Bess interests: Why battery storage is the missing link for renewables

Battery energy storage systems, commonly referred to as Bess, are becoming increasingly important in the renewable energy landscape. Bess systems store electricity in rechargeable batteries, which can then be released when needed, addressing concerns about the intermittency of renewables and making them more viable for widespread adoption.

Abu Dhabi's Masdar announced the launch of its second Bess project in the UK, highlighting the crucial role of Bess in combating climate change and meeting the goals of the 2015 Paris Agreement. Without a global energy storage target, the goal of tripling renewables by 2030 is at risk.

Bess systems support various functions, including renewable integration, peak shaving, load shifting, frequency regulation, grid stabilization, backup power, energy cost optimization, and energy security. They capture and store energy generated by power stations, providing power when demand is high or renewable sources are not available.

The most common battery used in Bess is lithium-ion, which is also used in consumer electronics and appliances. Other types, such as lead-acid, sodium-sulfur, solid-state, aluminium-sulfur, and flow batteries, are also being explored.

The global market for Bess was valued at $150 billion in 2025, with a projected compound annual growth rate of 17.2% from 2025 to 2031. This growth is driven by factors such as renewable energy deployment, grid modernization, electrification, data center expansion, and the need for power-system flexibility. The electric vehicle sector currently dominates the lithium-ion battery market, accounting for about 70% of demand.

Falling battery prices, advancements in manufacturing, and improvements in battery chemistry have contributed to the growth of the lithium-ion market.

Bess systems play a vital role in enabling the integration of renewable energy sources into the grid, with their ability to store large volumes of energy for later use becoming increasingly significant over the past decade. The Middle East is experiencing the fastest growth rate for Bess markets, with a projected 53% year-on-year increase.

The UAE's clean energy company, Masdar, is at the forefront of this development, having launched a $6 billion renewable energy project with 19GWh of battery storage in Abu Dhabi, enough to power half a million homes.