With declining technology costs and increasing renewable deployment, energy storage is poised to be a valuable resource on future power grids — but what is the total market potential for storage technologies, and what are the key drivers of cost-optimal deployment?
In the latest report from the Storage Futures Study (SFS), Economic Potential of Diurnal Storage in the U.S. Power Sector, NREL analysts Will Frazier, Wesley Cole, Paul Denholm, Scott Machen, and Nate Blair, describe significant market potential for utility-scale diurnal storage (up to 12 hours) in the U.S. power system through 2050. They found storage adds the most value to the grid and deployment increases when the power system allows storage to simultaneously provide multiple grid services and when there is greater solar photovoltaic (PV) penetration.
“We find significant market potential for diurnal energy storage across a variety of modeled scenarios, mostly occurring by 2030,” said Will Frazier, National Renewable Energy Laboratory (NREL) analyst and lead author of the report. “To realize cost-optimal storage deployment, the power system will need to allow storage to provide capacity and energy time-shifting grid services.”
The SFS — led by NREL and supported by the U.S. Department of Energy’s (DOE’s) Energy Storage Grand Challenge — is a multiyear research project to explore how advancing energy storage technologies could impact the deployment of utility-scale storage and adoption of distributed storage, including impacts to future power system infrastructure investment and operations.
Expanded Capabilities to Model Storage Potential
For this work, researchers added new capabilities to NREL’s Regional Energy Deployment System (ReEDS) capacity expansion model to accurately represent the value of diurnal battery energy storage when it is allowed to provide grid services — an inherently complex modeling challenge. Cost and performance metrics focus on Li-ion batteries because the technology has more market maturity than other emerging technologies. Because the value of storage depends greatly on timing, ReEDS simulated system operations every hour.
NREL researchers used ReEDS to model two sets of scenarios — one that allows storage to provide multiple grid services and one that restricts the services that storage can provide. All the scenarios use different cost and performance assumptions for storage, wind, solar PV, and natural gas to determine the key drivers of energy storage deployment.
Installed Storage Capacity Could Increase Five-Fold by 2050
Across all scenarios in the study, utility-scale diurnal energy storage deployment grows significantly through 2050, totaling over 125 gigawatts of installed capacity in the modest cost and performance assumptions — a more than five-fold increase from today’s total. Depending on cost and other variables, deployment could total as much as 680 gigawatts by 2050.
Chart courtesy of NREL — grid-scale U.S. storage capacity could grow five-fold by 2050.
Chart courtesy of NREL — grid-scale U.S. storage capacity could grow five-fold by 2050.
“These are game-changing numbers,” Frazier said. “Today we have 23 gigawatts of storage capacity, all of which is pumped-hydro.”
Initially, the new storage deployment is mostly shorter duration (up to 4 hours) and then progresses to longer durations (up to 12 hours) as deployment increases, mostly because longer-duration storage is currently more expensive. In 2030, annual deployment of battery storage ranges from 1 to 30 gigawatts across the scenarios. By 2050, annual deployment ranges from 7 to 77 gigawatts.
System Flexibility Key to Storage Deployment
To understand what could drive future grid-scale storage deployment, NREL modeled the techno-economic potential of storage when it is allowed to independently provide three grid services: capacity, energy time-shifting, and operating reserves.
- Blue — Energy Time-Shifting & Operating Reserves (No Firm Capacity From Storage)
- Black — Firm Capacity & Energy Time-Shifting (No Operating Reserves From Storage)
- Green — Firm Capacity & Operating Reserves (No Energy Time-Shifting From Storage)
NREL found not allowing storage to provide firm capacity impacts future deployment the most, although not allowing firm capacity or energy time-shifting services can also substantially decrease potential deployment. Operating reserves, on the hand, do not drive the deployment of storage within the study because they find limited overall market potential for this service.
Storage and Solar Symbiosis
Multiple NREL studies have pointed to the symbiotic nature of solar and storage, and this study reinforces that relationship. More PV generation makes peak demand periods shorter and decreases how much energy capacity is needed from storage — thereby increasing the value of storage capacity and effectively decreasing the cost of storage by allowing shorter-duration batteries to be a competitive source of peaking capacity. NREL found over time the value of energy storage in providing peaking capacity increases as load grows and existing generators retire.
