Battery storage has become an essential component for the stability of power grids in the United States, especially in California and Texas. These regions use lithium-ion batteries to balance their electrical systems, managing the variability of wind and solar energy.

In 2024, California reached a record battery storage production of 7.5 gigawatts, surpassing even the maximum wind energy production, while Texas also set new records in battery storage.

California’s stationary storage capacity has increased twentyfold since 2018, driven by the declining costs of lithium-ion batteries. This technology allows for charging batteries during periods of excess supply and discharging them at night when demand is higher. This business model is rapidly evolving from providing ancillary services to actively managing net load.

The future of energy storage looks promising, with projections indicating faster growth than wind or solar energy over the next decade. Annual battery storage installations in the U.S. are expected to exceed 20 gigawatts by 2030. Although lithium-ion batteries are not perfect for all uses, they are currently the best available option and are poised to dominate the market in the short and medium term.