The global energy transition is entering a new phase where battery storage is emerging as a critical pillar of modern power infrastructure. As renewable energy capacity expands rapidly across the world, the need for flexible and reliable energy storage systems has intensified. From large-scale battery installations in China and Australia to solar-plus-storage projects in the United States and emerging markets like India and Brazil, energy storage is increasingly becoming central to grid stability, energy security, and decarbonisation strategies. Falling battery costs, rising electricity demand, and growing investments in renewable energy are accelerating this transformation. At the same time, innovations in storage technologies are expanding the role batteries can play in balancing intermittent renewable power generation. As global electricity systems evolve, battery storage is no longer a complementary technology—it is becoming a foundational component of the future energy economy. The global energy landscape is undergoing a profound transformation, with battery storage emerging as a central pillar of modern power systems. Across continents, large-scale battery installations are rapidly being deployed—from solar-rich regions like Texas to Inner Mongolia’s vast grasslands and repurposed coal plant sites near Sydney. This surge reflects a convergence of economic, technological, and geopolitical forces that are accelerating the adoption of energy storage at an unprecedented pace. A recent report from InfoLink Consulting shows that global energy storage installations climbed to 275.3 GWh in 2025, registering a significant 61.3% increase compared to the previous year. The growth momentum is expected to continue in 2026, with an additional 353.4 GWh of capacity projected to be deployed worldwide, largely driven by rising electricity demand. The global shipments of energy storage cells surged to 612.39 GWh in 2025—nearly double the previous year’s level—and are forecast to climb further to 801 GWh in 2026. Shipments of battery energy storage systems (BESS) also rose sharply by 75.5% to 421.2 GWh in 2025, with expectations of reaching 600 GWh this year. How solar and wind expansion is fuelling battery adoption The rapid expansion of renewable energy—especially solar and wind—has amplified the need for storage. These energy sources are inherently variable, producing electricity intermittently depending on weather conditions. Batteries help address this challenge by storing excess power when supply is abundant and releasing it during periods of high demand or low generation. This capability enables more efficient grid management and reduces reliance on fossil fuel-based backup generation. Where coal and gas plants once filled gaps in supply, batteries are increasingly stepping in as a cleaner and more flexible alternative. Cost trends reinforce this transition. According to BloombergNEF, average costs have fallen by around 75% between 2018 and 2025 and are projected to decline by a further 25% by 2035. This rapid reduction contrasts with rising costs in other clean energy technologies, making batteries particularly attractive. As a result, developers are building projects at larger scales, creating battery fleets capable of delivering substantial amounts of power. In Inner Mongolia, for example, several large installations collectively provide gigawatt-hour-scale capacity, rivaling traditional power plants for short durations. Similarly, in Scotland, major battery facilities are being developed on former coal mining sites, symbolizing the shift from fossil fuels to cleaner energy solutions. Battery storage demand surges on renewable and economic drivers Global battery storage installations are witnessing rapid expansion, reflecting rising demand fuelled by large-scale solar and wind investments, broader electrification, and the need for stronger grid reliability. According to Wood Mackenzie, global energy storage market grew by 43% in 2025, adding 106 GW of new capacity compared to 73 GW in 2024, reflecting strong growth and investor interest. Total installed capacity has reached over 270 GW, with projections indicating a nearly sixfold rise to 1,545 GW by 2034. This trend highlights the growing importance of energy storage in the global energy transition. A key driver behind this boom is the dramatic decline in battery costs, coupled with rising global electricity demand—particularly from energy-intensive infrastructure such as data centers. Analysts had already projected strong growth in installations for 2026, expecting a significant year-on-year increase led by regions such as Europe, the Middle East, Africa, and Latin America. However, geopolitical tensions—especially conflict in the Middle East—have further intensified the shift toward batteries by increasing the cost and uncertainty of fossil fuel supplies. As a result, 2026 is shaping up to be a pivotal year in which batteries take on a more influential role in the