Capital is flowing out of the USA, Europe and Australia attract investors to energy storage
Battery energy storage remains one of the fastest-growing segments of the global energy transition. Falling technology costs, the increasing share of renewables in energy mixes, and the need for grid stabilization have made BESS projects a pillar of the new energy infrastructure. However, not all markets are currently developing at the same pace.
USA: a large market, growing uncertainty
The United States, the world’s second-largest energy storage market according to BloombergNEF, is entering a period of heightened regulatory risk. The policies of the Donald Trump administration, focused on supporting fossil fuels, limiting tax incentives for renewables, and introducing tariffs on key materials (steel, aluminum), are undermining investor confidence.
Although the energy storage sector is less exposed to regulatory changes than wind and solar power—among other things due to tax credits in force until 2033—the industry is already feeling the impact of new rules regarding the origin of components. A particular challenge remains China’s dominance in the battery supply chain, which complicates compliance with federal requirements for domestic content.
United Kingdom and the European Union: stability wins
In contrast to the US, the UK is becoming one of the main beneficiaries of the global shift in capital. In recent months alone, energy storage projects worth around £2 billion have been announced there. Investments include both large BESS platforms exceeding 1 GW of capacity and projects supporting the electrification of industry and seaports.
Europe as a whole is benefiting from predictable climate policy and the strong link between energy storage and energy security. Poland and Italy are already on investors’ radar.
Australia: the quiet winner of the transition
Australia is also attracting growing investor interest. With renewables accounting for around 40% of electricity generation, energy storage is becoming a key element of the system. Large-scale projects measured in gigawatt-hours confirm that this market is entering a phase of mature growth.
Costs are falling, investments follow stability
Global trends remain clear: the costs of renewables and energy storage continue to decline. According to analyses, the cost of four-hour utility-scale battery energy storage will fall below USD 100/MWh in the coming years. This makes the development of renewables and BESS economically justified even in a less favorable political environment.
For investors, not only the growth rate of the market but also regulatory stability is becoming crucial. The US still offers enormous potential, especially in states such as California and Texas. Increasingly, however, Europe and Australia are seen as safer places to allocate capital in energy storage—a technology without which further energy transition will not be possible.