Markets
“More than 1.7 TW of renewable and hybrid projects ‘stuck’ in grid connection queues across Europe”
The Energy Storage Europe Association recommends a reform of connection procedures, the establishment of priority lanes for storage and other grid-forming projects, appropriately designed flexible connection agreements (FCAs), and the introduction of hosting capacity maps from grid operators to guide investment and improve system planning.
By
Blathnaid O’Dea
Dec 09, 2025
Markets
Policy
Image: MottaW, Wikimedia Commons, CC-BY-SA-4.0
“If Europe wants grid access to be an enabler rather than a barrier to renewable and energy storage deployment, it must modernize connection queues and create clear priority lanes for flexible assets like storage,” Daniel Vig, Senior Policy Officer at Energy Storage Europe Association told ESS News.
“Across Europe, more than 1,700 GW of renewable and hybrid projects are stuck in grid connection queues.
Congestion – particularly in Germany – is slowing projects and pushing up costs for consumers,” Vig added.
His comments came ahead of the Dec. 8 publication of the Energy Storage Europe Association’s ‘Position Paper on Grid Connections’.
Digging into the connection queue problems Europe is facing, the paper claimed that more than half of the European grid has been in operation for more than 20 years and that it has not been designed to incentivize grid forming assets like energy storage which are needed to absorb and store excess energy generated by non-dispatchable resources such as wind and solar to avoid curtailment. It pointed out that up to 310 TWh of renewable energy could be curtailed annually by 2040 due to insufficient grid capacity.
No more ‘first-come-first-served’
The association called for an overhaul of the current first-come-first-served principle which it said prioritizes project applications by order as opposed to readiness or system value, leading to speculative projects and an estimated 1.7 TW of locked or delayed renewable and hybrid projects across 16 EU Member States and Great Britain.
The paper recommended that National Regulatory Authorities (NRAs) should propose rules that allow System Operators (SOs) to prioritize the reallocation of grid capacity from projects stalled in development to others at a more advanced stage of readiness in the queue. It also recommended that NRAs should propose rules to SOs to introduce “clear intermediate project development milestones from projects seeking grid connection.”
SOs could then work with NRAs to seek financial guarantees from projects seeking grid connections, which the Energy Storage Europe Association maintained would discourage speculative applications and prioritize deliverable projects in the queue.
It suggested that the EU should amend the Electricity Directive to require distribution system operators (DSOs) and transmission system operators (TSOs) to manage grid connection queues transparently and efficiently, “including reallocating capacity from stalled to advanced projects, implementing milestone-based progress tracking with time-bound deadlines, and allowing the use of performance/financial guarantees to deter speculative applications.”
Queue management
The paper pointed out that “high-value projects like storage are often delayed behind slower-moving or less impactful ones, undermining storage’s potential to support the energy transition.” It called for prioritization mechanisms and differentiated queue management, pointing out that in several Member States, queue assessments still rely on “overly conservative modelling that treats storage as net demand at peak or assumes worst-case dispatch without accounting for redispatch options or operational commitments from storage.”
The paper called on the EU to require DSOs to implement “transparent and non-discriminatory queue-management rules.”
The association called on the EU to mandate ‘use-it-or-lose it’ rules for connection procedures, but added that these rules should not apply when delays arise from factors beyond the project owner’s control.
The use-it-or-lose-it rules refer to the requirement for project developers to demonstrate progress toward predefined milestones, such as securing permits, financing, or construction deadlines, within a reasonable timeframe. Failure to meet these milestones results in the forfeiture of allocated grid connection capacity, which is then reallocated to other viable projects in the queue. This approach aims to prevent speculative or stalled projects from blocking grid access, while allowing flexibility for delays caused by external factors.
Co-location, cable pooling, hybrid grid connections
The association also set out its recommendations for making co-location, cable pooling and hybrid grid connection available for all projects. It said Member States should explicitly incorporate and define provisions for these facilities, adding that energy storage operators should be able to modify existing connections without requiring a full reapplication, provided their suggested changes do not significantly increase grid capacity needs.
Furthermore, a harmonized EU-level definition of the term energy storage operator is needed to ensure consistent regulatory treatment across Member States, with the paper’s authors noting that “Such a definition would clarify the role, rights, and obligations of storage operators within grid-connection frameworks, distinguish them from generators or consumers, and reduce legal uncertainty when modifying or sharing grid connection points.”
Flexible Connection Agreements
Flexible Connection Agreements (FCAs) were another focus of the paper, with the association stipulating these arrangements should be proportionate, technology-neutral and time-bound. They should also recognize storage’s potential in reducing curtailment and deferring grid updates, while avoiding restrictions that remove commercial flexibility.
The association warned that FCAs shouldn’t be used as a substitute for market-based redispatch and should only be used when market-based flexibility tolls are unavailable. Furthermore, their use should be “carefully monitored by regulators to ensure they remain a targeted solution, not a standard practice” for grid connections.
Hosting capacity maps
Finally, the paper recommended that TSOs and DSOs should publish hosting capacity maps to give storage developers better visibility into where grid capacity is available and where storage can add the most value. These maps should be updated regularly and be made publicly available through online portals. The association also recommended that they include curtailment data where applicable.
Other recommendations the paper made include easing administrative burdens and improving staffing competencies.
As with its recently published paper on permitting timelines, the association noted that it doesn’t argue EU legislative files should be reopened. “However, if files such as the Electricity Directive or Electricity Regulation are revised in the future, the review should integrate the recommendations outlined here to ensure that grid connection rules fully enable Europe’s energy transition,” it stated.
ess-news.com |
