The Grid is Strained – And the Stakes Are Rising
U.S. energy infrastructure has not had an easy last couple of years. Aging fossil fuel power plants have retired faster than new, more efficient ones can be deployed in their place. Outdated transmission lines continue to cause outages and struggle to handle the influx of load growth after two decades of very little change. Data centers, consuming as much energy as entire cities, are demanding rapid upgrades with high costs shared among everyone. Meanwhile, hurricanes in places like North Carolina and wildfires in California have devastated energy infrastructure, leaving vulnerable communities now weighing their options on how to rebuild.
At first glance, the road to a highly durable grid appears daunting, filled with logistical and financial challenges. But a closer look reveals that opportunity lies within this crisis: the chance to build a cleaner, more reliable, resilient, and affordable energy system. With the right technologies deployed in the right places, it is very possible to overcome current grid constraints and accelerate the transition to a lower-cost, energy resilient future for all.
Energy Storage Is the Missing Link
Distributed renewable energy sources have proven they’re up for the task of generating gigawatts of electricity, but the last few years have taught us they can’t do it all on their own. Parts of the U.S., like California, currently produce so much electricity during peak production periods that prices can go into negative territory. But, as peak production fades and customers need energy, expensive peaker plants have to be fired up causing price spikes. This same pattern of electricity price volatility is being felt around the world by countries with high renewables penetration, such as Australia and Germany.
Fortunately, we’ve identified the missing link to flattening out this problem: energy storage. Energy storage can cost-effectively store excess electricity and dispatch it when needed. Without it, we would always be beholden to on-demand solutions that fill in the gaps at significantly higher costs. This is especially problematic in urban areas, where the hurdles of building out new transmission infrastructure has caused deep reliance on peaker plants.
Not only is energy storage uniquely capable of balancing supply and demand—it’s also a critical transmission asset. Strategically placed storage can alleviate congestion, defer costly upgrades, and enhance grid efficiency. As renewable energy becomes the more cost-effective option, storage’s role in strengthening a decentralized, resilient grid will become more pronounced, reducing the need for expensive transmission expansion and allowing consumers to access renewable electricity generated many miles away.
Distributed energy resources including energy storage can also be deployed with a speed that far outpaces new centralized power plant approaches such as hydrogen-fired power plants, compressed air energy storage (CAES), and small modular nuclear reactors (SMRs). The regulatory hurdles, physical space requirements, and extensive non-energy infrastructure needed for these alternatives create significant barriers to rapid scaling.
To Power the Cities of Tomorrow, We Need Safer Storage Today
Taking full advantage of energy storage comes with challenges, however, particularly in urban areas due to its densely populated areas and buildings. Fire risks of the mainstream storage option today, lithium-ion, have prompted permitting restrictions and moratoriums in California, Massachusetts, and New York’s Staten Island. With regulatory hurdles challenging the pace of deployment, cities need an alternative.
Inherently non-flammable battery technologies eliminate fire hazards, bypassing permitting costs and barriers. What was previously unthinkable – siting battery units feet away from buildings and humans – is now possible by innovating out of flammability while maintaining the benefits. At a time when people are acutely aware of the risks of having lithium-ion batteries near them, non-flammable battery storage technology can eliminate ongoing concerns.
This isn’t a challenge of the future – New York’s Local Law 97 requires building owners over a certain sq. footage to reduce energy intensity starting in 2025, and there are no other solutions of appropriate size and flexibility than energy storage to achieve this. But pairing urban solar with non-flammable storage isn’t just to gain compliance, it increases self-sufficiency, lowers costs, and eases pressure on strained transmission infrastructure, passing on resiliency and reduced costs to everyone.
If we’re serious about rebuilding to meet the energy needs of tomorrow, let’s rebuild right. Achieving a resilient energy grid has a plethora of benefits outside the energy system itself, such as mitigating lost economic opportunity to outages and enhancing energy independence. Utilities, policymakers, and industry leaders must accelerate this transition through incentives, pilot projects, and regulatory updates favoring non-flammable storage. Integrating these technologies into federal and state infrastructure programs will expand access to next-generation energy storage.
To build a stronger, more stable grid for all, cities and communities must embrace inherently safe next-generation batteries. The path forward is clear—the time to act is now.
