{"id":543289,"date":"2025-09-23T06:49:03","date_gmt":"2025-09-23T06:49:03","guid":{"rendered":"https:\/\/www.capgemini.com\/co-es\/?p=543289&#038;preview=true&#038;preview_id=543289"},"modified":"2026-01-20T12:57:08","modified_gmt":"2026-01-20T12:57:08","slug":"why-the-future-of-battery-storage-is-brighter-than-ever","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/co-es\/insights\/expert-perspectives\/why-the-future-of-battery-storage-is-brighter-than-ever\/","title":{"rendered":"Why the future of battery storage is brighter than ever"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1>Why the future of battery storage is brighter than ever<\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/co-es\/wp-content\/uploads\/sites\/25\/2024\/05\/Mike-Lewis.jpg?w=200&amp;quality=10\" alt=\"\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Mike Lewis<\/h5><h5 class=\"blog-date\">Apr 16, 2025<\/h5><\/div><\/div><div class=\"brand-image\"><\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/?p=1118307\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/shareArticle?url=https:\/\/www.capgemini.com\/?p=1118307\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<h2 class=\"wp-block-heading\" id=\"h-we-cannot-have-a-sustainable-energy-system-without-storage-and-nbsp-lots-of-it-for-signatory-countries-to-achieve-the-commitments-set-at-cop28-for-example-global-energy-storage-systems-must-increase-sixfold-by-2030\">We cannot have a sustainable energy system without storage, and&nbsp;lots of it. For signatory countries to achieve the commitments set at COP28, for example, global energy storage systems must increase sixfold by 2030.<\/h2>\n\n\n\n<p>Batteries are expected to contribute 90% of this capacity. They also help optimize energy pricing, match supply with demand and prevent power outages, among many other critical energy system tasks. Put simply, batteries are the beating heart of the energy transition \u2013&nbsp;so what are the opportunities and challenges of this pivotal market? To find out, the Capgemini Research Institute surveyed 750 senior executives globally, including in the energy and utilities sectors. Its research report, <a href=\"https:\/\/www.capgemini.com\/insights\/research-library\/future-of-batteries\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>The battery revolution: shaping tomorrow\u2019s mobility and energy<\/em><\/a>, generally reflects what I hear from clients, but I would add a couple of other factors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-as-battery-prices-fall-their-prevalence-goes-up\"><strong>As battery prices fall, their prevalence goes up<\/strong><\/h2>\n\n\n\n<p>Let\u2019s start with the good news: the falling price of batteries as production capacity increased over the past decade or so. It will be interesting to see how these ongoing price drops impact two of the challenges highlighted in the report \u2013 the extended payback period for investors and the profitability of manufacturers.<\/p>\n\n\n\n<p>Likewise, as batteries become more available and affordable, I believe that every solar photovoltaic site will have some form of battery storage. I also expect that we will see more residential battery use. That could be people buying their own battery energy storage system (BESS) to capture energy from their solar panels and discharge it at peak times. Or it could be EV owners with Vehicle-to-Load (V2L) functionality renting or leasing a battery through the growing trend for Batteries-as-a-Service (BaaS).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-innovation-could-lead-to-surplus-batteries-and-energy-demand-outstripping-supply\"><strong>Innovation could lead to surplus batteries and energy demand outstripping supply<\/strong><\/h2>\n\n\n\n<p>This rise in availability, and corresponding drop in cost, also has its downsides. First, with so many batteries coming on to the market, how can we track where they are all are, or how well they are cared for during their life cycle? And what happens when an innovation arrives like \u201cFlash Charging\u201d, from the Chinese company BYD, which allows an EV battery to charge in 15 minutes? How do we know that the stock it supersedes will be properly disposed of, not just thrown into landfill?<\/p>\n\n\n\n<p>Second, if increasing numbers of homes have a BESS and an EV charging point, it will create a level of demand that the grid was not designed to meet. For example, it makes sense to charge your EV overnight. But if everyone does the same, it puts a huge stress on the system. This could conceivably lead the Distribution System Operator (DSO) to tell consumers they can\u2019t have an EV charger or a BESS \u2013&nbsp;the political implications of which could be huge.<\/p>\n\n\n\n<p>One final issue I would call out, which is also in the report, is the growing need for sovereignty in battery and energy production. We have all seen the impact on energy prices of being overly reliant on other countries for our supply. But having just one country \u2013&nbsp;China \u2013 produce 83% of the world\u2019s batteries, and mine around of one fifth of its lithium, creates similar vulnerabilities. Only time will tell how the trade tariffs the US administration recently imposed on China will affect the price of batteries and their raw materials stateside, for example.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-data-and-ai-will-be-a-big-part-of-any-solution\"><strong>Data and AI will be a big part of any solution<\/strong><\/h2>\n\n\n\n<p>Currently, there is no single, defined solution to the issues I have described. But here are some ideas to consider.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>In today\u2019s distributed energy system, data and AI are king \u2013 so why not use them to help ease the stresses I have described? For example, advanced battery management systems can extend the life of batteries by constantly monitoring and maintaining their health and optimizing the way they charge and discharge. Data and AI can also speed up research and increase visibility of the supply chain.