Next-Gen Batteries: Solving Intermittency and Strengthening Electricity Grid Resilience
- May 12
- 2 min read
Batteries on the electricity grid serve critical purposes to meet the explosive demand for clean and reliable electricity needs. Battery units can be paired with renewables to create an even dispatch of power into the larger electricity grid, achieving 95%+ capacity factors. They can also be used on-site to minimize the need for utility power. Pairing these two technologies mitigates the intermittency issue inherent in renewable power generation.
Batteries also provide a temporary power source on-site in the event of a utility interruption. They can also be used instead of utility power during short periods of exceptionally high electricity grid prices. This demand response tactic is increasingly useful as electricity grids are strained during peak demand windows.
Some of the best new battery technology includes iron-air batteries that have a long-term price target of $20/kWh, far lower than the $108/kWh of current lithium-ion battery technology. These work by intaking air which reacts with iron pellets, creates rust, and discharges electrons. Sodium-ion batteries have proceeded further in market development, with potential to be $40/kWh, and can be used as a drop-in replacement to the standard lithium-ion units used widely today. Another promising system is a flow battery that utilizes liquid electrolytes, and only requires the addition of storage tanks to increase capacity instead of additional battery cells. However, the potential long-term price target is high at $400-$800/kWh.
There are advantages outside of economics as well. Iron-air batteries excel at multi-day storage, complementing shorter-duration lithium-ion systems. Flow batteries and iron-air systems offer superior cycle life and lower fire risk which is beneficial for grid applications. Iron-air and sodium-ion technologies use abundant, lower-cost, and ethically sourced materials compared to lithium-ion, reducing reliance on cobalt, nickel, and lithium.
The need to advance clean energy and provide resilient power sources is growing as legacy grid systems struggle to meet rising demand. These battery innovations can solve a variety of issues, through demand response, providing back-up power, and pairing them with renewables on-site or renewables for the wholesale market.
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