Despite last year’s surge of$1.8 trillion in clean energy investments worldwide, investment remains below what is needed to meet the COP28 target of tripling renewable capacity by 2030, according to the latest EY Renewable Energy Country Attractiveness Index (RECAI).

This edition of RECAI focuses on BESS. According to the report, the U.S., bolstered by a 30% IRA tax credit, takes the top spot in the ranking of the world’s most attractive markets for BESS investment. China with strong government support, subsidies and plans to reduce costs, is second. The U.K., with its sophisticated energy market design and new energy bill classifying BESS as a generation asset, rounds out the top three.

A fourfold increase in global BESS deployment is forecast from 2023 to 2030, reaching 572 GW.

“Scaling up battery energy storage systems can help solve multiple problems holding up clean energy progress, including stabilizing and strengthening network infrastructure and enabling more distributed energy resources to connect to the grid,” says EY’s Arnaud de Giovanni.

“Focusing on four factors can help investors navigate this complex, highly regionalized and fast-changing market. These include building a resilient investment case, taking steps to maintain technology competitiveness, establishing the optimal business model or financing structure and mitigating supply chain risks.”

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Energy Investments Failing to Keep World on Renewables Target, Says Report