Review Article

Published: 2025-04-02
https://doi.org/10.20935/AcadEnergy7640

Future energy storage: technologies, management

systems, and pathways for sustainable integration
Paul Afreh1, * , Lizhen Gao2 , Beni Jared Passi1 , Chukwubuike Chiemelie Onwuagbu1
Academic Editor: Amjad Anvari-Moghaddam

Abstract
This review examines the technological progress, economic viability, and growth trajectories of energy storages systems (ESSs) integrated
with advanced energy management systems (AEMSs) from 2000 to 2030. This study evaluated key technologies such as battery (BESS),
mechanical (MESS), and thermal (TES) storage systems via the compound annual growth rate (CAGR), net present value (NPV), and
levelized cost of storage (LCOS) through a structured analysis of the peer-reviewed literature, market data, and case studies. The results
show that lithium-ion batteries dominate short-term storage at a CAGR of 43% (2011–2025), driven by cost reduction and high efficiency,
whereas pumped hydro remains important for long-term demand despite geographical limitations. Flow batteries and heat storage
demonstrate the growth potential of grid resilience and industrial decarbonization. An advanced AEM that leverages AI and machine
learning can improve operational efficiency by 10–30% in hybrid systems. This study predicts that BESSs will account for 65% of new
installations by 2030, highlighting the need for policy support, material recycling, and blending solutions. This work provides actionable
insights to help stakeholders align their storage deployments with global decarbonization goals.

Keywords: energy storage systems, advanced energy management systems, renewable energy, smart grids, optimization tech-
niques, artificial intelligence, machine learning

Citation: Afreh P, Gao L, Passi BJ, Onwuagbu CC. Future energy storage: technologies, management systems, and pathways for
sustainable integration. Academia Green Energy 2025;2. https://doi.org/10.20935/AcadEnergy7640

1. Introduction
The increasing climate crisis, highlighted by the Intergovernmental to overcome the issues linked with the recurrent nature of renew-
Panel on Climate Changes (IPCC) warning to limit global warning able energy sources and the increasing demand for reliable and
to 1.5 ◦ C [1], has intensified the urgency of transitioning from fossil stable electricity supplies [5]. The value of sophisticated energy
fuels to renewable energy systems and the need to reduce green- management systems lies in their capacity to maximize the effec-
house gas emissions. Moreover, the innate fluctuation of wind and tiveness and functionality of energy storage systems.
solar power, which generated 12% of the world’s electricity in 2022
and yet struggled to meet demand [2], is a barrier to grid scalability Numerous reviews have been conducted on specific energy stor-
and reliability. The increasing energy demand and periodic aging of age systems and their management. These reviews encompass
infrastructure require the modernization of grids to accommodate energy management strategies for hybrid power sources in vehi-
distributed generation and dynamic load management [3]. Energy cles, such as fuel cells and batteries [6]; the integration of bat-
storage systems (ESSs) are responsible for this shift since they tery/supercapacitor hybrid energy storage systems (HESSs) in
effectively regulate the fluctuations linked with solar and wind electric vehicles (EVs) [7]; and the integration of advanced energy
sources. Energy storage systems enable the storage of excess energy management systems (EMSs) in the optimization of the control
during periods of low demand, which is then distributed during and coordination of energy storage systems in buildings [8]. The
peak demand. This method effectively coordinates supply and de- world’s shift to renewable energy systems is hindered by the er-
mand, thereby enhancing the stability of the electrical grid [3]. ratic nature of solar and wind energy sources, where effective,
Energy storage systems integrated with advanced energy man- scalable, and financially feasible energy storage technologies are
agement systems have emerged as key elements of contemporary required. Existing technologies face challenges such as high capital
energy infrastructure, facilitating a transition toward a sustainable costs, geographic constraints, material shortages, security risks,
and resilient future in the clean energy economy. These systems and inefficient integration with smart grids. While energy storage
provide additional support services, including load frequency con- systems and advanced energy management systems (AEMSs) have
trol and voltage management, which enhance the reliability and evolved, there are still significant gaps in a comprehensive analysis
stability of the grid [4]. They offer a versatile and flexible solution comparing the technical, economic, and operational feasibility of

1 College of Environmental Science and Engineering, Taiyuan University of Technology, Taiyuan 030024, China.
2 School of Chemistry and Chemical Engineering, Shanxi University (Wucheng Campus), Taiyuan 030006, China.
∗ email: afrehpaul@gmail.com or luoaifei0030@link.tyut.edu.cn

