Impacts of Energy Storage on

the Future Power System

Sandeep Yeleti, Student Member, IEEE, and Yong Fu, Member, IEEE

Abstract-- The electrical energy storage systems serve many

applications to the power system like economically meeting peak
loads, quickly providing spinning reserve, improving power
quality and stability, and maintaining reliability and security.
The rapidly increasing integration of renewable energy sources
into the grid is driving greater attention towards electrical energy
storage systems which are capable of stabilizing the output from
renewable energy sources. The application of electrical energy
storage systems will also defer the installation of new
transmission lines. With the development of advanced energy
storage technologies, the electrical energy storage systems are
making the future power system more reliable, efficient and
economical. This paper presents various energy storage
technologies currently used, their applications and the role they
are going to play in the future power system.
Index Terms Energy storage, renewable energy sources,
smart grid.

I. INTRODUCTION

lectrical energy storage systems (EESS) store the

electrical energy in the kinetic, potential, electrochemical
or electromagnetic form which can be transferred back to the
electrical energy when required. The conversion of electrical
energy to different forms and back to electrical energy is done
with power conversion systems. EESS can store the
inexpensive energy during off-peak periods and be used to
meet the loads during peak periods when the energy is
expensive, which will improve the economic operation of the
power system. Compared to conventional generators, the
energy storage systems have a faster ramping rate which can
quickly respond to the load fluctuations. Therefore, the energy
storage systems can be a perfect spinning reserve source
which provides a fast load following and reduces the need for
spinning reserve sources from conventional generation plants.
Electrical energy storages were initially treated only for
load leveling applications. Now, they are more seen as a tool
to improve the power system quality and stability, to ensure a
reliable and secure power supply to loads, and to black start
the power system [1]. For example, due to increasing
electronic loads, the power quality has been becoming a major
concern to the utilities. Poor power quality exists with
variations in voltage magnitude and frequency. Electrical
energy storages can help in maintaining power quality by
The authors are with the Department of Electrical and Computer
Engineering, Mississippi State University, Starkville, MS 39762 USA
(e-mail: sy153@msstate.edu, fu@ece.msstate.edu )

providing necessary voltage and frequency support to the

power grid. Energy storage systems can provide VARs to
quickly increase and maintain voltage in periods when large
amounts of inductive loads come online [2]. Drawing high
power in a short interval directly from the power grid will
exacerbate the power system stability. However, energy
storage systems can be used to produce high power pulses
with the trivial impact on the stability. Reliability is also a
major issue which should be guaranteed by the utility,
especially to the critical loads. In U.S. the electricity outages
cost approximately $79 billion annually with two third of the
cost due to interruptions under five minutes [3]. Energy
storage devices can eliminate the short term interruptions until
the backup generators are brought online. In addition, a proper
location of EESS will provide the preventive actions to
mitigate violations under any contingency. Consequently, the
security of the power system will be maintained by the
application of EESS.
In the United States it is expected that there will be a
significant increase in amount of renewable generation.
Renewable portfolio standards of 15 30 % are required in
most states by 2020 [4]. Wind and solar, which are the major
sources of renewable energy, are intermittent and volatile
resulting in a varying power supply to the power grid. The
combination of electrical energy storages with these energy
sources can firm up the renewable power output by storing
energy during high availability and using it while there is
shortage. As a result, electrical energy storage systems can
increase the penetration of renewable energy into the power
grid and reduce the carbon emissions. In addition, when a
critical line outage occurs, the wind energy has to be curtailed
in order to remove the overloading on the transmission lines.
Such problem can be mitigated by using large energy storage.
In general, upgrade of the transmission system is necessary
to mitigate congestions in the power system with a large
amount of increasing demand. However, such solution may
not work because (1) obtaining rights and approvals to install
new lines will take many years, (2) the construction of new
lines in urban areas is almost impossible due to the space
limitation, and (3) the cost of building a transmission line has
been drastically increased. The energy storage at the load
center could be a fast, flexible and economical solution to the
operation of stressed power systems. The usage of energy
storage systems can reduce the power transfer through the
lines during the peak load periods and greatly decrease the
congestion cost as the energy storage system can shift the load
from the peak to off-peak load periods [5]. Thus, reducing the

