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Report on the Global Battery Energy Storage System (BESS) Market and its Contribution to Sustainable Development Goals

Executive Summary

The Global Battery Energy Storage System (BESS) Market is undergoing significant expansion, driven by the global imperative to achieve Sustainable Development Goals (SDGs), particularly those related to energy, climate, and infrastructure. BESS technologies, which store electrical energy in rechargeable batteries for later use, are pivotal for enhancing grid stability, integrating renewable energy sources, and providing reliable backup power. This report outlines the market’s growth trajectory, its direct alignment with key SDGs, and recent industry developments that underscore its role in fostering a sustainable future.

Market Size and Growth Projections

The BESS market demonstrates a robust growth forecast, indicating a strong global commitment to sustainable energy infrastructure.

• 2024 Market Size: US$ 81.26 billion
• 2032 Projected Market Size: US$ 170.42 billion
• Compound Annual Growth Rate (CAGR) 2025-2032: 9.70%

This growth is instrumental in advancing several SDGs by enabling decarbonization, improving energy efficiency, and supporting resilient infrastructure across residential, commercial, and utility sectors.

Alignment with Sustainable Development Goals (SDGs)

The BESS market is intrinsically linked to the achievement of multiple SDGs:

• SDG 7 (Affordable and Clean Energy): BESS is fundamental to ensuring access to affordable, reliable, and modern energy. It stabilizes power grids by storing energy from intermittent renewable sources like solar and wind, making clean energy a more dependable component of the global energy mix.
• SDG 9 (Industry, Innovation, and Infrastructure): The market represents a significant technological innovation. The deployment of grid-scale BESS contributes directly to building resilient, sustainable, and modernized energy infrastructure capable of supporting future economic development.
• SDG 11 (Sustainable Cities and Communities): By providing reliable backup power and managing energy loads, BESS enhances the resilience of urban communities against power disruptions. It also supports the transition to cleaner energy systems within cities, contributing to healthier environments.
• SDG 13 (Climate Action): As a key enabler of renewable energy, BESS plays a critical role in reducing global dependence on fossil fuels. This directly supports urgent action to combat climate change by mitigating greenhouse gas emissions from the power sector.

Key Market Drivers and SDG Linkages

1. Expanding Adoption in Renewable Energy Applications: The increasing use of lithium-ion batteries to store solar and wind power directly supports SDG 7 by making clean energy more efficient and accessible.
2. Accelerated Deployment of Grid-Scale Projects: Grid modernization efforts incorporating BESS enhance energy security and reliability, contributing to the resilient infrastructure goals of SDG 9 and the community stability objectives of SDG 11.
3. Falling Battery Costs and Supportive Policies: Decreasing costs and government incentives for clean energy make BESS more economically viable. This accelerates the clean energy transition, aligning with the targets of SDG 7 and SDG 13.

Recent Industry Developments Supporting SDGs

Recent global activities highlight the tangible impact of BESS on sustainability targets.

• United States:
  • Georgia Power’s planned 1.4 GWh of energy storage capacity, backed by a $350 million investment, is set to strengthen grid reliability, directly supporting SDG 9 and SDG 11.
  • Tesla Energy’s new Megapack BESS, featuring AI-based management, is designed to facilitate large-scale renewable energy projects, advancing SDG 7 and SDG 13.
  • Fluence Energy’s acquisition of a battery software startup enhances predictive energy storage, promoting smarter grid management in line with the innovation goals of SDG 9.
• Japan:
  • The construction of JAPEX’s Tomakomai BESS project marks a significant step in deploying grid-scale storage to support a sustainable energy infrastructure (SDG 9).
  • Over $2.6 billion in investments since December 2023 aims to bolster grid stability and renewable integration, directly contributing to SDG 7 and SDG 13.
  • A national focus on grid-scale battery storage is addressing challenges related to renewable energy targets and disaster resilience, aligning with SDG 11 and SDG 13.

Market Segmentation

• By Battery Type:
  • Lithium-ion Batteries
  • Lead-acid Batteries
  • Flow Batteries
  • Sodium-sulfur (NaS) Batteries
  • Others
• By Connection Type:
  • On-grid
  • Off-grid
• By Energy Capacity:
  • Below 500 kWh
  • 500 kWh to 1 MWh
  • 1 MWh to 5 MWh
  • Above 5 MWh
• By Application:
  • Residential
  • Non-Residential

Major Industry Stakeholders

Key players are driving the innovation and deployment necessary to meet global sustainability targets. Their contributions are vital for advancing the technologies that underpin the clean energy transition.

• Tesla, Inc
• LG Energy Solution
• Samsung SDI Co., Ltd
• Panasonic Holdings Corporation
• BYD Company Limited
• ABB Ltd
• Hitachi Energy Ltd
• Siemens Energy AG
• General Electric (GE)

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 Battery Energy Storage System (BESS) Market directly connects to several Sustainable Development Goals (SDGs) by focusing on technology and infrastructure that support a global transition to cleaner and more reliable energy systems.

