VFBATTERY REPORT

Applications: Stationary Energy Storage

Pages 182–232 (51 pages)

Battery Report 2025, page 219: Applications: Stationary Energy Storage
Text on page 219

Overview of Global Policy Support for BESS Regional Summary China: China is targeting 180 GW of energy storage by 2027 via a shift to market-based pricing, while simultaneously maintaining a "dual-use" licensing framework for advanced batteries and equipment that is currently under a partial one-year diplomatic suspension until November 2026. US In 2025, U.S. policy transitioned to the One Big Beautiful Bill Act OBBBA, which prioritized domestic manufacturing by strengthening Foreign Entity of Concern FEOC restrictions and tax credit requirements. While utility-scale storage retained its 30% Investment Tax Credit, high cumulative tariffs on Chinese imports (exceeding 100% in some cases) have increased project costs by 1525%, prompting a strategic shift toward a domestic supply chain. EMEA In 2025, the EU finalized the Electricity Market Design EMD) reform and Net-Zero Industry Act NZIA, officially classifying storage as a strategic asset class and mandating the removal of "double charging" fees across member states. The framework sets a benchmark to produce 40% of the EU's battery needs domestically by 2030, supported by fast-track permitting (capped at 1218 months) for "Net-Zero Strategic Projects. Africa: Africa has also formalized its storage transition through the African Unionʼs Energy Transition Strategy and Action Plan ETSAP. In South Africa the Renewable Energy Masterplan aims to localize battery manufacturing. A cornerstone of this shift is South Africaʼs Battery Energy Storage IPP Procurement Program BESIPPPP, which has successfully concluded three bid windows to date, securing a total of 1.7 GW of grid-scale capacity.

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