loading on the transmission equipments can defer the upgrade

of the transmission system. For example, a 1.0 MW, 7.2 MWh
sodium-sulphur battery was employed successfully in 2006 to
peak-shave the summer load on a 20 MVA transformer and
delay the substation upgrade for 3-5 years until the firm load
growth showed the need [6].
In addition, the energy storage can support critical load
customers during fault situations. Energy storage devices also
facilitate the black start of the entire power system. Overall,
the integration of energy storages into the power system is
making the usage of available generation, transmission and
distribution infrastructures more reliable, efficient and
economic.
The electrical energy storage system, as a market
participant, can participate in electricity markets, such as
NYISO and PJM. Depending on its storage and delivery
characteristics, the energy storage system can enter into
different markets, such as energy, ancillary service and
installed capacity markets [12].
The rest of this paper is organized as follows. Section II
describes various energy storage technologies. Section III
presents the impact of energy storage on different sections of
the power system. The importance of energy storage in future
smart grid is discussed in Section IV. Section V gives a brief
conclusion.
II. DIFFERENT ENERGY STORAGE TECHNOLOGIES
There are different energy storage technologies of which some
are already in use and some are yet to be implemented.
Different energy storage technologies serve different
applications depending on the amount of energy to be stored,
the rate at which it is to be transferred, and the response time.
The following energy storage technologies are with the high
priority in the energy storage applications. The comparison of
these technologies is summarized in TABLE I [3, 9, 12].
Besides, there are several other energy storage technologies,
such as hydrogen energy storage, thermal storage, and fuel
cells.
A. Pumped Hydro Storage
The pumped hydro storage is the conventional and most
widely used energy storage technology. In this storage, the
electrical energy is stored as the potential energy by pumping
water to a higher reservoir during off peak periods. This
energy can be converted back to the electrical energy by
allowing the water to flow from higher to lower reservoir and
driving the hydro turbines. Of the grid energy storage
techniques currently in use, the pumped hydro storage is the
largest one in terms of capacity. The efficiency of the pumped
hydro storage plant is about 70%80% which varies
depending on the plant size, the type of turbine, the penstock
diameter, the height between the reservoirs and the level of
generation [5]. The usage of pumped storage plants is limited
to rural areas because of the large area the system constitutes
for setting up the reservoirs.

B. Battery Energy Storage

The battery is charged to store the electrical energy in the form
of a chemical reaction inside the battery. The reversal of this
reaction will result in the discharge of the battery producing
electrical energy from the chemical reaction. Because batteries
store and produce DC power, the power converters are
essential for this type of storage in order to interact with the
AC power grid. Because they are non-polluting, easy to install
and portable, the battery energy storage is the most convenient
form of storage in urban areas. A battery energy storage
system is made up of several low voltage battery modules
connected in series and parallel to obtain the desired electrical
characteristic [1]. There are many types of battery systems like
lead-acid, Lithium-ion, Sodium sulfur and flow batteries.
Among them, the Lead-acid battery is presently used in many
applications due to its low cost. Although the batteries are the
most convenient and practical method, their high cost and less
cycle life are of great concern in their implementation. The
implementation of batteries in plug-in hybrid electric vehicles
is challenging the existing energy management system of
power grids.
C. Compressed Air Energy Storage (CAES)
The compressed air energy storage uses the excess power from
the grid during off-peak load periods to compress air and
stores it in an underground reservoir under the pressure. In
case of the shortage of power, the compressed air is released
and burnt with a fuel to drive the generator. Actually, this type
of technology is known as hybrid energy storage as it uses fuel
as well. However, for the same power output, the fuel
consumption in this storage is only one third of the
consumption for a regular combustion turbine. The
compressed air energy storage is not widely being used
presently due to the safety related issues of storing compressed
air in the underground. Currently there is only one such kind
of a plant in US, which is a 110 MW 26 hour compressed air
energy storage plant in Alabama, built in 1991[5, 8].
D. Flywheel Storage
The flywheel energy storage stores the electrical energy in the
form of kinetic energy of a rotor or a disc spinning around its
axis on a shaft. The charging or discharging of the flywheel
storage system takes place by changing the amount of kinetic
energy present in the accelerating or decelerating rotor,
respectively. The flywheel is coupled with an electrical
machine which acts as a motor to drive the flywheel while
charging and acts as a generator to discharge the stored energy
by decelerating the rotor to stationary position. The amount of
energy stored depends on the moment of inertia and square of
the rotational speed of the rotor. Therefore, composite
materials are used for the rotor to reduce its weight allowing
much high speeds. The flywheel has a high power density and
high cycle life. A medium scale flywheel system is being
incorporated in New York City with ten 100kW 30 seconds
flywheels for regenerative braking and startup of subway
transit cars [8].

