Expanding Energy Storage: Challenges and Solutions for 2030

In the face of the climate emergency, the G7 governments have made a bold commitment to increase global energy storage capacity sixfold by 2030. This development is crucial to support the necessary expansion of renewable energies.

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Energy Storage G7

As part of a global initiative, the G7 governments have highlighted the urgent need to rethink our energy storage capabilities to support the expansion of renewable energies. This need is driven by the intermittent production of solar and wind energy, which cannot cover constant energy needs. Thus, to meet consumption requirements during periods of low production, storage capacities need to be significantly increased. The capacity required by 2030 is estimated at 1,500 gigawatts (GW), of which 1,200 GW should come from batteries.

Technological advances in energy storage

The year 2023 marked a turning point with a 130% increase in the installation of new energy storage capacity over the previous year, mainly in the form of batteries. This progress is the result of decades of research and development that have reduced battery costs by over 90% in less than 15 years, making renewable energy storage systems increasingly competitive with fossil fuels.

Energy Storage Economics and Markets

The energy storage market is booming, with key players located in China, the European Union and the United States. Lower battery costs have been a catalyst for this growth, but significant challenges remain to maintain this trend. Diversifying supply chains and increasing production outside China are essential to avoid strategic and vulnerable dependence.

Impact of Critical Metals and Innovations

Dependence on critical metals such as lithium, cobalt and nickel remains a major concern. However, recent innovations in battery technologies, such as sodium-ion accumulators, promise to reduce this dependence. These new technologies could not only minimize the environmental impact of metal extraction, but also lower costs and increase the safety of the materials used. In India, the solar photovoltaic-battery combination is now competitive with new coal-fired power plants. In a few short years, this will be the case in China and against gas-fired power plants in the USA, according to Fatih Birol, Director of the IEA.

Alternative and Complementary Solutions

In addition to batteries, several other energy storage solutions are being explored for their potential to offer flexibility to the power grid. Pumped-storage systems associated with hydroelectric dams and electricity-to-hydrogen technologies are examples of solutions that can complement battery storage. Although more costly and complex to implement, these technologies offer promising prospects for long-term energy storage.

Network flexibility and demand management measures

To effectively integrate increased storage capacities, it is crucial to improve the flexibility of the power grid. Demand management measures, such as variable tariffs and cross-border interconnections, are essential for optimizing renewable energy consumption. These strategies not only reduce costs for consumers, but also stabilize the grid during fluctuations in energy production.
The ambition to triple the share of renewable energies by 2030 poses substantial challenges, but also significant opportunities. Government and industry initiatives will need to be supported by appropriate policies and increased international cooperation to achieve energy storage and efficiency objectives.

EDF Power Solutions has been selected by the Japanese government to build a 110 MW lithium-ion battery after winning a public tender aimed at enhancing the flexibility of the country's electricity grid.
Atmos Renewables has completed financing for a 100 MW battery energy storage system in Western Australia, marking the company's first asset of this type in the region and strengthening its presence in the Australian energy market.
Eos Energy Enterprises has received an additional $22.7mn from the US Department of Energy to complete the first phase of its battery manufacturing project in the United States, bringing total funding to $90.9mn.
A Wood Mackenzie report estimates required battery investments at $1.2 trillion to integrate an additional 5,900 GW of renewable energy, highlighting battery storage systems' key role in stabilising electrical grids.
Globeleq and African Rainbow Energy finalise financing for Africa's largest standalone battery energy storage project, raising ZAR 5.4 billion ($300 million) from Absa and Standard Bank in South Africa.
Matrix Renewables and Pioneer Community Energy have signed an energy capacity contract for a 22 MW battery storage project in Kern County, operational from early 2026.
The Ignitis Group is starting the construction of three battery energy storage systems in Lithuania, with a combined capacity of 291 MW and a total investment of €130mn.
Alinta Energy has appointed GenusPlus Group to build the first phase of the Reeves Plains Energy Hub Battery, a high-capacity storage facility designed to support grid stability in South Australia.
A partnership between Indonesia Battery and Contemporary Amperex Technology aims to launch a lithium-ion battery plant in Indonesia by the end of 2026, with a 6.9 gigawatt-hour capacity and planned expansion.
State Grid Wuzhong Power Supply Company announces the completion of the energy storage compartment at Tongli substation, a key step for the upcoming integration of a 300 MW shared storage power plant in Ningxia.
Globeleq and African Rainbow Energy finalise commercial agreements for a 153 MW energy storage project in South Africa, aimed at enhancing national grid stability and optimising peak energy management.
Estimated at 40.9 billion dollars in 2024, the global microgrid market is expected to grow at an average annual rate of 19.28% to reach 191.01 billion dollars by 2033, driven notably by innovative energy contracts.
The U.S. energy storage market set a historic record in early 2025, surpassing 2 GW installed in the first quarter despite increasing uncertainty regarding federal fiscal policies and tax credits.
The Sino-Moroccan joint venture COBCO has begun manufacturing essential lithium-ion battery components at its Jorf Lasfar plant, targeting a final annual capacity of 70 GWh, enough to equip one million electric vehicles.
Trianel teams with BKW and Luxcara to build a 900 MW lithium-iron-phosphate storage park in Waltrop, the first phase of a complex that could reach 1.5 GW and stabilise the German grid.
Blue Whale Energy partners with UNIGRID to deploy behind-the-meter storage systems adapted to constrained commercial and industrial urban areas in Southeast Asia.
Northvolt, recently placed under judicial administration, has received an indicative offer from a foreign investor to acquire its Swedish assets, signaling a potential imminent restart of its battery production units.
The frame agreement aligns Jinko ESS’s utility-scale storage technology with Metlen’s development pipeline, unlocking more than 3GWh across Chile and Europe while reducing delivery risk for grid operators.
Buffalo-based Viridi has obtained the cETLus mark for its RPS150 system, meeting the UL 9540 standard only days after a public battery fire-containment demonstration.
Tesla is building a giant electricity storage facility in Shanghai, China, signing a $560 million contract to meet growing demands on the urban electricity grid.