McKinsey Platform for Climate Technologies

Energy Storage

Advancing renewable energy with energy storage systems

Global demand for energy storage systems is expected to grow by up to 25 percent by 2030 due to the need for flexibility in the energy market and increasing energy independence. This demand is leading to the development of storage projects across residential, commercial, and utility-scale applications. However, navigating the challenges of technology uncertainties, global sourcing, and complex business cases can be difficult.

Our approach

McKinsey’s Energy Storage Team can guide you through this transition with expertise and proprietary tools that span the full value chain of BESS (battery energy storage systems), LDES (long-duration energy storage), and TES (thermal energy storage). As part of the Battery Accelerator Team, we support energy storage manufacturers, renewable developers, utilities, and investors by combining the knowledge and capabilities of our Electric Power & Natural Gas, Advanced Industries, and Sustainability practice areas into an integrated solution.

Market sizing and revenue modeling

Product strategy and value proposition

Energy storage supply chain strategy

Investment perspective

Renewable deployment strategy

Case studies

Growth ambitions

Supported a scale-up Nordics C&I battery energy storage developer with their investment memorandum and business plan, sizing the opportunity in different new markets.

Future technologies

Developed a net-zero power flexibility strategy for a leading infrastructure developer in the Middle East, including a development roadmap assessing new technologies.

Procurement excellence

Created a battery energy storage sourcing strategy for a renewables developer, including conducting cost benchmarks for battery systems sourced from different regions while using local incentives.

Product rollout

Supported a European residential energy storage manufacturer in supply chain and procurement excellence to bring a new product portfolio to market on time.

Investment perspective

Conducted a due diligence on a European battery energy storage developer by assessing their pipeline, business model, capabilities, and competitive landscape. Developed post-investment business model strategic scenarios.

Business building

Helped a long-duration storage technology provider improve its value proposition and built customer value modeling tools to compare different business cases and system configurations.

Featured technology and tools

Energy Storage Insights

Our Energy Storage Insights team provides detailed modeling of the technology, cost, demand, and supply outlooks of all types of power and heat storage, as well as advanced analytics on revenue streams for storage.

Battery Insights

Our Battery Insights team uses over ten proprietary assets to foster deep market intelligence across the full value chain, covering battery demand forecasts, technology outlooks, insights on recycling, and emissions quantification and tracking.

Battery Accelerator Team

McKinsey’s Battery Accelerator team consists of over 200 battery professionals across Europe, APAC, and North America, including senior experts from the industry from cell R&D, gigafactory construction and industrialization, and other relevant topics.

Visit the Battery Accelerator Team

Energy Solutions

Energy Solutions is a global leader in energy intelligence and analytics. Using data and technology, our world-class data scientists and analysts enable organizations across the entire energy value chain to make well-informed strategic and operational decisions.

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Featured experts

Featured insights

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Article

Demand-based pricing stabilizes the electricity market of the future

February 28, 2024 -

The build-out of renewables could lead to a variable supply of electricity—any oversupply could be used to accelerate the energy transition. Unlocking this potential requires action from all involved.