global energy system. This momentum is already visible in market activity. Battery manufacturers, particularly in China, are reporting rising profits as global demand accelerates. In countries like Vietnam, developers are reconsidering traditional fossil fuel-based projects in favor of renewable energy systems paired with battery storage. The economics are increasingly compelling: batteries are no longer seen merely as a complementary clean technology but as a core investment option in power infrastructure. Industry sentiment reflects this shift, with storage systems now viewed as essential components of future energy networks. Global energy shift: The rising role of battery storage in key markets Australia provides a compelling case study of how battery storage is reshaping national energy systems. As the world’s largest battery market on a per capita basis, the country has demonstrated how storage can enhance grid reliability and reduce dependence on gas-fired generation. The Waratah Super Battery in New South Wales, for instance, has already shown its potential by supplying more power during peak evening demand than some gas plants. Once fully operational, it is expected to play a critical role in stabilizing the grid and addressing potential energy shortages. Falling construction costs have further improved project economics, reinforcing investor confidence in large-scale storage. China’s role in this transformation is particularly significant. The country dominates global battery manufacturing, benefiting from years of investment in its electric vehicle supply chain. This has led to an oversupply of lithium-ion batteries, driving prices down and making storage solutions more accessible worldwide. China also accounts for a substantial share of existing grid-scale installations, supported in part by past policies that encouraged renewable projects to include storage. The resulting market dynamics mirror earlier

In 2025, the global wind industry recorded a historic 165 GW of new capacity, marking a 40% year-on-year increase and taking total installed capacity to 1,299 GW across 138 countries. According to the Global Wind Report 2026, onshore wind dominated additions with 155.3 GW (+42%), while offshore installations reached 9.3 GW (+16%), pushing cumulative offshore capacity to 92.3 GW, close to the 100 GW milestone. Asia led growth with nearly 80% of new installations (around 131 GW), driven primarily by China (120.5 GW) and India (6.3 GW). Europe added 19.1 GW, surpassing 300 GW total capacity, while North America contributed 7.3 GW. The top five markets accounted for 86% of global additions. Over the 2026–2030 period, close to 969 GW of new capacity is projected to be installed, although regulatory bottlenecks and grid limitations continue to pose significant challenges to further expansion. The global wind industry achieved a historic milestone in 2025, installing a record 165 GW of new capacity—an increase of 40% over the previous year, according to the Global Wind Energy Council (GWEC). The findings, detailed in the Global Wind Report 2026, underscore the sector’s resilience and rapid expansion amid ongoing volatility in global energy markets, including supply disruptions and surging oil and gas prices. With Asia at the forefront, accelerated growth is driving fast-growing energy markets toward ‘electro-state’ economies, while demonstrating that wind power, when deployed at scale, can compete effectively with all major energy sources—from coal to nuclear. As the global energy transition accelerates, wind energy is emerging as a key driver of clean and reliable power generation. By harnessing the natural movement of air, it provides a sustainable and virtually limitless source of electricity that meets current needs without compromising the environment. In the face of rising climate concerns and the push for decarbonisation, wind power stands out for its environmental as well as economic and social benefits. In addition to delivering clean energy, it enhances energy security, generates employment, and drives technological innovation. Global capacity expansion The report highlights that by the close of 2025, global wind power capacity had climbed to 1,299 GW, with 138 countries incorporating wind energy into their electricity systems. Last year delivered record growth, with 155.3 GW of new onshore wind capacity (up 42%) and an additional 9.3 GW of offshore wind installations (up 16%). This growth highlights wind power’s increasingly central role in the global energy transition, offering a resilient, reliable, cost-effective, and domestically sourced alternative to fossil fuels at a time of heightened economic uncertainty. Around 9.2 GW of new offshore wind capacity was connected to grids globally in 2025, lifting total installed capacity to 92.3 GW and bringing the sector close to the 100 GW milestone. China led additions with 6.6 GW, while Europe brought nearly 2 GW online, including over 1 GW from the UK