• Energy storage can ease the points of congestion that occur in transmission and distribution networks by temporarily absorbing surges and excess power flow, and returning that energy to the system as demand requires. This helps local distribution and transmission companies because it can allow them to defer, or even avoid, expensive system upgrades.

  • Energy storage balances supply with demand on a second-by-second basis (regulation service) and supports voltage on the system. This is another plus when it comes to reliability.

  • Energy storage can absorb surplus generation from renewable and other energy sources during off-peak hours and inject it back into the system when demand is higher.

  • There are also economic benefits, including the fact that services like congestion relief, grid balancing, and demand reduction have an economic value that will increase or decrease with demand, and as more market competition from different sources comes into play. In the new energy marketplace, Kula says system operators are paying attention to the ability of these different sources to deliver the reliability services needed, and their costs, as they look for ways to ensure the grids they oversee are managed cost-effectively. 


  • the cost of batteries has dropped ~80% in the last decade, making energy storage a financially viable—and advisable—solution in many applications.

  • Lithium-ion battery deployments are predicted to increase 800% from 2017 to 2022.