Battery energy storage investment to climb US$20b in 2022: IEA

This is largely led by grid-scale deployment.

Investment in battery storage is expected to “more than double” in 2022 as the International Energy Agency (IEA) projected it to reach US$20b.

This will be largely led by grid-scale deployment, which currently accounted for more than 70% of the total spending in 2021. 

“The pipeline of projects is immense, with China targeting around 30 gigawatts (GW) of non-hydro energy storage capacity by 2025 and the United States having more than 20GW of grid-scale projects either planned or under construction,” IEA said in its World Energy Investment report. 

According to IEA, the growth in China and the US will lead to a “new market that is poised for rapid expansion,” such as Europe, Korea, Japan and Australia. 

Battery storage systems are expected to see a decrease in cost as the demand for electric vehicles grows and technological innovation in new chemistries and configuration continues. China, in particular, expects costs to drop by 30% by 2025. 

The IEA report also projected that global energy investment is expected to rise by 8% to $2.4t in 2022. 

This will be mainly driven by investments in renewables and grids, as well as energy efficiency.