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With the advent of the "electrification" era, batteries that were once bulky and costly have become increasingly lighter and more affordable, driven by continuous technological innovation and widespread application. Energy storage batteries are now playing an increasingly important role in global power systems, even evolving into "versatile tools" capable of delivering multiple critical services simultaneously. In the foreseeable future, the deployment of energy storage batteries will continue to accelerate, with the pace depending on factors such as regulatory policies, grid connection conditions, and permitting timelines.
The relatively short construction and development cycles are particularly advantageous for the rapid deployment of large-scale batteries. In many countries and regions, large-scale energy storage battery projects typically take about two years to develop and become operational, effectively ensuring that domestic power systems can quickly access flexible power supply. According to the latest data from the International Energy Agency (IEA), the global energy storage battery market accelerated in 2025, with particularly rapid growth in countries such as Australia and Saudi Arabia. In countries that have been at the forefront of deployment, energy storage batteries have already begun to play a critical role in continuously balancing power supply and demand.
In 2025, global energy storage battery capacity growth broke records once again, with annual new installations reaching 108 GW, an increase of approximately 40% compared to 2024, surpassing the historical peak of 107 GW. Utility-scale energy storage batteries accounted for approximately 87 GW of new installations in 2025, representing about 80% of total global deployments. Residential and commercial self-deployed energy storage battery installations also accelerated, particularly in countries and regions with higher electricity prices and strong policy support. In 2025, approximately 24 GW of new utility-scale energy storage projects were directly linked to renewable energy projects, remaining at a similar scale to 2024.
The global deployment scope of energy storage batteries expanded significantly in 2025. In Australia, driven by government incentives, new installations approached 8 GW, nearly nine times the 2024 figure. Utility-scale energy storage projects grew from less than 1 GW in 2024 to approximately 4.2 GW in 2025, while residential and commercial self-deployed projects increased from about 0.2 GW to approximately 3.4 GW. Energy storage batteries now account for approximately 18% of Australia's dispatchable installed capacity. In the Middle East, new installations were almost entirely driven by Saudi Arabia, where energy storage battery capacity exceeded 3 GW in 2025, more than triple the 2024 figure. As large-scale projects advance rapidly in the Kingdom, energy storage batteries have become a key source of flexible power. In Chile, new energy storage battery capacity approached 1 GW, with utility-scale projects primarily used to store excess solar power and meet peak electricity demand.
In terms of total installed energy storage battery capacity globally, China, the United States, and Europe remain the leaders. In 2025, China added more than 63 GW of new energy storage battery capacity, an increase of about one-third compared to 2024. Utility-scale projects accounted for approximately 55 GW, while residential and commercial self-deployed projects accounted for about 8 GW. The United States added 19 GW of new energy storage capacity in 2025, representing a year-on-year increase of approximately 60%. Utility-scale projects accounted for over 16 GW, and self-deployed projects accounted for nearly 3 GW. Europe added approximately 6.2 GW of new energy storage capacity in 2025, slightly below the 2024 figure, but utility-scale projects reached approximately 4.6 GW.
Flexible power supply is emerging as a key driver of growth in the energy storage battery industry. Driven by innovation, competition, and economies of scale, energy storage battery costs have fallen by more than 90% between 2010 and 2025. Thanks to this dramatic cost reduction, energy storage batteries are becoming a critical source of short-term flexibility in global power systems. Their applications are extremely versatile, enabling a wide range of grid support services, including load shifting, ensuring adequate system capacity, and managing transmission congestion.
Thanks to technological advancements, the round-trip efficiency of energy storage batteries has improved from approximately 40% in 2015 to over 90% in 2025. As a result, energy storage batteries are increasingly used to shift large volumes of power over short timeframes, while also providing rapid power supply to the grid during shortages. As deployment shifts toward energy shifting and renewable integration, the duration of utility-scale energy storage is increasing. In 2025, the average storage duration of newly commissioned projects reached 3 hours, with a growing share of projects providing 4 hours or more of storage.
Rapid delivery timelines support the swift deployment of energy storage batteries. With their modular design and relatively low infrastructure requirements, storage battery projects can, in principle, be completed in less than a year. Currently, the average construction cycle for utility-scale energy storage projects is approximately 275 days, close to the roughly 220 days required for solar PV projects, and significantly shorter than the two-plus years for natural gas projects and the more than six years for nuclear power projects.
As energy storage deployment scales up and storage durations lengthen, batteries are gradually fulfilling short-term ramping and demand-balancing roles in power systems by charging during periods of excess power and discharging during peak demand. In California, solar capacity has grown to over 55 GW, exceeding the state's peak load. Meanwhile, battery capacity in California has grown from less than 1 GW in 2019 to over 17 GW today, providing ample storage and discharge capacity. In March 2026, energy storage batteries at one point covered more than 40% of the state's power supply, effectively helping to balance the power system load. In South Australia, energy storage batteries provided power security during peak demand periods, supplying more than 30% of power during the peak months of February and March. In the United Kingdom, energy storage batteries complement gas-fired and hydroelectric power in an increasingly diversified power mix and are playing a growing role in the grid's balancing mechanisms.
Despite the strong global momentum of the energy storage battery industry, regulatory frameworks and policy directions remain central to shaping the industry landscape. The time required to bring energy storage projects online is often more dependent on permitting, financing, and grid connection than on construction itself. In many countries, non-construction phases typically account for more than half of the total project timeline. In regions such as Europe, the United States, and Japan, energy storage projects generally take two to two and a half years to become operational. Nevertheless, compared to other flexibility solutions such as pumped hydro or gas generation, energy storage batteries can be deployed more quickly—particularly in power systems requiring additional flexibility in the short term—offering a distinct competitive advantage. Moreover, in countries such as China and parts of the Middle East, project approval and operational efficiency are even higher.