One of the challenges of renewable energy is in ensuring consistent and reliable power generation, for example, solar panels cannot generate power during the night. Energy storage can overcome the difficulty by storing excess power for use when renewable energy is not available. Storage is growing rapidly, and innovations can make deployment easier, faster and cheaper. 

Energy Storage is Growing

Renewable energy installation has set records in recent years, driven by declining costs and increasing demand for electricity as well as the closure of coal plants. The intermittency of solar and wind has, though, created challenges to using them for reliable power 24/7. Energy storage in batteries and other solutions can mitigate the challenges, and storage providers are growing at record rates.

US energy storage deployments rose 34 percent from 2023 to 2024, Utility Dive reported, and the three energy storage segments Wood Mackenzie tracks saw double-digit growth. The utility-scale segment grew 32 percent, the residential segment rose 64 percent and the community, commercial and industrial segment rose 11 percent. 

The US Energy Information Administration said capacity growth from battery storage could set a record in 2025, with 18.2 GW of utility-scale battery storage potentially being added. This growth highlights the importance of battery storage for renewable energy, as it helps to meet demand and improve grid stability.

“Energy storage is solidifying its place as a leading solution for strengthening American energy security and grid reliability in a time of historic rising demand for electricity,” ACP VP of Energy Storage Noah Roberts told Solar Power World. “The energy storage industry has quickly scaled to deliver reliability and cost-savings for American communities.”

A key reason for the growth, S&P explained, is that battery energy storage is increasingly vital for improving project economics and countering the effects of low wholesale electricity prices in regions with high renewable penetration. Excess energy production at midday drives prices down to cents per megawatt or even negative values. Incorporating battery storage solutions enables solar projects to remain viable, enabling developers to enhance the feasibility of renewable energy investments. A surge in storage capacity in 2025 will be driven by the increasing necessity for reliable energy storage solutions, particularly as a growing share of electricity is generated from renewable sources. 

Rising energy demand from AI and data centers coupled with supply chain issues for large gas turbines serves as an upside for utility-scale storage, SEIA observed, as renewable energy helps meet this expected growth when paired with storage. 

Innovative Storage Options are Underway

While lithium-ion batteries have long been common storage solutions, Bird & Bird expects alternatives to gain traction, driven by the need for lower costs and improved performance. Technologies such as sodium-ion, lithium-sulfur, solid-state and flow batteries are emerging as viable competitors, offering advantages in safety, longevity, and cost. Sodium-ion batteries, for example, are expected to see commercial adoption due to their lower production costs and better safety. Flow batteries, which use liquid electrolytes, are also becoming popular for large-scale, long-duration energy storage. These innovations provide options for energy storage and reduce dependency on any single technology or material.

Other innovations that are underway, Conexsol said, include sodium-sulfur, zinc-air, and nickel-zinc and magnesium-ion batteries. S&P similarly noted that even though lithium-ion battery technology is beginning to be utilized for eight-hour storage systems, there is a notable shift toward exploring non-lithium technologies, such as large-scale commercial deployments of compressed air energy. Another solution is advanced thermal energy storage (TES), which enables heat retention for later use. It uses molten salts, phase-change materials (PCM), and eutectic substances. The systems are efficient and use abundant materials.

Redox flow batteries, with electroactive materials stored in separate tanks as liquids and pumped through the battery to generate electricity, are another alternative to lithium-ion for long-duration energy storage. Used for utility-scale storage, they offer a longer lifespan, flexible scalability and eco-friendly materials.

Pacific Northwest National Laboratory is also working on a process that uses vapor from lithium oxide (Li2O) sublimation to accelerate a chemical reaction that forms single crystals when mixed with nickel-rich precursors, which can enhance lithium-ion batteries.

Washington has Plans to Grow Storage Significantly

While storage capacity in Washington is small, it is growing and could increase significantly. Although Washington had no reported battery storage capacity until 2016, according to Environment Washington, installed capacity had grown to 0.01 gigawatts as of as of 2023 and now ranks 30th in the country.
Utilities and independent energy companies in western Washington have proposed a slew of standalone battery energy storage systems, the Washington State Standard noted. Both supporters and opponents acknowledge that utility-scale battery storage will be needed for the Northwest to meet demand as renewable electricity comes onto the grid.

One of the first large-scale urban battery farms in Washington will be in Arlington, says the Standard, and energy developers have proposed dozens more projects from 2025 to 2027 throughout the state. Planners at Puget Sound Energy, for example, have 15-to-20 interconnection requests for major battery storage projects in their queue for evaluation.

Prices of batteries are falling, the Standard reported, and the Washington legislature made installation easier by adding an alternative permitting pathway for developers who foresee regulatory obstacles at the local level. House Bill 1812 (passed in 2022) allows energy storage facilities to be certified through the State of Washington Energy Facility Site Evaluation Council (EFSEC). Specifically, the bill modified RCW 80.50.060 to include storage facilities (and other technologies like transmission) to opt in the EFSEC review. The Standard also noted that some Washington jurisdictions have passed temporary moratoria on processing energy storage permits to give themselves time to formulate appropriate siting and safety rules.

Washington lawmakers passed HB 1216 in 2023 that funds the Energy Program to conduct a study about pumped storage hydropower, NWPB reported, and a study about where to build pumped storage is underway. Across the US, 90 percent of energy storage comes from pumped storage hydropower. When there is too much energy on the grid, water is pumped to a high reservoir. The water is then released through turbines into a lower reservoir to generate electricity when energy is needed. Drawbacks, though, include high construction costs and the loss of natural and cultural resources.

Given the rising share of renewable energy in Washington and more broadly the US, as well as the innovations and its improving cost-effectiveness, energy storage looks to grow significantly within just a few years.