Reform Investment Models to Reflect Post-Subsidy Market Realities

WeStorix submitted Feedback on the European Grids Package Consultation in response to the European Commission’s call for evidence on the upcoming European Grids Package (initiative 14672):

Reform Investment Models to Reflect Post-Subsidy Market Realities

With long-term offtake contracts becoming rare or commercially unviable, developers face significant financing barriers. Current frameworks assume stable long-term contracts, yet the reality is a volatile and short-term market that places disproportionate risk on equity and private capital.

WeStorix recommends that the EU introduce public co-financing guarantees to de-risk investments in BESS and flexibility infrastructure. This should include:

• EU-backed revenue floors or availability payments for system services
• Public credit enhancement to reduce the cost of capital for storage
• Dedicated EU financing channels (e.g., EIB, InvestEU) tied to system value, not contract duration

These instruments advance the Affordable Energy Action Plan’s goal of lowering energy costs through structural reforms and capital mobilisation under the Clean Industrial Deal.