Types of Energy Storage Technologies
Energy storage systems come in many forms. The most common include:
Pumped Hydro Storage: Uses two water reservoirs at different elevations. When excess power is available, water is pumped uphill; when energy is needed, it flows back down through turbines. Pumped hydro storage remains the world’s dominant technology, accounting for more than three‑quarters of installed energy storage capacity.
Battery Storage: Electrochemical batteries (especially lithium-ion) store electricity as chemical energy. Battery energy storage systems (BESS) are now used at both utility and behind-the-meter scales. Grid-scale lithium-ion batteries are experiencing rapid growth and are expected to dominate future storage growth. Smaller batteries power electric vehicles, while large battery farms help balance the power grid.

Compressed-Air Energy Storage (CAES): Excess electricity drives air compressors, pumping air into underground caverns. Later, the air is released to drive turbines, sometimes mixed with fuel for efficiency. CAES has peak-shaving capability, making it well-suited for large wind and solar farms.
Thermal Energy Storage: Heat or cold is stored in materials (like molten salt or chilled water). For example, concentrated solar power plants use molten-salt tanks to save daylight heat for nighttime electricity. Thermal storage helps shift heating and cooling loads, reducing reliance on peak power.
Flywheel Storage: A heavy rotating flywheel stores kinetic energy. When electricity is abundant, it spins up; when power is needed, the inertia generates current. Flywheels respond in milliseconds, making them ideal for short-duration smoothing of power fluctuations.
Hydrogen and Chemical Storage: Electricity can split water into hydrogen (via electrolysis) and oxygen. The hydrogen can be stored and later used in fuel cells or turbines to generate electricity, or used directly as a fuel. This chemical storage forms a potential long-duration solution, as hydrogen can be stored for days or months, decarbonizing sectors beyond the grid.
Each technology has its own power capacity and energy capacity characteristics. For example, a pumped hydro plant might deliver GW of power for many hours, while a battery might offer fast power over shorter durations. By combining different types (for instance, batteries for fast regulation and pumped hydro for long-duration shifting), grids achieve both reliability and efficiency.
Integrating Renewables: Clean Energy and Smart Grids