The share of renewable energy utilized for power generation within the European countries will experience a substantial rise, ultimately attaining unprecedented levels in the forthcoming decades. The aforementioned trend can be attributed to the ambitious targets for renewable energy production and electrification set by the EU, which are stimulating investment and fostering innovation in the renewable energy sector. The incorporation of substantial amounts of renewable energy into the power grid poses various challenges, such as the intermittent and variable nature of renewable energy sources. To compensate for the volatile nature of renewable energy, energy storage and conversion (e.g. Power-to-X technologies) has been identified as a crucial factor in accelerating decarbonisation in the European Union. This study examines the current trends in energy storage deployment throughout the European countries and identifies the challenges and opportunities in energy storage policy. This study offers a comprehensive analysis of the installed capacities of energy storage facilities and investigates the energy storage policies that have been implemented in various European countries. The findings of this study provide valuable insights for policymakers in formulating energy policies that effectively promote the adoption and implementation of energy storage technologies.