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different energy storage technologies in different regions. This global energy storage expansion and are poised to surpass pumped-
study aims to bridge this gap by systematically assessing the pro- storage hydropower in capacity. By the end of 2021, the installed
gression, feasibility, and future potential of energy storage systems capacity had reached 16 GW, with a 60% annual growth led by the
and AEMSs to inform a sustainable energy transition. U.S., China, and Europe. Sodium–sulfur (NaS) batteries, particu-
larly emerging room-temperature variants (RT-Na-S), offer energy
2. Selection and classification of research densities comparable to those of lithium-ion (Li-ion) batteries,
although traditional high-temperature Na-S systems exhibit lower
methods ranges (16–35 Wh/l) [10–12]. Li-ion batteries remain the indus-
try standard for compact energy storage because of the favor-
To ensure a comprehensive and rigorous review of the existing
able mass-to-charge ratio of lithium [10]. However, Na-S systems
literature on energy storage systems and advanced energy man-
excel in cost-effectiveness for grid-scale applications, leveraging
agement systems (AEMSs), a systematic approach was employed
abundant sodium resources, whereas the higher material costs
in selecting relevant studies. This review thoroughly examined
of Li-ions pose budget challenges. Na-S faces lifespan limitations
publishing trends over the last 14 years (2000–2024), including
due to capacity degradation over time, whereas Li-ion batteries
the market value of energy storage systems, data on installation
have been durable since their commercialization in 1990, although
and those integrated with AEMs, and the cost and efficiency of
aging accelerates at elevated temperatures [13]. Energy efficiency
energy storage systems, with methodologies adapted and modi-
varies: Na-S flow batteries require thermal management, while
fied from [9]. A structured literature search was conducted across
Li-ion batteries maintain high efficiency without memory effects,
multiple academic and technical databases such as Scopus, IEEE
reinforcing their dominance in performance-critical roles [14].
Xplore, Google Scholar, ScienceDirect, Web of Science, Springer-
Link, Elsevier, IEA, and the World Energy Council, which were Na-S batteries are suitable for large-scale grid storage with op-
chosen for their extensive coverage of peer-reviewed journals, timized control algorithms, balancing capacity and deployment
conference proceedings, and technical reports in the field. The simplicity [15]. On the other hand, Li-ion batteries dominate appli-
search strategy leveraged a combination of keywords and Boolean cations requiring a rapid response (frequency regulation) because
operators with terms such as “Energy Storage Systems”, “Advanced of their swift power delivery [16]. Future advancements target
Energy Management Systems” (AEMSs), “Battery Storage”, “Ther- RT-Na-S to resolve thermal challenges and enhance energy den-
mal Storage”, “Mechanical Storage”, “Smart Grids”, “Renewable sity, while intermediate-temperature Na-S systems aim for grid
Energy Integration”, “Artificial Intelligence in Energy Manage- scalability [17]. Li-ion research focuses on post-Li technologies
ment”, and “Optimization Techniques in Energy Storage”, with to address cost and sustainability without sacrificing efficiency.
queries adjusted to include synonyms and related technical terms Both technologies are pivotal for grid stability, with Na-S offering
for comprehensive coverage. economical bulk storage and Li-ion providing agile, high-efficiency
The selection of the literature was further refined using strict solutions, driving complementary roles in renewable energy inte-
inclusion and exclusion criteria. Studies were included if they gration [18].
were peer-reviewed articles or conference proceedings published
between 2000 and 2024, focused on storage systems, AEMSs, and Economically, BESSs’ profitability varies: energy trading involves
their integration with smart grids and renewable energy sources, or high battery wear costs, but frequency support services in markets
discussed optimization techniques, artificial intelligence, and ma- such as France and Germany yield attractive returns [19]. Reusing
chine learning applications in energy management. Non-English retired electric vehicle (EV) batteries for grid storage, as explored
publications, studies with limited technical relevance, articles lack- in China, could reduce the demand for new batteries, although
ing experimental data or substantial theoretical analysis, and du- challenges such as competition and availability persist [20]. In-
plicate or non-original review papers were excluded. A stepwise novations like China’s 100 MW/400 MWh vanadium redox flow
process was followed: an initial screening of titles and abstracts battery highlight scalable alternatives for long-duration storage.
eliminated irrelevant studies; a full-text review ensured alignment
The battery market is diversifying, with lead–acid batteries re-
with the study objectives; and data extraction captured key in-
maining prevalent in automotive and stationary applications (over
formation on research methodologies, findings, and technolog-
100 million kW installed globally) and with lithium-ion batter-
ical advancements in energy storage systems and AEMSs. This
ies dominating EVs and portable electronics (exceeding 5 billion
systematic methodology guarantees the inclusion of high-quality,
units). Sodium- and zinc-based batteries, though nascent, show
relevant studies that significantly advance the understanding and
promise, while nickel-based batteries are projected to surpass 500
development of energy storage and management systems.
million installations [21, 22]. The Moss landing facility in Cali-
fornia, the world’s largest battery system, exemplifies scalability
3. Energy storage technologies (Masterson, 2021). Annual installations of lithium-ion, lead–acid,
and flow batteries have risen steadily since 1970 [23], with the
Energy storage systems come in many varieties, and they can be number of supercapacitors expected to exceed 10 million kW by
divided into three broad groups: electrical energy storage systems, 2023 [24]. Hydrogen storage, an emerging clean solution, has
mechanical energy storage systems, and thermal energy storage reached 500,000 kW globally [25].
systems.
As renewable energy adoption accelerates, grid-scale batteries are
3.1. Battery energy storage systems (BESSs) critical for ensuring reliability, reducing emissions, and supporting
global decarbonization goals. Their continued innovation and cost
Grid-scale batteries are rapidly emerging as pivotal components in reduction will shape sustainable energy transitions [26, 27].

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3.1.1. Power-to-Gas (P2G) in these final two reservoirs have significant external river inputs.
Because an open-loop PHES may be implemented within a tradi-
Power-to-Gas (P2G) systems convert surplus renewable electricity tional hydroelectric plant that can also offer storage services, it is
into hydrogen via electrolysis, with optional methanation using the most prevalent form of facility [36].
CO₂ to produce synthetic methane, enabling energy storage in gas
form compatible with existing natural gas infrastructure [28]. This PHES can employ reversible machines (reversible
technology addresses renewable intermittency by storing excess turbines/pumps) or various machines (pumps) for charging
energy, supporting grid stability and decarbonization [29]. P2G and discharging [38]. The technical characteristics of pumped
facilitates integrated energy systems by coupling electricity and hydro storage (PHS) systems render them appropriate for the bulk
gas grids, particularly benefiting remote wind farms by reducing storage of surplus variable renewable energy sources [39, 40]. It is
curtailment and enabling multi-sector energy use [30]. Hydrogen important to note that the IEA guide indicates that PHS systems
storage methods include compressed/liquid forms and geologi- have a technology readiness level of 11/11 [41]. Power capacities
cal solutions such as salt caverns, which have minimal leakage vary from 10 to 4000 MW, allowing for adaptability in system
risks [31]. Methane synthesis via methanation leverages metal– design [42, 43]. At rated power, the discharge duration ranges
organic frameworks (MOFs) or clathrate hydrates for efficient stor- from 1 to 24+ hours, allowing for storage durations of hours to
age. Alternative approaches for methane storage include the use of days. The round-trip efficiency is 70–85%, and the self-discharge
clathrate hydrates, which can achieve a remarkable CH4 capacity is generally negligible [38, 44]; the system maintains efficient
of approximately 117 m3 CH4 (at STP)/m3 hydrate, nearly reaching energy storage. The PHS system’s rapid adaptation to changing
the theoretical maximum [32]. energy demands is facilitated by its minimal response time.

