EY Highlights Battery Storage’s Role in Global Energy Transition, Identifies Top Investment Markets

EY Highlights Battery Storage’s Role in Global Energy Transition, Identifies Top Investment Markets

(IN BRIEF) EY’s latest Renewable Energy Country Attractiveness Index (RECAI 63) underscores the critical role of battery energy storage systems (BESS) in addressing global energy challenges amid substantial clean energy investments. The index identifies the US, China, and the UK as leading markets for BESS investments, driven by supportive policies. EY emphasizes BESS’s capability to stabilize grids and integrate renewable energy sources, offering lucrative opportunities despite complexities and risks. The report highlights shifts in global rankings, with mature markets like the US and Germany maintaining top positions, while smaller economies like Greece and Chile gain traction due to ambitious renewable energy goals.

(PRESS RELEASE) LONDON, 18-Jun-2024 — /EuropaWire/ — EY’s latest Renewable Energy Country Attractiveness Index (RECAI 63) underscores the pivotal role of battery energy storage systems (BESS) in tackling global network challenges amidst a surge in clean energy investments. Highlighting the US, China, and the UK as prime investment markets, the index reflects strong policy frameworks supporting renewables, despite ongoing capital deficiencies hindering COP28 targets.

Arnaud de Giovanni, EY Global Renewables Leader, emphasized BESS’s potential in enhancing grid stability and integrating distributed energy resources. He outlined key strategies for investors navigating this complex market, including resilient investment cases and mitigating supply chain risks.

The new EY battery storage ranking identifies the US as the top market due to substantial tax incentives, followed closely by China and the UK. These countries are driving BESS adoption through government support and innovative market regulations, anticipating a significant global deployment increase by 2030.

Ben Warren, EY RECAI Chief Editor, noted the rising investor interest in BESS, despite its localized complexities and higher risks compared to traditional clean energy investments. He stressed the importance of understanding regional dynamics, market designs, and technology advancements crucial for long-term success.

In mature markets, the US, China, and Germany maintained top positions in RECAI, highlighting their stable renewable energy demand and project viability. Conversely, shifts in rankings saw Spain’s decline due to grid constraints, while Canada and Japan surged on offshore wind ambitions.

Smaller economies like Denmark, Greece, Chile, and Finland are emerging as attractive alternatives for investors, driven by ambitious renewable energy targets and supportive government policies.

For comprehensive insights into global renewable energy trends and rankings, including the full RECAI Top 40 and analysis, visit ey.com/recai.

Media Contact:

Aparna Sankaran
EY Global Media Relations and Social Media Assistant Director – Energy and Private Equity

SOURCE: Ernst & Young Global Limited