Is China entering a new era of energy storage demand?

Mainland China accounts for most of the global energy storage demand, driven in the near term by regional requirements for new utility-scale wind and solar projects to include energy storage capacity. However, the Chinese market is entering an era of change.

What is the future of energy storage?

Storage enables electricity systems to remain in balance despite variations in wind and solar availability, allowing for cost-effective deep decarbonization while maintaining reliability. The Future of Energy Storage report is an essential analysis of this key component in decarbonizing our energy infrastructure and combating climate change.

Will energy storage growth continue through 2025?

With developers continuing to add new capacity, including 9.2 GW of new lithium-ion battery storage capacity in 2024 through November 2024 and comparable levels of growth expected through the fourth quarter of 2024, energy storage investments and M&A activity are expected to continue this trajectory through 2025.

Why did energy storage surge in Q1 2025?

That makes Q1 2025 the biggest first quarter for energy storage in US history. The surge was led by utility-scale projects, which accounted for over 1.5 GW of the new capacity, a 57% jump compared to Q1 2024. Surging energy demand is putting the electric grid under strain,” said John Hensley, SVP of markets and policy analysis at ACP.

How can energy storage support the global transition to clean electricity?

To support the global transition to clean electricity, funding for development of energy storage projects is required. Pumped hydro, batteries, hydrogen, and thermal storage are a few of the technologies currently in the spotlight.

Why is storage demand increasing?

Storage demand continues to escalate, driven by the pressing need to decarbonise economies through renewable integration on the grid and by load increases from data centre demand, manufacturing and increased electrification.