Global Expansion of Battery Storage and Its Increasing Role in Electricity Systems
Battery storage experienced a remarkable growth in 2025, with total capacity additions reaching 108 gigawatts (GW). This represents a 40 percent increase over 2024 and exceeds the previously recorded peak for gas-fired power capacity additions in 2002, signalling a major shift in energy infrastructure. The expansion underscores the critical role of batteries in supporting renewable energy integration and system flexibility.
Most of the growth occurred in utility-scale battery storage, which accounted for around 87 GW of the global total. Behind-the-meter deployments also surged, especially in markets with high retail electricity prices and supportive policies. Approximately 24 GW of utility-scale storage was co-located with renewables in 2025, though this share decreased slightly due to regulatory reforms in China that removed broad co-location mandates. This diversification of deployment strategies highlights a maturing market willing to adapt to local policy frameworks.
Australia emerged as a standout market, with total additions reaching nearly 8 GW — almost nine times higher than the previous year. Utility-scale installations grew from under 1 GW in 2024 to about 4.2 GW in 2025, complemented by behind-the-meter growth supported by state and federal incentives. Meanwhile, in the Middle East, deployments surpassing 3 GW marked a more than threefold increase, primarily driven by Saudi Arabia's focus on system flexibility. Chile also saw significant deployment nearing 1 GW, mainly to help absorb surplus solar energy and meet peak demand.
Battery storage now contributes approximately 18 percent to Australia's total dispatchable capacity, a rapid rise when compared to 7 percent in China, 5 percent in the US, and 4 percent in Europe. This underpins the increasing importance of batteries within different regions' energy systems. China led the deployment with over 63 GW, a third more than in 2024, with utility-scale projects comprising the majority. The United States added 19 GW, a 60 percent increase year-on-year, with most growth in utility-scale systems. Europe's deployment reached around 6.2 GW, with a notable shift towards utility-scale developments, which more than doubled from the previous year.
Overall, the global battery storage landscape is rapidly evolving, driven by technological advancements, policy support, and the need for greater system flexibility. This expansion plays a vital role in enabling renewable energy integration, stabilising power networks, and supporting the transition towards a low-carbon energy system. As markets continue to develop, batteries are set to become a cornerstone of modern electricity infrastructure, underpinning a more sustainable and resilient future.