What drives energy storage project development?

Globally, energy storage project development is increasingly driven by the utility-scale segment, with mandates and targeted auctions driving gigawatt-hour projects in markets like China, Saudi Arabia, South Africa, Australia and Chile.

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 a battery energy storage system?

Battery energy storage systems (BESS), which enable utility companies and grid operators to access pools of surplus renewable energy on demand that would otherwise be wasted, play a central role in the global energy transition.

Should energy storage be removed from energy grid connection?

For energy storage, the new Chinese policy emphasized the need to remove energy storage as a prerequisite for renewable energy project grid connection, a requirement that has been a major driver for battery build. Nonetheless, BNEF still expects strong demand for batteries, as the policy doesn’t explicitly require mandates to stop.

Does North Carolina have a 255 MW battery storage project?

Later that month, North Carolina’s Strata Clean Energy secured US$559 million in financing for a 255-MW battery storage project in Phoenix, Arizona. The project will store enough electricity to power 50,000 homes in the state during peak summer conditions for two decades.

What is Spain's energy storage strategy?

The Spanish government’s Energy Storage Strategy, first laid out in 2021, ambitiously targets 20 GW of energy storage by 2030. This represents a more than twofold increase from the country’s existing capacity, which stood around 8.3 GW in 2023.