Global battery storage capacity surged by 40 percent in 2025 to reach 108 gigawatts (GW), underscoring the accelerating pace of the global energy transition, the International Energy Agency (IEA) said in a report released this week.
In its latest “Global Energy Review 2026,” the Paris-based agency said total installed battery storage capacity has now expanded more than elevenfold compared with 2021 levels, making it one of the fastest-growing segments of the global energy system.
The sharp increase reflects the rising importance of storage technologies in supporting renewable energy deployment, particularly as countries expand solar and wind capacity.
“Battery electricity storage is now central to the evolution of power systems worldwide,” the IEA said, pointing to its role in balancing supply and demand and stabilizing grids as intermittent renewable sources scale up.
According to the report, nearly 80 percent of new installations in 2025 were large-scale, grid-connected systems. These projects are designed to store excess electricity generated during peak production periods and release it when demand rises or supply drops.
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The shift toward centralized storage solutions highlights a broader transformation in energy infrastructure, as utilities and governments invest in systems capable of managing increasingly complex power networks.
Lithium iron phosphate (LFP) batteries dominated the market, accounting for about 90 percent of deployments. The IEA attributed their widespread adoption to lower costs and improved durability, particularly their ability to handle repeated charging cycles more efficiently than alternative technologies.
Developers also continued to favor shorter-duration storage systems, typically around two hours, although there is a growing trend toward longer-duration solutions of four hours or more. These systems are seen as critical for enhancing grid resilience and enabling higher shares of renewable energy.
Geographically, China led global deployment, accounting for nearly 60 percent of new capacity additions in 2025. The country’s dominance reflects strong policy support, manufacturing scale, and continued investment in clean energy infrastructure.
The United States and Europe followed, driven by a combination of regulatory incentives, decarbonization targets, and efforts to modernize aging power grids.
While the report did not provide detailed data for Africa, it noted that the continent is increasingly aligning with global trends as governments and private developers accelerate investment in energy storage.
In South Africa, authorities have expanded public procurement programs and signed private-sector contracts to deploy battery systems aimed at stabilizing a constrained electricity grid. The country has faced persistent power shortages in recent years, making storage a key component of its energy strategy.
Egypt is also advancing large-scale battery projects, both as standalone installations and integrated with solar power plants, to support renewable energy integration and reduce reliance on fossil fuels.
Across West Africa, countries including Senegal and Togo are seeing the emergence of mid-scale solar-plus-storage projects, while smaller commercial and industrial users are increasingly adopting battery-backed solar systems.
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Analysts say the growing deployment of storage solutions across Africa reflects a broader shift toward decentralized and resilient energy systems, particularly in regions where grid infrastructure remains underdeveloped.
As renewable energy capacity continues to expand, the need for storage is expected to rise sharply. Without adequate storage, excess electricity generated during periods of high solar or wind output can be lost, limiting the efficiency and reliability of clean energy systems.
The IEA emphasized that battery storage will play a critical role in enabling countries to meet climate targets while ensuring stable and affordable electricity supply.
Looking ahead, continued cost reductions, technological improvements, and supportive policy frameworks are expected to drive further growth in the sector.
For emerging markets, including those in Africa, the challenge will be to scale investment and develop regulatory environments that support both large-scale and distributed storage solutions.
With global capacity already growing at a rapid pace, industry stakeholders say battery storage is no longer a niche technology but a foundational element of modern energy systems, shaping how electricity is generated, distributed and consumed in the decades ahead.
Background to global energy system
Battery storage has emerged as a critical enabler of the global shift toward cleaner energy systems, particularly as countries expand the use of intermittent renewable sources such as solar and wind. Unlike conventional power generation, these sources depend on weather conditions, making it difficult to match electricity supply with demand in real time.
Energy storage systems address this challenge by capturing excess electricity when production is high and releasing it when output falls or demand rises, helping to stabilize power grids and reduce reliance on fossil fuel-based backup generation.
The rapid growth of battery storage in recent years has been driven by falling technology costs, improved performance, and stronger policy support in major markets. According to the International Energy Agency, global battery capacity has expanded at an unprecedented pace since 2021, reflecting increasing investment in grid flexibility and resilience.
China has played a central role in this expansion, supported by large-scale manufacturing capacity and government-backed deployment programs. Other major markets, including the United States and Europe, have accelerated adoption through subsidies, regulatory reforms, and decarbonization targets.
In Africa, energy storage is gaining traction as countries seek to address chronic power shortages, integrate renewable energy, and expand electricity access. While deployment remains relatively limited compared to global leaders, projects are increasing in scale and number, particularly in countries investing heavily in solar power.
As electricity demand rises and energy systems become more complex, battery storage is expected to play a growing role in shaping power infrastructure, supporting both grid stability and the broader transition to low-carbon energy.
