Energy storage draws renewed attention, capacity to jump

By EPN Staff

Battery Energy Storage Systems (BESS) are rapidly increasing in the United States, with multiple states, including Virginia, pushing to increase adoption to meet clean-energy goals. The efforts are helping to drive predictions that energy storage capacity will reach 40 gigawatts (GW) in 2025, nearly doubling the capacity from 2023.

In Virginia, recently approved legislation would require the state’s largest utilities to significantly expand battery energy storage capacity beyond the existing mandate for large utilities. Under the legislation, utilities would be required to more than double the number of megawatts of short-duration energy storage developed or procured in the next 15 to 20 years. The legislation also streamlines permitting and zoning processes, reducing regulatory barriers to speed up deployment.

Why it matters

Electricity demand is growing globally; in the next decade, electricity use is expected to grow six times as fast as overall energy demand, according to the International Energy Agency.

Electric vehicles and home appliances, air conditioning and heating, and the development of artificial intelligence and data centers are helping fuel demand. The U.S. Department of Energy predicts data centers alone will use up to 12% of total U.S. electricity by 2028.

That’s why communities nationwide are adding about 300 utility-scale BESS systems, many located in Texas and California in an attempt to meet that bigger need.

The bigger picture

BESS facilities house racks of rechargeable batteries, most often lithium-ion. A 1 megawatt (MW) facility – the minimum capacity for utility-grade storage – can store enough energy to power up to 1,000 homes daily, depending on geographic location.

While BESS can lower electric prices by flattening the peaks and valleys of supply and demand, they are expensive to make. From mining lithium, cobalt, nickel, and manganese, to battery manufacturing, China dominates the production market, and the U.S. has lagged.

However, battery storage comes with drawbacks, including costs, environmental impacts and limited lifespans. Lithium-ion batteries also pose safety issues – fire being one of the greatest – from overcharging or overheating. California lawmakers currently are considering legislation to address fire potential in energy storage systems.

Finally, the number of charging cycles, the amount of energy drawn, and environmental conditions can limit the life of BESS batteries. One source estimated the average lifespan of a BESS battery to be about 11 years.

What’s next?

With demand for energy storage unlikely to recede, a new generation of batteries is being developed. Iron-based and sodium-ion batteries are cheaper to produce and have a low risk of fire. However, a report by Stanford University notes these substitutes have a long way to go as they are not as “energy dense” as lithium-ion cells, meaning that they do not hold as much power per pound.

At least one non-partisan organization has recommended that the U.S. focus on research and development of these next-generation batteries rather than investing further in lithium-ion, a competition China has dominated.