The Role of Batteries in Powering a Net-Zero World

According to a study by the IRENA, battery electricity storage systems have significant potential for expansion and cost reduction. By 2030, total installed costs could drop by 50 to 60%, with battery cell costs decreasing even further due to manufacturing optimisation and material efficiency.

A future where clean energy powers the world may be an ambitious dream, but it’s already becoming an achievable reality. At the heart of this journey is energy storage, a technology essential for reaching net zero — an ideal state where the amount of greenhouse gases released into the planet’s atmosphere is tantamount to the amount removed. 

Among various energy storage technologies, battery storage has been acknowledged as a key enabler of renewable energy integration. Not only does it offer efficiency, but it’s also flexible and scalable. 

According to a study by the International Renewable Energy Agency (IRENA), battery electricity storage systems have significant potential for expansion and cost reduction. By 2030, total installed costs could drop by 50 to 60%, with battery cell costs decreasing even further due to manufacturing optimisation and material efficiency. Improved battery lifetimes and performance will also lower service costs.  

The importance of battery storage

A battery energy storage system (BESS) operates by receiving electricity from the grid, power plants, or renewable sources like solar panels. This system is designed to store the electricity it receives and discharge it as needed. 

From simple energy storage units, these systems have transformed into smart, dynamic platforms, powered by advanced software, Artificial Intelligence (AI), and Machine Learning. With these innovations, they can now manage energy more intelligently — especially in terms of adjusting real-time consumption to address supply and demand fluctuations.

An essential part of today’s energy transition narrative, battery storage has several applications. 

For residential properties, homeowners can use battery systems to store solar energy harnessed during the day and use it at night. They can also use it as a backup in case of power interruptions. For those living in remote areas, battery storage enables off-grid living, powering homes that are independent of utility grids.

Commercial and industrial applications also run aplenty. For instance, peak shaving allows businesses to manage spikes in energy consumption, helping them avoid hefty charges during peak hours. Similarly, load shifting enables companies to shift their energy usage from high-cost periods to more affordable off-peak times. This leads to lower operational expenses overall.

For organisations that are pushing their renewable integration agenda, battery storage helps stabilise the fluctuating supply from renewable sources to ensure a consistent and reliable flow of electricity.

Middle East adoption

As the demand for renewable energy increases, so does the need for robust energy storage systems. IRENA said that 360 gigawatts of battery storage will be required globally by 2030 to keep global warming below 1.5°C and achieve nearly 70% reliance on renewable energy. 

To meet this ambitious goal, innovations and large-scale deployments are underway worldwide.

As part of this global movement, countries in the Middle East have begun adopting battery storage technology to enhance their renewable energy capacity.

Back in 2020, Qatar General Electricity and Water Corporation (Kahramaa) commissioned its first grid-scale battery storage project. This pilot deployment of a 1 MW/4 MWh Tesla Powerpack system — installed at the Nuaija station — was completed ahead of schedule, even amidst the challenges posed by the COVID-19 pandemic. One of the project’s main goals is to manage peak demand during Qatar's high-energy summer months.

Meanwhile, earlier in January this year, Saudi Arabia officially connected its largest battery energy storage system to the grid. Located in Bisha, in the ‘Asir province, the 500 MW/2000 MWh system is the world’s largest single-phase energy storage project.

Owned by Saudi Electric Company (SEC), the facility uses 122 prefabricated storage units supplied by China’s BYD. Each unit includes a 6 MW power conversion system (PCS) and four lithium iron phosphate (LFP) battery modules with a combined capacity of 5.365 MWh. This modular design optimises space, improves system integration, and reduces failure risks.

In the same month, the United Arab Emirates (UAE) announced that it’s set to launch the world’s first round-the-clock solar photovoltaic (PV) and battery storage (BESS) gigascale project in Abu Dhabi. Developed by Masdar in partnership with the Emirates Water and Electricity Company (EWEC), the project will deliver up to 1 GW of continuous baseload power.

Valued at over $6 billion, the initiative combines a 5.2 GW solar PV plant with a 19 GWh battery energy storage system. This integrated system will provide 24/7 renewable energy.

Speaking at the Abu Dhabi Sustainability Week (ADSW) 2025, Abdulaziz Alobaidli, Chief Operating Officer of Masdar, stated, “This record-breaking project we are developing with EWEC is a giant step forward in the clean energy transformation, overcoming the intermittency challenges of renewables and enabling the dispatch of clean energy 24 hours a day, seven days a week.”

What’s in store for battery storage

Indeed, battery storage is an important part of the clean energy movement. However, as with other aspects of this journey, it has its own set of challenges.

Among the biggest hurdles is the reliance on critical minerals like lithium, cobalt, and nickel, which are essential for lithium-ion batteries. The extraction of these materials often raises environmental and ethical concerns, and supply chains are vulnerable to geopolitical risks. 

Moreover, cost remains another challenge, despite substantial price reductions over the past decade. Expanding battery manufacturing to meet the skyrocketing demand from electric vehicles (EVs) and storage systems will also require massive investment. According to the International Energy Agency (IEA), $800 billion will be needed by 2030 to scale battery production and meet the goals of the Net Zero Emissions (NZE) Scenario. 

Despite challenges in major markets, the energy storage sector is set to grow tenfold by 2035, reaching a cumulative 228 gigawatts (965 gigawatt-hours), according to BloombergNEF.

All these developments underscore how the battery storage landscape is still evolving. And in this space, the Middle East is positioning itself as a major player, with countries like the UAE, Saudi Arabia, and Qatar leading the charge. 

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