<\/li>\n\n\n\n<li>Collaboration between governments and industry could help to overcome the issue of an overstrained power grid. For example, <a href=\"https:\/\/www.ofgem.gov.uk\/news\/neso-coordinate-delivery-energy-data-sharing-infrastructurehttps:\/www.ofgem.gov.uk\/news\/neso-coordinate-delivery-energy-data-sharing-infrastructure\" target=\"_blank\" rel=\"noreferrer noopener\">Great Britain\u2019s energy regulator, OFGEM, has tasked the UK\u2019s National Energy System Operator (NESO) with coordinating the delivery of a data sharing infrastructure (DSI) for the sector (until 2028)<\/a>. Having a DSI in place will ultimately make it easier to connect all the battery storage devices on the grid and optimize when and how they are used.<\/li>\n\n\n\n<li>Europe and the US have invested heavily in rebalancing the scales for battery production. (Though again, it remains to be seen how the tariffs imposed by the US will affect its own efforts.) Meanwhile, governments that are serious about sovereignty will need to keep incentivizing local production. That\u2019s as well as supporting the research and development of technologies that rely on different components or materials, like <strong>solid-state and sodium-ion batteries.<\/strong><\/li>\n\n\n\n<li>As I said before, new innovations risk making old ones redundant. Yet according to our report, just one in three organizations has taken meaningful steps to establish a circular economy. To move the dial, we need more initiatives like the EU Sustainable Batteries Regulation, more research into recycling and repurposing methods and a \u2018sustainable-by-design\u2019 approach to battery manufacture.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-batteries-are-not-the-only-storage\"><strong>Batteries are not the only storage<\/strong><\/h2>\n\n\n\n<p>These challenges will not be solved overnight. But meanwhile, other innovations are emerging. For example, the giant solar array at New York City\u2019s John F Kennedy International Airport will also feature 3,84 MW&nbsp;of hydrogen fuel cells. I\u2019m sure London\u2019s Heathrow Airport would have appreciated this capacity when a fire in one of the electrical substations supplying its power forced it to close for over a day in March 2025.<\/p>\n\n\n\n<p>Far from being the be all and end all, then, batteries are part of a bigger picture of energy storage \u2013 one that is constantly evolving. In future, this could mean we have a sustainable energy system that deploys different types of storage to help it manage, monitor and optimize energy use. With AI technologies developing at pace, we have more opportunity than ever to achieve it.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n<section class=\"wp-block-cg-blocks-learn-more learnMoreBlock updated-new-sample-amal\"><div class=\"container\"><div class=\"content-title\"><h2 class=\"learnmore-heading\">Learn More<\/h2><\/div><div class=\"row\"> <div class=\"col-md-4\"><div class=\"box\"><div class=\"box-wrapper\"><a class=\"box-title\" href=\"\" target=\"\" aria-label=\"Learn more 1\" rel=\"noopener noreferrer\"><div class=\"box-img-wrapper\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2025\/04\/Artboard-15.png?w=500&amp;quality=70\" srcset=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2025\/04\/Artboard-15.png?w=500&amp;quality=70 1x, https:\/\/www.capgemini.com\/wp-content\/uploads\/2025\/04\/Artboard-15.png?w=1000&amp;quality=70 2x\" class=\"box-img\" alt=\"\" style=\"object-fit:cover;object-position:50% 50%\" loading=\"lazy\"\/><\/div><h3 class=\"titleWithoutLink_learnMore\">Battery storage<\/h3><\/a><\/div><\/div><div class=\"box-inner\"><p class=\"box-desc\"><\/p><\/div><\/div><\/div><div class=\"content-more\"><a class=\"more2\" href=\"https:\/\/www.capgemini.com\/industries\/energy-and-utilities\/utilities\/battery-storage\/\" aria-label=\" about Learn More\" target=\"\" rel=\"noopener noreferrer\"><\/a><\/div><\/div><\/section>\n\n\n<section class=\"section section--expert-slider wrapper-people-slider wp-block-cg-blocks-wrapper-people-slider undefined\"><div class=\"container\"><div class=\"content-title\"><h2 data-maxlength=\"34\" class=\"people-heading-title\">Author<\/h2><\/div><\/div><div class=\"slider slider-boxed\"><div class=\"container\"><div class=\"slider-window\"><div class=\"slider-list\">\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/co-es\/wp-content\/uploads\/sites\/25\/2024\/05\/Mike-Lewis.jpg\" alt=\"Mike Lewis\"\/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Mike Lewis<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>VP Global Leader Energy Transition<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"people-info\">He is the lead of Capgemini&#8217;s Energy Transition business globally. He is responsible for our client&#8217;s success in their move to low carbon energy &#8211; both the products and services our clients bring to market, and how their own company transition to low carbon, sustainable business practices.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div><\/div><\/div><div class=\"slider-nav\"><button class=\"slider-prev inactive\" aria-label=\"Slider-previous\" tabindex=\"-1\"><\/button><ul class=\"slider-paginator\"><\/ul><button class=\"slider-next\" aria-label=\"Slider-next\"><\/button><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>Why the future of battery storage is brighter than ever<\/p>\n","protected":false},"author":264,"featured_media":543290,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"","cg_seo_hreflang_x_default_relation":"","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"cg_dt_link_disabled":false,"_yoast_wpseo_primary_brand":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","featured_focal_points":""},"categories":[1],"tags":[],"brand":[],"service":[],"industry":[205],"partners":[],"blog-topic":[163],"content-group":[],"class_list":["post-543289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","industry-energy","blog-topic-innovation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - 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