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
A Turning Point for Battery Storage Economics
The cost of grid-scale battery storage reaching an average of $151/kWh in 2023 marks a major milestone in energy economics. This price decline reflects significant advancements in battery technology, increased manufacturing efficiency, and stronger economies of scale.
More importantly, it signals a shift in the business case for renewable energy, making large-scale storage more accessible and financially viable than ever before.
For businesses, utilities, and investors, the decreasing cost of battery storage is a game-changer. It lowers the barriers to entry for energy storage projects, enhances the feasibility of renewable energy integration, and creates new revenue streams through energy arbitrage, demand response, and grid services.
7. The global energy storage market is projected to grow to 1,432 GW by 2050
The global energy storage market is on an unprecedented growth trajectory, with projections showing it will reach 1,432 GW by 2050.
This isn’t just a technological evolution—it’s a fundamental shift in how the world produces, distributes, and consumes energy. For businesses, this expansion represents a once-in-a-generation opportunity to secure a foothold in a market that will define the future of energy.
Why This Growth Matters for Businesses
Reaching 1,432 GW of energy storage capacity means the industry will become one of the most valuable and essential sectors in global energy infrastructure. This massive scale-up is being driven by:
- The increasing dominance of renewables like solar and wind, which require storage for grid stability.
- Governments and utilities phasing out fossil-fuel-based peaker plants and replacing them with storage-backed energy solutions.
- The electrification of industries, transportation, and smart cities, all of which demand flexible, large-scale energy storage.
This growth isn’t just about sustainability—it’s about profitability, resilience, and long-term strategic positioning.
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
A Milestone Year for Energy Storage Expansion
Australia’s renewable energy industry made a significant leap forward in 2023, adding 1.3 gigawatts (GW) of new battery storage capacity.
This expansion marks a critical shift toward greater energy independence, stability, and resilience in the face of increasing demand and extreme weather events.
The rapid deployment of battery storage reflects Australia’s ongoing commitment to renewable energy, driven by a combination of government incentives, private sector investments, and the country’s vast renewable resources. But beyond the numbers, what does this mean for businesses, investors, and energy innovators?
Why Battery Storage is a Game-Changer for Australian Businesses
The increase in grid-scale battery installations is not just a victory for sustainability; it’s a strategic advantage for businesses across industries.
Energy-intensive industries such as mining, manufacturing, and data centers can now leverage battery storage to stabilize electricity costs, reduce grid dependency, and enhance operational resilience.
With energy prices historically volatile in Australia, businesses that integrate battery storage can secure more predictable costs, allowing for better financial planning.
Additionally, with corporate sustainability goals becoming a competitive differentiator, companies that align with renewable energy solutions are gaining a stronger foothold in both consumer trust and investor confidence.
10. The average duration of battery storage systems is increasing, reaching 4-6 hours in new projects
Battery storage is no longer just about short-term grid stability—it’s evolving into a critical backbone for renewable energy expansion.
One of the most significant advancements in recent years is the increase in the duration of grid-scale battery storage systems, with new projects now averaging between 4 to 6 hours of discharge capability.
This shift is creating game-changing opportunities for businesses, utilities, and investors looking to capitalize on the renewable energy transition.
Why Longer Duration Storage Is a Game Changer
Longer-duration storage is solving one of the biggest challenges of renewable energy—intermittency. Solar and wind power generation don’t always align with peak energy demand, but with storage systems capable of delivering energy for 4 to 6 hours, businesses can now:
- Maintain energy supply during peak evening hours when solar generation drops.
- Reduce dependency on expensive fossil-fuel-based peaker plants.
- Secure long-term energy contracts with utilities and grid operators, ensuring financial stability.
As storage durations extend, grid operators and businesses are gaining more flexibility in how they balance supply and demand.
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
A Historic Surge in Energy Storage Deployment
The U.S. energy storage sector experienced explosive growth in 2023, with installations skyrocketing by 80% year-over-year.
This unprecedented expansion is a direct response to rising electricity demand, increasing renewable energy adoption, and the urgent need for a more resilient power grid.
The sharp rise in battery storage capacity is reshaping the energy landscape, enabling greater integration of solar and wind power while reducing reliance on fossil fuels.
But beyond the statistics, this rapid expansion presents a wealth of opportunities for businesses, investors, and energy innovators.
Why This Growth Matters for Businesses
For companies across industries, the surge in battery storage deployment is more than just an energy sector milestone—it’s a shift that opens up strategic advantages.
Energy reliability has become a critical business factor, and access to large-scale battery storage allows companies to shield themselves from power fluctuations, peak demand charges, and grid disruptions.
