Europe’s Energy Future Depends on Long-Duration Storage, New Hydrostor Whitepaper Finds
A new whitepaper released by Hydrostor warns that Europe is at risk of falling behind global competitors unless it accelerates strategic investment in long-duration energy storage (LDES). According to the report, targeted policies that stimulate deployments of LDES technologies could save EU member states billions in grid system costs, reduce dependence on volatile gas markets, and keep Europe on track to achieve its 2050 climate neutrality goals.
Hydrostor’s analysis highlights a crucial reality: the energy transition will require far more storage than Europe currently has in place. As renewable penetration continues to rise and fossil fuels decline, Europe needs clean, dispatchable, and flexible energy capacity that can stabilize the grid for hours or even days at a time. Without the rapid scale-up of long-duration storage, countries risk locking themselves into new natural gas infrastructure, whose economic and environmental viability is increasingly uncertain.
Massive Cost Savings Through Long-Duration Storage
The whitepaper cites several compelling studies that quantify the economic benefits of LDES. Research from the Energy Storage Europe Association shows that deploying long-duration storage across the continent by 2040 could save the European system €103 billion by reducing the need for costly grid expansion and minimizing renewable energy curtailment. In the UK, analysis conducted by LCP Delta for the national government suggests as much as £35 billion (roughly €35 billion) could be saved by 2050 through similar deployments.
A significant portion of these savings results from avoided investment in natural gas plants and pipelines. As the EU pushes toward net-zero emissions, investments in new fossil assets run the risk of becoming stranded well before the end of their operational lifetimes. LDES technologies—capable of delivering several hours to multiple days of energy discharge—offer a clean alternative that supports the transition without saddling countries with expensive and obsolete infrastructure.
Jon Norman, President of Hydrostor, emphasized this point by noting the growing urgency for Europe to act. “As global momentum grows behind long-duration energy storage, Europe risks being left behind,” he said. “States must act now to deliver projects in time to fulfill their international commitments and ambitions. Failure to do so risks losing the opportunity to save billions, drive economic growth, and achieve energy independence, all while lowering electricity prices and tackling climate change.”
Three Key Policy Recommendations
Hydrostor’s whitepaper, From Ambition to Action: Embedding Long Duration Storage in European Energy Strategy, identifies three policy priorities that European governments should adopt immediately if they wish to maximize the benefits of LDES deployment.
1. Incorporate full-system modelling that reflects accurate storage costs and lifetimes
The report recommends that EU member states adopt system modelling frameworks that fully incorporate the performance, lifespan, and cost characteristics of multiple storage types—including long-duration options. This modelling should inform procurement decisions, long-term energy planning, and future grid development. Advanced modelling can help governments determine the optimal mix of energy technologies and avoid overbuilding grid infrastructure or relying unnecessarily on costly fossil capacity.
2. Establish procurement targets with clear, multi-year schedules
Hydrostor argues that governments should set energy storage procurement targets—specifically for long-duration categories—to ensure predictable investment cycles and mitigate supply chain constraints. Transparent, multi-year procurement schedules would reduce uncertainty, help utilities and developers plan effectively, and lower system-wide costs related to curtailment, congestion, and grid reinforcements.
3. Ensure markets properly value long-duration storage and provide revenue certainty
A key challenge for LDES project developers is market structure. Many markets fail to adequately compensate long-duration storage for its full suite of grid services, including flexibility, reliability, and renewable integration. Hydrostor recommends adopting mechanisms such as cap-and-floor revenue systems or long-term contracts that provide developers with greater certainty. This approach would unlock financing, accelerate deployment, and ensure that LDES projects can operate economically over their multi-decade lifespan.
Europe Must Double Storage Capacity by 2030
Europe already imports 58% of its energy—a vulnerability that has become starkly apparent in recent years due to geopolitical tensions and supply disruptions. Without strong policies supporting long-duration storage, the new flexibility needed for a renewable-based grid may be filled by natural gas, undermining the continent’s energy independence goals and exposing customers to volatile fuel prices.
According to the whitepaper, Europe will need to more than double its existing energy storage capacity by 2030 just to stay on track with current transition targets. This includes significant deployment of storage systems capable of storing and discharging energy for at least eight hours—far beyond the duration typically offered by lithium-ion batteries, which dominate today’s market.
Large-scale LDES projects also offer major benefits in reducing Europe’s reliance on gas. Hydrostor notes that a single 500 MW long-duration storage facility can displace enough natural gas usage to supply approximately 1.2 million Europeans, significantly bolstering energy security.
Hydrostor’s A-CAES: A Long-Term, Scalable Solution
Hydrostor’s technology, known as Advanced Compressed Air Energy Storage (A-CAES), is highlighted in the report as a promising pathway for Europe’s long-duration needs. Unlike batteries, A-CAES plants can reliably deliver up to 12 hours or more of energy, have a 50-year design life, and use readily available materials such as air, water, and rock caverns.
Each 500 MW A-CAES project generates large employment benefits, creating more than 6,500 jobs during construction and 40 long-term operational roles. These facilities support local economies and provide stable employment, while helping utilities integrate large amounts of intermittent wind and solar energy.
Hydrostor currently has more than 7 GW of early-stage projects under development in countries including Canada, Australia, the United States, and several European regions. The company argues that with the right policy support, Europe could unlock similar project pipelines and gain a competitive advantage in the global clean energy economy.
Source Link: https://www.businesswire.com/
