The deal, signed on 26 June in Luxembourg, brings together the European Commission, 22 member states, storage developers and manufacturers, and financial institutions including the European Investment Bank. The Commission has stressed that energy storage is now "indispensable" to the EU's energy system. Europe currently has around 55 gigawatts of storage capacity. The goal is to reach 200 gigawatts by 2030, with an interim target of 30 to 35 gigawatts by 2028. The share of storage in peak power demand is expected to double from 5 percent to 10 percent. The Commission warns that without increased storage, solar and wind output will be increasingly curtailed due to grid limitations, heightening the risk of blackouts and greater dependence on imported fossil fuels. Some countries have already set national targets: Poland (11,000 MW), Spain (up to 5,000 MW), Austria (5,000 MW), and Bulgaria (phased through 2028). Germany and other member states must submit their targets by the end of the year. The agreement is not legally binding, and challenges remain, including double-charging by storage operators, slow permitting, and grid-connection bottlenecks. The Commission will review progress annually through 2028.