The technical components of battery storage may vary largely either in providing greater power capacity (battery’s maximum instantaneous power output) or greater energy capacity (total amount of electricity that can be stored or discharged). Power-oriented systems are designed to generate large amounts of instantaneous power but is also able to maintain this output for a long period of time. Energy-oriented systems are meant to have longer durations and are used in cases like, delivering power during periods where electricity demand is at its highest.
Energy storage can play an important role in maintaining the balance between power supply and demand, creating more flexibility in the electricity grid. When supply is greater than demand, excess electricity can be fed into energy storage devices and when demand is great supply, these technologies can be used to provide more energy to the grid. Storage technologies can also improve the quality of electricity by allowing companies to provide energy when it is at its cheapest and most efficient, as well as maintain a constant source of power for critical infrastructure and services. Many renewable energy technologies have a more variable output and energy storage has the potential to help maintain a more stable supply of electricity. Despite its benefits, the energy storage market remains relatively small, for the market to become viable energy storage costs may have to decrease significantly.