Energy Storage: Technology Applications and Policy Options

This paper presents technology applications and policy options related to energy storage in energy systems or grids. Energy storage technologies are promising tools to achieve a low-carbon future since they allow for the decoupling of energy supply and demand. Energy storage technologies could potentially be deployed across the supply, transmission, distribution and demand portions of an energy system or grid. The services they provide are either based on a power application or an energy application; and they range from long-term seasonal storage to short duration spinning and non-spinning reserves. In terms of energy storage technologies, pumped storage hydropower systems are a mature technology and comprise over 99% of the current total global installed capacity of energy storage technologies, which is evaluated at over 141 GW. In order to achieve widespread deployment, policy options should seek to enable compensation for the multiple services performed across the energy system.