As the result of falling costs and greater flexibility needs, battery storage is playing a growing role in power systems worldwide, acting as a "multi-tool" that can provide a range of critical system services at once. According to the latest data, the deployment of batteries expanded strongly in 2025 and broadened across markets - with rapid growth in countries such as Australia and Saudi Arabia, where storage is increasingly being used to support the integration of rising shares of variable renewables.
In regions that have been at the forefront of renewable integration and battery deployment, batteries now play an essential role in continuously balancing electricity demand and supply. Comparatively short construction and development timelines are further supporting the rapid deployment of utility-scale batteries in particular: in many markets, projects typically take around two years to develop and commission, giving them an important advantage in systems that seek flexible capacity quickly.
Looking ahead, battery storage deployment is on track to continue accelerating. However, tackling notable barriers, such as regulatory uncertainty and delays in grid connection and permitting, will be key to setting the pace of growth.
Growth in battery storage capacity broke records again in 2025, with new markets growing fast
Global battery storage deployment expanded strongly last year. Total capacity additions reached 108 gigawatts (GW), up around 40% from 2024. Annual growth of this scale exceeds the historical peak for gas-fired power capacity additions, which was around 107 GW in 2002.
Utility-scale battery storage accounted for around 87 GW of global battery capacity additions in 2025, around four-fifths of the total. Behind-the-meter battery storage deployment also accelerated, particularly in markets with high retail electricity prices and supportive regulatory and policy frameworks. Around 24 GW of utility-scale battery storage additions in 2025 were co-located directly with renewables, on par with the previous year. This meant the share of capacity co-located with renewables fell just below 30%, as market reforms in China in early 2025 removed broad co-location mandates.
Meanwhile, the rollout of battery storage accelerated across several markets in 2025, pointing to a broadening of global deployment. Australia stood out, with additions surging to nearly 8 GW, almost nine times higher than the previous year. Utility-scale installations in the country rose from under 1 GW in 2024 to around 4.2 GW in 2025, while behind-the-meter additions increased from roughly 0.2 GW to about 3.4 GW, supported by state- and federal-level incentives. In the Middle East, additions topped 3 GW in 2025, more than three times their 2024 level. This was driven almost entirely by Saudi Arabia, where battery storage has become a key source of system flexibility amid a rapidly expanding pipeline of large-scale projects. In Chile, additions approached 1 GW as utility-scale batteries are deployed to absorb surplus solar generation and meet peak demand.
Battery storage now accounts for around 18% of installed dispatchable capacity in Australia, compared with 7% in China, 5% in the United States and 4% in Europe - underlining how rapidly batteries are becoming an important part of the electricity systems in some regions.
In absolute terms, deployment continued to be led by China, the United States and Europe. China added just over 63 GW of battery capacity in 2025, around one-third more than in 2024. Utility-scale installations accounted for around 55 GW of this total, while behind-the-meter additions reached about 8 GW, continuing to steadily expand alongside distributed solar. The United States added 19 GW of battery capacity in 2025 - resulting in year-on-year growth of around 60%, with utility-scale batteries accounting for over 16 GW and behind-the-meter additions rising to nearly 3 GW. In Europe, total battery additions were slightly lower than in 2024 at around 6.2 GW, but with a clear structural shift towards utility-scale systems, where additions more than doubled to about 4.6 GW.