Storage
Technology

Energy Capacity

Pumped
Hydro

< 24000 MWh

CAES

TABLE I
COMPARISON OF DIFFERENT ENERGY STORAGE TECHNOLOGY
Discharge
Response
AC-AC
Duration at Max
Power Level
Time
Efficiency
Power Level

Life
Time

12 hours

< 2000 MW

30 ms

70 80 %

40 yrs

400 7200 MWh

4 24 hours

100300 MW

3-15 min

85 %

30 yrs

Fly Wheel

< 100 kWh

Minutes to 1 hour

< 100 kW

5 ms

80 85 %

20 yrs

Battery

< 200 MWh

1 8 hours

< 30 MW

30 ms

60 80 %

SMES

0.6 kWh

10 s

200 kW

5 ms

90 %

40 yrs

Capacitors

0.3 kWh

10 s

100 kW

5 ms

90 %

40 yrs

E. Superconducting Magnetic Energy Storage (SMES)

The superconducting magnetic energy storage charges by
storing the electrical energy in the form of magnetic field
created by the flow of DC current through a coil made of
superconducting material at very low temperatures. The DC
power stored in the magnetic field can be discharged with high
power output in a short interval time. The energy stored in the
coil is proportional to the inductance of the coil and square of
the dc current creating the magnetic field. The increase in the
size of the coil can increase the storage capacity.
Superconducting magnetic energy storage units up to 3 MW
are in usage presently [1, 8]. Due to its high efficiency and fast
response, the superconducting magnetic energy storage is
driving greater attention. A small SMES unit of 1.0 MW, 0.75
MJ was installed and tested by Central Hudson Gas and
Electric Company to improve local power quality and
reliability [10].
F. Capacitors
The capacitor consists of two parallel electrode plates which
are separated by a dielectric. When the voltage is applied
across the terminals the positive and negative charges get
accumulated over the electrodes of opposite polarity. The
amount of energy stored in the capacitor is proportional to the
capacitance and the square of the voltage applied. So, the
energy storage capacity can be increased with both
capacitance and voltage. Although the voltage is restricted by
the dielectric in the capacitors, the capacitance can be
increased by increasing the permittivity and surface area of the
electrodes or decreasing the distance between the electrode
plates. The capacitor is generally used for the high power short
term applications, such as a pulsed load. There has been much
advancement in the capacitor storage like the super-capacitor
which has much lesser volume for the same storage capability
and with much longer cycle life. The super-capacitor is now
available in the range of up to 100 kW with very a short
discharge time of up to ten seconds [9].

