How energy storage is defying the clean energy slowdown – Latitude Media

Report on U.S. Energy Storage Sector Growth and Alignment with Sustainable Development Goals

Executive Summary

A recent analysis by BloombergNEF (BNEF) indicates a significant expansion in the United States energy storage sector, positioning it as a critical enabler for achieving multiple Sustainable Development Goals (SDGs). Despite a general slowdown in the clean energy buildout, battery storage deployment is projected to increase substantially, directly supporting SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). This report outlines the key projections, contributing factors, and the broader implications for sustainable development.

Projected Growth and Market Dynamics

The U.S. is on a trajectory to significantly increase its energy storage capacity, a development crucial for building resilient infrastructure (SDG 9) and ensuring a stable, clean energy supply (SDG 7).

• Decadal Forecast: An addition of 204 gigawatts (GW) of battery storage, equivalent to over 800 gigawatt-hours (GWh), is anticipated over the next decade.
• Comparative Growth: This represents a substantial increase from the 31 GW installed through 2024.
• Revised Projections: Current forecasts are 25% higher than estimates made immediately following recent legislative changes and 6% higher than projections from before the legislation.
• Sectoral Divergence: In contrast, long-term growth projections for solar and wind have been revised downwards, with wind forecasts being 48% lower than at the start of 2025.

Key Drivers of Energy Storage Expansion

Several factors are contributing to the robust growth of the energy storage market, fostering innovation and sustainable industrialization in line with SDG 9 and promoting economic growth (SDG 8).

1. Favorable Policy and Tax Incentives: The sector benefits from a long-term tax credit timeline, with full-value credits available until 2033 before phasing down. This stable policy environment provides a significant advantage over solar and wind, which face shorter qualification windows.
2. Domestic Manufacturing and Industrial Adaptation: The rapid expansion of domestic manufacturing capacity is a primary driver. This shift supports SDG 12 (Responsible Consumption and Production) and creates domestic jobs (SDG 8).
   • Domestic capacity for large-scale battery systems is projected to grow from less than 4 GWh in 2024 to over 60 GWh by 2029.
   • Companies are repurposing existing Electric Vehicle (EV) battery production lines for energy storage systems, a process that is proving faster than anticipated. Notable examples include LG Energy, SK On, and GM’s partnership with Redwood Materials, which also advances circular economy principles.
3. Strategic Market Response to Trade Policies: A short-term increase in deployments is attributed to efforts to build and stockpile components before anticipated tariffs and Foreign Entity of Concern (FEOC) restrictions on imports from China take effect, particularly the scheduled 25% tariff increase in 2026.

Conclusion: Contribution to Global Sustainability Agenda

The accelerated deployment of energy storage in the U.S. is a pivotal development for the global sustainability agenda. By enhancing grid stability and enabling greater integration of renewable energy, this expansion directly advances several SDGs:

• SDG 7 (Affordable and Clean Energy): Ensures a reliable and sustainable energy supply by integrating intermittent renewables.
• SDG 9 (Industry, Innovation, and Infrastructure): Fosters innovation in energy technology and builds resilient energy infrastructure.
• SDG 11 (Sustainable Cities and Communities): Contributes to the reliability of energy systems essential for community resilience.
• SDG 13 (Climate Action): Provides a critical tool for decarbonizing the power sector and mitigating climate change.

The sector’s growth, driven by strategic policy, industrial agility, and market foresight, underscores its role as a cornerstone of the clean energy transition and the achievement of global sustainability targets.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the U.S. clean energy buildout, with a focus on energy storage, connects to several Sustainable Development Goals (SDGs). The primary SDGs addressed are:

• SDG 7: Affordable and Clean Energy: This is the most central SDG to the article. The entire text discusses the deployment and growth projections for clean energy technologies, including battery storage, solar, and wind power. It directly addresses the goal of ensuring access to affordable, reliable, sustainable, and modern energy for all by analyzing the infrastructure required to support a clean energy grid.
• SDG 9: Industry, Innovation and Infrastructure: The article highlights significant developments in industrial strategy and innovation. It details the “fast ramping of domestic manufacturing” for batteries and the innovative repurposing of existing infrastructure, such as when “battery makers are shifting some of the production capacity from EVs to energy storage.” This directly relates to building resilient infrastructure, promoting sustainable industrialization, and fostering innovation.
• SDG 13: Climate Action: The expansion of clean energy and energy storage is a critical strategy for mitigating climate change. The article’s discussion of the buildout of solar, wind, and battery storage is intrinsically linked to taking urgent action to combat climate change and its impacts. The analysis of national policies, such as tax credits and tariffs that influence the pace of this buildout, relates to the integration of climate change measures into national planning.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, several specific SDG targets can be identified:

• Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article directly addresses this target by providing detailed projections for the growth of energy storage, which is a key enabling technology for intermittent renewables like solar and wind. The projection that the U.S. “is expected to add 204 gigawatts of battery storage over the next decade” is a clear effort to increase the capacity and reliability of renewable energy sources in the national energy mix.
• Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. The article provides concrete examples of this target in action. It describes how companies like LG Energy and SK On are retrofitting their industrial facilities by “repurposed part of its existing Michigan EV battery facility into an energy storage production line” and “converting some of its EV battery production lines.” This demonstrates the adoption of clean technology and the upgrading of industrial processes for sustainability.
• Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article’s analysis is framed around the impact of national policies on the clean energy sector. It discusses how the “sunsetting of many tax credits” under the “One Big Beautiful Bill” has affected solar and wind projections, while the “long tax credit timeline” for energy storage has made it an “outlier in the slowdown.” This shows how national policies, including tax incentives and tariffs, are being used as measures to influence the country’s climate strategy and energy transition.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several quantitative and qualitative indicators that can be used to measure progress:

• Indicators for Target 7.2 (Increase share of renewable energy):
  • Installed and projected energy capacity: The article provides specific figures, such as the projection to add “204 gigawatts of battery storage over the next decade” and the current installed base of “31 GW installed through 2024.” It also notes that wind projections are “48% lower,” providing a comparative measure of progress across different technologies. These figures in gigawatts (GW) and gigawatt-hours (GWh) are direct indicators of energy capacity.
• Indicators for Target 9.4 (Upgrade and retrofit industries):
  • Domestic manufacturing capacity for clean technologies: The article quantifies the growth in this area, stating that “domestic large-scale battery systems’ capacity… is expected to increase to over 60 GWh in 2029” from less than 4 GWh in 2024. This is a clear metric for tracking the growth of sustainable industry.
  • Number of industrial facilities repurposed for clean technology: While not providing a total count, the article gives specific examples (LG Energy, SK On, GM) that serve as qualitative indicators of industry retrofitting.
• Indicators for Target 13.2 (Integrate climate measures into policy):
  • Existence and structure of financial incentives and regulations: The article points to the “long tax credit timeline” for storage, the shorter windows for solar and wind, and the “new tariffs and FEOC restrictions” as policy-based indicators. The impact of these policies is measured by the resulting changes in investment and deployment projections from analysts like BloombergNEF.

4. Summary Table of SDGs, Targets, and Indicators

Source: latitudemedia.com