Background

Renewable energy has been growing on an enormous scale worldwide, from supplying power to remote households to powering commercial establishments. Though the renewable energy supply has helped improve the overall power supply and mix, it also poses challenges for the grid, due in part to the expected increase of renewables connected to the grid, and intermittency of renewable power supply. To overcome this obstacle, energy storage solutions combined with innovative grid technologies are creating new smart infrastructure for electric supply that can stabilize the grid and meet a power system’s diversified energy needs.

Energy storage systems are increasingly needed for storing wind and solar energy for later dispatch to meet peak load demand. They also have added unique capabilities, such as the ability to respond rapidly to dips or surges in electricity supply, to manage voltage fluctuations and to provide black start capability in the event of outages. However, with the perceived high cost of energy storage, lack of standardized regulatory policy and market design, outdated grid systems, and coupled with global movement toward renewables and EVs, adaptation of energy storage in Asia to alleviate pressures to the grid still lacks behind compared other markets.

If adopted at scale, energy storage systems have the potential to improve grid reliability, efficiency, and capacity by managing the variability associated with widely distributed, small-scale renewables. Urban centers will gain additional benefits through the connection of EVs, which could provide a mobile, flexible type of storage in future. In non-grid connected communities, energy storage and smart grid solutions can manage large-scale micro grids to smooth fluctuations of unpredictable peak loads and variable resources.

Overall, energy storage can greatly contribute to a reliable, efficient, responsive smart grid that can manage rapidly evolving power needs.