Renewable Energy Investment Remains Below Target, Despite Surge in Clean Energy Investments

Global Battery Energy Storage System (BESS) Deployment Forecast to Reach 572 GW by 2030

Arnaud de Giovanni

Despite last year’s surge of $1.8 trillion in clean energy investments worldwide, investment remains below what is needed to meet the COP28 target of tripling renewable capacity by 2030, according to the latest EY Renewable Energy Country Attractiveness Index (RECAI).

This edition of RECAI focuses on BESS. According to the report, the U.S., bolstered by a 30% IRA tax credit, takes the top spot in the ranking of the world’s most attractive markets for BESS investment.

China, with strong government support, subsidies and plans to reduce costs, is second. The U.K., with its sophisticated energy market design and new energy bill classifying BESS as a generation asset, rounds out the top three.

A fourfold increase in global BESS deployment is forecast from 2023 to 2030, reaching 572 GW.

“Scaling up battery energy storage systems can help solve multiple problems holding up clean energy progress, including stabilizing and strengthening network infrastructure and enabling more distributed energy resources to connect to the grid,” says EY’s Arnaud de Giovanni.

“Focusing on four factors can help investors navigate this complex, highly regionalized and fast-changing market. These include building a resilient investment case, taking steps to maintain technology competitiveness, establishing the optimal business model or financing structure and mitigating supply chain risks.”

Conclusion

The report highlights the importance of investing in BESS to meet the COP28 target of tripling renewable capacity by 2030. The U.S., China, and the U.K. are the top three most attractive markets for BESS investment, with a fourfold increase in global deployment forecast from 2023 to 2030.

FAQs

Q: What is the COP28 target for renewable capacity?
A: The COP28 target is to triple renewable capacity by 2030.

Q: What is the forecast for global BESS deployment from 2023 to 2030?
A: The forecast is a fourfold increase, reaching 572 GW.

Q: Which countries are the top three most attractive markets for BESS investment?
A: The U.S., China, and the U.K. are the top three most attractive markets for BESS investment.

Q: What are the key factors for investors to navigate the BESS market?
A: The key factors include building a resilient investment case, taking steps to maintain technology competitiveness, establishing the optimal business model or financing structure, and mitigating supply chain risks.