   • SDG 7: Affordable and Clean Energy: The core theme of the article is the growth of BESS, which is crucial for integrating renewable energy sources like solar and wind into the power grid, enhancing energy efficiency, and ensuring a stable supply of clean energy.
   • SDG 9: Industry, Innovation and Infrastructure: The article discusses significant investments in energy infrastructure, technological advancements like AI-based energy management, and the overall modernization of the grid. This highlights the development of reliable, sustainable, and resilient infrastructure.
   • SDG 11: Sustainable Cities and Communities: The deployment of BESS contributes to making cities more resilient, particularly through enhanced grid stability and support for disaster resilience, as mentioned in the context of Japan’s initiatives.
   • SDG 13: Climate Action: By enabling the large-scale adoption of renewable energy and supporting “decarbonization efforts,” the BESS market is a key component in the strategy to combat climate change and its impacts.

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

   The article’s content points to several specific targets within the identified SDGs.

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article explicitly states that BESS supports “renewable energy integration” and enables “more efficient energy storage and integration of solar and wind power.”
   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The article details massive investments, such as “$350 million invested in battery-related infrastructure” by Georgia Power and “$2.6 billion in battery storage projects” in Japan, showcasing investment in clean energy infrastructure.
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being. The article highlights that BESS is used to “strengthen grid reliability,” “enhance reliability,” and support “grid modernization efforts.”
   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable… with greater adoption of clean and environmentally sound technologies. The article’s entire focus on the BESS market, a clean technology, and its role in the “clean energy transition” aligns with this target.
   • Target 11.5: By 2030, significantly reduce… economic losses… caused by disasters… with a focus on protecting the poor and people in vulnerable situations. The mention of Japan using BESS to support “disaster resilience” directly relates to building infrastructure that can withstand and mitigate the impacts of disasters.
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article notes that market growth is driven by “increasing government incentives and policies supporting clean energy transition,” which is a direct implementation of this target.

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 provides several quantitative and qualitative indicators that can be used to measure progress.

   • Investment in clean energy infrastructure (Target 7.a): The article provides specific financial figures that serve as direct indicators.
     • Georgia Power’s investment of “$350 million in battery-related infrastructure.”
     • Japanese investments totaling at least “$2.6 billion in battery storage projects since December 2023.”
   • Installed energy storage capacity (Target 9.1): This is a key metric for assessing the development of resilient infrastructure.
     • Georgia Power’s plan for “another 1.4 GWh of energy storage capacity.”
   • Market size and growth rate (Targets 7.a, 9.4): The overall market valuation and growth projections indicate the scale of adoption for this clean technology.
     • The market size is projected to grow from “US$ 81.26 billion in 2024” to “US$ 170.42 billion by 2032.”
     • A Compound Annual Growth Rate (CAGR) of “9.70%.”
   • Deployment of grid-scale projects (Targets 7.2, 9.1): The number and scale of new projects are an indicator of progress.
     • The mention of JAPEX commencing its “Tomakomai Battery Energy Storage System project” is a qualitative indicator of new infrastructure deployment.
   • Adoption of policies and incentives (Target 13.2): While not quantified, the article explicitly mentions “increasing government incentives and policies supporting clean energy transition” as a major market driver, which is a crucial qualitative indicator.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article. In this table, list the Sustainable Development Goals (SDGs), their corresponding targets, and the specific indicators identified in the article.

   SDGs	Targets	Indicators
   SDG 7: Affordable and Clean Energy	7.2: Increase substantially the share of renewable energy in the global energy mix. 7.a: Promote investment in energy infrastructure and clean energy technology.	Expanding adoption of batteries for solar and wind power integration. Investment in battery-related infrastructure ($350 million in Georgia). Investment in battery storage projects ($2.6 billion in Japan). Market growth from $81.26 billion to $170.42 billion by 2032.
   SDG 9: Industry, Innovation and Infrastructure	9.1: Develop quality, reliable, sustainable and resilient infrastructure. 9.4: Upgrade infrastructure and retrofit industries to make them sustainable… with greater adoption of clean… technologies.	Planned increase in energy storage capacity (1.4 GWh by Georgia Power). Deployment of new grid-scale projects (e.g., Tomakomai project in Japan). Adoption of AI-based energy management and predictive storage software.
   SDG 11: Sustainable Cities and Communities	11.5: Significantly reduce… economic losses… caused by disasters.	Deployment of BESS specifically to support disaster resilience (as noted in Japan).
   SDG 13: Climate Action	13.2: Integrate climate change measures into national policies, strategies and planning.	Existence of government incentives and policies supporting clean energy transition.

Source: openpr.com