Global battery storage capacity expands by record 200 GWh in 2024
Global installed energy storage is on a steep rise and is expected to increase ninefold by 2040, to over 4 TW, driven by battery energy storage systems (BESS), which saw record growth in 2024, according to a report by Rystad Energy. In recent years, the cost of storing electricity has dropped significantly thanks to the declining cost of battery projects, coupled with technological advancements.
Last year, a record 200 GWh of new BESS projects came online globally, bringing the world’s total operational battery storage capacity to 375 GWh. China maintained its leading position, with over 100 GWh of new capacity, followed by the United States, which added 35 GWh. Germany, Australia, and the United Kingdom were among the top five.
Energy storage will play a key role in integrating renewables as power demand grows
As power demand is expected to continue its strong growth in 2025 and after, the growth rate of low-carbon energy sources is now close to covering the entire demand increase. Energy storage will play a key role in integrating the increasing share of intermittent renewable energy and providing the needed flexibility for the secure operation of the power systems, according to Rystad’s report.
The increasing share of intermittent renewables, combined with low flexibility in supply and load, creates price volatility in the liberalized power markets, making energy trading (arbitrage) a good source of revenue for BESS, according to the report.
Solar energy is projected to grow more than all other energy sources combined between 2025 and 2050, expanding tenfold over the period, Rystad noted.
The cost of BESS projects has fallen below USD 300 per kWh in recent years
The global average cost of BESS projects fell below USD 300 per kWh in 2024. If it were to decline to USD 250 per kWh, the cost of storing electricity could be as low as USD 60 per MWh, allowing BESS operators to retain a larger portion of the price spread as profit, Rystad said.
The lower costs of electricity storage are also driven by technological advancements, as battery manufacturers currently guarantee over 10,000 charge-discharge cycles and more than 80% battery health during that lifespan.