P2G enhances grid flexibility by acting as a controllable load, Pumped-storage hydropower is the most widely used storage tech-
aiding peak shaving and integrating with renewables to balance nology [45, 46], with 160 GW of installed capacity as of 2021,
supply–demand mismatches [33]. Economically, viability hinges accounting for more than 90% of global electricity storage [47].
on cost reductions, market dynamics, and synergies with demand The U.S. leads in capacity, with most plants used for daily balanc-
response programs [34]. Environmentally, P2G reduces carbon ing. Hydropower, including pumped storage, remains the largest
emissions, especially when paired with carbon capture, support- renewable electricity source, reducing carbon emissions and filling
ing carbon neutrality [34]. Operational optimization uses robust energy gaps. By 2025, over half of Europe’s new hydropower capac-
strategies to manage uncertainties in renewable generation and ity will come from pumped storage, led by Switzerland, Portugal,
load variations [35]. and Austria (Figure 1). China is expected to contribute more than
50% of the global annual hydropower capacity growth through
3.2. Pump hydro energy storage systems pumped-storage plants between 2023 and 2025 [47].
Pumped-storage hydropower is a key global energy solution that
Pumped hydro energy storage (PHES) systems work by pumping
offers reliable electricity storage and distribution [38, 48]. PHES
and discharging water between a lower reservoir and a higher
has several limitations, including a lack of suitable sites and low
reservoir, which are connected by one or more penstocks [36]. The
energy density, which require large reservoirs and extensive land
water is pumped to charge the storage and then released through
use [38]. The high costs and long construction time (up to 10 years)
the turbine [37, 38].
make the PHES less attractive for investors, especially given eco-
PHES systems can be built to run in an open-loop or closed-loop nomic uncertainties and fluctuating energy prices [49]. However,
configuration, in which the same water is constantly circulated the PHES has the highest round-trip efficiency among non-battery
between the two reservoirs. Both the top and lower reservoirs storage options because of its efficient energy conversion process.

Figure 1 • Hydropower net capacity additions, 2018–2025, by country and region from the IEA report (2020) [47].

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To address PHES drawbacks, alternative technologies have been of 450 MW (0.3% of total storage capacity), converts electrical
proposed. Seawater PHES (SWPHES) uses seawater reservoirs on energy into mechanical energy by compressing air [62]. Com-
cliff-tops to reduce land use and expand viable sites [50]. How- pared with other technologies, it offers advantages such as a long
ever, lower elevation differences reduce the energy density, and lifespan [63], low maintenance, and minimal environmental im-
the corrosive nature of seawater increases maintenance costs. The pact [64] but faces limitations such as lower efficiency and energy
only existing plant in Okinawa was dismantled in 2016 due to low density compared to other technologies [65].
profitability, though new projects are planned in Hawaii, Ireland,
A study by X. Wang et al. (2021) revealed that chamber roughness
and Greece [51].
impacts the efficiency and flow characteristics of axial turbines
Underground PHES (UPHES) utilizes abandoned caves, mines, in compressed air energy storage (CAES) systems. The efficiency
or artificial underground reservoirs to minimize land use and decreases nonlinearly with increasing roughness, with a 1.9% de-
environmental impact. Often designed in a closed-loop system, a crease at a 50 µm roughness. Smoothing even a small portion
UPHES can mitigate social acceptance issues. Feasibility studies (11.26%) of the wall increased the efficiency by 0.61% [66]. Ad-
suggest that facilities with a 500 m net head can match traditional ditionally, Dzido et al. (2022) highlighted that maintaining a low
PHES performance. air temperature before throttling reduces recirculating airflow and
compressor energy consumption, enhancing energy efficiency [67].
Both SWPHES and UPHES present potential solutions to PHES
These findings underscore the importance of optimizing the cham-
limitations, making the technology more adaptable to different
ber roughness and air temperature to improve CAES performance,
environments while maintaining its high efficiency.
making it a more sustainable and cost-effective energy storage
3.3. Flywheel Energy Storage Systems (FESSs) solution.
Similarly, a study by Q. Liu et al. (2022) examined how ambient
Flywheels, a mechanical energy storage method that uses rota-
temperature affects compressed air energy storage (CAES) sys-
tional kinetic energy, store energy by spinning a mass and release
tems. Higher temperatures increased the turbine output and effi-
it by reversing the rotor [52]. Modern systems use high-speed
ciency by 4.83% and 7.53%, respectively, while lower temperatures
composite or steel rotors, with steel being more cost-effective. They
reduced system efficiency by up to 4.85% without affecting the
feature rapid response times and long lifespans (over 1,000,000
work output. To address this, a thermal energy storage control
cycles) [53] but suffer from self-discharge. Advances in active mag-
technique was developed, which improved the efficiency and work
netic bearings have increased speeds and reduced wear, making
output at lower temperatures compared with the system’s design
flywheels ideal for quick energy bursts with discharge times of
conditions [68].
seconds or minutes [54].
Globally, there are 28 operational compressed air energy storage
However, flow batteries currently cost more than other competing
(CAES) projects, with the largest facilities in Germany (Huntorf),
technologies such as NaS batteries do, and the system complexity,
the U.S. (McIntosh), and China [69]. Most CAES projects are
mostly due to the presence of moving parts (the pumps) and sev-
concentrated in the Northern Hemisphere, including 16 in North
eral components, such as tanks, sensors, and flow managements
America (14 in the U.S., 2 in Canada), 5 in Europe, and 3 in China.
systems, may result in higher maintenance costs than traditional
Their prevalence in developed countries is linked to liberalized
battery technologies have [55].
energy markets, climate change concerns, renewable energy tar-
Flow batteries have limitations, including low energy density and gets, and supportive policies. However, some regions lack the sub-
cost uncertainty [56, 57]. Research has focused on improving mate- surface geology needed for CAES deployment, limiting its global
rials to increase compactness [56]. Various flow battery technolo- spread [70].
gies exist, including vanadium, zinc bromide, polysulfide bromide,
Matos et al. (2022) proposed measures to overcome barriers to en-
and iron–chromium. Vanadium redox flow batteries (VRFBs) are
ergy storage (ES) deployment, including classifying these systems
the most advanced and widespread, with commercial availability
as a comprehensive energy asset, allowing for large-scale system
and megawatt-scale applications [58].
ownership, eliminating double charging, and creating incentives
Advantages of VRFBs include the use of a single material (vana- and subsidies. These policies particularly benefit large, compressed
dium), low self-discharge, and high round-trip efficiency [59]. air energy storage (CAES) technologies. However, successful CAES
Other chemicals, such as zinc bromide and polysulfide bromide, deployment also depends on factors such as cost, technical and
offer potential benefits but also present challenges [57, 60]. Intense geographic feasibility, technology efficiency, and investment in
research is dedicated to exploring alternative chemical methods, research and development [69].
such as lithium-ion-based systems.
Despite their cost uncertainties, VRFBs are a promising storage 3.4.1. Advanced adiabatic compressed air energy storage
technology, with proven reliability and feasibility in grid-scale (AA-CAES)
applications. Mass production could significantly reduce costs,
Compared with traditional CAES systems, advanced adiabatic
making VRFBs more competitive with other technologies [58].
compressed air energy storage (AA-CAES) represents a significant
3.4. Compressed air energy storage (CAES) advancement in energy storage technology, offering improved effi-
ciency, environmental benefits, and versatility compared to tradi-
Compressed air energy storage (CAES) and pumped hydroelectric tional CAES systems. By capturing and reusing compression heat,
energy storage (PHES) are among the most promising large-scale AA-CAES eliminates the need for fossil fuels during expansion [71],
energy storage technologies because of their efficiency, scalability, achieving a theoretically adiabatic process with round-trip efficien-
and cost-effectiveness [61]. CAES, with a global installed capacity cies of approximately 70%, whereas traditional CAES systems, such