alone. Asia continued to dominate the global wind landscape, accounting for 131 GW of new installations—nearly 80% of the global total. This surge was led by China and India, which together added more than 126 GW of capacity during the year. China alone contributed over 120 GW, reinforcing its position as the world’s largest wind energy market. India also delivered a strong performance, nearly doubling its annual installations to a record 6.3 GW in 2025, up from 3.4 GW in 2024—an impressive 86% increase, followed by Germany (5.2 GW) and Brazil (2.3 GW). Beyond Asia, other regions also recorded significant progress. Europe surpassed the 300 GW mark in total installed wind capacity, adding 19.1 GW of new capacity in 2025—its second-highest annual addition and a 16% increase compared to the previous year. Growth in key markets such as Germany and Turkey played a crucial role in this expansion. Within the European Union, the EU-27 bloc installed 15.1 GW, reflecting a 17% rise year-on-year, however, this still falls short of the pace required to meet the bloc’s 2030 climate and energy targets. Leading regions in new wind capacity additions Region 2025 2024 2023 2022 2021 Asia-Pacific 131.8 88.3 82.9 43.2 55.1 Europe 19.1 16.6 18.2 19.5 18 North America 7.3 5.4 8.1 9.6 13.4 LatAm & Caribbean 3.7 5 6.3 5.2 5.8 Africa & Middle East 2.6 2 1 0.3 1.7 Source: Global Wind Energy Council; figures in GW Emerging regions across Africa and the Middle East also contributed notable volumes, defying expectations and demonstrating growing interest in wind energy as part of broader diversification strategies. Africa and the Middle East recorded another strong year of wind installations in 2025, led by renewed expansion in South Africa and exceptional growth in Saudi Arabia. In a notable development, the 1,500 MW Dawadmi wind farm in Saudi Arabia achieved a global benchmark by becoming the lowest-cost wind project in 2025, at just US$ 1.338/kWh. With new manufacturing facilities planned in Saudi Arabia and Oman, the Middle East is projected to add over 18 GW of onshore wind capacity between 2026 and 2030. In contrast, Latin America and the Caribbean was the only region to register a decline in annual additions during 2025. In Brazil, which installed 2.3 GW last year, new capacity additions have slowed, largely due to weaker electricity demand and rising curtailment. A significant concentration of growth was observed among the world’s leading wind markets. According to industry sources, the top five countries—China, the United States, India, Germany, and Brazil—collectively accounted for 86% of all new capacity additions in 2025. These countries together account for nearly 75% of global installed wind capacity, underscoring the critical role of supportive policies, large-scale investment, and robust infrastructure in accelerating deployment and shaping the sector’s future. Top five countries leading in new wind capacity additions in 2025 Country Annual installations (GW) Total capacity (GW) China 120.5 640.5 USA 6.9 161.2 India 6.3 54.5 Germany 5.7 77.7 Brazil 2.3 36  Source: Global Wind Energy Council The above data shows that China overwhelmingly dominates global wind capacity additions, installing 120.5 GW in a single year and accounting for the vast majority of new growth among the

Global energy trends in 2025 reflect a period of transition marked by slower overall demand growth and rapid expansion of clean energy technologies. According to the International Energy Agency’s Global Energy Review, energy consumption increased at a more moderate pace, even as electricity demand continued to grow strongly across sectors. Global energy demand rose by 1.3%, below the 1.4% decade average, while electricity demand increased by around 3%. Solar photovoltaic (PV) emerged as the largest contributor to global energy supply growth for the first time, accounting for over 25% of the increase. Meanwhile, renewable sources and nuclear together met nearly 60% of demand growth. The emissions in advanced economies grew by 0.5%, outpacing the 0.3% increase in emerging and developing economies. Even as the transition gathers pace, emissions trends, shifting fuel consumption patterns, and regional disparities reveal a global energy landscape that remains uneven, influenced by economic conditions, technological progress, and climate variability. Global carbon emissions saw a modest increase in 2025, rising at a slower pace as the rapid expansion of solar power helped balance out emission gains in advanced economies. According to the latest edition of the International Energy Agency’s (IEA) Global Energy Review, global energy demand expanded at a slower pace in 2025 compared to the previous year, even as electricity consumption continued to grow at a much faster rate than overall demand. A notable milestone highlighted in the report is that solar photovoltaic (PV) emerged as the largest contributor to the growth in global energy supply for the first time. The IEA