Europe Overtakes the US in Energy Storage
The energy storage market has entered a new phase, according to Wood Mackenzie's latest outlook. Global capacity will grow seven-fold to more than 7 TWh by 2035, and demand will rise by close to 30% in 2026 alone. The more interesting story, though, is the changing composition – and the fact that this year, for the first time, Europe's annual installations overtook those of the United States, making the continent the world's second-largest storage market after China.
A reshuffled global market
For utility-scale storage, government tenders remain the main driver: they have cleared more than 80 GW of (de-rated) capacity worldwide, with India the largest contributor. Contracted storage offtake has passed 130 GW, and more than three-quarters of it takes the form of power purchase agreements or tolling deals, in which a trader rents the right to operate the battery.
In the residential market, the centre of gravity has moved south: Australia has overtaken Germany, with more than 500,000 systems installed under its home battery subsidy. The US residential market, by contrast, is contracting this year as tax credits become harder to access.
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