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as those of Huntorf and McIntosh, achieve 42–54% [72]. This effi- injection achieving higher round-trip efficiencies during expan-
ciency gain is attributed to the integration of thermal energy stor- sion [84, 87].
age (TES), which stores heat generated during compression and
ICAES is particularly suited for mitigating renewable intermit-
reuses it to warm the air before expansion through turbines [73].
tency [87]. The open accumulator ICAES (OA-ICAES) system, for
AA-CAES operates as a zero-emission system when powered by
example, stores wind energy as high-pressure air (up to 210 bar),
renewable energy, reducing greenhouse gas emissions [74] and
dispatching power within seconds to meet demand surges [88].
air pollution while supporting the integration of intermittent re-
This rapid response supports grid services like frequency regu-
newable sources such as wind and solar [72]. AA-CAES is highly
lation while reducing reliance on natural gas plants. By decou-
versatile, providing grid balancing, renewable energy integration,
pling energy storage from electricity conversion, ICAES allows for
and grid stability services such as frequency regulation and con-
downstream components to be sized for mean—not peak—power,
gestion management [75–77]. It also supports combined cooling,
lowering infrastructure costs [89].
heating, and power (CCHP) systems by storing and supplying
both thermal and electrical energy. Economically, AA-CAES of- Current research focuses on liquid piston designs with porous
fers lower capital costs than pumped hydro storage does [72] media, optimized trajectories, and advanced chamber geometries.
and competitive levelized costs of electricity when integrated with Computational models reveal complex thermal dynamics, though
renewables [77], with potential operating cost reductions of up simplified 1D simulations predict efficiency within 7% of 2D coun-
to 20% compared with those of conventional systems [78]. How- terparts [89, 90]. Proprietary methods using mature industrial
ever, challenges remain, including the need for high-temperature components enable staged gas expansion and cost-effective scala-
thermal storage [79], temperature gradients that reduce efficiency bility [91]. Future work should emphasize 3D simulations, experi-
over multiple cycles, and geographic limitations requiring suitable mental validation, and hybrid systems to bridge efficiency gaps and
underground formations for large-scale air storage [72]. accelerate commercialization.
Ongoing research has focused on optimizing thermal storage, de- ICAES stands as a hydrocarbon-free alternative with the potential
veloping miniaturized AA-CAES systems, and exploring hybrid to reshape grid storage, offering high efficiency, rapid dispatch, and
configurations with technologies such as Organic Rankine Cy- compatibility with renewable integration, and is a critical enabler
cles or concentrated solar power [80]. With its ability to pro- for global decarbonization efforts.
vide long-duration energy storage and grid support, AA-CAES is
poised to play a key role in enabling higher renewable energy 3.5. Thermal energy storage systems (TESSs)
penetration and advancing the transition to a sustainable energy
future [81–83]. Thermal energy storage (TES) systems store and release thermal
energy through three primary mechanisms: (1) sensible heat stor-
3.4.2. Isothermal compressed air energy storage age, which involves heating or cooling materials such as water
(ICAES) or molten salts, (2) latent heat storage, which uses phase change
materials (PCMs) to absorb or release energy during transitions,
Isothermal compressed air energy storage (ICAES) represents a
and (3) thermochemical storage, which relies on reversible chem-
transformative advancement in energy storage and is designed
ical reactions [92, 93]. These systems include a storage medium,
to maintain near-constant temperatures during compression and
a containment infrastructure, and heat transfer mechanisms, with
expansion processes [83]. By leveraging the thermal interactions
molten salts and synthetic oils widely deployed in concentrated so-
between air and liquid (water sprays or foam), ICAES minimizes
lar power (CSP) plants, while PCMs and thermochemical materials
the energy losses inherent in conventional compressed air sys-
are emerging for higher efficiency [94, 95]. Critical energy chal-
tems [84]. This technology employs staged gas-expansion schemes
lenges are addressed by balancing supply–demand mismatches
and innovative heat transfer methods, such as water droplet injec-
across daily to seasonal cycles, increasing system efficiency, reduc-
tion, to increase enhance efficiency [85]. The large heat capacity of
ing operational costs, and curbing carbon emissions [95]. The ap-
water facilitates near-isothermal compression, while spray cooling
plications span solar thermal systems, district heating, waste heat
increases the contact surface area between the air and liquid,
recovery, and building climate control, with increasing relevance
optimizing thermal exchange [86].
due to renewable energy intermittency [95]. For instance, TES in-
ICAES significantly outperforms traditional compressed air stor- tegration in European district heating networks could save 1.4 mil-
age, achieving theoretical exergy efficiencies of up to 95.0% in lion GWh annually and reduce CO2 emissions by 400 million tons
isentropic processes and practical efficiencies of 73.4% in variable- by displacing fossil-fuel-based peaking plants [92]. Heat pumps
speed operations. Water spraying improves energy-saving ratios and hybrid systems further amplify TES benefits, enabling up to
by 1.3–25.6%, depending on the operational mode, with exergy 60% renewable contributions in heating sectors in Europe [96, 97].
efficiency gains of 1.4–9.4%. These improvements are critical for
Globally, TES adoption varies by region. Nordic countries like
grid-scale viability, although performance gaps persist, owing to
Sweden and Denmark utilize pit storage for solar thermal district
component off-design behavior, particularly in pumps [83].
heating [95], while the U.S. leads in ice and electric thermal storage
ICAES systems utilize double-vessel configurations for continuous for cooling and heating. Europe, particularly Germany and Spain,
compression, operating in sliding- or constant-pressure modes. integrates TES with renewables, whereas China and India priori-
The optimal vessel volume ranges from ≥3 m3 (with spraying) tize solar thermal projects. Middle Eastern and African countries
to ≥5 m3 (without), enabling megawatt-scale storage in low-cost like Saudi Arabia and Morocco focus on CSP-TES hybrids [95].
pressure vessels, pipelines, or lined-rock caverns. Recent pro- Despite progress, technological maturity differs: pit storage and
totypes demonstrate scalability, with pre-mixed water droplet underground TES (UTES) are commercialized, molten salt systems

