Iran is striving to increase battery storage capacity in its power industry. In July 2026, the first large-scale grid-connected battery energy storage system was commissioned in Tehran. This project, with a capacity of one megawatt and two megawatt-hours of energy, is considered a milestone in the development of electricity storage in Iran. However, this capacity is very small compared to global large-scale projects, such as Saudi Arabia's 500-megawatt "Bisheh" project, which has a capacity of 2000 megawatt-hours.
Gap Between Domestic and Global Projects
Iran is significantly lagging behind its global competitors like China and the United States, which are currently installing large battery storage capacities. According to a report by the International Energy Agency, around 108 gigawatts of new battery capacity was installed worldwide in 2025, representing a 40 percent increase compared to the previous year. Iran must rapidly develop battery storage and utilize modern technologies to prevent potential crises in the power industry.
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The Necessity of Storage Alongside Solar Power Generation
With the increase in solar power generation capacity in Iran, the need for storage to manage the time gap between electricity production and consumption has grown. Solar power plants produce the most energy during midday, but electricity consumption occurs in the afternoon and evening. This situation necessitates that Iran move towards sustainable and effective storage systems. Batteries can store electricity generated during peak hours for use during low-consumption hours, helping to improve grid efficiency.
Iran faces multiple challenges in developing storage. While new projects are being launched, there is still a significant gap compared to global capacities. The need for a clear economic model for storage and financing new projects is among the most important issues facing Iran. The country must seek effective solutions to attract domestic and foreign investments to capitalize on the existing potentials in its power industry.
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