Smart Grid Power

35GW of Energy Storage will make the U.S. Grid Resilient and Disruption-Proof

The Energy Storage Association (ESA) has released its “35×25: A Vision for Energy Storage” white paper, which maps a clear and actionable pathway to reaching 35GW of new energy storage systems installed in the U.S. by 2025.

Created in conjunction with Navigant Research, the white paper outlines the market drivers that are powering rapid storage industry growth and explains the value of a disruption-proof grid.

It also quantifies the considerable benefits of widespread energy storage deployment, such as $4 billion in cumulative operational grid savings and the potential for more than 167,000 new jobs. The report charts 35GW of new installations across all energy storage technologies from 2017 to 2025.

In 2017, the U.S. had approximately 0.5GW of installed energy storage, deployed in both retail and wholesale markets. Navigant Research informs ESA’s 35×25 vision of growth to 35GW installed in less than 10 years – bringing with it the benefits of substantial grid savings for a stronger economy and a robust jobs engine for America – as well as achieving greater electric reliability and resilience.

Market Drivers

Electrification of transportation, data centers, HVAC, communications, industry and manufacturing are driving the need for a more flexible, resilient grid. This electrified economy will rely heavily on a properly functioning grid; disruptions will become even more costly in the future. Even today, it is estimated that power outages, surges and spikes cost more than $150 billion to the U.S. economy every year.

The key to a resilient, disruption proof grid is to increase system flexibility and efficiency – building more safeguards into the system in the form of on-demand capacity and responsive balancing capability. Energy storage technologies are critical to addressing these vulnerabilities, as they deliver fast-dispatch flexibility.

Benefits

The report also explores the values that storage brings consumers, utilities and grid operators, including:

  • Faster, more accurate response within seconds, resulting in $4 billion in cumulative operational cost savings by 2025;
  • Enhanced reliability and resilience to reduce disruptions to the grid;
  • Customer engagement to help modernize the grid;
  • Cleaner air; and
  • The creation of more than 167,000 jobs in manufacturing and R&D, construction, project development, operations and maintenance, sales, marketing, management administrative and other positions.

The full report lays out recommendations for stakeholders including legislators, regulators and utilities to enable a disruption-proof grid. It also provides recommendations for grid stakeholders and policymakers as these parties consider how to properly integrate advanced energy storage systems.

Kelly Speakes-Backman

“Energy storage is the key to creating a powerful energy ecosystem whose backbone is an efficient, resilient, affordable, and sustainable grid. The ESA Vision will require a great deal of collaboration and commitment from all parties,” remarked Kelly Speakes-Backman, CEO of ESA.

“We stand ready to work with our members and key stakeholders to drive this vision forward, achieve our ambitious 35×25 goal, and truly transform the power sector,” Speakes-Backman added.

Praveen Kathpal

“A modern, resilient grid that meets the needs of today’s users is vital to the health and well being of our nation’s infrastructure and storage is crucial to making it a reality. ESA’s 35×25 Vision not only defines the future of energy storage, it offers key stakeholders an actionable blueprint for seeing it through,” said Praveen Kathpal, vice president of AES Energy Storage and chairman of the board of directors at ESA.

“The deployment of 35 GW of new energy storage by 2025 will fundamentally transform how we generate, deliver and consume energy, lowering costs and improving air quality and emissions for every user of the grid,” concluded Kathpal.

Energy Storage Association
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