Manufacturers, logistics hubs, and data centers—sectors that rely on uninterrupted power—can significantly cut costs by leveraging stored energy during peak hours. Even smaller businesses can now access financing options that make battery storage solutions an attractive long-term investment.
13. The European Union aims for 200 GW of energy storage by 2030
The European Union’s ambitious goal of reaching 200 GW of energy storage by 2030 is more than just a climate policy—it’s a massive business opportunity. As renewable energy adoption accelerates, the EU recognizes that energy storage is the missing piece in creating a stable, resilient, and self-sufficient power grid.
This target represents a significant push for innovation, investment, and market expansion in the energy storage sector, creating a fertile ground for businesses looking to lead in the clean energy transition.
Why 200 GW Matters: The Business Case for Energy Storage Expansion
The 200 GW target is not just a number—it signifies a shift in the way Europe manages energy. This scale of storage deployment is set to:
- Enhance grid stability by ensuring a steady power supply even when solar and wind generation fluctuates.
- Reduce reliance on fossil fuels by replacing peaker plants with stored renewable energy.
- Lower electricity costs by optimizing energy use and reducing price volatility in wholesale markets.
For businesses, this shift opens doors to new revenue streams, investment opportunities, and strategic partnerships.
14. India has set a target of 50 GW of battery storage by 2030
A Bold Step Toward Energy Security and Sustainability
India’s ambitious goal of deploying 50 GW of battery storage by 2030 is a transformative move that signals the country’s commitment to clean energy and grid stability.
As one of the fastest-growing energy markets in the world, India faces the dual challenge of meeting rising electricity demand while transitioning away from fossil fuels.
This large-scale energy storage target is a critical enabler for the country’s renewable energy plans.
With solar and wind power generation increasing rapidly, grid-scale batteries will play a crucial role in balancing supply and demand, preventing blackouts, and ensuring a steady power supply.
But beyond its impact on energy reliability, this shift presents immense opportunities for businesses, investors, and technology innovators.
15. Long-duration energy storage (>10 hours) is expected to make up >30% of new projects by 2030
Long-duration energy storage (LDES) is no longer a niche concept—it’s quickly becoming the backbone of the next-generation energy grid.
With projections showing that over 30% of new energy storage projects will exceed 10-hour durations by 2030, businesses have a golden opportunity to stake their claim in a rapidly expanding market.
This shift is driven by the growing need for grid stability, energy resilience, and deeper renewable energy penetration. As fossil fuel reliance declines, LDES will play a crucial role in ensuring that clean energy is available when and where it’s needed.
Why Long-Duration Storage Is Transforming the Energy Market
Traditional battery storage solutions, such as lithium-ion, have primarily focused on short-term applications—typically in the 2 to 6-hour range.
But as renewables take center stage, longer-duration storage is becoming a necessity to bridge the gap between intermittent generation and consistent demand.
LDES provides:
- Greater energy reliability by storing excess solar and wind power for overnight or multi-day use.
- Enhanced grid flexibility by reducing curtailment and optimizing energy dispatch.
- Stronger economic incentives as new policies and market structures reward longer storage capabilities.
16. Grid-scale battery storage reduced curtailment of solar and wind by 40% in high-renewable regions
Unlocking the Full Potential of Renewable Energy
The rapid expansion of grid-scale battery storage has drastically reduced the curtailment of solar and wind energy by 40% in regions with high renewable penetration. This is a major breakthrough for the energy sector, ensuring that more clean electricity reaches the grid instead of being wasted.
Curtailment—the process of limiting energy production due to grid constraints—has long been a challenge for renewable energy adoption.
When the grid cannot absorb excess energy from solar and wind farms, electricity goes unused, leading to lost revenue and inefficiencies. But with advanced battery storage systems in place, that excess power is now being captured and dispatched when needed.
This shift is not just good for energy sustainability; it creates new business opportunities and cost-saving advantages for companies operating in energy-intensive industries.
17. Global investment in battery storage reached $20 billion in 2023
The battery storage industry is no longer an emerging market—it’s a major investment hotspot. With global investment surpassing $20 billion in 2023, businesses across the energy sector and beyond are waking up to the massive opportunities in grid-scale battery storage.
This record-breaking capital infusion signals a new era where energy storage is seen not just as a support system for renewables, but as a standalone asset class with enormous financial and strategic value.
Why the Surge in Investment Matters
This $20 billion milestone is a clear sign that investors, governments, and corporations view energy storage as essential for the future of the global power grid. The surge in funding is accelerating:
- Infrastructure scaling to support larger, longer-duration battery storage projects.
- Technology breakthroughs in next-generation batteries that improve performance and lower costs.
- Policy and regulatory support driving storage deployment through incentives and market reforms.
For businesses, this means one thing: the window of opportunity is now.
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.
