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Inside the $17.6 Billion Bet on BESS

May 4, 2025

Contributed by Jenny Pham, MS, Bimergen Analyst

The acceleration of global integration of renewable energy sources has amplified the critical need for efficient energy storage solutions, driving substantial investment into grid infrastructure, particularly Battery Energy Storage Systems (BESS). Despite its emergence as a distinct sector only in the 2010s, the BESS market has since experienced exponential growth, attracting significant investor interest worldwide. According to Mercom Capital Group, global investments in energy storage reached $17.6 billion in the first nine months of 2024, a 15% year-over-year increase. Most corporate investments were reported to be from debt financing and public market funding.[1] Significant investments are expected to fuel remarkable growth in global battery storage capacity, with forecasts projecting a rise from 52 gigawatts (GW) in 2022 to 945 gigawatts by 2050.[2] Investors' appetite for the BESS industry is a testament to the market's momentum and the essential role of energy storage in grid stability and energy management.

By 2030, McKinsey & Company has projected that the global BESS market will reach $120-130 billion in value.[3] The growth in market size is mirrored by a substantial increase in investment and various factors, including renewable energy integration, grid Modernization, government support, and falling battery prices. As the use of renewables becomes increasingly prevalent, the need for infrastructure flexibility, resilience, and energy storage propels demand for BESS solutions proportionately. Moreover, declining cost of lithium-ion batteries—the dominant technology in BESS—over the past decade, makes storage projects more economically viable and attractive.[4] Governments worldwide are implementing policies and incentives to promote the deployment of energy storage systems, such as tax incentives, subsidies, and mandates, which increase the attractiveness of participation in these markets, serving as key drivers for BESS investment.

While the Asia Pacific region currently holds the largest share of the BESS market, capital is pouring into projects worldwide. A few notable projects include:

  • Neoen (France): Secured AU$1.4 billion (approximately $890 million) for the 197 MW/4-hour Collie Battery project in Western Australia, scheduled to be operational by mid-2025.[5]

  • BISHA Project (Saudi Arabia): Launched the nation's first-ever 2 GWh battery energy storage system through a nearly $2 billion partnership with Chinese battery manufacturer BYD, marking a significant step in Middle Eastern energy diversification.[6]

  • YEO Teknoloji (Turkey): Announced a $65 million solar-plus-storage project in Zambia in February 2025, aimed at delivering energy access to off-grid communities and enhancing rural electrification.[7]

The United States has also proved to be a prime destination for BESS investments, demonstrating rapid market expansion. According to Mordor Intelligence, the U.S. energy storage market is currently valued at approximately $3.68 billion, with projections indicating growth to $5.09 billion by 2030—reflecting a compound annual growth rate (CAGR) of 6.7%.[8] The sector has attracted significant attention, notably receiving a record-breaking $11.45 billion in FDI commitments in the first half of 2024.[9] This influx of capital is translating directly into capacity growth, with approximately 18.2 GW of utility-scale battery storage expected to be added to the grid in 2025. This follows the record 10.3 GW of new battery storage capacity added by power providers in 2024.[10]

Another notable emerging player in the U.S. BESS sector in the is Bimergen Energy [OTCQB: BESS], a leading force in the field with its investment plan to its robust BESS portfolio reach over $3 billion in the next few years. Currently, Bimergen's asset portfolio accounts for approximately 2GW of cumulative energy capacity distributed across 23 utility-scale battery storage projects, with plans to increase capacity to 5GW in the works. Bimergen plans to grow its existing development pipeline through opportunistic acquisitions across several ISO regions. The company is in final stages of securing financing for the first three projects within its robust BESS portfolio, which is now nearing ready-to-build (RTB) status. These financings reflect strong and consistent participation from leading global financial institutions through offtake agreements, debt instruments, and joint venture partnerships with international partners. Its portfolio is actively scaling, with funding efforts for future projects underway. Bimergen has projects in 5 grid networks across the U.S., with the majority concentrated in the ERCOT region, a trend fueled by the increasing energy demands of AI data centers. Other notable projects outside of the U.S. include:

  • Nord/LB (Germany): Served as lead financier, with investments totaling $112 million, for Recurrent Energy's Fort Duncan Storage project in ERCOT, highlighting growing European institutional interest in U.S. storage assets.[11]

  • LG Energy Solution (South Korea): Doubled down on its U.S. presence with a $1.4 billion investment in lithium iron phosphate cells for stationary energy storage.[12]

  • Canadian Solar (Canada): Secured a $183 million project financing for its subsidiary, Recurrent Energy for projects in Fort Duncan.[13] Additionally, Canadian Solar is expected to build approximately $712 million in projects in January 2025 in its battery manufacturing facility in Shelbyville, Kentucky.[14]

Battery energy storage is no longer a peripheral technology; it is becoming the backbone of modern systems and a fundamental shift in powering the world. Driven by the imperative for cleaner energy worldwide, advancements in battery technology, accessibility, and favorable government policies, the BESS market undoubtedly holds transformative potential. The message for governments, utilities, and institutional investors is clear: the time to invest is now.

