Given the complexity and scale of the energy transition, industries are having to rethink many aspects of the current energy system. Some technologies are being phased out, while new opportunities and developments are coming to the fore.
DNV’s ‘Energy Transition Outlook’ report for 2025 indicates that by 2060, global electricity demand is predicted to increase by 140 per cent with electricity supply 96 per cent decarbonised. In 2060, solar power is expected to account for 47 per cent of electricity generation, increasing five-fold from 2024.
So why is there still scepticism around successful deep decarbonisation?
Many sceptics suffer from what is called “intermittence anxiety”, which relates to periods where renewable power and storage cannot be reliably called upon.
This is similar to “range anxiety” for electric vehicles – a hotly debated topic which for many years had people questioning whether EV batteries would ever be good enough to replace internal combustion engine (ICE) vehicles. However, in 2024, the first electric vehicle broke the 1000km range barrier on a single charge.
As technologies increasingly debunk “range anxiety”, what will it take to ease “intermittence anxiety”?
Energy storage is a clear solution, enabling an electricity system with a high share of wind and solar.
“Electricity storage can play a critical role in balancing electricity supply and demand and can provide other services needed to keep decarbonised electricity systems reliable and cost-effective,” an excerpt from 2022 MIT study ‘The Future of Energy Storage’ reads.
The future looks bright for battery storage
Seven years ago, it would’ve been hard to imagine a world where gas peaking power plants would be replaced by battery power plants fulfilling the same functions.
In Australia, this has become a reality. Grid modernisation and battery energy storage systems (BESS) are advancing rapidly, with over 10 gigawatt-hours in the pipeline across the country. This coincides with increasing adoption of long-duration energy storage globally, with Wood Mackenzie observing a 49 per cent uptick in such deployments in 2025.
However, the devil is in the detail. In many countries, energy storage hasn’t historically been included in regulations or electricity codes, resulting in discriminatory treatment such as double taxation, permitting barriers or discriminatory grid fees compared to conventional power plants.
This doesn’t take away from battery storage’s importance and inevitable role in the energy transition moving forward, with legislation evolving rapidly to accommodate storage solutions.
To learn more, contact DNV.
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