This will be largely led by grid-scale deployment, which currently accounted for more than 70% of the total spending in 2021.
“The pipeline of projects is immense, with China targeting around 30 gigawatts (GW) of non-hydro energy storage capacity by 2025 and the United States having more than 20GW of grid-scale projects either planned or under construction,” IEA said in its World Energy Investment report.
According to IEA, the growth in China and the US will lead to a “new market that is poised for rapid expansion,” such as Europe, Korea, Japan and Australia.
Battery storage systems are expected to see a decrease in cost as the demand for electric vehicles grows and technological innovation in new chemistries and configuration continues. China, in particular, expects costs to drop by 30% by 2025.
The IEA report also projected that global energy investment is expected to rise by 8% to $2.4t in 2022.
This will be mainly driven by investments in renewables and grids, as well as energy efficiency.