The EU has developed a number of measurements and frameworks to encourage the electrification of industry, with thermal energy storage being highlighted as a key part of the solution.

Two weeks ago, the Tripartite Agreements for Energy Storage were signed. Kraftblock Co-Founder Susanne König attended the signing as one of the corporate representatives alongside Dan Jørgensen, Commissioner for Energy and the member state representatives.

The agreements state the clear role of energy storage in industrial and grid related electrification projects and want to foster the tripling of industrial Thermal Energy Storage in the EU from 0.5 GWh today to 1.5 GWh in two years time. Other main goals are tripling the PPAs with storage assets to 4.5 GWh and strengthening co-location and battery storage deployment in the C&I sector. Kraftblock’s Volt project with PepsiCo and Eneco is one of the highlighted best practices for the industry. 

Now, the Electrification Action Plan (EAP) has been released, determining a goal of 46% electricity share of final energy consumption by 2040. The first topic of the EAP is the electricity-gas-price relation, the most important topic for industrial electrification feasibility. The EU calls out that “levies and taxes on the electricity bill are in some cases disproportionate and unrelated. Taking all taxes into account, electricity is taxed more than gas for final consumers in most Member States”. (p.4)

The commissions will “propose a new network code and the revision of the network codes on requirements for generators and demand connection in 2026 to facilitate demand response and the seamless integration of battery storage, thermal storage, geothermal, EVs and heat pumps into the electricity grid” (p.6) to tackle the grid and tax difference between fossil fuels and electricity and criticises the weakening effect for clean energy from fossil fuel subsidies in member states.

Furthermore, they are calling for the ETS framework to be reworked in order to establish the €100 billion Industrial Decarbonisation Bank, as well as a €30 billion investment booster for industrial electrification technologies. Another aspect of industrial electrification is the launch of the second IF Heat Auction later this year.

The stakeholder day for input on the final terms and conditions has already taken place, and the second round of auctions is expected to launch in autumn. In the current version, thermal energy storage receives a 25% bonus bid for reducing indirect emissions through flexibility.