Main foreign laws, regulations, and industrial policies governing the energy storage industry

The Netherlands introduced policies in 2021 to end double taxation on energy storage. Regional Energy Strategies (RES), defined under the National Climate Agreement by local governments (e.g., municipalities and provinces), specifically emphasize infrastructure development—including energy storage. In addition, the Dutch market has established multiple standards for energy storage to enhance market flexibility. In 2022, the government launched the ISDE subsidy program for commercial solar panel installations, exclusively supporting small-scale photovoltaic (PV) projects on commercial buildings. Meanwhile, Dutch regulations require newly constructed residential buildings to source 70% of their energy supply from renewable sources. Residential PV systems operate under a net metering policy, enabling users to feed surplus electricity back into the grid for financial compensation. The government also implements competitive bidding subsidies to promote renewable energy; offers tax incentives for individuals investing in self-consumption PV projects; establishes a Renewable Energy Investment Fund; and provides loans or preferential financing to grid-connected investors. ④ United Kingdom In 2017, the UK launched its 'Smart and Flexible Energy System Strategy', outlining 29 action plans to build a smart, flexible energy system. This policy addresses nine key areas—definition, qualification, ownership, grid connection, planning, and financial support for energy storage—resolving practical market issues such as ambiguous classification leading to 'double charging' and unclear ownership of storage assets, and aiming to remove barriers preventing storage from entering and participating in electricity market trading. In 2019, the government launched the 'Large-Scale Energy Storage' program, providing funding for innovative large-scale storage demonstration projects. In 2020, the UK passed legislation removing capacity limits for battery energy storage projects, permitting deployments exceeding 50 MW in England and 350 MW in Wales. In July 2021, the government published the 'Smart Systems and Flexibility Plan 2021', proposing measures to eliminate obstacles to grid flexibility and advance power storage and interconnection technologies—including both large-scale utility storage and small-scale residential storage. Furthermore, the government announced a £1 billion Net Zero Innovation Portfolio, with at least £100 million earmarked specifically for energy storage and flexibility innovation projects. In 2022, the UK government committed £68 million to accelerate the deployment of emerging storage technologies such as liquid air energy storage and flow batteries, while also waiving VAT on residential PV systems for five years. To drive renewable energy development, the UK employs the Renewables Obligation Certificate (ROC) scheme, which mandates electricity suppliers to meet specified renewable generation quotas—either through direct investment in renewables or by purchasing ROCs. ⑤ Italy In November 2022, Italy introduced new policies reducing subsidies for residential energy storage and other related applications. The new policy plans to reduce the current 110% subsidy covering total investment in residential PV-plus-storage systems, lowering it to 90% starting in 2023, then further phasing down to 70% in 2024 and 65% in 2025. Additionally, income thresholds per household member will be introduced.

Chuji Dian: Home Energy Storage News — The UK government supports innovative energy storage companies with £30 million

Chuji Dian Home Energy Storage News reports: To modernize the UK’s energy system and maximize the potential of renewable energy, the UK government has awarded £30 million to three pioneering companies to develop novel energy storage technologies. According to the government, accelerating the adoption of these technologies could save billions of pounds in energy costs while helping balance the national grid and enhancing national energy security. This funding will assist companies in testing and preparing their technologies for market entry, encourage private investment, and create new jobs across the UK. The selected companies are as follows: Invinity Energy Systems This battery manufacturer will receive £11 million to construct the largest grid-scale battery ever built in the UK. The 30 MWh flow battery system will deliver over 7 MW of power on demand—equivalent to more than two hours of electricity consumption for approximately 3,500 households per day. The system replaces lithium with vanadium—a ductile transition metal discovered in 1801. According to the company, vanadium-based batteries offer superior performance: they are non-flammable, do not degrade over time, are over 97% recyclable, and can operate reliably for more than 25 years. Invinity Energy Systems will manufacture the batteries at its factory in Scotland and integrate them with the UK’s existing grid infrastructure to alleviate peak-load pressure. SynchroStor SynchroStor will build a grid-connected Pumped Thermal Energy Storage (PTES) demonstration plant. The system stores energy as thermal energy using a closed-loop Brayton cycle and converts that thermal energy back into electricity when needed. The facility will have a 1 MW capacity and be capable of charging, storing, and discharging energy for up to 10 hours—outperforming current battery technologies. To realize this project, the government has granted SynchroStor £9.4 million. Cheesecake Energy Ltd (CEL) This startup will receive an additional £9.4 million to test its FlexiTanker technology, which combines thermal energy storage with compressed air storage to store electricity.

UK Seeks to Slap Fees on Battery Projects Clogging Up Grid Queue

Sep 17, 2026

UK energy regulator Ofgem proposes new fees for battery-storage projects in the grid connection queue to reduce congestion, estimating costs up to 7% of capital expenditure for medium-duration projects.

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UK Seeks to Slap Fees on Battery Projects Clogging Up Grid Queue

UK Seeks to Slap Fees on Battery Projects Clogging Up Grid Queue

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