Overview
- BNEF expects global battery installations to rise by about one third in 2026, with growth led by Europe, the Middle East, Africa, and Latin America, and the IEA says batteries are now a top power investment.
- New multi-gigawatt-hour fleets are entering service, including 7.4 GWh switched on in Inner Mongolia, where batteries charge when power is cheap and discharge during peak demand.
- Average battery storage costs fell about 75% from 2018 to 2025, and BNEF projects another roughly 25% drop through 2035, making large projects more affordable.
- Rising electricity needs from data centers and recent fuel price shocks linked to the Middle East conflict are steering buyers toward storage as an alternative to costly fossil fuels.
- Market signals point to the shift, with a Chinese battery maker guiding sharply higher first-quarter profit and a Vietnamese developer seeking to replace a planned LNG plant with renewables paired with storage.