Unlocking Energy Storage 2026 Report
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Partner
Germany
I am a partner and member of both our international Energy and Utilities Sector Group and our Regulatory and Administrative Practice Group. What sets me apart is my in-depth legal expertise in combination with a keen sense of the challenges faced by industries which have to succeed in a largely regulated environment.
The global energy storage market is expanding rapidly, driven by the growing need to integrate renewables and stabilise electricity grids. In 2024, the market was valued at approximately $668.7 billion and is projected to reach $5.12 trillion by 2034, growing at a compound annual rate of 21.7%. Annual energy storage editions are expected to hit 220 GW (972 GWh), reflecting the scale of transformation underway.
This growth is largely powered by technological innovation, particularly in lithium-ion batteries. Known for their high energy density and falling costs, lithium‑ion technology currently dominates the market. China leads the charge, with its battery energy storage system (BESS) fleet even surpassing its pumped hydro capacity. The U.S. follows closely, supported by state‑level targets and favourable market conditions, though future policy uncertainties may affect its trajectory. In Europe, the BESS market is also gaining momentum, with projections showing a sixfold increase to nearly 120 GWh by 2029. However, this still falls short of the flexibility needed in a renewables heavy energy system, highlighting significant room for further growth.
As wind and solar continue to expand, the importance of energy storage becomes even clearer. While pumped-storage hydropower still holds the majority of installed capacity, grid-scale batteries, especially lithium-ion, are increasingly central to the transition. With ambitious decarbonisation policies and declining storage costs, the market is set for sustained growth, driven by innovation and strategic investment.
Our 2026 Unlocking Energy Storage report takes a global perspective on the role of energy storage systems in the clean energy transition and provides an overview of the market across key jurisdictions globally, outlining revenue streams, regulations and key innovations and technologies.
At Bird & Bird, we assist energy storage businesses in navigating complex regulatory frameworks, securing project financing, and ensuring compliance with environmental laws. Our expertise spans drafting contracts for the construction of large-scale energy storage facilities and energy sales, providing financing advice, technology licensing, protecting intellectual property, and managing risks throughout the entire lifecycle of energy storage projects, regarding all legal aspects.
Click here to read Unlocking Energy Storage 2026
Click here to watch Hermann Rothfuchs introduce the latest report