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are in demonstration phases, and thermochemical storage remains Multi-agent systems (MASs) have been found to improve grid
under development [98]. coordination, as demonstrated by the CCHP system, where MAS
integration has reduced operating costs by 10% [107].
TES also enhances energy security by storing off-peak energy for
peak demand, reducing reliance on fossil fuels. Domestic hot water
tanks are prevalent in Australia, the U.S., and Japan, while UTES 4.3. Role in smart grids
dominates in Canada and Germany [99]. However, challenges like
AEMS is critical to the modern smart grids and supports crit-
material costs and scalability hinder advanced technologies like
ical services such as peak emission reduction and frequency
PCMs and thermochemical storage. Addressing these barriers is vi-
tuning. Sodium–sulfur (NaS) batteries with a global capacity of
tal to achieving cost-effective, sustainable energy transitions [95].
530 MW/3700 MHz flatten the load curve to stabilize the grid [112].
Overall, TES is a cornerstone of decarbonization strategies, offering
Flow batteries can achieve frequency-controlled response times
scalable solutions to align renewable energy generation with global
of less than 1s [113]. Australia’s Hornsdale Power Reserve [109]
consumption patterns.
and Japan’s wind farm’s AI-based energy management system
(EMS) drive the integration of renewable energy, which mitigates
4. Advanced energy management systems wind and solar fluctuations by storing 34 MW of batteries and
51 MW of turbines for optimal power transmission [114]. Hybrid
for energy storage optimization methods, such as the GA combined with dynamic
programming (DP), further improve the TES efficiency of CCHP
Advanced energy management systems are crucial for maximizing
systems and minimize energy waste [115].
the efficiency of energy storage systems [100, 101]. These advanced
systems employ a range of techniques to monitor, control, and op-
timize the operations of energy storage systems effectively [101]. By 4.4. Applications and benefits
harnessing the power of advanced technology, these management
4.4.1. Grid-scale applications
systems ensure that energy storage systems operate at their peak
efficiency, delivering optimal results [102]. Grid-scale energy storage systems provide the necessary reliability
services, including frequency regulation and black-start capabili-
4.1. Machine learning (ML) and artificial intelligence ties. Superconducting magnetic energy storage (SMES) devices and
(AI) algorithms flow batteries suppress voltage fluctuations in milliseconds [111].
The Flywheel Energy Storage System of the Galapagos Islands
Advanced energy management systems (AEMSs) are increasingly reduces frequency deviation by 50% in the event of a grid emer-
relying on artificial intelligence (AI) and machine learning (ML) gency [116].
to optimize energy storage and grid operations [102]. Predictive
analytics implemented by ML algorithms significantly improve 4.4.2. Industrial/commercial applications
short-term schedules by dynamically predicting energy demand
and renewable energy generation patterns, as shown by neural Industry uses ESSs for load tracking and energy arbitrage. Com-
networks that predict heat demand from combined heat and power pressed air energy storage (CAES) units in Germany outperform
(CHP) plants with an error of less than 5% [103, 104]. For example, conventional thermal power plants in the energy market with high
artificial neural networks (ANNs) accurately model the behavior renewables and reduce costs by 20% [113]. The energy arbitrage
of phase change materials (PCMs) to achieve R-values greater strategy of the CCHP system has achieved cost savings of 7.7–10%
than 0.99 in temperature and liquid fraction predictions [105]. In by storing low-use wind energy [107].
addition to optimizing operations, ML accelerates the discovery of
materials, such as the identification of lithium-ion highly conduc- 4.4.3. Residential applications
tive crystalline solids for high-end batteries [106]. Reinforcement
learning (RL) further improves energy management, reducing en- Residential energy storage systems improve energy autonomy
ergy losses in hybrid electric vehicles by 16.8% [105] and increasing through demand management and backup power. A smart EMS
the productivity of combined cooling, heating, and power (CCHP) with artificial neural networks reduces household energy costs by
systems by 10% through multi-agent coordination [107]. 73.8% through optimized appliance scheduling [117]. An integrated
solar energy storage system ensures an uninterrupted power sup-
4.2. Optimization strategies ply in the event of a power outage [114].

Optimization techniques are essential for cost savings and grid re- 4.4.4. Environmental impact
liability. Genetic algorithms (GAs) excel in multi-target scenarios,
such as optimizing the PCM thickness of buildings to reduce cool- AEMS-based solutions significantly reduce emissions and promote
ing/heating loads [108] and designing solar–geothermal hybrid the adoption of renewable energies. Thermal energy storage (TES)
compressed air energy storage (CAES) systems to maximize effi- in Europe could replace fossil fuel peak power plants, avoiding 400
ciency [109]. Reinforcement learning (RL) agents manage state-of- million tons of CO2 per year [115]. Global renewable electricity
charge (SOC) in microgrids to balance energy flow while minimiz- generation is expected to increase by 60% by 2027, and hybrid
ing costs [110], while deep deterministic policy gradient (DDPG) solar fuel cell systems can reduce CO2 emissions from multi-family
algorithms optimize energy distribution on hybrid buses [111]. residential buildings by 13,920 kg per year [2, 118].