References

  1. Murray, Cameron. “Corporate Funding for Energy Storage Grows 15% to US$17.6 Billion in First Nine Months of 2024.” Energy Storage, October 22, 2024. https://www.energy-storage.news/corporate-funding-for-energy-storage-grows-15-to-us17-6-billion-in-first-nine-months-of-2024/

  2. “Global Grids and Battery Storage Investments 2024.” Statista, March 11, 2025. https://www.statista.com/statistics/1383650/grids-and-storage-investments-worldwide/

  3. Jarbratt, Gabriella, Sören Jautelat, Martin Linder, Erik Sparre, Alexandre van de Rijt, and Quan Han Wong. “Enabling Renewable Energy with Battery Energy Storage Systems.” McKinsey & Company, August 2, 2023. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/enabling-renewable-energy-with-battery-energy-storage-systems

  4. “Battery Price per Kwh 2025.” Statista, April 1, 2025. https://www.statista.com/statistics/883118/global-lithium-ion-battery-pack-costs/

  5. Heynes, George. “Neoen Secures AU$1.4 Billion Australian Energy Storage and Renewables Portfolio.” Energy Storage, December 18, 2024. https://www.energy-storage.news/neoen-secures-au1-4-billion-australian-energy-storage-and-renewables-portfolio/#:~:text=Construction%20on%20the%20Collie%20Stage,energy%20generation%20projects%20in%20Australia

  6. Colthorpe, Andy. “Saudi Arabia: 2GWh Bess Project ‘Marks Potential for Energy Cooperation with China.’” Energy Storage, January 21, 2025. https://www.energy-storage.news/saudi-arabia-2gwh-bess-project-marks-potential-for-energy-cooperation-with-china/

  7. Murray, Cameron. “Developer Gei and EPC Firm Yeo Launching Solar-plus-Storage Project in Zambia with 20mwh Bess.” Energy Storage, May 7, 2024. https://www.energy-storage.news/zambia-developers-gei-yeo-launching-solar-plus-storage-project-zambia-20mwh-bess/

  8. “US Energy Storage Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030). Source: Https://Www.Mordorintelligence.Com/Industry-Reports/United-States-Energy-Storage-Market.” Mordor Intelligence. Accessed May 2, 2025.

  9. Russell, Tárlach. “US Battery Energy Storage Investment Surges.” fDi Intelligence, August 28, 2024. https://www.fdiintelligence.com/content/6e46dc32-8b51-5519-8439-b044a8dea215

  10. “U.S. Battery Capacity Increased 66% in 2024.” U.S. Energy Information Administration (EIA), March 12, 2025. https://www.eia.gov/todayinenergy/detail.php?id=64705#:~:text=In%20the%20United%20States%2C%20cumulative,generating%20capacity%20addition%20after%20solar

  11. “News.” Recurrent Energy, March 18, 2025. https://recurrentenergy.com/recurrent-energy-secures-183-million-in-project-financing-and-tax-equity-for-merchant-storage-project-in-texas/

  12. Colthorpe, Andy. “LG Es to Invest US$1.4 Billion in US Stationary Storage Cell Manufacturing.” Energy Storage, February 25, 2025. https://www.energy-storage.news/lg-es-to-invest-us1-4-billion-in-us-stationary-storage-cell-manufacturing/#:~:text=LG%20ES%20to%20invest%20US,manufacturing%20%2D%20Energy%2DStorage.News

  13. “News.” Recurrent Energy, March 18, 2025. https://recurrentenergy.com/recurrent-energy-secures-183-million-in-project-financing-and-tax-equity-for-merchant-storage-project-in-texas/

  14. “Canadian Solar to Build Nearly $712m Battery Manufacturing Plant in Kentucky.” Intersolar & Energy Storage North America, November 19, 2024.

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Access on: 2025-05-18 00:15:21 (New York)