Policy and regulation risks are a common theme in Europe and US energy storage markets

AI Summary

• •Policy and regulatory uncertainty, rather than technology or cost, is identified as the primary impediment to energy storage deployment and investment across both US and European markets, impacting project timelines and financial viability.
• •In the US, evolving interconnection queues, permitting delays, and inconsistent state-level market design rules (e.g., for capacity market participation) pose significant risks, often hindering the full realization of IRA benefits.
• •European markets face similar challenges including slow and complex permitting processes, grid connection bottlenecks, and fragmented national regulations, which impede large-scale and cross-border storage development.
• •Developers and IPPs are advised to prioritize robust regulatory intelligence, active engagement in policy discussions, and flexible project development strategies to mitigate these risks and secure financing. Large power consumers should factor these regulatory hurdles into their long-term energy procurement and resilience planning.