At the consumption level, the use of fossil fuel technologies for power generation results in more carbon emissions. Energy storage enables the seamless integration of intermittent renewable sources like solar and wind into the power grid. As a result, this fosters environmental conservation initiatives while also guaranteeing stable power quality.
Investment decisions Energy storage can affect investment in power generation by reducing the need for peaker plants and transmission and distribution upgrades, thereby lowering the overall cost of electricity generation and delivery.
In general, they have not been widely used in electricity networks because their cost is considerably high and their profit margin is low. However, climate concerns, carbon reduction effects, increase in renewable energy use, and energy security put pressure on adopting the storage concepts and facilities as complementary to renewables.
Energy storage can offer various electricity services, and while the best deployment location is unknown, behind-the-meter storage models can already provide a positive net value to the electricity system.
Three distinct yet interlinked dimensions can illustrate energy storage’s expanding role in the current and future electric grid—renewable energy integration, grid optimization, and electrification and decentralization support.
Energy storage has the potential to play a crucial role in the future of the power sector. However, significant research and development efforts are needed to improve storage technologies, reduce costs, and increase efficiency.