Achieving an increasingly relevant role for electrical energy storage is one of the keys to the transformation of the electrical production system, but why?

Making electrical energy storage more efficient and cheaper could mean a revolution in the way we produce and consume energy in our daily lives, but why? If you are reading these lines, it is probably because you have come across some news item announcing that a certain country or company has reinforced its electrical storage capacity. Energy storage is one of the major trends in the energy sector in recent years, and it has compelling reasons. Imagine a system that allows all the “surplus” energy generation to be stored and made available to the market when required; something very common in other types of markets that, for technological and cost reasons, is a rare bird in this sector.

Perhaps the first thing we should define is what electrical energy storage is and how it works. By nature, energy is an agent in constant motion; something that means that achieving its storage, through different methodologies, has been a constant battle since the very existence of humanity. From water mills that took advantage of the dammed water to operate the machinery with which to crush grain, to today’s advanced dams that allow us to move turbines and generate electricity; human beings have tried to take advantage of the release of energy to fulfill our productive purposes. A desire that, with the discovery and exploitation of electrical energy (19th century), became an obsession that continues to this day.

Although, initially, we understood that the combustion of certain materials such as wood, coal, or oil allowed us to release energy that could be transformed into electricity, thus facilitating its consumption based on our specific needs and allowing its “physical storage,” the very complexity of electrical energy has taught us that this method is nothing more than a mere fix. And unlike this type of energy, used in the first industrial revolution, electricity flows through a closed circuit designed for a purpose: its consumption. If we think about how electricity works from the moment it is generated until it reaches our homes, the “roads” along which it runs, with an enormous level of technological sophistication, allow for its transportation and distribution, but not its storage.

This means that, sometimes, there are peaks in electricity demand that cannot be met, given the lack of generation capacity to meet them. It is also common that on other occasions there is an excess of generation that is lost, since at that time there is not enough demand. This is why, as our societies have evolved, and with them our electricity consumption, we have understood that the storage of electrical energy is absolutely key to achieving several goals such as energy efficiency, the fight against climate change, and the definitive push for renewable energy.

Storing electrical energy: a “battery” for sustainability

Let’s think of a hill full of wind turbines at full capacity, or a field of several hectares equipped with photovoltaic panels. In our collective imagination, this may represent the final solution to the pollution problems caused by our continuous exploitation and burning of fossil fuels to produce electricity. While this may be true, it is not absolutely true. And, as we have explained before, electrical energy cannot be “domesticated” as such. Renewable energies depend on climatic conditions to generate energy for our consumption (wind, solar radiation, etc.), and these may not always coincide with the demand of their final consumers, creating valleys in generation or demand.

On the other hand, there are electricity generation technologies, such as nuclear power, whose production is not dependent but absolutely continuous, since a nuclear power plant, for technical and economic reasons, cannot be turned on or off based on our needs, but rather requires the release of energy in a constant and controlled manner. This has meant that nuclear power plants have been the “batteries” of some electrical systems in our environment, as is the case in France. However, in addition to the moral conditions that these may have, they also expose the underlying problem that we previously discussed: sometimes a significant part of the generated energy is not used, since it is not required by the market.

All these situations have led our societies to consider a great challenge that, in turn, holds great hope: the storage of electrical energy. And this solution could greatly reduce the climatic consequences of the underutilization of electrical energy, promoting a more efficient and flexible grid for the end user.

The implementation of electrical storage systems would allow us to ultimately expand renewable energy, allowing us to store surpluses for use on days when weather conditions do not allow for stable energy generation. Furthermore, this would eliminate the role of fossil fuels as an “energy reserve” for those times of peak demand, when thermal power plants act as “batteries” for our electrical system; something far from a society in its total pursuit of sustainability and green energy. On the other hand, it is also worth highlighting the enormous boost this would represent for the democratization of the electric vehicle, which would find in electric energy storage a key ally in providing a stable energy supply for its normal operation.

But what is preventing the expansion of electric storage?

If there is one word that is constantly repeated in our societies, it is “market.” And the fact is that, despite the existence or past existence of innovative technologies, if they are not competitive, they cannot become real vectors of transformation; and electric storage is no exception. This has occurred due to the high material and production costs of the main material of this technological revolution: lithium. This material, whose properties make it the center of attention in the energy sector, is also expensive, something that has prevented, until now, its full emergence.

But this situation will not last forever. Studies, such as one published by BloombergNEF (BNEF), estimate that battery costs will be cut by up to half by 2030, directly affecting both electrical storage and the emergence of electric vehicles. Thus, with greater competitiveness and cost reduction, the democratization of this technology offers real hope. Now it only remains to be seen how far this revolution will go. Time will tell if it succeeds.