce the buyer's exposure to shape and volume risk compared with a standard pay-as-produced PPA.

Financing: the role of the EIB and EBRD

The European Investment Bank Group is assessing opportunities to strengthen its support for energy storage investment. Options on the table include adapting its EUR 500 million pilot programme for corporate PPAs so that it also covers storage solutions, including flexible and hybrid PPAs, and extending the EUR 1.5 billion grids manufacturing package to manufacturers of storage components.

The European Bank for Reconstruction and Development is expanding its support for energy storage projects over 2026-2028 and providing advisory support to Member States on enabling regulatory frameworks.

What it means for the market

Increased storage deployment may reduce reliance on gas-fired generation at peak hours over time, with the pace depending on implementation and market conditions. For power markets in Central and South-Eastern Europe, the agreement points to three developments worth tracking: a larger pipeline of hybrid PPA volumes, potential changes to network tariffs that stimulate flexibility and grid-friendly behaviour, and counter-guarantee instruments that could help address counterparty risk for corporate PPAs.

The Commission will publish annual progress reviews against indicators including installed storage capacity, the share of peak demand supplied by storage, and PPAs with storage assets signed between signatory parties.

Key questions on the EU tripartite agreement on energy storage

What was signed on 26 June 2026?

The first EU tripartite agreement on energy storage, a voluntary framework bringing together the European Commission, EU Member States, storage and renewable energy developers, manufacturers, energy-consuming industries and financial institutions, covering the 2026-2028 period.

How much storage does the agreement target?

In total, around 45 GW of energy storage is expected to be installed across the EU between 2026 and 2028. That implies annual deployment at least 20% above the roughly 12 GW installed in 2025.

What is the target for PPAs with storage assets?

Volumes of PPAs with storage assets are targeted to grow from 1.5 GW in 2026 to 4.5 GW in 2028 under the agreement.

Is the tripartite agreement legally binding?

No. The text states that the commitments create no legal obligations for the signatory parties. The European Commission will monitor progress annually until 2028.

How will the EIB support storage under the agreement?

The EIB Group is assessing opportunities to strengthen its support for energy storage investments, with a view to adapting its EUR 500 million counter-guarantee pilot for corporate PPAs to cover flexible and hybrid PPAs with storage, and extending its EUR 1.5 billion grids manufacturing package to storage component manufacturers.

Source
European Commission, "First-ever EU tripartite agreement signed to boost energy storage," 26 June 2026:https://ec.europa.eu/commission/presscorner/detail/en/ip_26_1426
Tripartite Agreement for Energy Storage, full text:https://webgate.ec.europa.eu/circabc-ewpp/d/d/workspace/SpacesStore/f4e51c06-bebd-494f-af00-3e2e37d259cc/download

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