Globally, Storage Projects Are Already Growing at a Rapid Pace

Batteries have become one of the hottest topics in the power sector, with a Brazilian auction scheduled for the end of the year expected to boost the technology and help balance energy supply and demand. Globally, storage projects are already growing at a rapid pace. Energy storage systems have quickly moved from a promise to a sector demand.

With the rise of intermittent renewable sources — whose generation does not coincide with peak consumption hours — batteries are now seen as essential for adding flexibility to power grids. Their importance is nearly consensual in the industry, though some experts argue there are more efficient and cheaper mechanisms for storing energy, such as pumped-storage hydroelectric plants. Known as BESS (battery energy storage systems), these systems currently exist in three main formats.

One is installed on the consumer side, providing self-sufficiency, lower electricity bills, and backup power for homes and businesses. Another application is at distribution utilities, focused on solving local grid problems. The third format, which has been gaining scale in recent years, involves batteries connected directly to transmission networks or large generation plants.

The auction scheduled for December in Brazil focuses on this model. A May report by consultancy BloombergNEF shows the storage sector surpassed the 100 GW (gigawatts) installed in a single year for the first time in 2025. According to the IEA (International Energy Agency), 108 GW were added, 40% more than in 2024. The growth was driven by falling battery prices — project costs have dropped more than 90% since 2010. The sector is also expanding amid strong global demand for batteries, fueled by cuts in renewable generation (known as "curtailment"), the growing electric vehicle fleet, and public policies encouraging energy storage. China leads the race, accounting for more than half of new battery projects installed worldwide.

The United States comes second with about 16%. Chinese government data shows that by the end of 2025, the country's installed storage capacity reached 136 GW, supported by state subsidies for new projects and lower production costs. In the US, battery growth is also backed by public policy.

California is a leader, with storage capacity jumping from less than 1 GW in 2019 to more than 17 GW today. According to the US energy authority, large-scale battery storage capacity is growing at an annual rate of 70%. In 2025, the country's grid registered 43 GW of BESS capacity, with another 8.3 GW added in the first half of this year.

Federal tax credits and local policies, such as California's requirement that all new large buildings install batteries, have supported this trajectory. Australia is also standing out, with new installations jumping to nearly 8 GW in 2025, nine times the previous year's volume. In the Middle East, storage capacity expansion surpassed 3 GW in 2025, driven by Saudi Arabia, where batteries have become a key source of flexibility amid the rapid expansion of large renewable projects.

In South America, Chile leads with 1 GW of new installations in 2025. BloombergNEF forecasts the storage sector will keep growing over the next decade, driven by falling costs, more renewables, and battery auctions. The consultancy projects annual installations will reach 300 GW by 2036, with 158 GW expected this year. Fabio Lima, executive director of Absae (Brazilian Energy Storage Association), says the battery sector is going through a transition in Brazil and rapid consolidation abroad, adding that the Brazilian market has already reached a level of maturity.