Energy Storage

Fast Facts About
Energy Storage

Energy storage allows energy to be saved for use at a later time. Energy can be stored in many forms, including chemical (piles of coal or biomass), potential (pumped hydropower), and electrochemical (battery). Energy storage can be stand-alone or distributed and can participate in different energy markets (see our The Grid: Electricity Transmission, Industry, and Markets page for more information about energy markets).

Energy storage is a valuable tool for balancing the grid and integrating more renewable energy. When energy demand is low and production of renewables is high, the excess energy can be stored for later use. When demand for energy or power is high and supply is low, the stored energy can be discharged. Due to the hourly, seasonal, and locational variability of renewable production, energy storage is critical to facilitating the clean energy transition.

Pumped hydropower storage represents the largest share of global energy storage capacity today (>90%) but is experiencing little growth. Electrochemical storage capacity, mainly lithium-ion batteries, is the fastest-growing.

Why Do We Need Energy Storage Now?

Energy Storage Technologies

Though pumped hydro currently dominates global storage capacity, electrochemical is growing the fastest. Generally, pumped hydro storage is used for longer-term storage compared to battery storage, which is often used on a day-to-day scale. 

Both distributed and centralized storage can be system integrated or standalone. However, centralized storage is almost always system integrated.

Global Supply and Demand of Battery Storage

Lithium-Ion Battery Materials and Supply

Mineral Resourcing Concerns

• Human rights challenges (e.g., child labor, slavery)
• Environmental impacts (e.g, water, land, and air pollution, heavy metal leakage, habitat loss)
• Human health problems (e.g., lung and cardiovascular problems, birth defects)

(See our Energy, the Environment, and Justice page for more information.)

Battery Growth and Pricing

Cost Range (LCOE) for 4-Hour Storage in Different Scenarios (US$/MWh)

Utility scale storage is much cheaper than residential scale.

Energy Storage Has Many Potential Applications and Roles

Our Lecture on
Energy Storage

This is our Stanford University Understand Energy course lecture on energy storage. We strongly encourage you to watch the full lecture to understand why energy storage plays a critical role in the clean energy transition and to be able to put this complex topic into context. For a complete learning experience, we also encourage you to watch / read the Essential videos and readings we assign to our students before watching the lecture.

Presented by: Kirsten Stasio, Adjunct Lecturer, Civil and Environmental Engineering, Stanford University; CEO, Nevada Clean Energy Fund (NCEF)
Recorded on: April 24, 2024   Duration: 41 minutes

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