The world is moving fast toward renewable energy, but there’s one major challenge—how do we store all that power when the sun isn’t shining, or the wind isn’t blowing? That’s where grid-scale battery storage comes in. Battery storage is changing the energy game, making it easier to integrate renewable power into our electric grids.
1. Global grid-scale battery storage capacity reached >50 GW in 2023
The global capacity of grid-scale battery storage surpassed 50 gigawatts (GW) in 2023, marking a major milestone in renewable energy adoption. This means that more electricity from wind and solar can now be stored for later use, reducing reliance on fossil fuel plants.
For businesses and energy providers, this is a signal that battery storage is no longer an experimental technology. Investing in battery storage solutions now can help utilities and corporations stay ahead in the evolving energy market.
2. The U.S. had 12.7 GW of operational battery storage capacity by mid-2023
Battery storage is expanding rapidly across the U.S., with 12.7 GW already installed as of mid-2023. This represents a massive increase from just a few years ago.
States like California, Texas, and Arizona are leading the charge, offering incentives and mandates to accelerate deployment. Companies that want to benefit from these developments should explore state and federal incentives that support battery storage adoption.
3. China leads in grid-scale battery installations, surpassing 18 GW in 2023
China is aggressively expanding its battery storage infrastructure, surpassing 18 GW in 2023. This rapid deployment is driven by the government’s push for energy independence and sustainability.
For global investors, this means China is setting the pace for battery storage innovation. Watching Chinese developments can offer insights into emerging technologies and business models that may soon spread worldwide.
4. Lithium-ion batteries account for 90% of grid-scale storage projects
Lithium-ion batteries dominate the market, making up 90% of all grid-scale storage installations. Their efficiency, energy density, and decreasing costs make them the go-to choice for most projects.
However, this also raises concerns about lithium supply chains and sustainability. Companies should keep an eye on emerging alternatives like sodium-ion and solid-state batteries that could become viable competitors.
5. Battery storage costs have fallen >80% since 2010
One of the biggest drivers of battery storage adoption has been the dramatic drop in costs—over 80% since 2010. This has made battery storage far more affordable for utilities and businesses.
Companies looking to invest in battery storage should act now before prices stabilize or increase due to supply chain issues. Locking in contracts at today’s prices can lead to significant cost savings over time.
6. The average cost of grid-scale battery storage was $151/kWh in 2023
In 2023, the average cost of grid-scale battery storage reached $151 per kilowatt-hour (kWh). This price point makes storage projects more financially viable for energy providers.
To optimize returns, developers should carefully evaluate financing options, tax credits, and operational efficiencies that can further lower costs.
7. The global energy storage market is projected to grow to 1,432 GW by 2050
By 2050, the total capacity of energy storage worldwide is expected to reach 1,432 GW. This is a clear indicator that storage will play a massive role in the future energy landscape.
Businesses that invest in energy storage now will be well-positioned to benefit from this growth, whether through direct installations or partnerships with utilities.
8. California alone has 5.6 GW of operational battery storage capacity
California leads the U.S. in battery storage with 5.6 GW of installed capacity. This is largely due to aggressive state policies, renewable energy mandates, and financial incentives.
For companies operating in California, taking advantage of these policies can provide significant cost savings. Exploring state programs and incentives can make storage investments more attractive.
9. Australia deployed 1.3 GW of new battery storage in 2023
Australia continues to expand its battery storage sector, adding 1.3 GW in 2023. With its vast solar and wind resources, the country is betting big on energy storage.
Businesses with renewable projects in Australia should consider integrating battery storage to maximize efficiency and profitability.
10. The average duration of battery storage systems is increasing, reaching 4-6 hours in new projects
Longer-duration storage is becoming the norm, with newer installations averaging 4-6 hours of discharge capability. This allows stored energy to be used more effectively during peak demand periods.
Investing in batteries with longer durations can provide better returns, especially in markets where peak electricity prices are high.
11. Over 75% of new grid-scale storage projects in 2023 were paired with renewable energy
The majority of new battery storage projects are being integrated directly with renewable energy sources. This is helping to stabilize grids and reduce waste from excess solar or wind generation.
For businesses investing in renewables, adding battery storage can significantly improve energy reliability and revenue potential.
12. U.S. battery storage installations grew by 80% YoY in 2023
The year-over-year growth of 80% in the U.S. battery storage market shows that demand is surging. Companies that delay adoption risk being left behind in an increasingly competitive market.
13. The European Union aims for 200 GW of energy storage by 2030
The EU’s commitment to reaching 200 GW of energy storage by 2030 means significant funding and incentives are available. Companies operating in Europe should explore funding opportunities to integrate storage solutions.
14. India has set a target of 50 GW of battery storage by 2030
India is rapidly expanding its storage sector, aiming for 50 GW by 2030. Companies looking to enter the Indian energy market should consider partnerships in the storage space.
15. Long-duration energy storage (>10 hours) is expected to make up >30% of new projects by 2030
Long-duration storage is becoming a priority, with over 30% of future projects expected to focus on systems that last more than 10 hours.
Companies exploring storage should look at new technologies like flow batteries and compressed air storage to capitalize on this trend.
16. Grid-scale battery storage reduced curtailment of solar and wind by 40% in high-renewable regions
Battery storage has been instrumental in reducing wasted renewable energy, cutting curtailment by 40% in areas with high solar and wind penetration.
For renewable developers, integrating storage can help maximize revenue and ensure more power gets used efficiently.
17. Global investment in battery storage reached $20 billion in 2023
With $20 billion invested in 2023 alone, battery storage is now a major industry. Companies looking to attract funding should focus on innovative storage solutions and partnerships.
18. By 2030, energy storage could displace >20% of peaker plants worldwide
Peaker plants—power plants that only operate during times of high electricity demand—are expensive and inefficient. They typically burn fossil fuels, contributing to greenhouse gas emissions and high energy costs. By 2030, battery storage is expected to replace over 20% of these peaker plants.
This shift presents a massive opportunity for energy companies to reduce costs and improve sustainability. Utilities should invest in battery storage to reduce reliance on costly peaker plants, while businesses can explore energy storage solutions to lower their electricity bills and carbon footprint.
19. Vanadium flow batteries are gaining traction, with >1 GW installed globally
While lithium-ion batteries dominate, vanadium flow batteries are emerging as a viable alternative. These batteries have longer lifespans, can discharge for extended periods, and are more stable.
Companies involved in energy storage should monitor vanadium battery developments. Utilities planning long-duration storage solutions may find flow batteries a better option for balancing renewable power on the grid.
20. In 2023, China commissioned the world’s largest battery storage project at 2 GW/4 GWh
China continues to lead in large-scale energy storage, commissioning a 2-gigawatt (GW) battery project with a storage capacity of 4 gigawatt-hours (GWh). This project can power millions of homes and stabilize the grid.
Other nations and utilities should take note. Large-scale battery projects like this one demonstrate the feasibility of energy storage at massive scales. Businesses involved in energy infrastructure should explore similar projects for their regions.
21. The U.S. Inflation Reduction Act (IRA) allocated $369 billion for energy storage and renewables
The Inflation Reduction Act (IRA) is one of the biggest investments in clean energy in U.S. history. It includes tax credits, incentives, and funding for energy storage and renewable power projects.
Businesses and investors should explore how they can benefit from the IRA. Companies considering battery storage should act quickly to take advantage of federal incentives, which can significantly lower project costs.
22. The global grid-scale battery market is expected to grow at a 25% CAGR from 2023 to 2030
Battery storage is one of the fastest-growing energy sectors, with an expected compound annual growth rate (CAGR) of 25% through 2030.
This rapid growth means competition will increase. Companies that invest early will have a strategic advantage in securing projects, technology partnerships, and market share.
23. Energy storage can improve grid reliability and reduce blackouts by >30% in renewables-heavy regions
Battery storage plays a crucial role in improving grid reliability, especially in areas with a high percentage of renewable energy. By storing excess power and releasing it when needed, battery storage can reduce blackouts by over 30%.
For utilities, adding storage can enhance grid stability and avoid costly outages. Businesses operating in areas with unstable grids should consider investing in battery storage to ensure uninterrupted power supply.
24. The levelized cost of storage (LCOS) for lithium-ion batteries fell below $100/MWh in 2023
The levelized cost of storage (LCOS)—which measures the cost per megawatt-hour of stored energy—has dropped below $100/MWh. This makes battery storage competitive with traditional energy sources.
For companies and utilities, this means battery storage is now a cost-effective solution for managing electricity supply and demand. Investing in storage now can result in long-term savings.
25. Grid-scale battery deployment in Latin America grew >150% YoY in 2023
Latin America is seeing a surge in energy storage, with a 150% year-over-year increase in 2023. Countries like Brazil, Chile, and Mexico are leading the charge with new projects.
Energy companies looking to expand in Latin America should consider battery storage as part of their strategy. The region’s strong renewable energy resources make storage an essential investment.
26. Hybrid battery-storage projects accounted for 60% of new utility-scale solar projects in 2023
More than half of all new utility-scale solar projects in 2023 included battery storage. This trend highlights how energy providers are recognizing the value of pairing storage with solar.
Businesses planning solar energy projects should consider integrating storage from the start. Doing so improves reliability, increases revenue potential, and ensures compliance with future energy regulations.
27. The world’s first 1 TWh energy storage milestone is expected to be reached before 2040
Energy storage is scaling up rapidly, with projections indicating that global storage capacity will reach 1 terawatt-hour (TWh) before 2040. This level of storage could replace significant amounts of fossil fuel generation.
This milestone signals a major shift in global energy dynamics. Companies should prepare for a future where large-scale battery storage is an integral part of power grids worldwide.
28. Second-life EV batteries could supply >200 GWh of stationary storage by 2035
As electric vehicle (EV) adoption increases, used EV batteries are being repurposed for stationary energy storage. By 2035, these second-life batteries could provide over 200 GWh of capacity.
Businesses in the EV and energy storage sectors should explore ways to integrate second-life batteries into their projects. This presents an opportunity to lower costs and promote sustainability.
29. Over 10,000 grid-scale battery projects are in development worldwide
The number of grid-scale battery projects in development has surpassed 10,000 globally. This indicates strong demand for storage solutions across different markets.
Companies involved in energy infrastructure should evaluate how they can participate in this growing sector. Whether through direct investment, technology development, or partnerships, opportunities in battery storage are abundant.
30. Sodium-ion batteries are emerging as a cost-effective alternative, with >5 GWh of planned capacity
Sodium-ion batteries are gaining attention as a cheaper and more abundant alternative to lithium-ion. With over 5 GWh of planned capacity, this technology could be a game-changer.
Businesses looking for alternative storage solutions should track developments in sodium-ion technology. Early adopters could gain a competitive edge as the technology matures.
wrapping it up
The rapid expansion of grid-scale battery storage is transforming the global energy landscape. With renewable energy sources like solar and wind becoming more dominant, the ability to store and manage electricity efficiently is now more critical than ever.
Battery storage is no longer a futuristic concept—it is happening now, at scale, and with significant investment from governments, utilities, and private companies.
