Global energy storage - statistics & facts
Global electricity output is set to grow by 50 percent by mid-century, relative to 2022 levels. With renewable sources expected to account for the largest share of electricity generation worldwide in the coming decades, energy storage will play a significant role in maintaining the balance between supply and demand. To support the global transition to clean electricity, funding for development of energy storage projects is required. Pumped hydro, batteries, hydrogen, and thermal storage are a few of the technologies currently in the spotlight. The global battery industry has been gaining momentum over the last few years, and investments in battery storage and power grids surpassed 450 billion U.S. dollars in 2024.
There is a wide range of energy storage technologies available, but they can be divided into five major categories, depending on their working principle: mechanical, electrochemical, thermal, chemical, and electrical. Mechanical technologies, particularly pumped hydropower, have historically been the most widely used large-scale energy storage. Together with sand thermal energy storage, pumped hydro has one of the lowest energy storage costs, below 100 U.S. dollars per kilowatt-hour. By comparison, battery energy cost ranges between 90 U.S. dollars per kilowatt-hour for sodium-ion batteries and 1,000 U.S. dollars per kilowatt-hour for lithium-ion-titanium-oxide (LTO) batteries.
Types of energy storage technologies
Electricity demand oscillates throughout the year and across the day, usually peaking in the coldest and hottest months of the year and in the busiest hours of the day. By comparison, specific energy sources, such as wind, sun, and water, have their highest power generation potential when the weather conditions are favorable, not necessarily matching hours of peak electricity demand. Energy storage can provide flexibility to the electricity grid, guaranteeing more efficient use of resources. When supply is greater than demand, excess electricity can be fed into storage devices. It can in turn be tapped hours (or sometimes even days) later when demand is greater than supply.There is a wide range of energy storage technologies available, but they can be divided into five major categories, depending on their working principle: mechanical, electrochemical, thermal, chemical, and electrical. Mechanical technologies, particularly pumped hydropower, have historically been the most widely used large-scale energy storage. Together with sand thermal energy storage, pumped hydro has one of the lowest energy storage costs, below 100 U.S. dollars per kilowatt-hour. By comparison, battery energy cost ranges between 90 U.S. dollars per kilowatt-hour for sodium-ion batteries and 1,000 U.S. dollars per kilowatt-hour for lithium-ion-titanium-oxide (LTO) batteries.