report states that global energy demand growth eased to 1.3% in 2025. This figure is slightly below the average growth rate of 1.4% recorded over the past decade and significantly lower than the level seen in 2024. The slowdown in demand growth can be attributed to several key factors, including Weaker global economic expansion, Milder weather conditions in certain regions, and Accelerated adoption of more energy-efficient technologies. Together, these factors helped restrain overall energy consumption growth. Electricity demand and power sector shifts Electricity demand worldwide maintained strong momentum in 2025, increasing by about 3%, which is more than twice the pace of overall energy demand growth. Despite being slightly lower than the surge seen in 2024—largely due to reduced cooling needs in regions such as India and Southeast Asia amid less intense heatwaves—it remained above the long-term average of the past decade. The expansion was broad-based, driven by consumption across residential and commercial buildings as well as industrial activity, and further supported by rising demand from electric vehicles and the growing footprint of data centres. While all major fuels and energy technologies contributed to meeting the growing demand, their rates of expansion differed significantly. Solar PV stood out as the single largest contributor to the increase in global energy supply in 2025, accounting for more than 25% of the total growth. This marks the first instance in which a modern renewable energy source has led the expansion of global primary energy supply. Natural gas followed as the second-largest contributor, with a 17% share, reflecting its continued importance in electricity generation across many parts of the world. Taken together, renewables and nuclear power accounted for nearly 60% of the growth in energy demand. Importantly, the growth in electricity generation from these sources exceeded the total rise in electricity demand, highlighting their expanding role in the global power mix. Reflecting IEA projections, global oil demand recorded a 0.7% increase in 2025. This increase was influenced by the continued rise in electric vehicle adoption, which has begun to limit the growth in demand for traditional road fuels. Electric car sales increased by more than 20% during the year, surpassing 20 million units and accounting for roughly one in every four new cars sold worldwide. Coal demand trends showed regional variation. In China, the rapid expansion of renewable energy reduced reliance on coal in power generation. In contrast, coal demand rose in the United States, where higher natural gas prices led to a shift from gas to coal in electricity generation. Despite these differences, the overall rate of growth in global coal demand slowed in 2025. Regional trends and emissions outlook Across the global totals, energy demand trends diverged sharply among major economies. As per the report, energy demand growth in the United States rose to its second-highest level this century—excluding post-recession recovery years, driven by Strong electricity demand from data centres, Robust industrial activity, and Colder winter temperatures. China continued to be the largest contributor to global energy demand growth in absolute terms last year, though its growth rate dropped sharply to 1.7% as renewables displaced less efficient coal and energy efficiency improvements intensified. Growth in global energy-related carbon dioxide (CO₂) emissions also slowed in 2025, rising by about 0.4%. China’s emissions declined during the year, supported by the rapid deployment of renewable and other low-emissions technologies. For the first time since the 1970s—excluding the Covid-19 pandemic—India’s energy-related CO₂ emissions held steady, with an unusually strong monsoon season significantly curbing emissions growth. Notably, India’s carbon dioxide (CO₂) emissions increased by 0.5% in the latter half of 2025 and by just 0.7% over the entire year—the slowest pace of growth in more than two decades. In contrast, advanced economies experienced an increase in emissions, driven by higher fossil fuel consumption during an unusually cold winter. As a result, emissions in advanced economies grew by 0.5%, outpacing the 0.3% increase in emerging and developing economies for the first time since the 1990s. The report also highlighted notable developments in the electricity sector during the year. Solar PV generation increased by an additional 600 terawatt-hours globally in 2025, marking the largest annual increase ever recorded for any electricity generation technology. This expansion contributed to a decline in coal-fired power generation worldwide. Battery storage also emerged as the fastest-growing technology in the power sector, with approximately 110 gigawatts of new capacity added—exceeding the largest-ever annual additions for natural gas. Additionally, more than 12 gigawatts of nuclear power capacity entered construction, highlighting