Global energy storage and electrification targets critical for 1.5°C goal

A report by Climate Resource indicates that to maintain the 1.5°C global warming limit, electricity must account for 35% of final energy consumption by 2035. While electricity's share rose from 17% in 2000 to 23% in 2025, current policies suggest it may only reach 30% by 2035. Achieving the target requires increased electrification in transport, industry, and buildings, supported by infrastructure investment and improved financing.

Simultaneously, the energy storage market is projected to experience massive growth. According to Wood Mackenzie, global energy storage capacity is expected to exceed 7 TWh by 2035, representing a more than sevenfold increase. This growth is driven by the need to balance renewable energy fluctuations.

Regional shifts are also occurring. While China and the US lead the total market, Europe is projected to surpass the US in annual new installations by 2026. In the residential segment, Australia has become the world's largest market due to incentive programs, overtaking Germany.