Significant decreases in energy storage technology price points have been a major driver for installations of hybrid energy systems that pair energy storage with renewable technologies such as wind and solar. Levelized cost of electricity dropped from $800/megawatt-hour in 2013 to $170/megawatt-hour in 2017. Standardization of energy storage as a commodity is a key factor in moving energy storage forward with a wider deployment similar to solar. While FERC has issued some guidance to support energy storage markets, much of the leadership in developing standardization is coming from regional grid operators. Additionally, innovations in battery technologies may catalyze wider energy storage deployments. While 99% of energy storage deployed in the US is comprised of lithium-ion chemistry using cobalt, companies such as Urban Electric Power are innovating on battery chemistry to develop safer alternatives such as the Zinc-MnO2 battery that provides similar or better performance to current lead-acid battery technologies with more flexible use cases. Technological innovation, in combination with new market opportunities for energy storage in electricity markets in the U.S. may encourage the rapid growth of energy storage
deployments in the U.S.
