Electricity storage and state aid

Abstract

Recently, the promotion of large-scale deployment of electricity storage technologies has become an essential component of EU policies, as it is deemed crucial to the advancement of the green transition. Photovoltaic and wind generation are intermittent and cannot consistently meet electricity demand; hence, these technologies can store electricity during periods of excess generation and release it into the electricity system when needed, while also contributing to its security and reliability. Many Member States have implemented support schemes targeting these technologies to overcome investment barriers and foster their development. The study investigates these support schemes and the manner in which state aid rules address electricity storage. Then, it analyzes the Italian scheme for the promotion of electricity storage, which is regarded as highly innovative and is hence attracting significant international attention. It will be questioned whether the scheme constitutes state aid, despite being notified and approved as such, or whether it could have been considered as providing compensation for the performance of a service of general economic interest in line with the Altmark conditions.