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5. Projected energy storage technology

Fc − Ic
trends and economic analysis LG =
y
(1)

5.1. Methodology
Fc 1y
CAGR = ( ) −1 (2)
5.1.1. Growth rate trends of energy storage technologies Ic

To confirm the observed patterns and provide a clearer comparison where LG is linear growth, CAGR is the compound annual growth
of the adoption of energy storage technologies, Equations (1) and rate, Fc is the final capacity, Fi is the initial capacity, and y is the
(2) were used to determine the nature of battery storage, pumped projected year.
storage, and other technologies and to distinguish between linear
and exponential trends. The data in Tables S1 and S2 (Supplemen- 5.1.2. Economic analysis of energy storage technologies
tary Materials) represent the various energy storage technologies
that were installed in the period 2000–2025 and projected into On the basis of the data in Table 1, the economic feasibility
2030. Equations (1) and (2) were used to determine the growth of each of the analyzed storage technology can be assessed. The
trends of the individual energy storage technology installation, and calculations are based on a specific case study of various energy
projections for the year 2030 were drawn up on this basis. storage systems [119–123] and the world energy council data [124].

Table 1 • Characteristics of selected energy storage systems.

Max power Max cycles or Energy density
Discharge time Efficiency
rating (MW) lifetime (watt–hour per liter)
Pumped hydro 3000 4 h–16 h 30–60 years 0.2–2 70–85%
Compressed air 1000 2 h–30 h 20–40 years 2–6 40–70%
Molten salt (thermal) 150 hours 30 years 70–210 80–90%
Li-ion battery 100 1 min–8 h 1000–10,000 200–400 85–95%
Lead–acid battery 100 1 min–8 h 6–40 years 50–80 80–90%
Flow battery 100 hours 12,000–14,000 20–70 60–85%
Hydrogen 100 min–week 5–30 years 600 (at 200 bar) 25–45%
Flywheel 20 sec—min 20,000–100,000 20–80 70–95%

Recent studies conducted in different regions have highlighted the the decarbonization of the heating and cooling industry, as inte-
economic and operational feasibility of energy storage technologies grating TES with heat pumps and predictive controllers resulted
in advancing renewable energy integration and grid resilience. in a 27.5% reduction in operating costs [120]. Taken together,
In Northwest China, J. Li et al. (2023) analyzed pumped-storage these studies highlight the importance of region-specific technical,
power generation (PHES) and adapted PHES deployment to lo- economic, and environmental factors in optimizing energy storage
cal hydrological and operational constraints, demonstrating its deployments and providing policymakers and industry stakehold-
potential to reduce renewable wind power reduction and carbon ers with actionable insights to prioritize technologies aligned with
emissions by providing a framework for cost–benefit optimiza- regional energy transition goals. This provides a good basis for an
tion in mountainous areas [122]. To compensate for this, Assareh economic feasibility study.
and Ghafouri (2023) evaluated a hybrid compressed air energy
Using Equations (3)–(5) and the technical parameters provided in
storage (CAES) system in Iran that integrates solar, geothermal,
Table 1, we evaluate the economic viability of the selected energy
and hydrogen energy. AI-based optimization models deliver higher
storage system based on the net present value (NPV), levelized
efficiency and economic returns, especially in high-solar areas such
cost of storage (LCOS), and energy arbitrage returns. The key
as Bandar Abbas, while addressing capital costs and environmental
assumptions include a discount rate of 5% (r), an electricity price
trade-offs [119]. In the European market, Y. Hu et al. (2022)
arbitrage spread of 0.10/kWh (peak: 0.10/kWh (peak: 0.15/kWh,
evaluated battery energy storage systems with an emphasis on
non-peak: USD 0.05/kWh)), and the lifecycle period shown in
profitability through energy arbitrage and frequency regulation,
Table 1. Average industry cost data are used to derive financial
with France and Germany showing the highest returns due to
ratios. This analysis assumes a static price point (USD 0.10/kWh
favorable electricity price differentials and regulatory incentives.
arbitrage) and excludes external environmental influences (im-
Moreover, Yan et al. (2023) applied flywheel energy storage to pacts of lithium mining and water consumption in pumped-storage
industrial hydraulic presses to achieve cost savings and energy power plants). Regional differences, such as lithium-ion produc-
efficiency improvements of up to 30% through advanced control tion in Asia and hydrogen production in Europe, have also not
strategies, highlighting niche potential in high-cycle manufactur- been modeled. Future work should integrate lifecycle assessments,
ing processes [123]. Finally, Bechtel et al. (2020) explored thermal regional policy dynamics, and supply chain resilience to improve
energy storage (TES) in net-zero buildings, highlighting its role in forecasting.

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To conduct an economic analysis of each energy storage technol-

ogy, we will utilize key financial parameters such as capital costs,
operational costs, efficiency, and revenue from energy arbitrage.
Below are the general economic equations used:

n
∑ Rt − Ct
NPV = (3)
t=1
(1 + r)t

where Rt is the revenue at time, Ct represents the annual opera-

tional costs, r is the discount rate, and n is the estimated lifecycle.

∑n
(I t + Mt + Et
)
t=1
LCOS = ∑ (4)
(Es )

where It represents the investment cost, Mt represents the main-

tenance cost, Et represents the operational energy cost, and Es
represents the total energy stored over its lifetime.

n
∑
R= (Psell − Pbuy ) × Estored × Nt (5)
t=1

where Psell and Pbuy are peak and off-peak prices, respectively,
Estored is the energy stored, and Nt represents annual cycles.

