What is Tier 1 energy storage?

From 3Q 2025, the criterion for an energy storage brand to be listed as tier 1 is that it must have supplied, or be firmly contracted to supply, products to six different eligible projects in the last two years. To be relevant to tiering, each project: must be larger than 10MW or 10MWh (whichever is higher).

What are the tiering criteria for energy storage?

From 1Q 2025, an energy storage brand to be listed as tier 1 must have supplied products to at least three different third-party buyers in the last two years. We may change these criteria further. In addition, the tiering team reserves the right to reject projects which are demonstration, not fully commercial.

How big is battery storage capacity in the power sector?

Battery storage capacity in the power sector is expanding rapidly. Over 40 gigawatt (GW) was added in 2023, double the previous year’s increase, split between utility-scale projects (65%) and behind-the-meter systems (35%).

What is a tightening standard for a battery?

The same tightening standard applies to battery components sold in those years, though the limits are different: the maximum allowed foreign share (known as the threshold percentage) is set at 45% for projects that begin construction in 2026; it reduces 5% every year until 2030.

What is the BNEF capacity threshold?

In particular, BNEF counts the number of projects above 10 megawatt or 10 megawatt-hours to which a supplier has provided batteries and/or energy storage systems in the last two years. This capacity threshold applies from 1Q 2025, previous issues used 1MW or 1MWh as the threshold.

How many batteries are used in the energy sector in 2023?

The total volume of batteries used in the energy sector was over 2 400 gigawatt-hours (GWh) in 2023, a fourfold increase from 2020. In the past five years, over 2 000 GWh of lithium-ion battery capacity has been added worldwide, powering 40 million electric vehicles and thousands of battery storage projects.