Global demand for energy storage systems is expected to grow by more than 20 percent annually until 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.
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.
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.
Our Leadership
Senior Partner
Martin Linder
Leads the Firm’s Battery Accelerator Team; global colead for the McKinsey Platform for Climate Technologies as well as our sustainability...
Partner
Godart van Gendt
Leads work on energy transition with a focus on power and mobility, supporting businesses and investors to identify and capture...
Partner
Christian Staudt
Supports utilities, service providers, manufacturers, and investors with navigating the energy transition
Partner
Jesse Noffsinger
Works with organizations to understand, drive, and prepare for the global energy transition, bringing deep insight into renewable...
Partner
Erik Sparre
Advises and serves industrial and technology clients on sustainable and transformational growth topics
Partner
Andreas Breiter
Helps clients optimize capital expenditures and material costs while addressing the opportunities ahead as mobility becomes more...
Asset Leader
Natascha Buresch
Leads McKinsey’s Energy Storage Insights solution and supports clients in the energy storage, electrification, and renewables...
Expert Associate Partner
Alexandre Van de Rijt
Leads the global Battery and Energy Storage Insights solutions, which develop end-to-end perspectives across the entire battery...
Featured insights
Article
Demand-based pricing stabilizes the electricity market of the future
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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.
Article
How Europe’s residential BESS industry can navigate global competition
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Manufacturers of residential battery energy storage systems in Europe face competitive pressure from players in Asia—and...
Article
Enabling renewable energy with battery energy storage systems
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The market for battery energy storage systems is growing rapidly. Here are the key questions for those who want to lead the way....
Report
Net-zero heat: Long-duration energy storage to accelerate energy system decarbonization
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Thermal energy storage has the potential to greatly contribute to decarbonizing global heat and power, while helping to ensure...
Article
Decarbonizing the grid with 24/7 clean power purchase agreements
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In the global struggle to curb greenhouse-gas emissions, renewable power is taking an ever-increasing share of generation capacity....
Related areas of expertise
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