6. Results and discussion

6.1. Growth trends and statistical analysis of energy
storage technologies

The evolution of energy storage technology from 2000 to 2025

(Figure 2) shows the different growth trajectories of bat-
tery (BESS), mechanical (MESS), and thermal (TESS) systems.
Lithium-ion batteries dominate the BESS category and grow ex-
ponentially, with the installed capacity increasing from 0.10 GW in
2011 to 9.99 GW in 2025, corresponding to a compound annual
growth rate (CAGR) of 43%. This acceleration reflects a policy-
driven demand for cost reductions, increased energy intensity, and
the need for renewables to be integrated into the grid. In con-
trast, lead–acid batteries are growing linearly (CAGR: 4.5%, 2000–
2025) and are constrained by competition from advanced alter-
natives. In MESS technology, pumped hydrogen storage shows
steady linear growth (CAGR: 2.1%, 2000–2025), while flywheels
achieve modest growth (CAGR: 8.2%, 2005–2025) because of
their niche role in grid frequency regulation. For TESSs, sensible
heat storage is growing exponentially (CAGR: 19%, 2008–2025),
driven by industrial decarbonization and concentrated solar energy
(CSP), while latent heat storage is lagging behind due to material
constraints (CAGR: 12%).
The results of the statistical analysis via ANOVA (Table 2) high-
light these trends. Lithium-ion batteries (F = 11.02, p = 0.004) and
hydrogen storage (F = 6.56, p = 0.021) had statistically significant
effects, which was confirmed by a high model robustness (BESS R2 :
0.983). Pumped hydrogen storage was a critical MESS contributor
(F = 146.77, p = 1.14 × 10−10 ), while sensible heat storage (TESS)
was significant (F = 5.39, p = 0.032). Non-significant technologies
such as nickel-based batteries (p = 0.948) and latent heat storage Figure 2 • Summation of ESS technologies installed on a yearly
(p = 0.155) indicate areas that require innovation or strategic basis. Data source: [25]. (a) Battery energy storage; (b) mechanical
prioritization. energy storage; and (c) thermal energy storage.

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Table 2 • Regression analysis of energy storage technology installed on a yearly basis and projection into 2030, as analyzed from
Table S2.
DF Sum of squares Mean square F value Prob > F
Model 14 1424.04362 101.7174 145.38581 1 × 10−9
BESS
Electro chemical capacitor 1 1.59046 1.59046 1.05414 0.31983
Flow battery 1 1.1904 1.1904 0.78899 0.38757
Hydrogen storage 1 9.89117 9.89117 6.55579 0.02096
Lead–acid battery 1 6.49968 6.49968 4.30793 0.05442
Lithium-ion battery 1 16.6203 16.6203 11.0158 0.00434
Nickel-based battery 1 0.00653 0.00653 0.00432 0.94838
Sodium-based battery 1 3.73819 3.73819 2.47764 0.13504
Zinc-based battery 1 0.41101 0.41101 0.27242 0.60887
MESS
Compress air energy
1 3.55398 3.55398 2.59441 0.12291
storage
Flywheel 1 15.29865 15.29865 11.16803 0.00325
Pumped hydrogen storage 1 201.05985 201.05985 146.77388 1 × 10−10
TES
Heat thermal storage 1 21.48853 21.48853 5.38552 0.03158
Latent heat 1 8.73717 8.73717 2.18973 0.15532
Sensible heat 1 0.0197 0.0197 0.00494 0.94471
Error 10 6.99638 0.69964
Total 24 1431.04
R-Square (COD) Adj. R-Square
BESS 0.98313 0.9747
MESS 0.97834 0.97509
TES 0.93701 0.92706

6.1.1. Projected energy storage technology trends (2030) policy frameworks must prioritize sustainable material sourcing
and circular economy practices. By 2030, BESSs are projected to
The world is transitioning to renewable energy systems, but this
account for approximately 65% of new grid-scale storage installa-
shift requires efficient energy storage technologies to address inter-
tions, supported by renewable energy mandates and hybrid storage
mittency and grid stability. Our analysis evaluates the evolution of
solutions.
three key energy storage categories, battery energy storage systems
(BESSs), mechanical energy storage systems (MESSs), and thermal
The MESS, which includes pumped hydro storage and flywheels,
energy storage systems (TESSs), from 2000 to 2030 (Figure 3).
represented the bulk of installed capacity before 2010, accounting
The reviewed literature revealed that BESSs, particularly lithium- for 95% of global storage. However, growth stagnated due to ge-
ion batteries, have experienced exponential growth since 2010. ographical limitations and competition from BESSs. By 2020, the
This growth was driven by declining costs, advancements in energy MESS contributed approximately 1.2 TWh globally, primarily from
density, and integration with electric vehicles and solar photo- pumped hydro storage installations. Moderate growth (CAGR of
voltaic systems. By 2020, BESSs dominated short-duration storage 4%) is expected, driven by the retrofitting of existing facilities and
applications, with global deployments exceeding 20 GWh annually. niche applications for flywheels (Figure 3b).
Looking ahead to 2030, BESSs are expected to continue to domi-
nate, growing at a compound annual growth rate (CAGR) of 27%. Emerging technologies like compressed air energy storage may
Innovations in solid-state batteries, sodium-ion chemistries, and gain traction in regions with favorable geology. By 2030, the MESS
recycling infrastructure will help to mitigate resource constraints is projected to represent approximately 25% of the total storage
(Figure 3a). capacity, emphasizing long-duration storage needs. However, the
However, BESSs face challenges such as resource scarcity, lifecy- MESS faces challenges like high capital costs, long development
cle emissions, and safety concerns. To address these challenges, cycles, and site-specific requirements.

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TESSs, including molten salts and phase-change materials, have

been adopted for concentrated solar power and industrial waste
heat recovery. By 2020, CSP-driven TESSs accounted for more
than 5.8 GWh globally. Accelerated growth (CAGR 17.5%) is an-
ticipated, driven by industrial decarbonization and district heat-
ing/cooling applications (Figure 3c). Innovations in low-cost
phase-change materials and hybrid systems could expand viability.

By 2030, TES may capture approximately 10% of the storage

market, particularly in regions with high industrial heat demand.
However, TESSs faces challenges such as low round-trip efficiency
and competition from electrification solutions. Integration with re-
newable heat sources and policy support for industrial applications
are crucial to overcoming these challenges.

