A 2025 Update on Utility-Scale Energy Storage
While the energy storage market continues to rapidly expand, fueled by record-low battery costs and robust policy support, challenges
Base year costs for utility-scale battery energy storage systems (BESS) are based on a bottom-up cost model using the data and methodology for utility-scale BESS in (Ramasamy et al., 2022). The bottom-up BESS model accounts for major components, including the LIB pack, the inverter, and the balance of system (BOS) needed for the installation.
Containerized Battery Energy Storage Systems (BESS) are essentially large batteries housed within storage containers. These systems are designed to store energy from renewable sources or the grid and release it when required. This setup offers a modular and scalable solution to energy storage.
In a 2032 system, 13.6 GW of energy storage is currently planned to provide $835 million to $1.34 billion of annual net grid benefits depending on storage costs, as estimated in the CPUC Energy Storage Procurement Study: Moving Forward, Chapter 3.
These energy storage containers often lower capital costs and operational expenses, making them a viable economic alternative to traditional energy solutions. The modular nature of containerized systems often results in lower installation and maintenance costs compared to traditional setups.
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