Overview

Electric companies are increasingly using innovative technologies such as energy storage, hydrogen, and microgrids to develop a smarter energy grid that delivers energy safely and reliably to customers.

Energy storage offers multiple benefits to the energy grid and electricity customers. It facilitates the integration of renewable energy resources, such as wind and solar, into the grid by keeping supply and demand balanced at all times. Energy storage also helps to improve reliability by providing grid stability services, reducing transmission constraints, and meeting peak demand. 

Long-duration energy storage (LDES) can help improve the resilience of the energy grid by providing backup power during natural disasters or other emergencies. LDES can also provide other grid services such as frequency regulation, voltage support, and black start capability, contributing to the overall stability and efficiency of the power system.

Energy storage, including hydrogen as a storage medium, can be integrated into microgrids. This not only gives customers greater control over their energy needs, but also helps electric companies enhance the resilience of the entire energy grid. Furthermore, it provides numerous public benefits that extend beyond microgrid users to the general grid and all customers.

Energy Storage Status Update

Key Facts

Electric companies are the largest users and operators of the approximately 40 gigawatts (GW) of operational energy storage in the U.S., representing 93 percent of all energy storage capacity in use today.

Utilize 85%
Of Installed Battery Storage Technology
As of December 2023, electric companies own or operate approximately 85 percent of the installed battery storage technology, equivalent to more than 17 GW of battery storage.
16x Increase
Of Installed Battery Storage From 2018
Since 2018, electric companies have installed more than 16 GW battery storage, with 8 GW of that being installed in 2023. As of 2023, batteries account for 48% of total installed energy storage capacity, compared to just 6% in 2018. The remaining energy storage capacity is primarily pumped hydro, nearly 22 GW.
85%
Of Microgrid Projects Connected To The Grid
Electric companies are utilizing microgrids as a tool for energy grid reliability and resilience. These systems are most efficient when connect to the grid. Today, 85 percent of microgrid projects are connected to the grid.

What Are the Benefits of Energy Storage?

Energy storage improves reliability and resiliency for the energy grid and electricity customers.

For Homes House
For Businesses Clock
For Electric Companies
For Homes House
For Homes
For Homes Energy storage enables the expanded use of on-site renewable energy, and in some instances can act as back-up generation for several hours. Can help the grid with peak shaving when coupled with renewable on-site renewable generation and dispatched into the grid appropriately.
For Businesses Clock
For Businesses
For Businesses Energy storage helps to control energy costs by reducing downtime and production losses.
For Electric Companies
For Electric Companies
For Electric Companies Energy storage helps to manage supply and demand variability and improves operations in generation, transmission, and distribution.

Members-Only Resources

Energy and Technologies Policy Research

Additional Resources

Staff Contacts

  • Bill Pfister
    Managing Director, Business Analytics and Energy Supply
    bpfister@eei.org
    202-508-5531
  • Huiyi Jackson
    Senior Director, Clean Energy Technologies and Policy
    hjackson@eei.org
    202-508-5250