Energy Storage |

Issues & Policy

Energy Storage

Overview

Electric companies increasingly are using innovative technologies such as energy storage and microgrids to develop a smarter energy grid that delivers energy safely and reliably to customers.

Energy storage offers multiple benefits for the energy grid and for electricity customers. It facilitates the integration of renewable energy resources, such as wind and solar, into the grid by keeping supply and demand balanced at all times. Energy storage also helps to improve electric reliability by providing grid stability services, reducing transmission constraints, and meeting peak demand.

Energy storage is also used in microgrids, which give customers more control over their own energy needs, while also being able to help electric companies enhance the resilience of the entire energy grid and provide numerous public benefits that extend beyond the microgrid users to the general grid and all customers.

Harnessing the Potential of Energy Storage

Key Facts

Invest in ~70%

Of Battery Storage Technology

According to the most recent data, electric companies represent roughly 70 percent of total investment in battery storage technology. Electric companies own, procure, or utilize 96 percent of all mostly grid-connected energy storage today, of which roughly 84 percent is pumped hydropower storage.

150% Increase

From 2017

Investment in advanced energy storage is growing rapidly. In 2021, electric companies installed 545 MW of battery storage capacity, an annual record. Over five years, energy storage assets owned by all electric utilities increased about 150 percent.
Battery energy storage growth is so profound that across the industry annual 2021 installations were 3,208 MW, about 26 times the 122 MW that what was installed in 2017.

Active in 27%

Of Microgrid Projects

Electric companies are utilizing microgrids on the grid as a tool in the utility toolbox and are involved in 27 percent of the projects in the U.S.

What Are the Benefits of Energy Storage?

Energy storage improves reliability and resiliency for the energy grid and electricity customers.

For Homes

For Businesses

For Electric Companies

For Homes

For Homes Energy storage enables the expanded use of on-site renewable energy, and in some instances can act as back-up generation for several hours. Can help the grid with peak shaving when coupled with renewable on-site renewable generation and dispatched into the grid appropriately.

For Businesses

For Businesses Energy storage helps to control energy costs by reducing downtime and production losses.

For Electric Companies

For Electric Companies Energy storage helps to manage supply and demand variability and improves operations in generation, transmission, and distribution.