On June 26, 2026, the European Union formalized the Tripartite Agreement for Energy Storage, a coalition bringing together the European Commission, Member States, financial institutions and industry. The goal is to reduce regulatory and financial risks to unlock investment and raise the bloc's storage capacity from about 55 GW, recorded in early 2026, to 200 GW by 2030, combining standalone and hybrid projects. The initiative had already been signaled in the 2025 State of the Energy Union Report. The analysis of the agreement, released by ABSAE, carries direct messages for those developing battery projects in Brazil.
The targets of the European agreement
The pact organizes its commitments into three fronts, all with a 2028 horizon:
- Capacity expansion: increase the annual deployment rate of storage systems by at least 20% relative to installed capacity in 2025, equivalent to approximately 45 GW between 2026 and 2028.
- Lower gas consumption: have storage meet about 10% of peak demand, up from approximately 5% in 2025, making better use of renewable generation.
- Electrified and competitive industry: raise PPAs linked to storage assets from 1.5 GW in 2026 to 4.5 GW in 2028; expand commercial and industrial thermal storage from 0.5 GWh to 1.5 GWh; increase the share of installations co-located with renewable plants from 5% to 20%; and expand commercial and industrial batteries from 9 GWh to 24 GWh.
The logic behind the numbers is that storage helps stabilize prices, reduce curtailment (cuts to renewable generation) and ease grid congestion.
Who does what
What sets the agreement apart is the explicit division of tasks among stakeholders, instead of scattered actions:
- European Investment Bank (EIB): is assessing including storage in its €500 million program for corporate PPAs, extending a €1.5 billion guarantee package to the supply chain and offering flexible credit, such as venture debt and quasi-equity.
- European Bank for Reconstruction and Development (EBRD): is expected to increase direct investments and provide technical advisory so countries can build attractive regulatory frameworks.
- European Commission: will work with the EIB on counter-guarantees for PPAs and on protecting the local supply chain, in addition to coordinating implementation and the exchange of experiences.
- Member States: pledge a pace of 30 GW installed per year, with less red tape and fair, non-discriminatory grid tariffs for storage operators.
- Developers and industry: are to present new replicable projects every year and provide transparency on electricity demand projections.
Progress will be measured every year until 2028, with indicators such as installed capacity, share of peak demand, PPA volume, thermal storage, co-location and commercial and industrial batteries.
ABSAE's take for Brazil
For the association, the European case shows that storage grows when there is coordination among government, regulators, financiers and the productive sector, with clear targets, a long-term signal and monitoring. In Brazil, ABSAE acknowledges progress, such as the regulation resulting from Public Consultation No. 39/2023 and the debate over the white tariff (tarifa branca), which strengthens economic signals to shift consumption. However, definitions are still lacking on grid access and use, tariff treatment, remuneration for the different services provided by batteries and suitable financing instruments.
What changes in practice for the BESS market
According to ABSAE, the auctions scheduled for December are the most concrete opportunity to gain scale and consolidate the first contracting models in the country. For developers, the moment calls for mature projects and a strategy that considers standalone, hybrid and co-located arrangements. EPCs should prepare for tighter deployment schedules if the auctions are confirmed. Manufacturers and suppliers can take a warning from the European experience: supply chain guarantees and protection of local production have moved to the center of industrial policy. ABSAE's main demand is that the auctions not be one-off events, but part of a continuous and predictable calendar, aligned with the planning and operation of the National Interconnected System (SIN). Without this predictability, capital tends to hesitate; with it, Brazil can repeat the recipe Europe has just put on paper.
Original source: ABSAE — UNIÃO EUROPEIA FIRMA ACORDO PARA ACELERAR ARMAZENAMENTO DE ENERGIA ATÉ 2028