UBS Boosts BESS Demand Outlook to 1.6 TWh, Notes 30% Cost Deflation
UBS projects global battery energy storage demand will reach 1.6 TWh by 2030 and US demand will triple to 200 GWh by decade’s end. UBS highlights US battery cell costs 30% below estimates and rising AI data center demand, which could boost its energy financing margins.
1. UBS Revises Global Battery Storage Outlook
UBS now forecasts global battery energy storage systems demand will climb to 1.6 TWh by 2030, a 6% upward revision, and expects US demand to surge to 200 GWh, tripling earlier projections as renewable-plus-storage becomes the default dispatchable power solution.
2. Cost Deflation in Battery Cells and Systems
The bank finds US onshore battery cell costs running over 30% below consensus and anticipates a 30% decline in overall BESS system costs, substantially improving project economics and driving double-digit internal rates of return for developers.
3. AI Infrastructure Emerges as Structural Driver
Accelerating electricity consumption from AI data centers is creating new grid flexibility requirements, positioning storage solutions as critical for reliable power delivery and marking a clear market inflection for large-scale deployment.
4. Implications for UBS Energy Services
Improved cost dynamics and faster deployment timelines are expected to expand demand for UBS’s energy advisory, financing and trading services as clients seek capital and strategic support for storage projects.