With the increasing integration of renewable energy sources, grid storage has become essential for balancing supply and demand. Innovations include:

• Grid-Level Energy Storage Systems (e.g., batteries, pumped hydro, thermal storage)
• Energy Management Systems for Storage Integration

The global grid-scale battery market size was valued at USD 10.07 billion in 2023 and is projected to grow from USD 12.78 billion in 2024 to USD 48.71 billion by 2032, exhibiting a CAGR of 18.20% during the forecast period. North America dominated the global grid-scale battery market with a share of 54.12% in 2023. [7]

Globally, the energy storage landscape is dominated by pumped hydro storage, which accounts for around 94% of the total installed capacity, making it the most prevalent method due to its maturity and capacity to store large volumes of energy. Battery storage, particularly lithium-ion technology, though holding a smaller fraction, is rapidly growing and widely recognized for its flexibility in grid applications, such as frequency regulation and integration of renewable energy. Other storage technologies like flywheels, compressed air energy storage (CAES), and thermal storage systems collectively occupy a minor share but are crucial in specific applications that require fast response times or long-duration storage capabilities.

Figure 7: Global operational ESTs project capacity [8]

For US, Since 2018, electric companies have installed more than 16 GW battery storage, with 8 GW of that being installed in 2023. [9] Batteries account for 41% of total installed energy storage capacity, compared to just 6% in 2018. The remaining energy storage capacity is primarily pumped hydro, nearly 23 GW [10] , which would be around 57%.

Figure 8: Number of Grid-Connected Energy Storage Projects by State [10]

Over the past three years, battery storage capacity on the nation’s grids has grown tenfold, to 16,000 megawatts. This year, it is expected to nearly double again, with the biggest growth in Texas, California and Arizona. Most grid batteries use lithium-ion technology, similar to batteries in smartphones or electric cars. As the electric vehicle industry has expanded over the past decade, battery costs have fallen by 80 percent, making them competitive for large-scale power storage. Federal subsidies have also spurred growth. [11]

Figure 9: Characteristics of Energy Storage Technologies [10]

In grid infrastructure energy storage, several types of energy storage methods are used, each with distinct characteristics and suited for specific use cases. Here are the primary types: