Battery energy storage in the NEM: Key trends in
Energy Storage Summit Australia 2025 took place in March. This article summarises a presentation on key trends for battery energy storage in the NEM.
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6 Frequently Asked Questions about “Major energy storage projects in 2025”
What is energy storage in 2025?
Energy Storage in 2025: What's Hot and What's Next? The energy storage landscape is changing quickly as scientists work to create better and longer-lasting storage solutions. Experts are focused on improving smart grids to ensure that electricity systems work well and are cost-effective.
What drives energy storage project development?
Globally, energy storage project development is increasingly driven by the utility-scale segment, with mandates and targeted auctions driving gigawatt-hour projects in markets like China, Saudi Arabia, South Africa, Australia and Chile.
Is China entering a new era of energy storage demand?
Mainland China accounts for most of the global energy storage demand, driven in the near term by regional requirements for new utility-scale wind and solar projects to include energy storage capacity. However, the Chinese market is entering an era of change.
What industry trends will be impacted in 2025?
Innovative thermal and hydrogen technologies are also helping to lower the carbon footprint of the sector. Meanwhile, industrial consumers are adopting energy storage as a service to integrate renewable sources and meet their demands. This table illustrates the most influential industry trends and their projected impact in 2025.
Should energy storage be removed from energy grid connection?
For energy storage, the new Chinese policy emphasized the need to remove energy storage as a prerequisite for renewable energy project grid connection, a requirement that has been a major driver for battery build. Nonetheless, BNEF still expects strong demand for batteries, as the policy doesn't explicitly require mandates to stop.
Which region will be the largest utility sector in 2026?
Across the region of Europe, the Middle East and Africa, the utility-scale segment is scaling quicker than expected, and will overtake the residential sector to become the largest in the region from 2026, given a sharp ramp-up in targeted support programs and utility procurement.