Applications

210 yrs

Energy arbitrage
Frequency regulation
Ancillary services
Energy arbitrage
Frequency regulation
Ancillary services
Frequency regulation
Power quality
Emergency bridging power
Fluctuation smoothing
Peak shaving for T&D
upgrade deferral
Backup power
Small load leveling
applications
Power quality
Emergency bridging power
Power quality
Emergency bridging power
Fluctuation smoothing

III. ENERGY STORAGE APPLICATIONS IN DIFFERENT SECTIONS

OF THE POWER SYSTEM
A. Energy Storage with Renewable Energy Sources
Various renewable energy sources can be used for generating
the power, such as wind, solar, geothermal, and tidal.
Renewable energy sources are given the high priority in the
power system because of their clean and economic nature.
However, the volatile and intermittent nature of renewable
energy affects the operation and planning of the power system.
Energy storage connected with renewable energy sources can
solve two major issues as follows,
Stabilize the intermittent and volatile power output of
renewable energy sources
Benefit the power system by shifting the excessive
renewable energy from the off-peak load period to the peak
load period.
These impacts of energy storage connected with a wind farm
can be explained with the following example shown in Fig .1.
Since the wind farms generally request high capacity energy
storage technologies, we use a pumped storage plant in this
example. The hourly demand for the entire power system is
shown in Fig. 2. The ten-minute forecasted wind power output
from the wind farm P1 during a day is shown in Fig. 3. After
connecting the pumped hydro storage with the wind farm, the
coordinated wind power output P2 in Fig. 4 is obtained by
executing the economic dispatch for the entire day. The power
profile of the pumped storage plant P3 is shown in Fig .5. The
generation that is not being supplied by wind farm is assumed
to be supplied from conventional generation in the power
system.

Fig. 1. Power system with a wind farm connected with pumped hydro storage

Fig.5. Energy storage changing and discharging

Fig.2. Hourly system demand

Considering the wind farm with the pumped hydro storage, the
energy storage techniques can stabilize the wind power output
such that a constant power shown in Fig.4 is generated in each
hour to follow the system demand trend over 24 hours. Note
that the forecasted wind power output shown in Fig. 2 is high
during off-peak period (hours 1-9 and 19-24) and is very low
during peak loads (hours 13-17). However, the coordinated
wind power output shown in Fig. 4 is low during off-peak
period (hours 1-9 and 19-24) and is very high during peak
loads (hours 10-18). After comparing Fig. 2 and Fig. 4, we can
find that a certain amount of inexpensive wind power during
off-peak load hours is stored in the pumped hydro storage, and
used during peak load hours. As a result, the total operation
cost of the power system is reduced since it is not necessary to
get the power from expensive conventional generators during
peak load hours. Therefore, the integration of wind farm with
the energy storage will firm up the wind energy output and
make the system economic.
B. Grid Energy Storage

Fig.3. Wind power forecast without energy storage

Fig.4. Wind power output with energy storage

The grid energy storage means that the energy storage is

connected at a certain bus. Grid energy storage can reduce the
operating cost of the power system, mitigate the congestion,
and improve the security of the power system. The following
example shows such benefits from the grid energy storage. A
simple 6-bus system is shown in Fig. 6 which has two thermal
units at buses 1 and 3, two loads at buses 2 and 5, two battery
storages at buses 4 and 6, and six lines with reactance 0.1 p.u.
The characteristics of generators and lines are presented in
Fig. 6, such as the operating capacity and the incremental cost.
The batteries are operated with the capacity limit between 2
MWh and 8 MWh. The charging/discharging rate limit is
assumed as 3 MW/hr and the initial stored energy in the
battery is 2 MWh. This system is supplying the loads for 3
hours. The load L1 is 37 MW, 45 MW and 47 MW, and L2 is
65MW, 80 MW and 85 MW for 3 hours, respectively.
Security constrained economic dispatch (SCED) with the DC
network model is executed in the following four cases to show
the economic and security benefits from the energy storage.

