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The EU’s energy ministers have raised concerns over the bloc’s growing dependence on China for energy storage as the expansion of wind and solar power outstrips storage infrastructure development. Chinese firms control over 80% of Europe’s battery energy storage and nearly 88% of lithium-ion battery imports, according to Wood Mackenzie. During discussions, ministers endorsed diversified storage technologies, acknowledged the importance of electricity storage for grid stability, and advocated for investing in storage, enhancing storage infrastructure, and accelerating electrification to mitigate the risks associated with reliance on imported fossil fuels.
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EU Energy Ministers Discuss Reliance on Chinese-Made Energy Storage
During a meeting in Cyprus, the EU’s energy ministers discussed the bloc’s increasing dependence on storage made in China. This has emerged as a concern as the rapid growth of wind and solar power surpasses the development of infrastructure to store it.
The EU is making significant progress in producing clean power. However, the lack of sufficient storage infrastructure for excess renewables has raised concerns about congestion of clean power, instability of the power grid, and price volatility across the bloc.
Currently, Chinese firms control more than 80% of Europe’s battery energy storage system market, including nearly 88% of lithium-ion battery imports, according to data from Wood Mackenzie.
Lithium-Ion Batteries and Other Storage Technologies
During the discussions, ministers acknowledged the dominance of lithium-ion batteries. However, they also approved “diverse storage technologies”, with several EU countries backing pumped hydro and thermal storage solutions, as per a document seen by Euronews.
The Energy Minister of Cyprus, Michael Damianos, asserted, “Enhancing our electricity storage capacity is a critical tool for ensuring grid stability and providing the non-fossil flexibility required to reduce and stabilise energy prices for all Europeans.”
Žygimantas Vaičiūnas, the Lithuanian energy minister, also pointed out that investment in storage is the way forward. He referenced Vilnius’ recent installation of more than 1 gigawatt of storage capacities, capable of powering between 750,000 to 1 million homes.
The Importance of Storage Infrastructure
EU leaders have consistently emphasized the importance of storage infrastructure in facilitating the EU’s energy transition and boosting competitiveness. Energy Commissioner Dan Jørgensen noted last October that 2024 had been a record year for storage installations, with 12 gigawatts of capacity added. However, he also stated that these accomplishments were insufficient.
The ministers agreed on the need to increase storage deployment to maintain both climate credibility and industrial competitiveness. The EU aims to achieve climate neutrality by 2050, and success will require not only the electrification of the transport sector and industry but also revamping power grids.
Sweden recently announced plans to halt the construction of a new power cable to Denmark, expressing opposition to a Commission proposal to use revenues from electricity congestion charges for revamping the EU’s electricity infrastructure.
Storage as a Strategic Industrial Sector
During the Cyprus talks, ministers discussed storage as a strategic manufacturing sector, referring to the bloc’s Net-Zero Industry Act (NZIA) adopted in 2024, which is designed to boost domestic manufacturing of clean technologies, including storage.
Analysts have suggested that Europe could reduce its strategic dependence on China in clean energy industries. However, they agree that completely replacing Beijing across the entire supply chain is likely unrealistic within the next decade. They suggest that the EU’s goal should be selective de-risking rather than complete independence.
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