In the global race to achieve net-zero emissions, energy storage—especially battery-based solutions—has emerged as a linchpin of the new energy economy. The intermittency of renewable sources like solar and wind creates challenges for grid reliability, necessitating advanced energy storage systems to bridge gaps and balance supply and demand. This technological role is increasingly being recognized by both governments and the private sector as critical to any credible decarbonization strategy.
According to the International Energy Agency (IEA), global battery storage capacity nearly doubled between 2020 and 2023, reaching approximately 75 gigawatts (GW) by the end of 2023. In the United States, battery storage capacity topped 17 GW in early 2024, with policy forecasts suggesting a surge to over 80 GW by 2030. This dramatic growth is indicative of a broader shift: from viewing batteries as mere emergency backups to recognizing them as vital, grid-critical infrastructure.
At companies like NZero, real-time energy tracking is empowering businesses to treat storage not just as infrastructure but as a strategic lever. By storing excess renewable power and intelligently timing its release, battery systems enable a more resilient, cleaner grid that aligns with corporate ESG goals and national climate targets.
Battery storage has undergone a rapid evolution in the last two decades. At present, lithium-ion technology dominates grid-scale installations, making up around 90% of new projects. This dominance stems from lithium-ion’s high energy density, extended lifecycle, and a dramatic fall in costs—from over $1,200 per kilowatt-hour (kWh) in 2010 to less than $150/kWh by 2023. Key players in this transformation include Tesla, BYD, and LG Energy Solution, which have scaled manufacturing and driven innovation in cell chemistry.
However, next-generation storage technologies are beginning to take root. Alternatives such as sodium-ion, iron-air, and flow batteries offer distinct advantages in terms of safety, cost, and sustainability. Sodium-ion batteries, for example, bypass the need for scarce minerals like cobalt and lithium, making them geopolitically and environmentally attractive. Meanwhile, flow batteries allow for scalable, long-duration storage suitable for shifting energy seasonally.
In the U.S., the Department of Energy’s Long Duration Storage Shot seeks to cut the cost of long-duration systems by 90% by 2030. Startups like Form Energy are pioneering technologies that could store electricity for 100 hours or more—essential in grids with deep renewables penetration.
The battery technology race is about more than power output—it's also a materials race, a safety race, and a data race. As chemistries diversify and innovation accelerates, real-time energy data will be critical to maximizing the value and impact of each technology in situ.
The United States has become a global leader in battery storage not only due to technological innovation but also because of strong policy frameworks. The Inflation Reduction Act (IRA) of 2022 introduced a 30% investment tax credit (ITC) for standalone battery storage—an unprecedented move that unlocked billions in private investment. This has led to a surge in deployment across utility and commercial sectors.
Key developments include:
Moreover, the rise of behind-the-meter (BTM) storage among commercial and industrial customers has created a new frontier for resilience and profitability. Corporations like Walmart and hyperscale data operators like Google and Amazon are investing in batteries not only to manage peak demand and reduce emissions, but also to hedge against grid outages and participate in demand response programs.
Crucially, battery storage is evolving from a cost center into a revenue-generating asset. With advanced analytics platforms like NZero, users can track real-time carbon emissions, adjust load schedules, and monetize grid interactions—transforming batteries into active agents in the energy transition.
Globally, battery storage is becoming a linchpin of energy policy and infrastructure development. In 2023, China accounted for more than 50% of new battery installations, spurred by a combination of state subsidies, mandates for storage alongside new renewable projects, and robust domestic manufacturing capacity from firms like CATL and BYD.
Europe is catching up rapidly, driven by both decarbonization goals and energy security concerns stemming from geopolitical tensions.
Emerging markets are also seeing a surge in storage interest, often as a leapfrogging opportunity to bypass centralized fossil-heavy infrastructure. In Africa, battery storage is being integrated with mini-grids to bring electricity to remote areas. In Southeast Asia and Latin America, it is becoming a keystone for grid stabilization amid increasing solar and wind deployment.
Across all regions, data is becoming a vital component of storage strategy. Accurate, hourly emissions data, energy attribution, and grid carbon intensity insights are critical for optimizing deployment and verifying impact—especially for ESG reporting and green financing mechanisms.
Battery storage is no longer a supporting character in the decarbonization story—it is a central pillar. By enabling time-shifting of renewables, stabilizing grids, and reducing dependence on fossil peaker plants, battery systems are redefining the architecture of modern energy systems. In a world transitioning toward cleaner, more decentralized energy, the role of storage is foundational.
From utility-scale installations to onsite commercial batteries, storage technologies are proving essential not only to environmental goals but also to financial and operational resilience. For governments, storage can help meet climate mandates; for corporations, it supports ESG metrics and energy cost optimization. The technology’s value is amplified when paired with real-time analytics platforms like NZero, which provide granular data on energy use and emissions.
Ultimately, the success of the global net-zero transition will depend not only on generating clean electricity but on using it intelligently. Battery storage, backed by smart data, is the bridge that can turn renewable potential into tangible decarbonization—powering economies, safeguarding grids, and protecting the climate.
Embodied carbon in renewable energy infrastructure is emerging as a key concern for corporate PPA buyers. This article explores how to measure, report, and reduce these hidden emissions to align with robust climate goals.
