Grid-scale energy storage: Battery technology brings life to grid storage

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  Quantumrun Foresight
• May 13, 2024

Insight summary

Grid-scale energy storage is transforming how we use renewable energy, making it possible to store power from sources like wind and solar when it's most needed. By employing advanced battery technology, this approach offers a more reliable energy source than renewables. These technologies make renewable energy more reliable and accessible, ultimately leading to a shift in energy consumption patterns, policy making, and market investments.

Grid-scale energy storage context

Grid-scale energy storage can store electricity generated from renewable sources during peak production times and deliver it back to the power grid when demand is high or production is low. About 12 percent of US utility-scale electricity generation is sourced from wind and solar (according to the International Energy Agency), which are intermittent due to varying weather conditions. Energy storage solutions are essential to increase the reliability of these renewable sources and their contribution to decarbonizing the electricity grid, though cost-effective options at scale have been elusive.

One notable advancement is the development of a redox-flow battery by researchers at Harvard University, which utilizes an aqueous, organic electrolyte. This innovation employs quinone or hydroquinone compounds in the electrolyte, offering potential benefits in cost, safety, stability, and energy density. Quino Energy, a startup founded to commercialize this technology, has garnered attention for its promise to effectively address the sporadic nature of renewable energy sources. This flow battery targets a discharge duration of 5 to 20 hours, positioning it as a competitive alternative to the shorter-duration lithium-ion batteries, especially for grid-scale stationary storage applications.

The development and potential impact of grid-scale energy storage technologies are further underscored by the support from the US Department of Energy, which awarded Quino Energy USD $4.58 million to assist in developing a scalable and cost-effective synthesis process for flow battery reactants. This funding highlights a broader initiative to reduce the costs of long-duration, grid-scale energy storage by 90% within the decade compared to lithium-ion technologies. Quino Energy's approach could eliminate the need for a traditional chemical factory by allowing the flow battery to synthesize its reactants.

Disruptive impact

With energy storage systems ensuring a steady supply of electricity from renewable sources, consumers may see a decrease in energy costs over time as reliance on expensive fossil fuels diminishes. This shift also encourages the adoption of smart home technologies that optimize energy use, further reducing household energy bills and enhancing environmental sustainability. Additionally, the reliability of renewable energy could lead to new job opportunities in green technology and energy management sectors as demand for expertise in these areas increases.

For companies, the transition towards renewable energy, augmented by grid-scale storage solutions, presents a dual opportunity for cost savings and corporate responsibility. Businesses operating their own microgrids could become less dependent on the traditional power grid, leading to lower operational costs and increased energy autonomy. This trend could also influence companies to rethink their supply chains, prioritizing sustainability and resilience against climate-induced disruptions. Furthermore, companies that invest in renewable energy technologies may enhance their brand reputation, attracting customers and investors who value environmental stewardship.

The adoption of grid-scale energy storage technologies may require updates to local and international energy policies to support the integration of renewable energy sources into the national grid. Governments might offer incentives for energy storage research and development, encouraging innovation and reducing costs. Finally, the reliability and efficiency of renewable energy storage systems could lead to energy independence for many nations, reducing the need for energy imports and enhancing national security.

Implications of grid-scale energy storage

Wider implications of grid-scale energy storage may include: 

• Reduced operational costs for utilities due to decreased reliance on peaker plants, leading to lower electricity rates for consumers.
• Increased investment in renewable energy projects as grid-scale storage provides a reliable backup, attracting more private and public funding.
• Enhanced grid resilience against natural disasters and climate change impacts, minimizing power outages and improving emergency responses.
• Consumer empowerment through decentralized energy production, allowing individuals to sell back excess power to the grid and reduce their utility expenses.
• Governments revising energy policies to incorporate storage capabilities, leading to stricter renewable energy targets and incentives for clean technology.
• Accelerated phase-out of coal and gas power plants, reducing greenhouse gas emissions and contributing to global efforts to combat climate change.
• Potential for energy price volatility as markets adjust to the increased integration of renewable sources, affecting global energy trade dynamics.
• Urban and rural development disparities as grid-scale storage projects favor locations with more space and renewable resources, requiring policy interventions to ensure equitable access to clean energy.

Questions to consider

• How could your daily life change with more affordable and reliable renewable energy?
• How can local governments facilitate the deployment of renewable energy storage systems to ensure equitable access for all communities?