Energy storage at the substation or customer site enhances power quality and provides backup power in areas where lines and transformers cannot handle additional capacity, especially as more intermittent renewable resources come online. Other Utilities increased spending by $8.6 billion (30%) on other electricity systems costs from 2003 to 2023.
The length of energy storage technologies is divided into two categories: LDES systems can discharge power for many hours to days or even longer, while short-duration storage systems usually remove for a few minutes to a few hours. It is impossible to exaggerate the significance of LDES in reaching net zero.
The worldwide energy storage industry is projected to expand from over 27 GW in 2021 to more than 358 GW by 2030, propelled by breakthroughs in technology and declining costs . The ongoing reduction of costs will be driven by the increase in production volumes and the optimization of supply chains.
Although energy storage remains a relatively small portion of the total budget for distribution infrastructure, spending increased from $97 million in 2022 to $723 million in 2023.
As part of its more enormous energy transformation aims, China has given energy storage top priority, hoping to dramatically raise the proportion of renewable energy sources in its energy mix.
Programs like the CEFC offer financial incentives and funding for renewable energy and storage projects. Examples of programs designed to support energy storage at the utility and customer levels are the Victorian Energy Upgrades program and the Home Battery Scheme of the South Australian government .