Energy storage is a transformative technology—it has the potential to change everything. Ultimately developments in storage, especially large-scale applications, will define the speed of evolution within the energy and utility industry.

Energy storage technologies and their applications hold promise for solving challenges related to renewable and distributed generation grid interconnection, ancillary services, reliability, and customer use and demand. What is known so far about storage technologies and potential applications is gaining significant attention:

• Large-scale energy storage has greater value when it is placed near demand. The closer it is to the customer, the more valuable its application benefits.
• Fast storage is more effective in providing ancillary services, especially frequency regulation.
• Community energy storage is a game changer. When located on customer premises, storage offers the ultimate in reliability.
• The growth rate of customer-based distributed, renewable generation is currently almost doubling each year. Energy storage creates a buffer from potential voltage sags and swells.

In addition there are some broad energy storage policy issues hindering adoption of the technology that need to be addressed. A policy that defines energy storage as its own asset class – neither a generation nor a transmission asset, is one key issue that needs to be considered.

A more detailed summary of the executive-level energy and utility industry dialog held at KEMA’s 2^nd annual Utility of the Future conference – including the Developments in Storage panel – is available on-line and as a download at www.kema.com/utilityfuture2009.