Summary
Global energy storage battery deployments reached 108 GW in 2025, up about 40% year-on-year, according to the International Energy Agency. China led with more than 63 GW of new capacity,
followed by the US at 19 GW, Australia at nearly 8 GW, Europe at about 6.2 GW,
and Saudi Arabia at over 3 GW. Utility-scale storage accounted for roughly 80% of total installations, while behind-the-meter storage experienced accelerated growth.
Commentary
Last year's global storage deployments of 108 GW — up 40% year-on-year — were dominated by China, the US and Europe, but emerging markets such as Australia and Saudi Arabia saw explosive growth. Lithium battery costs have fallen by nearly 90% over the past decade, pushing storage from demonstration to commercial scale, with CATL, Tesla and other leading companies dominating cell supply. For New Zealand SMEs, two opportunities stand out.
First, residential solar-plus-storage installation and services. Australia's ninefold surge in residential additions to 3.4 GW last year validates the business model for high electricity price regions. With New Zealand's wholesale electricity prices fluctuating frequently, the payback period for rooftop solar paired with storage could be compressed to 6–8 years.
Second, participating in grid ancillary services. New Zealand generates about 82% of its electricity from renewables; large-scale storage can help alleviate hydro shortages in dry years. However, bottlenecks such as slow grid connection approvals and monopoly must be addressed.
Upstream hardware is heavily reliant on the Chinese supply chain. If trade frictions intensify, delivery lead times and costs will come under pressure. Securing long-term contracts early or exploring alternatives such as Samsung SDI could provide a buffer.
Australia's subsidy policy directly triggered a ninefold surge in installations. If New Zealand introduces a similar mechanism, local integrators will face a window of opportunity.
Keywords: energy storage batteries, global, new installed capacity, 2025, International Energy Agency, China, US, Australia, Saudi Arabia, utility-scale storage
Disclaimer: This article is compiled from publicly available sources for general information only. The analysis and commentary are editorial opinions. MiDeer Observer does not guarantee the accuracy or completeness of the information provided. Readers should seek independent professional advice before relying on this content, or contact us for more information.
