By Obinna Uballa
A new research by Wood Mackenzie (WoodMac) has revealed that the world must invest more than $1.2 trillion in battery storage capacity over the next decade to stabilise electricity grids dominated by renewables.
The WoodMackenzie, a leading global research consultancy firm estimates that the power sector faces a 1,400 GW battery shortfall andvit must fix that challenge if it is to achieve grid stability by 2034.
With global electricity demand forecast to rise by 55% in 2034, and wind and solar expected to account for over 80% of new capacity, the challenge is urgent, the research firm added.
“Grid-forming battery energy storage systems (GFM BESS) represent a critical breakthrough for renewable integration,” said Robert Liew, WoodMac research director.
“They provide the bridge between renewable abundance and the reliability that power networks require.”
WoodMac reported that battery storage prices fell by 10% to 40% across global markets over the past year, strengthening the investment case for the technology. Analysts say this drop makes large-scale deployment more viable, especially as intermittent renewables expand rapidly.
On its part, BloombergNEF had previously predicted that wind and solar could generate half of the world’s electricity by mid-century, but emphasised that storage would be essential to balance supply and demand, according to Al-Jazeera report.
United States Scenario
In the United States, utility-scale battery storage has surged 15-fold in five years to nearly 30 GW, with 19 states surpassing the 100 MW mark. But the future is now uncertain.
President Donald Trump’s “One Big Beautiful Bill Act” (OBBBA) has reportedly rolled back many clean energy incentives, reportedly threatening to stall domestic battery production and undermine electric vehicle (EV) growth.
According to the International Council on Clean Transportation, OBBBA’s cuts could slash U.S. battery output by 75% by 2030—reducing expected capacity from 1,050 GWh to just 250 GWh—while EV sales projections may fall 40% below earlier estimates.
Dynamics in China
While U.S. prospects dim, China is reportedly doubling down on pumped storage hydropower (PSH) as a long-duration, cost-effective alternative to batteries.
For instance, reports say in 2023, China commissioned 24.6 GW of new hydropower capacity, accounting for nearly 60% of the global total. Of this, 7.75 GW came from PSH projects. With over 200 GW of PSH capacity under construction or approved already, China is poised to exceed its 2030 target of 120 GW, potentially reaching 130 GW.
According to experts, this strategy reflects Beijing’s drive toward carbon neutrality by 2060. By the end of 2023, China already had 436 GW of installed hydropower, complementing more than 1,200 GW of wind and solar. Its revised Energy Law, effective January 2025, explicitly promotes PSH development to stabilise the grid.