The batteries can also decrease the power flow on the lines
during the peak load. The power flow on line 1-6 at hour 3 is
35.53 MW in this case, but 40 MW in Case 1. So, such
application could be helpful in deferring the transmission line
upgrade due to the aging of lines or the increase in loads.
Case 3: Considering the contingency without battery
Consider the outage of line 1-2 at hour 2. If the system has no
batteries, the load at the second hour could not be met because
the outage of line 1-2 restricts the supply from G1 to 40MW
through line 1-6. Thus, the total power that the generators
could supply is 120 MW which can not meet the load of 125
MW at hour 2.
Fig. 6. Six-bus power system with the battery energy storages

Case 1: Normal condition without battery

In this normal case, the system is initially assumed without
battery. After executing the economic dispatch considering the
limits on generation and lines, the output of generating units is
listed in TABLE II. The minimum generation dispatch cost of
the system without the battery storage is $3733.324. At hour 1,
the expensive unit G1 supplies its minimum and the remaining
load is being supplied by the cheap unit G2. As there are high
loads at hours 2 and 3, the cheap unit G2 has to supply more
power, but no more than 77.7027 MW at hour 2 and 73.70571
MW at hour 3 due to the flow limit on the line 3-4. So, the
remaining has to be supplemented with the expensive unit G1.
TABLE II
OPTIMAL GENERATION DISPATCH WITHOUT THE BATTERY
Units
Hour 1
Hour 2
Hour 3
P1 (MW)

30

47.2973

58.29429

P2 (MW)

72

77.7027

73.70571

Case 2: Normal condition with the battery

With the battery, the economic dispatch is solved and the
generation dispatch is listed in TABLE III, where the negative
sign indicates the power consumed by the battery during
charging and the positive sign means the power delivered to
the grid during discharging. At the first low-load hour, the
batteries BAT1 and BAT2 are charged by 3 MW which is
from the cheap unit G2. At hours 2 and 3, the output from
BAT2 is mitigating the congestion on the line 3-4.
Consequently, the cheap unit G2 can supply more power
compared with Case 1. In addition, the outputs from batteries
are replacing the generation from the expensive unit G1.
Accordingly, the total generation dispatch cost is $ 3625.243
which is less than that in Case 1. The saving could be much
higher in the large power system.
TABLE III
OPTIMAL GENERATION DISPATCH WITH THE BATTERY
Units
Hour 1
Hour 2
Hour 3
P1 (MW)
30
43.47
50.11258
P2 (MW)
78
80
77.41742
Pbat1 (MW)
-3
0
+3
Pbat2 (MW)
-3
+1.53
+1.47

Case 4: Considering the contingency with battery

With the outage of line 1-2 at hour 2, the optimal generation
dispatch of the system with batteries is listed in TABLE IV. In
this case, the batteries have to discharge 5 MW at hour 2 in
order to meet the system demand of 125 MW once the outage
of line 1-2 occurs, and only 1 MW is left for the discharge
from BAT 2 at the peak load hour 3. Accordingly, the
minimum generation cost is $ 3645.135 which is higher than
that in Case 2.
TABLE IV
OPTIMAL GENERATION DISPATCH WITH THE BATTERY
CONSIDERING LINE 1-2 OUTAGE
Units
Hour 1
Hour 2
Hour 3
P1 (MW)
30
40
55.79279
P2 (MW)
78
80
75.20721
Pbat1 (MW)
-3
+3
0
Pbat2 (MW)
-3
+2
+1
According to the above discussions, the grid energy storage
can be helpful in reduction of generation cost, decrease in line
loading and enhancement of the power system against
contingencies. In addition, by comparing the installation and
maintenance costs of energy storage devices with the benefits
from them over the studied period, the system planner can
make a decision on whether, when and where to build a grid
energy storage.
C. Energy Storage with Loads
Energy storage systems connected to the load can meet the
peak loads, provide uninterrupted supply to critical loads,
eliminate spikes in the load profile, and supply pulsed loads.
The power supply to critical loads should be ensured all the
time. In a fault situation when the supply to critical loads gets
interrupted, the energy storage on the load side can supply the
power until the system is restored. For example, a distribution
system shown in Fig. 7 has three loads and one energy storage
at bus 4. The Energy storage is connected with a critical load
at bus 4. When power system is running in the normal
situation, the energy storage gets charged. Assume that a fault
occurs on the line 1-2. The supply to loads L1 and L2 is
interrupted because of opening of switches on the line 1-2. In
this case, the energy storage will discharge to supply the
critical load L4 till the system is restored.

