In 2023, the growth of batteries surpassed nearly all other clean energy technologies. A new report from the IEA says this surge was fueled by declining costs, advancing innovation, and supportive industrial policies, driving up demand for a technology deemed crucial in achieving the climate and energy targets set forth at the COP28 climate conference in Dubai.

Alternative to electricity from fossil fuels

In its analysis of the entire battery ecosystem, the IEA's Special Report on Batteries and Secure Energy Transitions delineates the pivotal role batteries can play alongside renewables. They serve as a competitive, secure, and sustainable alternative to electricity generation from fossil fuels, while also supporting the decarbonization of road transport through the powering of electric vehicles.

In under 15 years, battery costs have plummeted by over 90%, marking one of the swiftest declines ever recorded in clean energy technologies. While lithium-ion batteries were traditionally associated with consumer electronics, they now dominate the energy sector, accounting for over 90% of total battery demand. In 2023 alone, battery deployment in the power sector soared by over 130% year-on-year, adding a substantial 42 gigawatts (GW) to global electricity systems.

Battery deployment

The report emphasizes the urgent need for substantial scaling up of battery deployment by the end of the decade to align with global energy and climate goals. It envisions a sixfold increase in overall energy storage capacity worldwide by 2030, with batteries accounting for 90% of this increase and pumped hydropower for the majority of the remainder. By facilitating higher shares of renewables in the power system and optimizing electricity supply, batteries will play a pivotal role in advancing progress towards the ambitious targets set at COP28.

Energy security

The report underscores the imperative of further reducing costs while maintaining quality and advancing technology to scale up global battery deployment. Ensuring energy security also necessitates enhancing diversity in supply chains, including the extraction and processing of critical minerals used in batteries, as well as battery manufacturing.

Versatility of battery storage

The report underscores the versatility of battery storage in supporting electricity security cost-effectively as part of clean energy transitions. In the power sector, batteries play a crucial role in smoothing out the variability of renewable electricity from sources like wind and solar. Additionally, battery storage can mitigate grid congestion during periods of high supply by capturing and storing excess renewable electricity that would otherwise be lost.

Furthermore, batteries can significantly enhance access to electricity for those still lacking it. In a pathway toward achieving universal energy access worldwide by 2030, batteries facilitate electricity access for 400 million people in emerging and developing economies through decentralized solutions like solar home systems and mini-grids with battery storage.