Introduction
With an increasing integration of solar and wind power into power grids, it has become increasingly challenging to ensure reliability. This is especially because of the intermittent nature of solar and wind power. Energy Storage Systems (ESS) can mitigate such variations and can supply electricity during peak times. In the energy storage system market, ESS is playing a crucial role in facilitating renewable integration as it improves flexibility and prevents curtailment, thus enhancing grid stability.
The Role of ESS in Balancing Supply and Demand
Fundamentally, the key application of an energy storage system is to absorb or intake excess power during periods of liberal renewable generation, providing discharge services for periods of low generation or peak demands. The ESS serves the additional function of maintaining grid stability using services like rapid frequency response reserves. The application is expected to accelerate with the development of large grid energy storage, with the capacity of battery energy storage increasing to 55.7 GW by 2023, symbolizing intense activity at the start of 2024-2025.
(Source: REN21 – Renewables 2024 Global Status Report (Energy Storage))
Market Momentum Supporting Renewable Integration
The deployment of storage resources is improving in the larger energy markets due to the growing adoption of renewable energy sources. Within the American market, utility-scale batteries had over 20.7 GW of installed storage power as of mid-2024, showcasing the rising application of storage resources in the management of peak demand as well as variability in renewable energy sources.
(Source: U.S. Energy Information Administration (EIA) – Today in Energy)
Reducing Curtailment and Supporting Renewable Growth
Curtailment refers to the reduction of renewables due to the constraint of absorbing available renewables by the power system. Energy storage system decreases curtailment by storing excess power and directing it to times of high peak. Energy storage will also decrease dependency on fossil fuels peaker plants by injecting peaking power into times of high peak. Energy storage is set to increase by 92 GW (247 GWh) by 2025. Energy storage will continue to find its applications in renewables.
(Source: IEA – Energy Storage)
Instances: Real-World ESS Deployments Supporting Renewables (2024–2025)
In June 2025, Rome’s Fiumicino Airport opened “Pioneer,” Italy’s largest energy storage facility, using reused EV batteries with an expected emission reduction of about 16,000 tons over a 10-year lifespan.
(Source: Reuters (June 3, 2025))
In May 2025, Delhi launched South Asia's largest battery energy storage system with a capacity of 20 MW/40 MWh at Kilokari, which would provide peak support and stability to a population of over 100,000.
(Source: Times of India (May 30, 2025))
Technological Advances in ESS for Renewable Support
Multiple technologies are available to facilitate the integration of RE, such as lithium batteries, pumped hydro storage, flow batteries, and more recently, long-duration energy systems. Although lithium batteries are presently scaling up rapidly because they can be easily deployed, pumped hydro still leads the way in regard to long-duration storage, owning an estimated 200 GW cumulative pumped storage globally.
(Source: International Hydropower Association – Pumped Storage Factsheet)
Challenges and the Road Ahead
Although ESSs have made significant progress, there are some challenges that can affect their deployment. These include high capital expenditure and regulatory approval timelines that can affect their deployment. Moreover, regulatory frameworks can also affect the deployment of ESSs. Apart from that, safety regulations are now more stringent due to large-scale batteries that can affect ESSs and require proper thermal management and heating control for safety and performance purposes.
Conclusion
Energy storage systems have emerged as a scalability solution for integrating large shares of renewables steadily by matching supply and demand patterns and making a positive impact on curtailing losses and stabilizing the grid. With large-scale batteries joining the energy landscape and major projects launched for the period of 2024 and 2025 bearing tangible outcomes, the energy storage system market stands out as a key facilitator for a robust and clean energy sector.
FAQs
- What role does ESS play in renewable energy integration?
Ans: ESS holds excess renewable energy and supplies this energy when demand is at its peak. - How does ESS improve grid stability?
Ans: ESS has the capability to offer quick response in areas like frequency regulation and reserve power. - Can ESS reduce renewable curtailment?
Ans: Yes, ESS allows for the additional production of renewables that would otherwise be curtailed and moves it to post-demand periods. - Which ESS technology supports long-duration grid storage?
Ans: Pumped hydro energy storage is widely used for multi-hour discharging because of its high capacity. - Why is the ESS market growing quickly?
Ans: Growth is driven by renewable expansion, grid modernization programs, and increasing demand for flexibility services.
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