Solar PV generation also has a strong relationship with time-shifting services. More PV generation creates more volatile energy price profiles, increasing the potential of storage energy time-shifting. Like peaking capacity, the value of energy time-shifting grows over time with increased PV penetration.
Next Up in the Storage Futures Study
The SFS will continue to explore topics from the foundational report that outlines a visionary framework for the possible evolution of the stationary energy storage industry — and the power system as a whole.
The next report in the series will assess customer adoption potential of distributed diurnal storage for several future scenarios. The study will also include the larger impacts of storage deployment on power system evolution and operations.
Visit the Storage Futures Study page for more information about the broader study, and learn more about NREL’s energy analysis research.
Learn More in June 22 Webinar
Join a webinar from 9 to 10 a.m. MT on Tuesday, June 22, to learn more about SFS results with Will Frazier and Nate Blair and hear from SFS analyst Paul Denholm on the visionary framework for the possible evolution of the stationary energy storage industry, outlined in the first report in the series. Register to attend.
Article courtesy of NREL, the U.S. Department of Energy.
Image courtesy of 8minute Solar Energy, plus Energy storage project.
Renewables and nuclear provided 40.9% of the world’s power generation in 2024, passing the 40% mark for the first time since the 1940s, according to a new global energy think tank Ember report.
Renewables added a record 858 TWh in 2024, 49% more than the previous high in 2022. Solar was the largest contributor for the third year running, adding 474 TWh to reach a share of 6.9%. Solar was the fastest-growing power source (+29%) for the 20th year in a row.
Solar has doubled in just three years, providing more than 2,000 TWh of electricity in 2024. Wind generation also grew to 8.1% of global electricity, while hydro – the single largest renewable source – remained steady at 14% of global electricity.
“Solar power has become the engine of the global energy transition,” said Phil MacDonald, Ember’s managing director. “Paired with battery storage, solar is set to be an unstoppable force. As the fastest-growing and largest source of new electricity, it is critical in meeting the world’s ever-increasing demand for electricity.”
Ember’s sixth annual Global Electricity Review, published today, provides the first comprehensive overview of the global power system in 2024 based on country-level data. It’s published alongside the world’s first open dataset on electricity generation in 2024, covering 88 countries that account for 93% of global electricity demand, as well as historical data for 215 countries.
What drove the rising power demand
The analysis finds that fossil fuels also saw a small 1.4% increase in 2024 due to surging electricity demand, pushing global power sector emissions up 1.6% to an all-time high.
Heatwaves were the main driver of the rise in fossil generation, accounting for almost a fifth (+0.7%) of the increase in global electricity demand in 2024 (+4.0%), mainly through additional use of cooling. Without these temperature effects, fossil fuel generation would have risen by only 0.2%, as clean electricity generation met 96% of the demand growth not caused by hotter temperatures.
“Amid the noise, it’s essential to focus on the real signal,” continued MacDonald. “Hotter weather drove the fossil generation increase in 2024, but we’re very unlikely to see a similar jump in 2025.”
Aside from weather effects, the increasing use of electricity for AI, data centers, EVs, and heat pumps is already contributing to global demand growth. Combined, the growing use of these technologies accounted for a 0.7% increase in global electricity demand in 2024, double what they contributed five years ago.
Clean power will grow faster than demand
Ember’s report shows that clean generation growth is set to outpace faster-rising demand in the coming years, marking the start of a permanent decline in fossil fuel generation. The current expected growth in clean generation would be sufficient to meet a demand increase of 4.1% per year to 2030, which is above expectations for demand growth.
“The world is watching how technologies like AI and EVs will drive electricity demand,” said MacDonald. “It’s clear that booming solar and wind are comfortably set to deliver, and those expecting fossil fuel generation to keep rising will be disappointed.”
Beyond emerging technologies, the growth trajectories of the world’s largest emerging economies will play a crucial role in defining the global outlook. More than half of the increase in solar generation in 2024 was in China, with its clean generation growth meeting 81% of its demand increase in 2024. India’s solar capacity additions in 2024 doubled compared to 2023. These two countries are at the forefront of the drive to clean power and will help tip the balance toward a decline in fossil generation at a global level.
