Annual battery storage capacity is predicted to cross 400 gigawatt hours (GWh)—ten times the present yearly additions, Kallanish learns from a statement by Rystad Energy.

The global capacity additions of battery energy storage systems (BESS) increased by 60% in 2022 compared to 2021. While new installations surpassed 43 GWh last year, an additional 74 GWh is projected to be added in 2023. This 72% increase is largely due to reduced BESS costs as well as favourable government policies. China’s renewable capacity expansion has also been instrumental to this growth, according to the independent energy research firm.

The US Inflation Reduction Act, for example, has “catalysed” the growth of renewables and clean tech. It is expected to expand solar and onshore wind capacity by 40%. This is predicted to add over 20 GW battery capacity, with the total US battery capacity surpassing 130 GW by the turn of this decade.

Meanwhile, in Europe, the European Green Deal Industrial Plan is expected to accelerate the sustainable energy transition. On the other hand, China is expected to boost its clean energy production as it aims to peak its emissions by 2030. 

Led by Asia, Rystad predicts the annual BESS market installation will reach 110 GW by the end of this decade. While Asia will account for 58% of the installation, North America and Europe will represent 18 and 16%, respectively. 

Sepehr Soltani, energy storage analyst at Rystad Energy emphasised countries should invest in BESS to accelerate decarbonisation. “Batteries will play a fundamental role in the future of energy production and power demand, solving the intermittency problem of renewable energy generation,” Soltani adds.