THE ROLE OF ENERGY STORAGE TECHNOLOGIES IN DECARBONIZING ENERGY SECTOR
Keywords:
renewables, wind energy, solar energy, lithium-ion, energy finance
Abstract
A mounting requirement to increase the capacity for storing the energy generated from renewables drives the energy storage sector. However, there is no one-size-fits-all approach when it comes to storing energy. Relevant to the recent growth in energy storage are Battery Energy Storage Systems (BESS), particularly those based on lithium-ion. During the last decade, the cost of lithium-ion batteries has decreased by more than 90%, with battery cell prices estimated to continue this downward trend, adding to the attractiveness of energy storage. Major countries retain focus on lithium-ion batteries' supply chain, following their ambitions to build local manufacturing, gain international advantage, attract investment, and create jobs. Another crucial concern is linked to raw material supplies. Challenges for developing countries include a lack of skilled human resources and adequate monitoring and control equipment, underdeveloped or non-existent grid infrastructure, insufficient generation capacity, poor supply security, etc. Energy storage can boost reliability, which is vital when shifting from thermal projects to hybrid ones. Hence, this research investigates the general attitude over energy storage adoption and widespread use, including economic constraints, industry acceptance, contemporary technology, and regulatory barriers.
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Aityan, S. K. (2022). Business Research Methodology: Research Process and Methods. Springer Nature.
Asif, M. (2021). Energy and environmental security in developing countries. Springer Nature.
Bahl, R., & Bird, R. M. (2018). Fiscal decentralization and local finance in developing countries. Edward Elgar Publishing.
Carpinelli, G., Noce, C., Russo, A., Varilone, P., & Verde, P. (2024). Optimal siting and sizing of battery energy storage systems in unbalanced distribution systems: A multi objective problem under uncertainty. International Journal of Electrical Power & Energy Systems, 162, 110316. https://doi.org/10.1016/j.ijepes.2024.110316
Emenike, S. N., & Falcone, G. (2020). A review on energy supply chain resilience through optimization. Renewable and Sustainable Energy Reviews, 134, 110088. https://doi.org/10.1016/j.rser.2020.110088
Fletcher, W. D., & Smith, C. B. (2024). The global climate crisis: What To Do About It. Elsevier.
Hafner, M., & Tagliapietra, S. (2020). The geopolitics of the global energy transition. Springer Nature.
Jaheer, M. K. P., Jain, V., Tsai, S. B., & Wu, C. H. (2024). Digital innovations for renewable energy and conservation. IGI Global.
Kaushik, A., Kaushik, C. P., & Attri, S. D. (2021). Climate resilience and environmental sustainability approaches: Global Lessons and Local Challenges. Springer Nature.
Khan, M. K., Raza, M., Shahbaz, M., Farooq, U., & Akram, M. U. (2024). Recent advancement in energy storage technologies and their applications. Journal of Energy Storage, 92, 112112. https://doi.org/10.1016/j.est.2024.112112
Kumar, R., Lee, D., Ağbulut, Ü., Kumar, S., Thapa, S., Thakur, A., Jilte, R. D., Saleel, C. A., & Shaik, S. (2024). Different energy storage techniques: recent advancements, applications, limitations, and efficient utilization of sustainable energy. Journal of Thermal Analysis and Calorimetry, 149(5), 1895–1933. https://doi.org/10.1007/s10973-023-12831-9
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Márquez, J. M. A., Manzano, F. S., & Luengo, J. R. (2023). Energy Storage Systems: Fundamentals, Classification and a Technical Comparative. Springer Nature.
Michaelides, E. E. (2025). Energy storage: Driving the Renewable Energy Transition. CRC Press.
Migała-Warchoł, A., Ziółkowski, B., Lew, A., Stec-Rusiecka, J., & Warmińska, A. (2025). Factors enabling access to affordable, reliable, sustainable and modern energy in the European Union. Energies, 18(3), 722. https://doi.org/10.3390/en18030722
Mohamadi, F. (2021). Introduction to project finance in renewable energy infrastructure: Including Public-Private Investments and Non-Mature Markets. Springer Nature.
Montana, F., Cellura, M., Di Silvestre, M. L., Longo, S., Luu, L. Q., Sanseverino, E. R., & Sciumè, G. (2024). Assessing Critical Raw Materials and their Supply Risk in Energy Technologies—A Literature Review. Energies, 18(1), 86. https://doi.org/10.3390/en18010086
Paredes, Á., & Aguado, J. A. (2024). Revenue stacking of BESSs in wholesale and aFRR markets with delivery guarantees. Electric Power Systems Research, 234, 110633. https://doi.org/10.1016/j.epsr.2024.110633
Rahimi, M. (2021). Lithium-Ion batteries: Latest Advances and Prospects. MDPI.
Rahman, M. M., Khan, I., & Alameh, K. (2022). The role of energy storage technologies for sustainability in developing countries. In Elsevier eBooks (pp. 347–376). https://doi.org/10.1016/b978-0-323-88668-0.00004-8
Raikar, S., & Adamson, S. (2024). Renewable energy finance: Theory and Practice. Elsevier.
Schmidt, O., & Staffell, I. (2023). Monetizing energy storage: A Toolkit to Assess Future Cost and Value. Oxford University Press.
Scholten, D. (2023). Handbook on the Geopolitics of the Energy Transition. Edward Elgar Publishing.
Seward, W., Qadrdan, M., & Jenkins, N. (2022). Revenue stacking for behind the meter battery storage in energy and ancillary services markets. Electric Power Systems Research, 211, 108292. https://doi.org/10.1016/j.epsr.2022.108292
Szott, M., Wermiński, S., Jarnut, M., Kaniewski, J., & Benysek, G. (2021). Battery energy storage system for emergency supply and improved reliability of power networks. Energies, 14(3), 720. https://doi.org/10.3390/en14030720
Talus, K. (2024). A research agenda for international energy law. Edward Elgar Publishing.
Vasilev, V. (2024). Proceedings of the 2024 5th International Conference on Management Science and Engineering Management (ICMSEM 2024). Springer Nature.
Wagner, S. M. (2020). Business and environmental sustainability: Foundations, Challenges and Corporate Functions. Routledge.
Wali, S., Hannan, M., Ker, P. J., Rahman, S., Le, K. N., Begum, R., Tiong, S., & Mahlia, T. I. (2023). Grid-connected lithium-ion battery energy storage system towards sustainable energy: A patent landscape analysis and technology updates. Journal of Energy Storage, 77, 109986. https://doi.org/10.1016/j.est.2023.109986
Yoo, Y., & Ha, Y. (2023). Market attractiveness analysis of battery energy storage systems in Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Renewable and Sustainable Energy Reviews, 191, 114095. https://doi.org/10.1016/j.rser.2023.114095
Zhang, A., Alvi, M. F., Gong, Y., & Wang, J. X. (2022). Overcoming barriers to supply chain decarbonization: Case studies of first movers. Resources Conservation and Recycling, 186, 106536. https://doi.org/10.1016/j.resconrec.2022.106536
Zhang, H., Gao, S., & Zhou, P. (2022). Role of digitalization in energy storage technological innovation: Evidence from China. Renewable and Sustainable Energy Reviews, 171, 113014. https://doi.org/10.1016/j.rser.2022.113014
Zioło, M., Bąk, I., & Spoz, A. (2024). The role of financial markets in energy transitions. Energies, 17(24), 6315. https://doi.org/10.3390/en17246315
Published
2025/10/14
Section
Original Scientific Paper
