Connect with us:

A State of National Energy Emergency: A Unique Catalyst for BESS Growth

April 12, 2025

Contributed by Jenny Pham, MS, Bimergen Energy Analyst

The return of the Trump administration has ushered in a notable recalibration of national energy policy, signaling a prioritization of fossil fuels.[1] This strategic pivot towards "energy dominance," as reported by the New York Times, temporarily creates some regulatory obstacles for the advancements of large-scale solar and wind projects. Paradoxically, in a political climate that appears less supportive of renewable energy, the Battery Energy Storage System (BESS) market has witnessed a unique catalyst for unprecedented expansion.

The renewable energy sector is presenting a compelling pitch: America requires cheaper services. With the increasing demand for electricity, largely fueled by an expansion in data centers, the industry emphasizes that it's becoming increasingly challenging to construct sufficient new gas plants to meet the nation's growing power needs.

In January 2025, the White House declared a state of national emergency, underscoring the severity of the energy crisis confronting the United States. Driven by a complex interplay of economic factors, rapid technological advancements, and evolving geopolitical dynamics, the surge in electricity demand raises concerns about the potential for systemic instability and soaring costs.[2] Major power providers, including NextEra, have threatened escalation of electricity prices in retaliation to policy shifts.[3] The administration's reversal of renewables, especially amidst the proliferation of energy-intensive AI data centers, cryptocurrency mining operations, and increasing electrification of various industries, places significant pressure on current power infrastructure. Last year, Goldman Sachs reports that AI's footprint is skyrocketing, with U.S. data centers projected to consume 8% of national electricity by 2030.[4]

Consequently, battery energy storage systems (BESS) have emerged as a critical technology and realistic solution for the US aging grids. BESS offers rapid and flexible energy reserves, enabling utilities to strategically deploy excess energy generated during off-peak hours to meet periods of high demand. Additionally, BESS minimizes unnecessary interruptions during grid disruptions and offers a cost-effective alternative to protracted and capital-intensive infrastructure upgrades. The imperative for energy storage is further evidenced as the International Energy Agency (IEA) projects that global energy storage deployments must increase six-fold by 2030 to adequately address growing energy reliability needs, with the U.S. positioned as a potential leader in this expansion.[5] In this climate, BESS is indispensable for meeting the demands of a modern, electrified economy.

  1. Plumer B. Want cheap power, fast? solar and wind firms have a suggestion. The New York Times 2025. https://www.nytimes.com/2025/03/17/climate/renewable-energy-trump-electricity.html (accessed April 11, 2025).

  2. Declaring a national energy emergency. The White House 2025. https://www.whitehouse.gov/presidential-actions/2025/01/declaring-a-national-energy-emergency/ (accessed April 11, 2025).

  3. Plumer B. Want cheap power, fast? solar and wind firms have a suggestion. The New York Times 2025. https://www.nytimes.com/2025/03/17/climate/renewable-energy-trump-electricity.html (accessed April 11, 2025).

  4. Davenport C, Singer B, Mehta N, Lee B, Mackay J. AI, Data Centers and the coming US Power Demand Surge. Goldman Sachs 2024. https://www.goldmansachs.com/pdfs/insights/pages/generational-growth-ai-data-centers-and-the-coming-us-power-surge/report.pdf (accessed April 11, 2025).

In 2025, analysts anticipate that the renewable markets will continue to see growth and investments due to high power demand.[6] It is no coincidence that the BESS sector is experiencing record foreign investment. In 2024 alone, foreign direct investment into U.S. battery storage projects surpassed $12 billion, led by companies from South Korea, Germany, and China.[7] Samsung SDI and LG Energy Solution, among others, have announced significant expansions of U.S.-based battery manufacturing plants.[8] This development is mirrored at state policy levels. California updated its renewable portfolio standard to require all new utility-scale solar and wind projects to include integrated BESS components to prevent grid instability.[9] Texas regulators, facing massive strain from AI centers, are discussing the implementation of similar incentives. Globally, the BESS market is witnessing substantial growth, with newly installed global energy storage capacity expected to reach 261 GWh in 2025, a year-on-year growth of 41%. Battery Energy Storage Systems prove to be a necessity worldwide, with ongoing advancements in China and emerging as a booming market in the Middle East.[10] Market demand for BESS shows a strong and promising future for both the storage sector and the broader renewables industry.

However, this opportunity is not without challenges. While recent global trade dynamics have introduced new considerations in the sourcing of BESS systems, Bimergen Energy [OTCQB: BESS] remains committed to prioritizing strategies that satisfy both the technical and economic parameters of our projects, including leveraging American made products. Notably, the U.S. is home to some of the most technologically advanced BESS solutions globally. Bimergen Energy is fortunate to have established relationships with global financial institutions as its backers and technology leaders, offering cutting-edge systems with sophisticated capabilities for revenue optimization through the power of next-gen AI. These innovations allow us to enhance operational efficiency and maximize returns over the asset's lifecycle.

  1. IEA (2024), Batteries and Secure Energy Transitions, IEA, Paris https://www.iea.org/reports/batteries-and-secure-energy-transitions, License: CC BY 4.0.

  2. DiGangi D. IRA credits and energy demand continue to drive renewables investments. Utility Dive 2025. https://www.utilitydive.com/news/inflation-reduction-act-credits-energy-demand-investment-financing-trump/742485/ (accessed April 11, 2025).

  3. US battery energy storage investment surges. fDi Intelligence 2024. https://www.fdiintelligence.com/content/6e46dc32-8b51-5519-8439-b044a8dea215 (accessed April 11, 2025).

  4. Hye-jin B. LG Energy Solution Readies to start LFP battery production for ESS in US this year. The Korea Herald 2025. https://www.koreaherald.com/article/10423751?ref=naver (accessed April 11, 2025).

  5. CPUC sets new safety standards and enhances oversight of emergency plans for Battery Energy Storage Facilities. California Public Utilities Commission 2025. https://www.cpuc.ca.gov/news-and-updates/all-news/cpuc-sets-new-safety-standards-and-enhances-oversight-of-emergency-plans#:~:text=Over%20the%20past%20several%20years,at%2052%2C000%20MW%20by%202045.&text=Californians%20access%20to%20safe%20and,ca.gov%20for%20more%20information. (accessed April 11, 2025).

  6. 2025: A pivotal year for Battery Energy Storage Systems (BESS). WENERGY 2025. https://www.linkedin.com/pulse/2025-pivotal-year-battery-energy-storage-systems-bess-7cyic/ (accessed April 11, 2025).

Through our diversified portfolio, Bimergen is positioned to effectively offset external volatility through revenue-stacking models that enable us to participate in multiple market services to maintain a strong IRR without increasing CAPEX. Looking ahead, BESS players will likely employ friend-shoring strategies in countries such as South Korea and Australia. More broadly, we anticipate an overwhelming industry shift towards vertical integration initiatives and investments in localized supply chains to mitigate external risks and maximize internal efficiencies.

The 2025 energy landscape is not what many predicted. While the new administration presents challenges, underlying economic and technological needs drive momentum for renewable energy and BESS, perhaps not in the traditional sense of climate preservation, but for American innovation and energy independence. Irrespective of policy changes, the need for energy persists. In this environment, BESS is poised to be a defining growth sector in the coming years, and players who can simultaneously scale, protect margins, and insulate themselves from geopolitical turbulence—through resilient supply chains and strategic innovation—will emerge as market leaders.

References

Latest Posts

Access on: 2025-04-18 09:56:52 (New York)