The Rise of Battery Energy Storage Systems: Powering the Future of Renewables By Samrath Kochar, Trontek

The global energy transition is accelerating, with wind and solar power dominating new capacity additions. However, integrating these intermittent sources into grids 24/7 remains a challenge. Battery Energy Storage Systems (BESS) are emerging as a crucial solution, enabling efficient power dispatch, reducing curtailment, and enhancing grid stability.

BESS: The Key to Expanding Zero-Carbon Power

As renewable energy scales up, grid constraints often force operators to curtail wind and solar generation, leading to wasted potential and volatile power prices. During times of low renewable generation, gas plants step in, causing price spikes. Energy storage smooths this imbalance by capturing excess power during peak generation and supplying it when demand rises.

The impact of BESS deployment is already visible. In 2024, the global energy storage market grew by 44%, installing 69 GW/161 GWh of capacity. Grid-scale storage led the way, accounting for 80% of new additions. Projections indicate that by 2035, energy storage installations will exceed 1 TW/3 TWh—nearly seven times today’s capacity.

Governments Driving Storage Growth

Recognizing the bottleneck in grid infrastructure, governments are ramping up BESS adoption. At COP29 in November 2024, world leaders set a target of 1,500 GW of energy storage capacity by 2030, a significant leap from 340 GW today.

China is leading the charge, leveraging its dominance in lithium-iron phosphate (LFP) battery manufacturing and integrated renewables policies. The country accounts for half of the global installed storage capacity and plans to commission 45% of new capacity additions over the next decade.

Meanwhile, emerging markets are also making bold moves. Saudi Arabia aims to install 14 GW/53 GWh of energy storage by 2033, driven by large-scale projects such as Neom. This will position the country among the world’s top 10 energy storage markets and support its target of achieving 50% renewable energy by 2030.

Advancing Battery Technology for Longer Duration Storage

Current LFP batteries can provide full power output for up to eight hours, effectively mitigating the ‘duck curve’—a phenomenon where solar oversupply during the day leads to excess generation, followed by steep evening demand peaks. However, the next frontier for BESS is longer-duration storage.

Emerging battery technologies, such as flow batteries and iron-air systems, promise up to 100 hours of storage. These advancements could enable renewable energy to function as baseload power, fundamentally transforming the energy landscape. However, further R&D and commercial scaling are needed before these technologies become mainstream.

Falling Costs and Growing Competitiveness

The cost of battery storage dropped nearly 20% in 2024 due to oversupply and intensified competition. As cell sizes increase and energy density improves, prices are expected to decline further. By 2030, battery container costs could fall from $160/kWh to below $100/kWh.

This cost reduction, combined with the affordability of solar PV, is making hybrid systems—such as solar-plus-storage—one of the most competitive and reliable electricity sources.

The industry is also seeing greater corporate activity. Leading Asian battery manufacturers like CATL, Panasonic, and BYD are expanding investments overseas, while US and European automakers are partnering with Asian firms to develop battery production capacity.

The Impact of Trade Protectionism

Despite rapid growth, rising trade restrictions could slow BESS adoption. In the US, a new administration could impose higher tariffs on battery imports, increasing costs until domestic production scales up. Similarly, China is considering banning the export of cathode technology, which could disrupt supply chains outside its borders.

Such protectionist policies highlight the need for diversified supply chains and localized battery manufacturing to ensure sustainable growth in the energy storage market.

BESS: A Crucial but Not Solitary Solution

While BESS is a game-changer for the energy transition, it is not a silver bullet. A balanced mix of technologies—including gas with carbon capture, nuclear, green hydrogen, and renewables—will be essential to meet future energy demands and maintain grid stability.

However, with surging investment, falling costs, and technological breakthroughs, battery storage is rapidly becoming a cornerstone of the global clean energy future. The next decade will be critical in shaping an energy landscape that is both sustainable and resilient.