IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i13p3570-d1696217.html
   My bibliography  Save this article

The Fifth Freedom: Shaping EU Innovation Policy for Renewable Energy Storage and Decarbonization

Author

Listed:
  • Esmeralda Colombo

    (CMCC Foundation—Euro-Mediterranean Center on Climate Change, 20144 Milan, Italy
    RFF-CMCC European Institute on Economics and the Environment, 20144 Milan, Italy)

Abstract

This article proposes recognizing innovation as the European Union’s “fifth freedom”, alongside the free movement of goods, services, capital, and people, with the aim of embedding it into renewable energy legislation. Focusing on renewable energy storage—a critical but overlooked component of decarbonization—it identifies structural barriers in EU cleantech innovation, including regulatory fragmentation, slow financing, and weak industrial coordination. To address these, this article introduces the Risk–Resilience–Reward (RRR) framework, a strategic tool for more anticipatory policymaking. It outlines how the proposed Clean Energy Delivery Agency and Clean Energy Deployment Fund could operationalize the RRR framework to accelerate storage deployment and strengthen EU competitiveness. Embedding purpose-led principles in energy policy, this article positions storage as the “unsung hero of decarbonization” and offers takeaways for advancing a just, sustainable EU economy.

Suggested Citation

  • Esmeralda Colombo, 2025. "The Fifth Freedom: Shaping EU Innovation Policy for Renewable Energy Storage and Decarbonization," Energies, MDPI, vol. 18(13), pages 1-18, July.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:13:p:3570-:d:1696217
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/13/3570/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/18/13/3570/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karsten Neuhoff & Jörn C. Richstein & Mats Kröger, 2023. "Reacting to Changing Paradigms: How and Why to Reform Electricity Markets," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 127, number pbk189.
    2. Chad P. Bown, 2024. "Trade policy, industrial policy, and the economic security of the European Union," Working Paper Series WP24-2, Peterson Institute for International Economics.
    3. Barbara Bigliardi & Serena Filippelli, 2022. "Sustainability and Open Innovation: Main Themes and Research Trajectories," Sustainability, MDPI, vol. 14(11), pages 1-22, May.
    4. Neuhoff, Karsten & Richstein, Jörn C. & Kröger, Mats, 2023. "Reacting to changing paradigms: How and why to reform electricity markets," Energy Policy, Elsevier, vol. 180(C).
    5. Anthea Roberts, 2023. "Risk, Reward, and Resilience Framework: Integrative Policy Making in a Complex World," Journal of International Economic Law, Oxford University Press, vol. 26(2), pages 233-265.
    6. Daniela Rupo & Mirko Perano & Giovanna Centorrino & Alfonso Vargas-Sanchez, 2018. "A Framework Based on Sustainability, Open Innovation, and Value Cocreation Paradigms—A Case in an Italian Maritime Cluster," Sustainability, MDPI, vol. 10(3), pages 1-28, March.
    7. Stevens, Kelly A. & Tang, Tian & Hittinger, Eric, 2023. "Innovation in complementary energy technologies from renewable energy policies," Renewable Energy, Elsevier, vol. 209(C), pages 431-441.
    8. Chad P. Bown, 2024. "Modern Industrial Policy and the World Trade Organization," Annual Review of Economics, Annual Reviews, vol. 16(1), pages 243-270, August.
    9. Belén Payán-Sánchez & Luis Jesús Belmonte-Ureña & José Antonio Plaza-Úbeda & Diego Vazquez-Brust & Natalia Yakovleva & Miguel Pérez-Valls, 2021. "Open Innovation for Sustainability or Not: Literature Reviews of Global Research Trends," Sustainability, MDPI, vol. 13(3), pages 1-29, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luo, Yilun & Ahmadi, Esmaeil & McLellan, Benjamin Craig & Tezuka, Tetsuo, 2024. "A hybrid system dynamics model for power mix trajectory simulation in liberalized electricity markets considering carbon and capacity policy," Renewable Energy, Elsevier, vol. 233(C).
    2. Sonnsjö, Hannes, 2024. "What we talk about when we talk about electricity: A thematic analysis of recent political debates on Swedish electricity supply," Energy Policy, Elsevier, vol. 187(C).
    3. Chaves, J. P. & Cossent, R. & Gómez San Román, T. & Linares, P. & Rivier, M., 2023. "An assessment of the European electricity market reform options and a pragmatic proposal," Cambridge Working Papers in Economics 2325, Faculty of Economics, University of Cambridge.
