Unlocking the Future of Green Energy: Why Battery Storage is Essential for Renewables

Battery energy storage systems are gaining momentum for good reason, as they address some of the most pressing needs in the power market. Often referred to as 'Bess', these systems store electricity in rechargeable batteries to release energy when needed, solving the intermittency problem faced by renewables and making them more suitable for mainstream use. They also reduce consumption costs and address another major obstacle to the widespread adoption of renewables—the integration of energy systems—as countries prepare for the future economy.

Abu Dhabi’s Masdar announced the launch of its second Bess project in the UK on Monday, boosting its presence in the region. Bess is critical to battling the effects of climate change and is a key component of the 2015 Paris Agreement. Without a global energy storage target, the goal of tripling renewables by 2030 is at risk, according to the Global Renewables Alliance. Analysts at San Francisco-based Novatrends Market Intelligence noted that the market is accelerating due to renewable energy deployment, grid modernisation, electrification, data centre expansion, and rising demand for power-system flexibility.

A Bess is a subset of energy storage systems in which an individual or group of batteries is used to capture and store energy generated by power stations for later use. According to the Swedish industrial major Atlas Copco, it is an easy way to supply power to an off-grid application or to complement a peak in demand. France's TotalEnergies states that using Bess is essential to support the growth of renewable electricity production by addressing the limitations of solar panels and wind turbines, which depend heavily on daylight and weather conditions. The Abu Dhabi-based International Renewable Energy Agency emphasized that flexible and reliable power grids capable of supplying electricity at all times have become essential.

Lithium-ion remains the most common battery type used in Bess, alongside lead-acid, sodium-sulfur, and more expensive solid-state options, while aluminium-sulfur and flow batteries are currently being studied. According to an International Energy Agency report published in May, global production of lithium-ion batteries increased sixfold between 2020 and 2025. While the electric vehicle sector accounted for about 70 per cent of demand, Bess emerged as the second-biggest driver, reflecting the growing role of batteries in providing power system flexibility. Falling battery prices, manufacturing advancements, and improved chemistries have driven market growth, with the global market valued at $150 billion in 2025.

The role of Bess in energy shifting has grown substantially over the past decade, rising from about 40 per cent in 2015 to more than 90 per cent last year, according to the IEA. Bess has outpaced ancillary services and congestion management markets, and Mordor Intelligence data shows the overall sector is expected to reach nearly $200 billion by 2031, growing at a compound annual growth rate of about 17.2 per cent from an estimated $89.9 billion this year.

In the Middle East, data compiled by Middle East Energy in Dubai shows that the regional Bess market is growing at a staggering 53 per cent year-on-year, making it the fastest-growing segment globally. Projected capacity deployment across the Middle East is estimated at 33.5GWh by the end of the year. IEA data also highlights that the Middle East is among the fastest regions to bring Bess projects to market, averaging 1.7 years. Governments in the region are actively tapping into this potential; Abu Dhabi clean energy company Masdar unveiled a $6 billion round-the-clock renewable energy project in October featuring 19GWh of battery storage, and launched a 35MW/70MWh plant near Manchester following a similar venture in Stockport last December. Meanwhile, Saudi Arabia signed four investment agreements worth $1.16 billion for its first group of Bess projects, securing its place as the regional leader and sixth-largest globally with about 32.4GWh of capacity. China remains the biggest global market with 721GWh, followed by the US, Australia, the UK, and Chile.

Major investors such as BlackRock, Brookfield Renewable Partners, and China's State Development and Investment Group have contributed to the estimated $150 billion poured into the sector. However, Wood Mackenzie analysts note that a long way remains to reach the $1.2 trillion in investment needed to support over 5,900GW of new wind and solar capacity through to 2034. Mark Garry, chief executive of Bahrain-based Bess manufacturer Grid Green Global, emphasized that storage is ultimately about making energy available at the right time to improve utility and infrastructure resilience.