Promising technological advances and a host of lucrative new contracts and incentives are encouraging signs to alternative energy watchers who say that the market for storing wind and solar-generated electricity could become a multibillion-dollar industry in the next decade.
Electric engineers have long argued that affordable and reliable energy storage is an essential component of an electric power grid that is supplied by an ever-growing share of renewable energy. That’s because the sun doesn’t always shine and the wind doesn’t always blow exactly when utilities need it to.
But the cost of energy storage, until recently, remained too high to serve as a practical option. Instead, utilities largely relied on so-called “peaker plants” that they can ramp up within a few minutes to meet demand when, for example, air conditioners are cranked up on a steamy summer day.