Professor Xunpeng Shi, president of the International Society for Energy Transition Studies (ISETS), said: “The future of the global power system is being shaped in Asia, with China and India at the heart of the energy transition. Their increasing reliance on renewables to power demand growth marks a shift that will redefine the global power sector and accelerate the decline of fossil fuels.”
Read more: Made-in-America solar just got a big win in Louisiana
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
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The next-gen LEAF is almost here, and it’s looking better than ever. This isn’t the electric hatch you are used to seeing. Nissan’s new LEAF EV has more range, a fresh crossover design, and yes, it can finally charge up at Tesla Superchargers with an NACS port. With the official reveal just around the corner, someone already spotted the new LEAF at a Tesla charger in Canada.
Nissan is launching the new LEAF in the US and Canada
A little over a week ago, we finally got our first look at the third-generation LEAF. Nissan’s iconic electric hatch has grown into a “sleek and spacious family-friendly crossover.”
The US and Canada will be the first to see the reimagined LEAF later this year. It will join the Ariya in Nissan’s North American EV lineup as it looks to spark growth in one of its most important markets.
Based on the CMF-EV platform, the same one underpinning the Ariya, Nissan promises the new LEAF will have “significant range improvements.” Although no other details were revealed, Nissan’s vehicle programs chief, Francois Bailly, told TopGear.com that it’s expected to have WLTP driving range of up to 373 miles (600 km).
It will likely be lower on the EPA scale, but anything even close to 300 miles would be a major improvement over the current 212 EPA-estimated miles offered on the 2025 LEAF SV Plus.
The next-gen LEAF will also be Nissan’s first EV to feature an integrated NACS charging port. With its official debut later this year, the new model is out for testing and was just caught testing at a Tesla Supercharger in Canada.
If you didn’t know what vehicle it is, the LEAF is hardly recognizable. The new image from KindelAuto gives us a closer look at the new crossover design. It almost looks like a Tesla sitting in front of the charger.
The new LEAF is one of 10 new and refreshed Nissan vehicles set to launch in the US and Canada. It will arrive later this year, followed by the fourth-gen Rogue in 2026, which will be available as a PHEV for the first time.
Nissan also plans to build a new “adventure-focused SUV” at its Canton, Mississippi, plant in late 2027. The teaser shows what appears to be a rugged electric Xterra. We’ll have to wait for more details on that one.
Nissan will reveal additional info about the upcoming LEAF mid-year. Check back soon for more updates.
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The Port of Barcelona launched the Ecocat Tres, a highly efficient, all-electric commuter ferry powered by Molabo’s ARIES i50 electric motors.
Ecocat Tres is the latest zero-emission ferry in Bus Nàutic’s growing electric fleet, providing clean transportation between the Drassanes and Llevant wharves. In just its first three months, the Bus Nàutic service logged over 125,000 sustainable trips. Operated by ALSA and backed by the Port of Barcelona, the initiative offers locals and visitors an eco-friendly way to travel, cutting down on road congestion and air pollution in the bustling city.
Built by Spanish shipbuilder Metaltec Naval, Ecocat Tres is a 15-meter aluminum catamaran that carries up to 84 passengers. It even includes a rooftop deck, offering extra seating and a breezy ride across the port. The ferry runs every 15 to 30 minutes for at least 12 hours each day, with the entire trip taking about 10 minutes.
Under the deck are two powerful 48V Molabo ARIES i50 motors, enabling the electric ferry to hit a top speed of 12 knots. Cruising at its regular operational speed of 5 knots, Ecocat Tres can run efficiently for up to 21 hours on a single charge, making it highly reliable for daily commuters.
Molabo’s motors have a low-voltage setup, which makes them safer to maintain compared to traditional high-voltage electric systems. Passengers also enjoy a smoother, quieter ride thanks to significantly reduced noise and vibrations onboard. Azimut Marine supplied the full propulsion and energy system, which includes two ARIES 50 kW electric drives, 36 batteries providing a total of 216 kWh, fast chargers, and integrated solar panels. Impressively, solar power alone can cover up to 40% of the ferry’s energy needs.
Ecocat Tres will cut around 90 tons of CO2 emissions each year, making a positive impact on Barcelona’s ambitious climate goals.
Port of Barcelona president José Antonio Carbonell said, “This 100% electric, zero-emission passenger ferry is helping us reshape mobility in the port and accelerate the decarbonization of our operations.”
To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
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