Energy storage subsidy policy 2025 nicosia

How much do energy subsidies cost in the EU?

Total energy subsidies in the EU rose from EUR 177 billion in 2015 to EUR 216 billion in 2021, to reach an estimated EUR 390 billion in 2022. The trend of decline in fossil fuel subsidies continued until 2021, when they were at EUR 56 billion, before increasing rapidly to an estimated EUR 123 billion in 2022 in response to the crisis.

How do fossil fuel subsidies work in the EU-27?

Most of the fossil fuel subsidies allocated in the EU-27 since 2015 have been intended to support consumers’ energy demand, for example by limiting the costs of energy consumption through lower tax rates on energy products.

How many energy subsidies are there in the EU-27?

The total amount of energy subsidies in the EU-27 ( Figure 1 ) is estimated at EUR 390 billion in 2022 (+80% compared to the EUR 216 billion 8 in 2021). The economic recovery in 2021 put upward pressure on energy prices and consequently on subsidies. Energy subsidies already rose from EUR 200 billion in 2020 to EUR 216 billion in 2021.

Why should EU countries consider the 'consumer-producer' role of energy storage?

It addresses the most important issues contributing to the broader deployment of energy storage. EU countries should consider the double 'consumer-producer' role of storage by applying the EU electricity regulatory framework and by removing barriers, including avoiding double taxation and facilitating smooth permitting procedures.

Which energy sector received the most subsidies in 2022?

Across all Member States, solar energy (both solar PV and concentrated solar) received the most subsidies in 2022 (EUR 25 billion), followed by wind and biomass (EUR 15 billion each). Hydropower received the least financial support (EUR 1.5 billion in 2022).

How has the energy crisis impacted energy subsidies?

The recent extraordinarily high energy prices made it necessary to take bold policy initiatives in the European Union to mitigate the social impact of the energy crisis. The temporary and exceptional measures to address the energy crisis have greatly impacted the trends in energy subsidies.