    4. Stella Lippolis & Angelo Ruggieri & Rossella Leopizzi, 2023. "Open Innovation for sustainable transition: The case of Enel “Open Power”," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4202-4216, November.
    5. Jimenez, I. Sanchez & Ribó-Pérez, D. & Cvetkovic, M. & Kochems, J. & Schimeczek, C. & de Vries, L.J., 2024. "Can an energy only market enable resource adequacy in a decarbonized power system? A co-simulation with two agent-based-models," Applied Energy, Elsevier, vol. 360(C).
    6. Shirazi, Masoud, 2025. "Dynamic policy pathfinding for balanced growth of energy trilemma: Evidence from the world's large energy-consuming economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 214(C).
    7. J.P. Chaves & R. Cossent & T. Gómez San Román & P. Linares & M. Rivier, 2023. "An assessment of the European electricity market reform options and a pragmatic proposal," Working Papers EPRG2305, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    8. Michał Pikus & Jarosław Wąs, 2024. "Predictive Modeling of Renewable Energy Purchase Prices Using Deep Learning Based on Polish Power Grid Data for Small Hybrid PV Microinstallations," Energies, MDPI, vol. 17(3), pages 1-12, January.
    9. Shen, Weijie & Ding, Hongjian & Zeng, Ming & Zhang, Xiaochun, 2025. "Optimal bidding strategy for integrated energy system participating in spot power market: A Wasserstein metric based DRO method," Energy, Elsevier, vol. 327(C).
    10. Hosseini Dolatabadi, Sayed Hamid & Bhuiyan, Tanveer Hossain & Chen, Yang & Morales, Jose Luis, 2024. "A stochastic game-theoretic optimization approach for managing local electricity markets with electric vehicles and renewable sources," Applied Energy, Elsevier, vol. 368(C).
    11. Francesco Martielli & Antonio Salvi & Emanuele Doronzo, 2024. "Corporate social responsibility practices and value creation through open innovation approach: Evidence from the STOXX Europe 600 Index," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4732-4745, September.
    12. Liu, Jiamin & Zhang, Jiaoning & Ma, Xiaoyu & Zhao, Bin & Zhang, Mengyu, 2024. "The road to sustainable development: Can the new energy demonstration city policy promote the industrial structure transformation?," Renewable Energy, Elsevier, vol. 237(PB).
    13. Aleksandra Kozłowska-Woszczycka & Katarzyna Pactwa, 2022. "Social License for Closure—A Participatory Approach to the Management of the Mine Closure Process," Sustainability, MDPI, vol. 14(11), pages 1-26, May.
    14. Ding, Qian & Huang, Jianbai & Chen, Jinyu & Tao, Dali, 2023. "Internet development and renewable energy technological innovation: Does institutional quality matter?," Renewable Energy, Elsevier, vol. 218(C).
    15. Roberta Troisi & Annamaria Nese & Rocío Blanco-Gregory & Monica Anna Giovanniello, 2023. "The Effects of Corruption and Innovation on Sustainability: A Firm-Level Analysis," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    16. Suneet Singh & Ashish Dwivedi & Saurabh Pratap, 2023. "Sustainable Maritime Freight Transportation: Current Status and Future Directions," Sustainability, MDPI, vol. 15(8), pages 1-23, April.
    17. Gloria Alexandra Ortiz Rocha & Maria Angelica Pichimata & Edwin Villagran, 2021. "Research on the Microclimate of Protected Agriculture Structures Using Numerical Simulation Tools: A Technical and Bibliometric Analysis as a Contribution to the Sustainability of Under-Cover Cropping," Sustainability, MDPI, vol. 13(18), pages 1-40, September.
    18. Xiaoying Xu & Xinxin Tian, 2023. "Dynamic Evolution and Trend Prediction in Coupling Coordination between Energy Consumption and Green Development in China," Sustainability, MDPI, vol. 15(18), pages 1-21, September.
    19. Marcelo Werneck Barbosa, 2022. "A Critical Appraisal of Review Studies in Circular Economy: a Tertiary Study," Circular Economy and Sustainability, Springer, vol. 2(2), pages 473-505, June.
    20. Serena Strazzullo & Sérgio Moro & Livio Cricelli, 2023. "Unveiling the relationship between sustainable development and Industry 4.0: A text mining literature analysis," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2851-2862, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:18:y:2025:i:13:p:3570-:d:1696217. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.