In 2023, more than 500 GW of renewable energy capacity was added to the world to combat climate change. This was a greater than 50% increase on the previous year and the 22nd year in a row that renewable capacity additions set a record. However, this turn to renewable energy sources like solar and wind challenges the stability of our power grids.

Grid stability: The missing link in a renewable-powered future

Because solar and wind energy production fluctuates based on weather conditions and the time of day, it leads to periods of over- or under-production.

This intermittency challenges the grid’s energy reliability. If the global energy system is 70% reliant on renewable energy sources by 2050, this challenge will grow exponentially.

Herein lies the crucial role of battery energy storage systems—they are not just beneficial but necessary for the future stability of our energy supply.

This is because grid batteries aren’t merely large-scale batteries; they’re sophisticated systems equipped with real-time energy monitoring and instant energy dispersion capabilities, making them ideal for managing fluctuating energy flow.

The point deserves to be underscored: a lack of effective solutions for grid stabilisation will threaten the buildout of renewables.

This issue is evident today already, with times of negative electricity prices, which demonstrates how at times renewable energy is poised to overproduce. Electricity producers like European Energy have been forced to curtail electricity production, leading to a large waste of renewable electricity.

Battery storage as a cornerstone of a resilient energy system

By buffering wind and solar energy’s unpredictability, battery storage allows for higher penetration of these sources without compromising grid integrity. Or as McKinsey put it, “battery storage is an essential enabler of renewable-energy generation.”

When it comes to deploying grid batteries, the UK is an inspiring example.

Driven by its unique geographic and infrastructural context, the UK is ahead of the curve in building out battery storage systems. As an island with limited connections to other countries’ energy supplies, the UK must rely heavily on internal sources.

Batteries have become an invaluable tool in managing the grid’s stability and resilience, showcasing a model that other regions could replicate.

Despite battery storage’s clear environmental and technical benefits, economic uncertainties linger, particularly concerning revenue streams. This uncertainty complicates investment decisions in battery technology. Without a solid business case, the private sector won’t push forward the adoption of this technology.

Accelerating battery storage with clear policies and targeted incentives

Moreover, the regulatory environment is still evolving.

Stakeholders await clearer policies that could open up new markets for storage systems, including more robust auxiliary services and incentives like preferential grid connections.

Such regulatory clarity and support are essential for battery storage to realise its potential.

Furthermore, to fully harness the benefits of batteries, policymakers should consider implementing supportive measures.

These could include financial incentives to offset the initial high capital costs, regulatory reforms to recognise and reward the grid services provided by the systems, and investment in research and development to continue improving the technology.

Encouragingly, some countries have begun to establish frameworks that could serve as blueprints.

For instance, California mandated its utilities begin procuring energy storage more than a decade ago. And Germany has established criteria for large grid-connected storage systems as dispatchable loads.

While there is still a lot of work to do, these illustrate how governments can facilitate smoother integration of renewable and storage systems into national grids.

The transition to a renewable-powered future is inevitable, but it must be underpinned by technologies that can ensure energy reliability and stability.

Battery storage stands out as one of the most promising solutions. As such, it demands attention from policymakers, investors, and the energy community.