 The high-efficient power electronic conversion system is to

be developed to increase the efficiency of the energy storage
system.
The proper coordination of the energy storage with the
renewable energy sources should be determined.
The long-life and clean battery technology should be
developed for minimizing its negative impact on the
environment.
V. CONCLUSION
Fig .7. One line diagram of a distributed system with energy storage

The energy storage has a higher ramping rate so it can

mitigate spikes present in the load profile. The pulsed load
draws a large power in a very short interval time, which can be
supplied by an energy storage system which charges during
no-load periods and discharges instantaneously to supply the
pulsed load.
IV. ENERGY STORAGE IN FUTURE SMART GRID
Due to the aging infrastructure, environmental concerns,
security issues, to avoid blackouts and to ensure high
efficiencies, there has been much interest laid by the United
States government in transforming the conventional electric
grid into a future smart grid. With the large scale integration
of renewable energy sources and distributed generation into
the power grid, energy storage devices will play a key role in
the future smart grid. The smart grid without energy storage
devices is said to be like a computer without hard drive [13].
Presently only 2.5 % of the total electric power delivered in
the United States passes through energy storage, almost all of
which is pumped hydro storage [12].
The distributed energy storage devices connected to the grid
on a large scale can be helpful in meeting peak loads,
maintaining power quality, and reducing the reserve capacity.
With the less response time, the energy storage can reduce
spikes in the load and ensure the power supply to the loads
during the faults until the system is restored. The distributed
energy storage can help in reducing losses on the distribution
lines. The energy storage can also play a major role in the
micro grid operation by helping in islanding and reconnection
process, and increasing the range of load that could be
supplied by the micro grid. In addition, the plug-in hybrid
electrical vehicle is driving greater attention in the smart grid,
which charge when the vehicle is running and can supply the
power to the grid when the vehicle is parked. The plug-in
hybrid electrical vehicle can facilitate the micro grid to meet
load demand transients or grid power quality events [18].
With many applications in the power grid, the large scale
integration of energy storage is still lacking because of the
following challenges,
A economic energy storage device is to be developed since
the existing devices are requiring the high capital
investment
The optimal location, type, and size of the energy storage
system is still a major concern to the utilities.
Both optimal software and hardware models for the energy
storage applications are to be developed.

This paper presents various energy storage techniques and

their applications in the power system. The benefits from the
energy storage with the renewable energy sources, at the grid,
and with the loads are discussed based on simple examples. It
has been shown that energy storage devices not only enables
the large scale integration of renewable energy sources into
the grid, but also ensures the economic generation by the
application of grid energy storages. With the energy storage
serving different sections in the power system as discussed in
the paper, they will be installed widely in the grid in the
future, which requires much more knowledge in determining
the optimal design, location, type and size of the energy
storage devices.
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Sandeep Yeleti received his BS degree in Electrical and Electronics

Engineering from Osmania University, India, in 2009. Currently, he
is pursuing MS degree in Electrical Engineering at Mississippi State
University.
Yong Fu (M05) received his BS and MS in E.E. from Shanghai
Jiaotong University, China, in 1997 and 2002, respectively and Ph.D
degree in E.E. from Illinois Institute of Technology, USA, in 2006.
From 2006 to 2009, he was a senior research associate in the Electric
power and Power Electronics center at Illinois Institute of
Technology. Presently, he is an assistant professor in the department
of Electrical and Computer engineering at Mississippi State
University.