Europe is taking a significant step to bolster its power grid stability by mandating that new large-scale battery storage and renewable energy projects actively support the network. A new framework from the European Network of Transmission System Operators for Electricity (ENTSO-E) will require all new and significantly upgraded systems above 1 megawatt to have “grid-forming” capabilities. This policy, expected to become legally binding, transitions these assets from passive power suppliers to active participants in maintaining grid voltage and frequency, ensuring reliability as traditional power plants are phased out.
The new requirements are detailed in a comprehensive technical report that will inform the updated Network Code on Requirements for Generators (NC RfG 2.0). Once formally adopted by the European Commission, this code will legally obligate all EU member states to enforce these new standards, though individual countries will determine their own implementation timelines. An accompanying guidance document will be released to help national regulators and grid operators apply the rules consistently.
At the core of this policy is a fundamental shift in how inverter-based technologies interact with the grid. Most current solar and battery storage systems are “grid-following,” meaning they depend on and synchronize with the existing grid’s electrical signal. In contrast, “grid-forming” systems can generate their own voltage and frequency. This enables them to operate independently and provide the foundational stability traditionally supplied by the rotating mass of large synchronous generators in fossil fuel and nuclear power plants.
To ensure performance, ENTSO-E has established specific technical benchmarks. A system must demonstrate advanced inverter behaviors, including control over oscillations with a minimum damping ratio of 5% and strict limits on impedance to prevent instability. The framework also formalizes the concept of synthetic inertia, measuring a battery’s ability to support frequency in a way that is equivalent to the stabilizing effect of traditional mechanical generators. While these standards are technology-neutral, they are well-suited for advanced lithium-ion batteries and sophisticated power conversion systems capable of rapid power adjustments.
This European initiative follows successful implementations of grid-forming battery projects in Great Britain and Australia. These pioneering projects have already demonstrated that modern battery energy storage systems can provide essential system strength, anchor local grid voltage, and deliver rapid frequency response, proving the technology’s readiness for a central role in grid architecture. By incorporating these lessons, Europe is moving to standardize these capabilities across the continent.
For energy project developers and equipment manufacturers, the mandate presents both new requirements and significant opportunities. Future projects will require power conversion systems that meet these advanced specifications, influencing design and procurement decisions. While this adds a layer of technical complexity, it also creates new value streams. Grid-forming assets can offer high-value services such as voltage support, synthetic inertia, and black-start capability, which can improve the financial viability of advanced energy storage projects as grid operators increasingly prioritize reliability. This policy marks a pivotal change, embedding stability directly into the distributed energy resources that will power the future.