KPMG report on lead battery energy storage systems points to behind-the-meter applications

Battery energy storage systems are essential for preventing grid failures in Europe and supporting the integration of renewable energy sources: new report from KPMG

Lead batteries suited to ‘behind the meter applications, microgrids and grid stabilisation’

EUROPE will need to manufacture and deploy a range of battery technologies to meet the growth in renewable energy by 2035, according to a new report by KPMG.

The findings included in Battery Energy Storage Systems (BESS) 2035 Market Outlook and Opportunities, published at the global lead conference Pb2025 taking place in Amsterdam,identifies all of the current battery technologies available and how they can best be deployed.

The rapid growth in renewable energy is helping drive demand for a range of battery energy storage systems, from grid-scale back-up to smaller residential systems, the report states. 

However, more battery energy storage systems will be required to build more robust systems, and help to avoid large scale grid failures such as those experienced in Spain and Portugal earlier this year.

According to the report up to 48% of global electricity supply is estimated to be provided by renewable energies in 2035.

Report author, Chihab Boucheffa, KPMG’s Strategy Consultant, said: “Battery energy storage systems are becoming increasingly necessary to address challenges associated with renewables, such as grid destabilization, while also unlocking new value capture opportunities. Decision-makers need to ensure they have the right mix of battery technologies available to them to smooth the transition, manage the increased load on the grid, and avoid the kind of disruption we have seen in Spain.”

The ability to source battery raw materials will be critical to achieving the levels of energy storage needed in a decade, he added.

The report states that the market for lead battery energy storage systems could increase to meet the demand for behind-the-meter applications such as EV charging stations and smaller microgrids.

Dr Alistair Davidson, Executive Director of the Consortium for Battery Innovation, which supports research in lead battery technologies, welcomed the findings.

He said: “It’s clear that we need an eco-system of battery technologies and capabilities in Europe to help meet the demand for battery energy storage. One size does not fit all.  This report demonstrates that lead batteries are particularly suited to behind the meter applications, microgrids and grid stabilisation projects.

“The EU benefits from investments in new and existing battery technologies and it must continue to nurture both manufacturing capability and raw material security to meet its electrification and low carbon objectives.”

An executive summary of the report is available on the Consortium for Battery Innovation website: KPMG ADVISORY Template 16/9