What comes after renewables?

As renewable energy becomes a larger part of the global power mix, focus is increasingly shifting towards flexibility. As solar and wind capacity continue to expand, power systems require technologies that can balance supply and demand, support grid stability and enable further renewable deployment. Battery energy storage systems (BESS) are emerging as a key part of that solution.

Falling battery costs and improving project economics are accelerating the adoption of energy storage globally. Based on expected renewable additions through 2030, UBS Research estimates BESS could represent a USD 750 billion global opportunity over the next five years, equivalent to more than 7 terawatt-hours (TWh) of potential energy storage capacity.

As storage becomes more cost effective, developers are increasingly able to deploy projects that support grid flexibility while improving the efficiency of renewable energy systems.

To better understand BESS deployment potential, UBS Research analysed the Iberian power market using detailed generation, demand and pricing data.

The findings highlight significant capacity for additional storage, with BESS helping to integrate renewable generation while maintaining system flexibility. New UBS Evidence Lab data also points to other areas across Europe where storage could play an increasingly important role, particularly where renewable capacity and growing electricity demand coincide.

The implications of BESS extend beyond storage itself. Greater deployment could support increased renewable penetration, improve energy resilience and contribute to lower overall system costs.

As the energy transition evolves, battery energy storage systems are becoming an increasingly important component of modern power networks, helping move the industry from a focus on generation towards a focus on flexibility.