In 2024, global battery energy storage system (BESS) deployments soared by an impressive 53%, reaching 205 GWh installed worldwide. This unprecedented growth was primarily driven by the grid-scale segment, which expanded by 68% yearly and accounted for 160 GWh. Notably, lithium-ion technology dominated, making up 98% of grid-scale installations.
However, China is the most significant and fastest-growing storage battery market, with a share of almost 67% of the global storage battery capacity. The market grew enormously thanks to specific policy mandates instated by several provincial governments and the unprecedented low cost of battery cells and systems. China has made its bulk deployment a stunning trend.
The United States and Canada will soon be expanding BESS. Together, they added almost 40 GWh of battery storage in 2024. California alone is responsible for 50% of the 2024 installation, affirming its proficiency in renewable energy storage.
In addition to China, other regions, such as Europe, Latin America, and the Asia Pacific region, have experienced significant growth in the sector. Almost twice as many new installations were undertaken in these regions, leading to a global requirement for energy storage solutions.
The boom in mega-sized battery installations will be a massive highlight in 2024. This year, 17 storage projects exceeded the 1 GWh threshold, 11 launched in China and 5 in the U.S.; the sole project in this regard was in Saudi Arabia. In 2023, just four large-scale projects were commissioned.
The BESS (behind-the-meter) pipeline will continue to expand into 2025 and 2026. Up to this point, more than 140 planned projects have exceeded 1 GWh, with as many as 30 projects exceeding 2 GWh each. This signifies an increased focus on energy storage systems with high capacity.
As the industry matures, the average duration of BESS projects also increases. In Europe, the average duration exceeded two hours for the first time, compared to 1.4 hours in 2023. New installations in the U.S. and Canada averaged over three hours in 2024, with Texas projects averaging 1.7 hours and California nearing four hours.
Latin America has become a prime location for long-duration BESS projects. The average number of hours described for each new installation is about 4.2, reflecting a move toward cleaner and more efficient storage systems.
In 2023, almost half of the global BESS deployments were combined with solar or wind energy. In 2024, the percentage dropped to 40% because China moved towards a leasing-based energy storage model and because of the changing regulatory environment. It signifies that BESS is removing extraction/renewable energy integration as an ultimate use case.
In 2024, more than 40 GWh of energy storage facilities were installed, far beyond grid-scale applications. The segment was earlier dominated by strong European residential demand due to subsidies and high electricity costs. With subsidies dwindling and electricity prices flattening, the segment has reached equilibrium.
The 2024 global surge in BESS deployments attests to the rapid evolution of the energy storage industry. With increasing investment in large-scale projects, longer-duration storage, and expanding markets, the sector is poised for sustained growth in the coming years.
For a detailed analysis, read the original article: Global BESS Deployments Soared 53% in 2024
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