Energy's Next Frontier : Inside RE+ 2025

This year, we had the chance to attend RE+ in Las Vegas, where key players from the renewable energy sector gathered to discuss how to meet rising energy demand and ensure grid stability. One theme stood out: Battery Energy Storage Systems (BESS)🔋.

BESS is powering grid stability and meeting AI-driven energy demand — set to grow sixfold in the next five years. ⚡️

At RE+ 2025, global leaders showcased next-gen battery tech — from Ampace’s semi-solid LFP cells to Fluence’s U.S.-made systems, Samsung SDI’s containerized units, CATL’s sodium-ion batteries, and WeLion’s semi-solid batteries powering EVs. 🚗

Key takeaways from RE+ event-

AI workloads are reshaping energy demand and – Storage is the answer!

• Power demand is surging, led by data centers and AI workloads that create sharp,
unpredictable spikes in consumption.
• Traditional solutions like nuclear or thermal will take 5–8 years to come online, leaving
a near-term capacity deficit.
• At the same time, electricity has become more expensive—up about 20% since 2020—
and in crowded markets, getting a new grid connection can take over 3 years, often
requiring costly T&D upgrades of $50–150M for each data center.
• This is driving the need for Battery Energy Storage Systems (BESS) + Solar, which
provide faster power availability, lower costs, and flexible, scalable backup.

Global BESS capacity surges 4x — Poised for sixfold growth ahead:

Global BESS capacity has already grown 4x from about 75-80 Gwh in 2022 to ~320-330Gwh, reflecting how critical storage has become to balance grids and manage new demand from renewables and data centers. Looking ahead, the momentum is only accelerating — installed capacity is projected to grow another sixfold within the next five year.

China’s dominance in the BESS supply chain:

Based on 2024 data from Benchmark Mineral Intelligence, the global Battery Energy Storage
System (BESS) supply chain is profoundly dominated by China. This control spans every stage, starting with key materials where China commands 88% of the cathode market and 92% of the anode market. The dominance is even more pronounced in LFP chemistry, with China producing 99% of LFP cathodes and 100% of all LFP cells.
This upstream supremacy extends downstream, where China supplies 77% of the world’s BESS systems, establishing near-total control over the LFP battery ecosystem.
At the same time, this concentration opens a strategic window for India. By scaling rapidly,
Indian companies can not only meet domestic energy needs but also emerge as global suppliers, providing the world with a much-needed alternative to its dependence on China.

Diversifying storage: Emerging alternatives to lithium-ion:

• The global BESS landscape is rapidly diversifying beyond lithium-ion. Out of 8,000
tracked projects, more than 340 are based on alternative chemistries, with a strong
pipeline building up for the next few years.
• Flow batteries dominate with 45 GWh of announced capacity while metal-air
technologies account for 10 GWh.
• Sodium-based batteries are also gaining traction with 7 GWh in the pipeline, with
heavyweights like CATL entering the space. Zinc batteries contribute another 1 GWh,
and “other” chemistries such as lead-acid, liquid metal, and nickel hydride add 6 GWh.
Interestingly, the pipeline for these non-Li-ion projects is expected to peak in 2025 with 128 projects, before moderating in subsequent years, highlighting a clear industry shift toward long- duration and cost-effective storage solutions to complement conventional lithium-ion dominance.

Declining competitiveness of wind energy:

Falling Battery Energy Storage System (BESS) costs and rising efficiency are reshaping
renewable energy economics. Once a complement to solar, wind is losing ground as BESS
emerges as the preferred option for grid stabilization and balancing intermittent supply.

In regions without strong or consistent wind resources, solar-plus-storage or standalone BESS projects are increasingly favoured. They deploy faster, offer geographic flexibility, and deliver reliable services like frequency regulation, peak shaving, and backup power—advantages over wind farms that demand high capital, favourable sites, and long permitting cycles.