6.2. Regional case studies on energy storage systems and

economic feasibility

The economic analysis of energy storage systems, assessed in

terms of the net present value (Table 3), levelized cost of storage
(Table 4), and energy arbitrage revenue (Table 5), provides im-
portant insights into their commercial feasibility and strategic role
in modern energy systems. Lithium-ion batteries have emerged as
the most economically viable technology with an LCOS of 0.08–
0.15/kWh and a net present value of 50–150 million over a 20-year
lifecycle. Their dominance stems from decreasing capital costs
(USD 300/kWh), high round-trip efficiency (85–95,300/kWh),
and revenues of 8–12 million per year from frequent cycling (300–
500 cycles/year). These qualities render lithium-ion batteries es-
sential for the stabilization of renewable energy, the integration of
electric vehicles, and the storage of short-to-medium-duration grid
power.
Flow batteries are less efficient (60–85%) but achieve competitive
LCOSs (0.06–0.12/kWh) because of their exceptional cycle life
(12,000–14,000 cycles), making them ideal for long-term storage
applications. The NPV of 20–60 million reflects growing prof-
itability in markets requiring intra-day to multi-day storage, such
as solar-heavy grids. Pumped storage, on the other hand, has
a moderate NPV (10–30 million) and LCOS (0.12–0.20/kWh),
constrained by high upfront costs (USD 1500–2000/kWh) and
geographic limitations. However, its unrivaled scalability (3,000
MW capacity) makes it relevant for bulk power management and
seasonal storage.

Hydrogen storage struggles economically, with an LCOS (0.40–

0.60/kWh) and negative-to-breakeven NPV (−20–10 million) due
to low efficiency (25–45%) and energy-intensive compression.
While promising for seasonal storage or industrial decarboniza-
tion, its viability hinges on advancements in electrolyzer efficiency
and cost reductions. Flywheels, though niche, yield modest returns
(USD 5–15 million NPV) through their high cycle life (20,000–
100,000 cycles) and rapid response, making them suitable for
frequency regulation in grids with high renewable penetration.

Therefore, lithium-ion batteries and flow batteries are pivotal for

Figure 3 • Projected energy storage technology trends (2000–
achieving cost-effective decarbonization, whereas pumped hydro
2030). Data source: [25]. (a) battery energy storage systems
and flywheels address specific grid stability needs. Hydrogen stor-
(BESSs); (b) mechanical energy storage systems (MESSs); (c) ther-
mal energy storage systems (TESSs). age remains a long-term prospect requiring targeted innovation.

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Table 3 • Net present value (NPV).

Technology NPV (million USD) Economic viability
Li-ion battery 50–150 Highly positive due to declining costs and high arbitrage revenue.
Flow battery 20–60 Favorable for long-duration storage with stable LCOS.
Pumped hydro 10–30 Positive but constrained by high CAPEX and site-specific requirements.
Hydrogen storage −20–10 Negative/breakeven due to high LCOS and low efficiency.
Flywheel 5—15 Niche applications (frequency regulation) yield modest returns.

Table 4 • Levelized cost of storage (LCOS).

Technology LCOS (USD/kWh) Drivers
Pumped hydro 0.12–0.20 Low operational costs, long lifespan (60 years), but high initial CAPEX.
Li-ion battery 0.08–0.15 Declining CAPEX (USD 300/kWh), high efficiency (95%), but limited cycles.
Flow battery 0.06–0.12 Exceptional cycle life (14,000 cycles), offsets moderate efficiency (85%).
High CAPEX (USD 2000/kW), low efficiency (45%), and energy-intensive
Hydrogen storage 0.40–0.60
compression.
Flywheel 0.25–0.50 High cycle life (100,000 cycles) but low energy density (80 Wh/L).

Table 5 • Revenue from energy arbitrage.

Technology Annual revenue (million USD) Annual cycles (Nt ) Revenue drivers
High cycle count, rapid response for daily
Li-ion battery 8.0–12.0 300–500
arbitrage.
Limited cycles, but large-scale energy storage
Pumped hydro 2.5–4.0 50–100
(48,000 MWh).
Moderate cycles, suitable for intra-day
Flow battery 1.5–3.0 200–300
arbitrage.
Low efficiency and high operational costs
Hydrogen storage 0.5–1.2 50–100
limit profitability.

7. Conclusions 2. Pumping storage retrofit and flow battery projects should

be encouraged through grants and streamlined permitting
This paper highlights that lithium-ion batteries, the cornerstone
processes.
of modern energy storage, are experiencing exponential growth
due to their cost reduction and increased efficiency. Pumped and 3. R&D for hydrogen storage, compressed air systems, and ad-
flow batteries remain critical for long-term and grid-scale appli- vanced heat storage should be funded to overcome efficiency
cations, whereas heat storage is becoming increasingly popular and cost barriers.
in the industrial and solar sectors. Despite their potential, hy-
4. Policies that consider geographical constraints (e.g., PHES in
drogen storage and compressed air systems face economic and
mountainous areas, TES in industrial centers) and renewable
technical barriers that require targeted research and development.
energy profiles should be developed.
The advanced AEM blends AI and optimization algorithms to dra-
matically improve storage efficiency and reproducible integration. 5. The essential integration of the AEMS into the grid infrastruc-
Key challenges include resource scarcity, lifecycle emissions, and ture optimizes the storage performance and supports real-
site-specific constraints. The analysis suggests that lithium-ion time demand response mechanisms.
batteries will dominate future deployments of flow batteries and
6. To improve market viability, global standards for storage se-
thermal storage support; this highlights that there is no single
curity, lifecycle assessment, and cross-border energy trading
technology that can meet all storage needs. A diverse regional
should be developed.
approach, combined with AI-driven management, is essential for
achieving a resilient, low-carbon energy system. 7. Regulations to mitigate the ecological impacts of large-scale
storage projects, such as land use for PHES and resource
extraction for batteries, should be enforced.
7.1. Policy implications

1. Investments in lithium-ion batteries and emerging solid-state Funding

batteries should be prioritized, and circular economy frame-
works should be incorporated to address material shortages This work was supported by the Shanxi Provincial Department of
and recycling. Education [grant number: YDZJSX20231B002].

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Author contributions Commons Attribution (CC BY) license (https://creativecommons.

org/licenses/by/4.0/).
Conceptualization, P.A. and L.G.; methodology, P.A.; software,
P.A.; validation, L.G.; formal analysis, P.A. and B.J.P.; investi-
gation, P.A., B.J.P. and C.C.O.; data curation, P.A. and C.C.O.; References
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